ADMN 400 UNH Final UPDATED ACTUAL
Exam Questions and CORRECT Answers
What is a cultural reason why most employee incentives in the U.S. are based on performance? -
CORRECT ANSWER - Americans tend to be individualistic.
Why might it be a bad idea to play it safe and deposit money in a bank on a regular basis instead
of investing? - CORRECT ANSWER - You can actually lose money with bank savings
due to inflation and taxes.
A portion of the ownership of a corporation is known as - CORRECT ANSWER - Stock
To find a firm's profit or loss, one must - CORRECT ANSWER - subtract the expenses
from the revenues
In a small town, the number of car washes has grown from 2 to 5 in the last two months. What is
most likely to occur in terms of supply and demand? - CORRECT ANSWER - The
increase in supply will lead to a decrease in equilibrium price.
Dollar-cost averaging has which of the following advantages over lump-sum investing? -
CORRECT ANSWER - Reduces market timing risk
The amount of money that an owner would receive if they sold all of the company's assets and
paid all the liabilities is called what? - CORRECT ANSWER - Owner's equity
ABC Company's stock currently trades at $20 per share. It has net income of $100 million shares
of common stock (no preferred stock) outstanding. What is ABC Company's price-to-earnings
(P/E) ratio? - CORRECT ANSWER -2
When selling a product to the general public, what would a demand and supply curve be used to
determine? - CORRECT ANSWER - Market price
, Which of the following is NOT recognized as an important competency for success in
accounting? - CORRECT ANSWER - A basic understanding of calculus.
(other answers: Proficiency with information technology, Ability to integrate information from
diverse sources, Communication skills, Critical thinking and problem solving skills)
How do you determine earnings per share? - CORRECT ANSWER - Annual net income /
# common stock shares
An American manager begins working at a foreign manufacturing planet and quickly develops a
reputation for loudly complaining about the metric system and mocking coworkers for watching
"soccer". This manager is exhibiting what trait? - CORRECT ANSWER - Ethnocentrism
A balance sheet contains what? - CORRECT ANSWER - Total assets, liability, fixed
assets, and owner's equity.
Do corporate bonds convey company ownership? - CORRECT ANSWER - No
What is a corporate bond? - CORRECT ANSWER - A loan with no legal standing, that
pay no periodic interest, that do not have specific maturity dates or due dates, and is underwritten
by corporate stock
If GDP in the U.S. increases, what will probably result? - CORRECT ANSWER -
Employment levels will increase
What is market price? - CORRECT ANSWER - The price at which the quantity of goods
demanded and the quantity of goods supplied are equal.
Is a debt owed by one part of a firm to another part of the firm a liability? - CORRECT
ANSWER - No
Exam Questions and CORRECT Answers
What is a cultural reason why most employee incentives in the U.S. are based on performance? -
CORRECT ANSWER - Americans tend to be individualistic.
Why might it be a bad idea to play it safe and deposit money in a bank on a regular basis instead
of investing? - CORRECT ANSWER - You can actually lose money with bank savings
due to inflation and taxes.
A portion of the ownership of a corporation is known as - CORRECT ANSWER - Stock
To find a firm's profit or loss, one must - CORRECT ANSWER - subtract the expenses
from the revenues
In a small town, the number of car washes has grown from 2 to 5 in the last two months. What is
most likely to occur in terms of supply and demand? - CORRECT ANSWER - The
increase in supply will lead to a decrease in equilibrium price.
Dollar-cost averaging has which of the following advantages over lump-sum investing? -
CORRECT ANSWER - Reduces market timing risk
The amount of money that an owner would receive if they sold all of the company's assets and
paid all the liabilities is called what? - CORRECT ANSWER - Owner's equity
ABC Company's stock currently trades at $20 per share. It has net income of $100 million shares
of common stock (no preferred stock) outstanding. What is ABC Company's price-to-earnings
(P/E) ratio? - CORRECT ANSWER -2
When selling a product to the general public, what would a demand and supply curve be used to
determine? - CORRECT ANSWER - Market price
, Which of the following is NOT recognized as an important competency for success in
accounting? - CORRECT ANSWER - A basic understanding of calculus.
(other answers: Proficiency with information technology, Ability to integrate information from
diverse sources, Communication skills, Critical thinking and problem solving skills)
How do you determine earnings per share? - CORRECT ANSWER - Annual net income /
# common stock shares
An American manager begins working at a foreign manufacturing planet and quickly develops a
reputation for loudly complaining about the metric system and mocking coworkers for watching
"soccer". This manager is exhibiting what trait? - CORRECT ANSWER - Ethnocentrism
A balance sheet contains what? - CORRECT ANSWER - Total assets, liability, fixed
assets, and owner's equity.
Do corporate bonds convey company ownership? - CORRECT ANSWER - No
What is a corporate bond? - CORRECT ANSWER - A loan with no legal standing, that
pay no periodic interest, that do not have specific maturity dates or due dates, and is underwritten
by corporate stock
If GDP in the U.S. increases, what will probably result? - CORRECT ANSWER -
Employment levels will increase
What is market price? - CORRECT ANSWER - The price at which the quantity of goods
demanded and the quantity of goods supplied are equal.
Is a debt owed by one part of a firm to another part of the firm a liability? - CORRECT
ANSWER - No
