MBA 620 FINAL (PRACTICE) QUESTIONS & ANSWERS
Which of the following is true regarding capital structure? - Answers -Equity financing is
typically associated with voting rights for shareholders and therefore with the loss of
some degree of control over operations.
Taxable income is reduced by - Answers -All of the above
Job loss related to artificial intelligence is expected to most affect workers with -
Answers -Bachelor's and master's degrees
Which of the following is true? - Answers -In certain circumstances, it may be prudent
to take on high levels of debt.
Match each regulation to its purpose: - Answers -Increased regulation of the auditing
profession due to several high-profile accounting scandals, particularly the failure of
Enron 1
Increased regulations on banks to protect against bank failures and crises, largely in
response to the 2007-2008 global financial crisis 2
Requires companies to disclose any material non-public information disclosed to
analysts to the general public as well 3
Which of the following could lead to an unfavorable direct materials efficiency variance?
- Answers -Spoilage/waste
Out-of-pocket healthcare costs (i.e., expenses that are paid by the consumer and not
the insurer) include all of the following except (___________) - Answers -Copays for
preventative care
List and explain (*2-3 sentences each) three reasons for high healthcare costs in the
U.S. - Answers -Longer Life Expectancy
Longer life means more chronic conditions and ongoing medical care, increasing
healthcare costs for treatments and long-term care.
Higher Drug Prices
High drug prices in the U.S. are driven by lack of price regulation, research costs, and
limited competition, raising overall healthcare expenses.
Cost of Training/Shortage of Professionals
Expensive medical education and a shortage of healthcare workers drive up wages and
increase healthcare costs.
Which of the following is true regarding capital structure? - Answers -Equity financing is
typically associated with voting rights for shareholders and therefore with the loss of
some degree of control over operations.
Taxable income is reduced by - Answers -All of the above
Job loss related to artificial intelligence is expected to most affect workers with -
Answers -Bachelor's and master's degrees
Which of the following is true? - Answers -In certain circumstances, it may be prudent
to take on high levels of debt.
Match each regulation to its purpose: - Answers -Increased regulation of the auditing
profession due to several high-profile accounting scandals, particularly the failure of
Enron 1
Increased regulations on banks to protect against bank failures and crises, largely in
response to the 2007-2008 global financial crisis 2
Requires companies to disclose any material non-public information disclosed to
analysts to the general public as well 3
Which of the following could lead to an unfavorable direct materials efficiency variance?
- Answers -Spoilage/waste
Out-of-pocket healthcare costs (i.e., expenses that are paid by the consumer and not
the insurer) include all of the following except (___________) - Answers -Copays for
preventative care
List and explain (*2-3 sentences each) three reasons for high healthcare costs in the
U.S. - Answers -Longer Life Expectancy
Longer life means more chronic conditions and ongoing medical care, increasing
healthcare costs for treatments and long-term care.
Higher Drug Prices
High drug prices in the U.S. are driven by lack of price regulation, research costs, and
limited competition, raising overall healthcare expenses.
Cost of Training/Shortage of Professionals
Expensive medical education and a shortage of healthcare workers drive up wages and
increase healthcare costs.
