BUS 6600 Final Exam questions with answers

BUS 6600 Final Exam questions with
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answers


Accounting versus other business functions - CORRECT|\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔Recording, classifying, summarizing and
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interpreting of financial events and transactions in an |\ |\ |\ |\ |\ |\ |\ |\



organization to provide interested parties needed |\ |\ |\ |\ |\ |\



financial information |\




Adam Smith and the Invisible Hand Theory - CORRECT
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ANSWERS ✔✔The unobservable market force that helps
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the demand and supply of goods in a free market to reach
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equilibrium automatically.
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Benefits and rights in different economic systems -
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CORRECT ANSWERS ✔✔Free-Market Economics - the
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market largely determines what goods and services are
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produced, who gets them, and how the economy grows
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Command Economics - the government largely |\ |\ |\ |\ |\ |\



determines what goods and services are produced, who|\ |\ |\ |\ |\ |\ |\ |\



gets them and how the economy will grow
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Mixed Economy - some allocation of resources is made by
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the target and some by the government
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,Bond financing - CORRECT ANSWERS ✔✔is a type of long-
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term borrowing that state and local governments
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frequently use to raise money, primarily for long-lived |\ |\ |\ |\ |\ |\ |\ |\



infrastructure assets. They obtain this money by selling |\ |\ |\ |\ |\ |\ |\ |\



bonds to investors. In exchange, they promise to repay
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this money, with interest, according to specified
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schedules.


Branding & brand names - CORRECT ANSWERS ✔✔brand - |\ |\ |\ |\ |\ |\ |\ |\



name, symbol or design that identified the goods or
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services and distinguishes them from competitors'
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offerings
trademark - a brand that has exclusive legal protections |\ |\ |\ |\ |\ |\ |\ |\ |\



for both its brand name and design
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Manufacturers' brands - brand names of manufacturers |\ |\ |\ |\ |\ |\ |\



that distribute products nationally
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Dealer (private-label) Brands - products that carry a
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retailer's or distributor's brand name instead of a|\ |\ |\ |\ |\ |\ |\ |\



manufacturer's |\




Generic Goods - non-branded products that sell at a
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discount compared to manufacturers' or dealers' brands
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Knockoff Brands - illegal copies or national brands
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Budget - CORRECT ANSWERS ✔✔sets forth
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management's expectations for revenues and allocates |\ |\ |\ |\ |\ |\



the use of specific resources through the firm... depend
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, heavily on the balance sheet, income statement,
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statement of cash flows and financial forecasts. |\ |\ |\ |\ |\ |\




Business era - CORRECT ANSWERS ✔✔production era,
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selling era, marketing concept era, customer relationship
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era


Buying stock on margin - CORRECT ANSWERS
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✔✔borrowing some of the stock's purchase cost from the |\ |\ |\ |\ |\ |\ |\ |\ |\



brokerage firm. |\




Margin is the portion of the stock's purchase price that
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the investor must pay with their own money. If a broker
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issues a margin call, the investor has to come up with
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money to cover losses |\ |\ |\




Capitalism, Socialism, Communism, Nationalism - |\ |\ |\ |\ |\



CORRECT ANSWERS ✔✔Capitalism - all or most of the |\ |\ |\ |\ |\ |\ |\ |\ |\



land, factories and stores are owned by individuals, not
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the government, and operated for profit
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Socialism - an economic system based on the premise |\ |\ |\ |\ |\ |\ |\ |\ |\



that some basic businesses, like utilites, should be owned
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by the government in order to more evenly distribute
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profits among the people |\ |\ |\




Communism - an economic and political system in which |\ |\ |\ |\ |\ |\ |\ |\ |\



the government makes almost all economic decisions and
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owns almost all the major factors on production
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