PEREGRINE EXAMINATION SCRIPT 2025/2026 QUESTIONS
WITH ANSWERS GRADED A+
✔✔A dividend will reduce which of the following accounts? - ✔✔Retained Earnings
✔✔Lying by omission involves intentionally - ✔✔withholding material facts.
✔✔Conflicts of interest exist when employees must choose whether to - ✔✔advance
their own interests, those of the organization, or those of some other group.
✔✔Which of the following statements is CORRECT? - ✔✔Free cash flow (FCF) is,
essentially, the cash flow that is available for interest and dividends after the company
has made the investments in current and fixed assets that are necessary to sustain
ongoing operations.
✔✔A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors be
indifferent between the two bonds? - ✔✔33.73%
✔✔When the costs of supplies increase in an industry, the low-cost leader - ✔✔be the
only firm able to pay the higher prices and continue to earn average or above- average
returns.
✔✔TQM is most helpful to firms following the ____ business strategy. - ✔✔integrated
cost-leadership differentiation
✔✔All of the following are considered extrinsic motivators in Herzberg's two-factor
theory EXCEPT: - ✔✔Work itself
✔✔Which of the following is NOT one of the process motivation theories? - ✔✔Acquired
needs theory
✔✔An individual who purchases a computer later decides to acquire a new
motherboard. In terms of computing GDP, this new motherboard would be a(n) -
✔✔Final good
✔✔The largest component of GDP is - ✔✔consumption
✔✔In economics, firms are assumed to - ✔✔Maximize profits
✔✔Holding everything else equal, total revenue increases - ✔✔when either price or
quantity increase
,✔✔Government tactics that include removing incentives, demanding a higher share of
profits and taxes, and confiscating foreign assets are known as: - ✔✔Expropriation
✔✔"People of the same trade seldom meet together, even for merriment and diversion,
but their conversation often ends in conspiracy against the public." This quote from
Adam Smith is referring to which of the following business relationship terms: -
✔✔Collusion
✔✔____ is a collection of facts organized so that they have additional value beyond the
value of the facts themselves. - ✔✔Information
✔✔____ is the simulation of a real or imagined environment that can be experienced
visually in three dimensions. - ✔✔Virtual reality
✔✔The Federal Highway Administration uses notice-and-comment rulemaking. This
process begins with - ✔✔the publication of a notice of proposed rulemaking.
✔✔Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip's parents. This violates - ✔✔No federal law
✔✔The process of setting major organization objectives and developing plans to
achieve them is called: - ✔✔Strategic planning
✔✔One way human resource planning links to strategic planning is by providing a set of
inputs into the: - ✔✔strategy formulation process
✔✔In the SERVQUAL instrument for measuring service quality, the concept of
assurance is associated with - ✔✔The ability to convey trust and confidence
✔✔Which of the following is not one of W. Edwards Deming's 14 points? - ✔✔The only
performance standard is Zero Defects
✔✔A leading force currently driving change at work is: - ✔✔Global competition
✔✔A questioning, probing attitude is at the core of: - ✔✔critical thinking
✔✔Which of the following IS NOT a purpose of a marketing plan? - ✔✔It explains how
marketing activities mesh with other functional areas
✔✔In the context of marketing planning, why is it vital that the marketing plan be
capable of selling itself to top management? - ✔✔Because top managers must decide
whether the marketing plan is the best use for the organization's scarce resources
, ✔✔Sensitivity analysis considers - ✔✔changes in the values of the payoffs.
✔✔A population characteristic, such as a population mean, is called - ✔✔A parameter
✔✔OPERATING STATEMENT IS ANOTHER NAME FOR WHICH OF THE
FOLLOWING? - ✔✔Income Statement
✔✔AN INCREASE TO WHICH OF THE FOLLOWING ACCOUNTS WILL INCREASE
OWNERS' EQUITY? - ✔✔Client Fees
✔✔PURCHASES RETURNS AND ALLOWANCES AND PURCHASE DISCOUNTS
ARE CLASSIFIED AS WHICH OF THE FOLLOWING ON THE INCOME STATEMENT?
- ✔✔CONTRA-COST ACCOUNTS
✔✔THE LAST STEP IN PREPARING A WORKSHEET IS WHICH OF THE
FOLLOWING? - ✔✔TOTAL THE INCOME STATEMENT AND BALANCE SHEET
ITEMS TO COMPUTE NET INCOME (LOSS)
✔✔Mission Statement vs Vision - ✔✔A MISSION STATEMENT DEFINES THE
COMPANY'S BUSINESS, ITS OBJECTIVES AND ITS APPROACH TO REACH
THOSE OBJECTIVES. A VISION STATEMENT DESCRIBES THE DESIRED FUTURE
POSITION OF THE COMPANY. ELEMENTS OF MISSION AND VISION
STATEMENTS ARE OFTEN COMBINED TO PROVIDE A STATEMENT OF THE
COMPANY'S PURPOSES, GOALS AND VALUES. HOWEVER, SOMETIMES THE
TWO TERMS ARE USED INTERCHANGEABLY.
✔✔Corporation Structure - ✔✔A BOARD OF DIRECTORS; OFFICERS; EMPLOYEES;
SHAREHOLDERS/OWNERS
AN INTERNAL CONFIGURATION OF THE FUNCTIONAL AREAS OF A BUSINESS
✔✔CORPORATE GOVERNANCE - ✔✔IT ESSENTIALLY INVOLVES BALANCING
THE INTERESTS OF A COMPANY'S MANY STAKEHOLDERS, SUCH AS
SHAREHOLDERS, MANAGEMENT, CUSTOMERS, SUPPLIERS, FINANCIERS,
GOVERNMENT AND THE COMMUNITY
IT ENCOMPASSES PRACTICALLY EVERY SPHERE OF MANAGEMENT, FROM
ACTION PLANS AND INTERNAL CONTROLS TO PERFORMANCE MEASUREMENT
AND CORPORATE DISCLOSURE.
✔✔GDP Calculation - ✔✔THE FORMULA FOR GDP IS: GDP = C + I + G + (EX -IM),
WHERE "C" EQUALS SPENDING BY CONSUMERS, "I" EQUALS INVESTMENT BY
BUSINESSES, "G" EQUALS GOVERNMENT SPENDING AND "(EX -IM)" EQUALS
NET EXPORTS, THAT IS, THE VALUE OF EXPORTSMINUSIMPORTS.
WITH ANSWERS GRADED A+
✔✔A dividend will reduce which of the following accounts? - ✔✔Retained Earnings
✔✔Lying by omission involves intentionally - ✔✔withholding material facts.
✔✔Conflicts of interest exist when employees must choose whether to - ✔✔advance
their own interests, those of the organization, or those of some other group.
✔✔Which of the following statements is CORRECT? - ✔✔Free cash flow (FCF) is,
essentially, the cash flow that is available for interest and dividends after the company
has made the investments in current and fixed assets that are necessary to sustain
ongoing operations.
✔✔A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors be
indifferent between the two bonds? - ✔✔33.73%
✔✔When the costs of supplies increase in an industry, the low-cost leader - ✔✔be the
only firm able to pay the higher prices and continue to earn average or above- average
returns.
✔✔TQM is most helpful to firms following the ____ business strategy. - ✔✔integrated
cost-leadership differentiation
✔✔All of the following are considered extrinsic motivators in Herzberg's two-factor
theory EXCEPT: - ✔✔Work itself
✔✔Which of the following is NOT one of the process motivation theories? - ✔✔Acquired
needs theory
✔✔An individual who purchases a computer later decides to acquire a new
motherboard. In terms of computing GDP, this new motherboard would be a(n) -
✔✔Final good
✔✔The largest component of GDP is - ✔✔consumption
✔✔In economics, firms are assumed to - ✔✔Maximize profits
✔✔Holding everything else equal, total revenue increases - ✔✔when either price or
quantity increase
,✔✔Government tactics that include removing incentives, demanding a higher share of
profits and taxes, and confiscating foreign assets are known as: - ✔✔Expropriation
✔✔"People of the same trade seldom meet together, even for merriment and diversion,
but their conversation often ends in conspiracy against the public." This quote from
Adam Smith is referring to which of the following business relationship terms: -
✔✔Collusion
✔✔____ is a collection of facts organized so that they have additional value beyond the
value of the facts themselves. - ✔✔Information
✔✔____ is the simulation of a real or imagined environment that can be experienced
visually in three dimensions. - ✔✔Virtual reality
✔✔The Federal Highway Administration uses notice-and-comment rulemaking. This
process begins with - ✔✔the publication of a notice of proposed rulemaking.
✔✔Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip's parents. This violates - ✔✔No federal law
✔✔The process of setting major organization objectives and developing plans to
achieve them is called: - ✔✔Strategic planning
✔✔One way human resource planning links to strategic planning is by providing a set of
inputs into the: - ✔✔strategy formulation process
✔✔In the SERVQUAL instrument for measuring service quality, the concept of
assurance is associated with - ✔✔The ability to convey trust and confidence
✔✔Which of the following is not one of W. Edwards Deming's 14 points? - ✔✔The only
performance standard is Zero Defects
✔✔A leading force currently driving change at work is: - ✔✔Global competition
✔✔A questioning, probing attitude is at the core of: - ✔✔critical thinking
✔✔Which of the following IS NOT a purpose of a marketing plan? - ✔✔It explains how
marketing activities mesh with other functional areas
✔✔In the context of marketing planning, why is it vital that the marketing plan be
capable of selling itself to top management? - ✔✔Because top managers must decide
whether the marketing plan is the best use for the organization's scarce resources
, ✔✔Sensitivity analysis considers - ✔✔changes in the values of the payoffs.
✔✔A population characteristic, such as a population mean, is called - ✔✔A parameter
✔✔OPERATING STATEMENT IS ANOTHER NAME FOR WHICH OF THE
FOLLOWING? - ✔✔Income Statement
✔✔AN INCREASE TO WHICH OF THE FOLLOWING ACCOUNTS WILL INCREASE
OWNERS' EQUITY? - ✔✔Client Fees
✔✔PURCHASES RETURNS AND ALLOWANCES AND PURCHASE DISCOUNTS
ARE CLASSIFIED AS WHICH OF THE FOLLOWING ON THE INCOME STATEMENT?
- ✔✔CONTRA-COST ACCOUNTS
✔✔THE LAST STEP IN PREPARING A WORKSHEET IS WHICH OF THE
FOLLOWING? - ✔✔TOTAL THE INCOME STATEMENT AND BALANCE SHEET
ITEMS TO COMPUTE NET INCOME (LOSS)
✔✔Mission Statement vs Vision - ✔✔A MISSION STATEMENT DEFINES THE
COMPANY'S BUSINESS, ITS OBJECTIVES AND ITS APPROACH TO REACH
THOSE OBJECTIVES. A VISION STATEMENT DESCRIBES THE DESIRED FUTURE
POSITION OF THE COMPANY. ELEMENTS OF MISSION AND VISION
STATEMENTS ARE OFTEN COMBINED TO PROVIDE A STATEMENT OF THE
COMPANY'S PURPOSES, GOALS AND VALUES. HOWEVER, SOMETIMES THE
TWO TERMS ARE USED INTERCHANGEABLY.
✔✔Corporation Structure - ✔✔A BOARD OF DIRECTORS; OFFICERS; EMPLOYEES;
SHAREHOLDERS/OWNERS
AN INTERNAL CONFIGURATION OF THE FUNCTIONAL AREAS OF A BUSINESS
✔✔CORPORATE GOVERNANCE - ✔✔IT ESSENTIALLY INVOLVES BALANCING
THE INTERESTS OF A COMPANY'S MANY STAKEHOLDERS, SUCH AS
SHAREHOLDERS, MANAGEMENT, CUSTOMERS, SUPPLIERS, FINANCIERS,
GOVERNMENT AND THE COMMUNITY
IT ENCOMPASSES PRACTICALLY EVERY SPHERE OF MANAGEMENT, FROM
ACTION PLANS AND INTERNAL CONTROLS TO PERFORMANCE MEASUREMENT
AND CORPORATE DISCLOSURE.
✔✔GDP Calculation - ✔✔THE FORMULA FOR GDP IS: GDP = C + I + G + (EX -IM),
WHERE "C" EQUALS SPENDING BY CONSUMERS, "I" EQUALS INVESTMENT BY
BUSINESSES, "G" EQUALS GOVERNMENT SPENDING AND "(EX -IM)" EQUALS
NET EXPORTS, THAT IS, THE VALUE OF EXPORTSMINUSIMPORTS.
