Question 1

Fixed asset ratios show the ability of the firm to pay its debts.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following are frequent causes of poor quality?

Accepted Answer

A) Managers blaming poor quality on employees 
B) Lack of proper resources 
C) Poor management 
D) Lack of training 
E) Inefficient operations 
A) Managers blaming poor quality on employees 
B) Lack of proper resources 
C) Poor management 
D) Lack of training 
E) Inefficient operations A, B, C, D, E

Question 3

_______ are the relationships of the firm's financial figures using balance sheet and income statement information that can be compared to industry averages and prior firm performance.

Accepted Answer

A) Ratios 
B) Accounting principles 
C) Variances 
D) Deviations 
E) Scorecards 
A) Ratios 
B) Accounting principles 
C) Variances 
D) Deviations 
E) Scorecards A

Question 4

The _______ is the monthly or yearly cost for the amount of insurance coverage desired.

Accepted Answer

A) premium 
B) deductible 
C) net cost 
D) chunk 
E) policy 
A) premium 
B) deductible 
C) net cost 
D) chunk 
E) policy

Question 5

Which of the following are steps in the organizational control process?

Accepted Answer

A) Establish standards, methods, and times for measuring performance. 
B) Decide which ratios your company must set. 
C) Set objectives. 
D) Measure and compare performance to standards. 
E) Reinforce or correct. 
A) Establish standards, methods, and times for measuring performance. 
B) Decide which ratios your company must set. 
C) Set objectives. 
D) Measure and compare performance to standards. 
E) Reinforce or correct.

Question 6

An insurance company pools clients' risks to make payments more affordable for the insured.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following are techniques managers can use to control costs?

Accepted Answer

A) Emphasize costs, not profits. 
B) Emphasize profits, not cost. 
C) Set vague standards and hope employees define them themselves. 
D) Enforce standards. 
E) Do not talk about or reward cost efficiency. 
A) Emphasize costs, not profits. 
B) Emphasize profits, not cost. 
C) Set vague standards and hope employees define them themselves. 
D) Enforce standards. 
E) Do not talk about or reward cost efficiency.

Question 8

An insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury, or negligence is called _______.

Accepted Answer

A) casualty 
B) uninsured worker 
C) business interruption 
D) liability 
E) disability 
A) casualty 
B) uninsured worker 
C) business interruption 
D) liability 
E) disability

Question 9

It is unnecessary for owners to communicate the costs of production and expectation of outputs.

Accepted Answer

A) True 
 B)False

Question 10

The _______ tells an investor the percentage of revenue /sales left after subtracting the cost of goods sold.

Accepted Answer

A) net worth 
B) relative income 
C) net profit 
D) after-tax revenue 
E) gross profit 
A) net worth 
B) relative income 
C) net profit 
D) after-tax revenue 
E) gross profit

Question 11

Budget _______ is a deviation from the established budgetary amount.

Accepted Answer

A) augmentation 
B) selection 
C) variance 
D) deviation 
E) balance 
A) augmentation 
B) selection 
C) variance 
D) deviation 
E) balance

Question 12

Budgets are not necessary for smaller companies.

Accepted Answer

A) True 
 B)False

Question 13

The challenges are quite different when establishing a new venture than when the business is operating, so owners need controls to ensure success.

Accepted Answer

A) True 
 B)False

Question 14

Explain what Total Quality Management is, and describe the relationship between quality and costs.

Accepted Answer

Total Quality Management (TQM) is a mana

Question 15

Explain how entrepreneurs can use insurance to their advantage.

Accepted Answer

Entrepreneurs can use insurance as a str

Question 16

The _______ ratio indicates how long the inventory remains on a store shelf.

Accepted Answer

A) quick 
B) inventory turnover 
C) operating 
D) leveraging 
E) profitability 
A) quick 
B) inventory turnover 
C) operating 
D) leveraging 
E) profitability

Question 17

The higher your company's market share, the higher the indication that your customers are happy with your products and services.

Accepted Answer

A) True 
 B)False

Question 18

Poor quality has a direct effect on costs and profits.

Accepted Answer

A) True 
 B)False

Question 19

The concept of the variable budget is important since it transforms the simple budget from a passive tool to one that can respond to changes.

Accepted Answer

A) True 
 B)False

Question 20

_______ leads to damage control of lost customers and possible product liability lawsuits.

Accepted Answer

A) Good quality 
B) Poor quality 
C) Acceptable quality 
D) Poor human relation skills 
E) Corrosive employee relation skills 
A) Good quality 
B) Poor quality 
C) Acceptable quality 
D) Poor human relation skills 
E) Corrosive employee relation skills

Fixed asset ratios show the ability of the firm to pay its debts.

Which of the following are frequent causes of poor quality?

_______ are the relationships of the firm's financial figures using balance sheet and income statement information that can be compared to industry averages and prior firm performance.

The _______ is the monthly or yearly cost for the amount of insurance coverage desired.

Which of the following are steps in the organizational control process?

An insurance company pools clients' risks to make payments more affordable for the insured.

Which of the following are techniques managers can use to control costs?

An insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury, or negligence is called _______.

It is unnecessary for owners to communicate the costs of production and expectation of outputs.

The _______ tells an investor the percentage of revenue /sales left after subtracting the cost of goods sold.

Budget _______ is a deviation from the established budgetary amount.

Budgets are not necessary for smaller companies.

The challenges are quite different when establishing a new venture than when the business is operating, so owners need controls to ensure success.

Explain what Total Quality Management is, and describe the relationship between quality and costs.

Explain how entrepreneurs can use insurance to their advantage.

The _______ ratio indicates how long the inventory remains on a store shelf.

The higher your company's market share, the higher the indication that your customers are happy with your products and services.

Poor quality has a direct effect on costs and profits.

The concept of the variable budget is important since it transforms the simple budget from a passive tool to one that can respond to changes.

_______ leads to damage control of lost customers and possible product liability lawsuits.

Whats Entrepreneurship About Do You Want to Start Your Own Business

New Venture Options: Do You Want to Start a New Business, Buy One, Be a Franchisee, or a Corporate or Nonprofit Entrepreneur

What Business How Do You Find Opportunities and Develop a Business Model

How Do You Assess the Chances of Venture Success Feasibility Analysis and Protecting the Business Model Legally

Business Planning: Whats Your Legal Form and Strategy

The Marketing Plan: Who Are Your Customers

The Location and Layout Plan: What Facilities Do You Need

The Operations Plan: How Will You Make the Product

The Human Resource Plan: How Do You Develop the New Venture Team and Employees

The Finance Plan: How Much Money Do You Need

Sources of Funds: Where Do You Get the Money

Filters

Exam 12: Controls: How Do You Keep the New Venture on Track

Fixed asset ratios show the ability of the firm to pay its debts.

Which of the following are frequent causes of poor quality?

_______ are the relationships of the firm's financial figures using balance sheet and income statement information that can be compared to industry averages and prior firm performance.

The _______ is the monthly or yearly cost for the amount of insurance coverage desired.

Which of the following are steps in the organizational control process?

An insurance company pools clients' risks to make payments more affordable for the insured.

Which of the following are techniques managers can use to control costs?

An insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury, or negligence is called _______.

It is unnecessary for owners to communicate the costs of production and expectation of outputs.

The _______ tells an investor the percentage of revenue /sales left after subtracting the cost of goods sold.

Budget _______ is a deviation from the established budgetary amount.

Budgets are not necessary for smaller companies.

The challenges are quite different when establishing a new venture than when the business is operating, so owners need controls to ensure success.

Explain what Total Quality Management is, and describe the relationship between quality and costs.

Explain how entrepreneurs can use insurance to their advantage.

The _______ ratio indicates how long the inventory remains on a store shelf.

The higher your company's market share, the higher the indication that your customers are happy with your products and services.

Poor quality has a direct effect on costs and profits.

The concept of the variable budget is important since it transforms the simple budget from a passive tool to one that can respond to changes.

_______ leads to damage control of lost customers and possible product liability lawsuits.

Whats Entrepreneurship About Do You Want to Start Your Own Business

New Venture Options: Do You Want to Start a New Business, Buy One, Be a Franchisee, or a Corporate or Nonprofit Entrepreneur

What Business How Do You Find Opportunities and Develop a Business Model

How Do You Assess the Chances of Venture Success Feasibility Analysis and Protecting the Business Model Legally

Business Planning: Whats Your Legal Form and Strategy

The Marketing Plan: Who Are Your Customers

The Location and Layout Plan: What Facilities Do You Need

The Operations Plan: How Will You Make the Product

The Human Resource Plan: How Do You Develop the New Venture Team and Employees

The Finance Plan: How Much Money Do You Need

Sources of Funds: Where Do You Get the Money

Filters