Question 1

Operational control depends on all of the following types of feedback EXCEPT:

Accepted Answer

A) informational feedback. 
B) corrective feedback. 
C) interpretive feedback. 
D) reinforcing feedback. 
A) informational feedback. 
B) corrective feedback. 
C) interpretive feedback. 
D) reinforcing feedback.

Question 2

Depreciation is based on all of the following assumptions EXCEPT

Accepted Answer

A) that the asset has a fixed,determinable period of utility. 
B) that the asset has a fixed,determinable value that will exist when the depreciation process is complete. 
C) that the value of the asset will decline in a continuous and predictable manner over the period of utility. 
D) that it is the cost incurred to replace one asset with an identical asset. 
A) that the asset has a fixed,determinable period of utility. 
B) that the asset has a fixed,determinable value that will exist when the depreciation process is complete. 
C) that the value of the asset will decline in a continuous and predictable manner over the period of utility. 
D) that it is the cost incurred to replace one asset with an identical asset.

Question 3

Given the high interest rate charges,current practice is for small businesses to provide direct credit to customers.

Accepted Answer

A) True 
 B)False

Question 4

What are the major sources of efficiencies for product-based firms? What are best practices?

Accepted Answer

There are two major sources of efficienc

Question 5

The value of operating assets is a function of their utility.

Accepted Answer

A) True 
 B)False

Question 6

What is an arbitrary,but regular and systematic method used to take an asset value as an expense for the purpose of calculating net income or loss?

Accepted Answer

A) Book value 
B) Depreciation 
C) Arm's length transaction 
D) Disposal value 
A) Book value 
B) Depreciation 
C) Arm's length transaction 
D) Disposal value

Question 7

Given the high cost of keeping and counting inventory,most small businesses use the perpetual inventory method.

Accepted Answer

A) True 
 B)False

Question 8

Assets that are expected to provide economic benefits for periods of time greater than one year are called:

Accepted Answer

A) accounts receivable. 
B) short-term investments. 
C) capital assets. 
D) cash and cash equivalent assets. 
A) accounts receivable. 
B) short-term investments. 
C) capital assets. 
D) cash and cash equivalent assets.

Question 9

What strategies can a business owner apply in using the accounts receivable as a source of financing? Explain.

Accepted Answer

Accounts receivable are money that is ow

Question 10

What is productivity? Provide an example of an increase in productivity ratio.

Accepted Answer

Productivity is the ratio measure of how

Question 11

_____ is money that is owed to your business by your customers.

Accepted Answer

A) Inventory 
B) Accounts receivable 
C) Factor receivables 
D) Accounts payable 
A) Inventory 
B) Accounts receivable 
C) Factor receivables 
D) Accounts payable

Question 12

Products that are held for sale to customers are called:

Accepted Answer

A) inventory. 
B) layaways. 
C) accounts receivable. 
D) equipments. 
A) inventory. 
B) layaways. 
C) accounts receivable. 
D) equipments.

Question 13

All of these are negative effects of extending credit to customers EXCEPT:

Accepted Answer

A) it delays the receipt of cash. 
B) it creates a borrowing situation for the owners of the business providing credit. 
C) some customers with credit will not pay. 
D) it increases the cost of selling. 
A) it delays the receipt of cash. 
B) it creates a borrowing situation for the owners of the business providing credit. 
C) some customers with credit will not pay. 
D) it increases the cost of selling.

Question 14

Which of these also refers to reorder point?

Accepted Answer

A) Microinventory 
B) JIT 
C) Optimum stocking level 
D) EOQ 
A) Microinventory 
B) JIT 
C) Optimum stocking level 
D) EOQ

Question 15

A capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment is called:

Accepted Answer

A) ROI. 
B) return on sales. 
C) current ratio. 
D) NPV. 
A) ROI. 
B) return on sales. 
C) current ratio. 
D) NPV.

Question 16

Which of these is true about providing credit?

Accepted Answer

A) It usually results in lower sales revenues. 
B) It accelerates the receipt of cash. 
C) It reduces the cost of selling. 
D) It forces all the customers to pay. 
A) It usually results in lower sales revenues. 
B) It accelerates the receipt of cash. 
C) It reduces the cost of selling. 
D) It forces all the customers to pay.

Question 17

The direct cost incurred in using an asset for the purpose for which it was intended is called:

Accepted Answer

A) cost of disposition. 
B) cost of owning. 
C) whole of life cost. 
D) cost of operating. 
A) cost of disposition. 
B) cost of owning. 
C) whole of life cost. 
D) cost of operating.

Question 18

Potential buyers and investors are most interested in the book value of the asset since it represents the real cost of that asset.

Accepted Answer

A) True 
 B)False

Question 19

A-One Garage Doors
Having worked in the door installation industry for about six years, Harry has started his own company called "A-One Garage Doors". The company assembles, installs, provides services and repairs for both residential and industrial garage doors. Like any other business when it comes to residential accounts Harry's conditions are cash but for industrial accounts he thinks he should offer credit. Furthermore, he is contemplating what level of inventory he should keep to meet the demand.

-Harry needs to know that when it comes to providing credit,this is true.

Accepted Answer

A) It reduces the cost of selling. 
B) It forces all customers to pay. 
C) It usually results in lower sales revenues. 
D) It accelerates the receipt of cash. 
A) It reduces the cost of selling. 
B) It forces all customers to pay. 
C) It usually results in lower sales revenues. 
D) It accelerates the receipt of cash.

Question 20

_____ refers to the process of deciding among various investment opportunities to create a specific spending plan.

Accepted Answer

A) ROI 
B) Payback period 
C) Capital budgeting 
D) Return on asset 
A) ROI 
B) Payback period 
C) Capital budgeting 
D) Return on asset

Operational control depends on all of the following types of feedback EXCEPT:

Depreciation is based on all of the following assumptions EXCEPT

Given the high interest rate charges,current practice is for small businesses to provide direct credit to customers.

What are the major sources of efficiencies for product-based firms? What are best practices?

The value of operating assets is a function of their utility.

What is an arbitrary,but regular and systematic method used to take an asset value as an expense for the purpose of calculating net income or loss?

Given the high cost of keeping and counting inventory,most small businesses use the perpetual inventory method.

Assets that are expected to provide economic benefits for periods of time greater than one year are called:

What strategies can a business owner apply in using the accounts receivable as a source of financing? Explain.

What is productivity? Provide an example of an increase in productivity ratio.

_____ is money that is owed to your business by your customers.

Products that are held for sale to customers are called:

All of these are negative effects of extending credit to customers EXCEPT:

Which of these also refers to reorder point?

A capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment is called:

Which of these is true about providing credit?

The direct cost incurred in using an asset for the purpose for which it was intended is called:

Potential buyers and investors are most interested in the book value of the asset since it represents the real cost of that asset.

_____ refers to the process of deciding among various investment opportunities to create a specific spending plan.

Small Business: Its Opportunities and Rewards

Small Business Environment: Managing External Relations

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Marketing Plans: Saying How Youll Get Sales

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity,debt,and Gifts

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

Achieving Success in the Small Business

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Exam 16: Assets: Inventory and Operations Management

Operational control depends on all of the following types of feedback EXCEPT:

Depreciation is based on all of the following assumptions EXCEPT

Given the high interest rate charges,current practice is for small businesses to provide direct credit to customers.

What are the major sources of efficiencies for product-based firms? What are best practices?

The value of operating assets is a function of their utility.

What is an arbitrary,but regular and systematic method used to take an asset value as an expense for the purpose of calculating net income or loss?

Given the high cost of keeping and counting inventory,most small businesses use the perpetual inventory method.

Assets that are expected to provide economic benefits for periods of time greater than one year are called:

What strategies can a business owner apply in using the accounts receivable as a source of financing? Explain.

What is productivity? Provide an example of an increase in productivity ratio.

_____ is money that is owed to your business by your customers.

Products that are held for sale to customers are called:

All of these are negative effects of extending credit to customers EXCEPT:

Which of these also refers to reorder point?

A capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment is called:

Which of these is true about providing credit?

The direct cost incurred in using an asset for the purpose for which it was intended is called:

Potential buyers and investors are most interested in the book value of the asset since it represents the real cost of that asset.

_____ refers to the process of deciding among various investment opportunities to create a specific spending plan.

Small Business: Its Opportunities and Rewards

Small Business Environment: Managing External Relations

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Marketing Plans: Saying How Youll Get Sales

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity,debt,and Gifts

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

Achieving Success in the Small Business

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