Ask Basic Finance Expert

1. Reaching a valid decision is based on the evaluation of arguments. If we know that a valid argument has true premises, then a decision based on the argument______________.

A. must be sound
B. might be sound
C. is strong
D. might have a false conclusion

2. Identify the fallacy in the following piano store advertisement: "Pianos are our only business. You'll get the best deal at the Piano Experts."

A. Ad hominem
B. Straw man
C. Hasty generalization
D. Red herring

3. Which of the following statements describes creativity correctly?

A. Only highly intelligent people are capable of generating creative ideas.
B. Creative people are born with the trait.
C. Anyone can become more creative.
D. Children are more creative than adults.

4. How would you assess the following statement? Consider both the nature of the claim and the source. "Lottery director Mark Michalko said Thursday that allegations that Californians are squandering money they once used for food to buy lottery tickets ‘are just not correct.'. . . California Grocers Association president Don Beaver raised the issue earlier in the week, saying five supermarket chains had complained that grocery sales dropped about 5 percent after lottery tickets went on sale October 3." -Sacramento Bee

A. Probably true
B. Probably false
C. Requiring further documentation
D. Claim that cannot be properly evaluated

5. The Sarbanes-Oxley Act was created in 2002 to improve and maintain investor confidence. The act includes which of the following:

A. senior managers sign off on financial results
B. privately held companies must report to the public
C. officers are exempt if they were not aware of a misrepresentation
D. company insiders may compose the entire Board of Directors

6. Organizational behavior is examined at three main levels.

A. Traits, behaviors, and results
B. Affective, cognitive, and behavioral
C. Individual, organizational, and societal
D. Individual, group, and organizational

7. Employees who have intrinsic work values will be motivated by

A. challenging assignments
B. status in the workplace
C. social contacts
D. financial rewards

8. Research on the five-stage model of group development shows that

A. all groups pass through the norming stage
B. groups always pass through the stages in order
C. not all groups go through each of the stages
D. all groups pass through the adjourning stage

9. The extent to which a leader actually does help a group or organization to achieve its goals is best described as

A. formal leadership
B. leader effectiveness
C. organizational profitability
D. informal leadership

10. When the business environment is __________, an organization is most likely to decentralize authority and empower its employees to make operating decisions.

A. stable
B. uncertain
C. unknown
D. transparent

11. To make your communication more effective

A. include as much information as possible, even if you are not sure it is necessary
B. send the same messages by multiple channels
C. clearly address your audience's wants and needs, not yours
D. draw pictures and animations your audience will understand

12. Which of the following meeting technologies would be most effective for negotiations, collaborative problem solving, and other complex discussions?

A. Telepresence
B. Instant messaging
C. Teleconference
D. Telephone

13. Most persuasive messages combine

A. many major points all at once
B. logical and emotional factors
C. truth and falsehood
D. current and very old evidence

14. Important design elements to consider when creating slides include which of the following:

A. word selection
B. selecting background designs
C. selecting a theme
D. writing content

15. Which of the following would be the best wording to use on a resume?

A. "I was in charge of a staff of six employees."
B. "I supervised a full staff of six employees."
C. "Was in charge of entire departmental staff."
D. "Supervised staff of six employees."

16. The __________ approach to ethics maintains that an ethical action is the one that provides the most good or does the least harm.

A. utilitarian approach
B. rights approach
C. fairness approach
D. common good approach

17. Which type of privacy policy restricts an organization from collecting personal information until the customer specifically authorizes it?

A. Opt-out model
B. Opt-in model
C. Electronic surveillance
D. Profiling

18. Wireless communication includes which of the following:

A. Bluetooth
B. coaxial connections
C. traditional land lines
D. lighting connections

19. Enterprise resource planning applications seeks to integrate a number of issues, including which of the following:

A. vacation schedules
B. tenure of the staff
C. production and inventory levels
D. turnover rate of the project staff

20. The request for proposal (RFP) is one of the key tools in acquiring information systems and applications. Which of the following statements best characterizes the RFP?

A. The RFP must always be used.
B. It is prepared by the vendor.
C. It always identifies the price.
D. It defines the scope of the project.

21. The relationship between jurisdiction and venue of state and federal courts

A. often causes delays in case resolution
B. causes development of conflicting rules in similar disputes
C. is determined by the U.S. Attorney General
D. is well-defined by statute and case law

22. Businesses owe customers (business invitees) visiting their stores

A. no duty of care, the customer assumes the risk of injury
B. a warning of known risks, only
C. a duty to inspect for and warn of risks
D. a duty to repair hidden risks only where children are involved

23. A legally enforceable contract always requires

A. a written document
B. signatures of all parties
C. a heading saying "Contract" or "Agreement"
D. a manifest intent to be bound by the parties

24. Regulatory (or administrative) law arises from

A. court decisions
B. enabling statutes
C. attorney general opinions
D. policy documents prepared by nongovernmental organizations

25. The purpose of a clear ethical code in a business is

A. to draw on employees religious background
B. to encourage philosophical debate among employees
C. to regulate employees' private conduct
D. to manage values and conflicts among them

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