Multiple choice questions on Ratio analysis, Standard deviation, and SWOT analysis.

1.  The acquisition of treasury stock by corporation:

a.         Decreases its total assets and total stockholders' equity

b.        Increases its total assets and total stockholders' equity

c.         Has no effect on total assets and total stockholders' equity

d.        Requires that a gain or loss be recognized on the income statement

2.  International trade occurs primarily because of relative price difference among nations. These differences are result of variations in production costs that are caused by all of the following EXCEPT:

a.         Trade restrictions

b.        Differences in the endowments of the factors of production

c.         Differences in the levels of technology that determine the factor intensities used

d.        Difference in the efficiencies with which these factor intensities are utilized

3.   Which of the following is non-programmed decision?

a.         Ordering office supplies when the inventory drops to three or fewer items

b.        Initiating a job order when an employee resigns unexpectedly

c.         Determining ways to reverse the company's declining market share

d.        Enforcing dress code policies after a series of exceptions have been noted

4.   All of the following are forms of financial analysis EXCEPT:

a.         Ratio analysis

b.        Maturity analysis

c.         Trend analysis

d.        Du Pont analysis

5.   Trade restrictions:

a.         Increase domestic competition

b.        Increase prices to consumers

c.         Benefit consumers

d.        Generally do not lead to retaliation

6.   Classifying a cost as either direct or indirect depends upon:

a.         The behavior of the cost in response to volume changes

b.        Whether the cost is expensed in the period in which it is incurred

c.         Whether the cost can be easily identified with the cost object

d.        Whether the expenditure is avoidable or not in the future

7.   Concept test of products, testing of marketing campaigns, sneak previews, and awareness tests are all examples of:

a.         Marketing research techniques

b.        SWOT analysis

c.         Marketing decision theory

d.        Target audience identification

8.   The total are under a normal curve is:

a.         Always between +/- 2 standard deviations from the mean

b.        Approximately 1.00

c.         Approximated by a binomial distribution

d.        Cannot be found in most cases

9.   Under the Commerce Clause of the U.S. Constitution, the federal government may regulate business activities that:

a.         Have a "substantial relationship" to intrastate commerce

b.        Are entirely conducted within a state's borders

c.         Have a "substantial relationship" to interstate commerce

d.        Both a and b

10.   In order to encourage organizational flexibility, the __________ approach to departmentalization utilizes both functional and divisional chains of command simultaneously in the same part of the organization, resulting in some employees reporting to two bosses.

a.         Network

b.        Vertical functional

c.         Virtual

d.        Matrix