Introduction to Business test 2

________ ratios determine how well a firm can pay its liabilities as they come due.

• Liquidity

• Profitability

• Debt to owners' equity

• Liability

What function measures, classifies, analyzes, and communicates financial information to people inside and outside a company?

• technology

• financial management

• accounting

• office management

The statement "assets = liabilities + owners' equity" is called the

• balance statement.

• asset equation.

• accounting calculation.

• accounting equation.

The four characteristics of an entrepreneur are (1) high self-confidence, (2) high need for achievement, (3) high tolerance for ambiguity and risk, and

• willingness to let go of control

• a tranquil and easygoing attitude

• high energy level

• low need for achievement

The roads, utilities, schools, and hospitals in a community are part of the

• community hardware.

• infrastructure.

• government investment.

• brick and mortar elements

The United States, in 2017, decided it needed to protect its textile industry from a flood of imports from China. As a result, it implemented ________ to limit the textile products coming into the United States from China.

• a protective tariff

• an import quota

• a revenue tariff

• an export quota

Bankruptcy is defined as the legal means of relief for debtors who are

• unwilling to pay their debts.

• dissatisfied with loan interest rates.

• unable to pay their debts.

• able to pay their debts.

Carla was balancing the books when she realized that she entered a transaction of $102.50 in one place, but she entered the same transaction as $105.20 in another place. What method of bookkeeping is Carla using?

• single-entry

• spreadsheet

• double-entry

• debit/credit

When Jennifer had her first business meeting in Japan, she firmly shook the CEO's hand and looked him directly in the eye. She didn't realize that she should bow instead of shake hands and avoid direct eye contact to avoid offending him. In what area did Jennifer demonstrate a cultural misunderstanding?

• time orientation

• length of workweek

• religion

• nonverbal communication

When the value of a country's total imports exceeds the value of its total exports, it has

• a favorable balance of trade.

• a trade deficit.

• a balance of trade.

• a comparative advantage.