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WorksheetsBusiness Essentials Unit 4 (Updated)
Total questions: 80
Worksheet time: 40mins
Finance is the business function that involves managing
Information
Money
Marketing
Production
The goals of the finance function are to ensure profitability and
Advertise products
Manufacture raw material
Give out information
Reduce risks
Accounting is distinct from finance because its main focus is on
Recordkeeping activities
Money management decision
Administration of assets
Acquisition of funds
The administration of assets refers to decisions about
Accounting
Spending
Investments
Financing
Decisions about financing refer to the
Accounts receivable
Acquisition of funds
Administration of assets
Accounting department
The finance function ensures that the company's financial goals are
Acceptable to the marketing department
Related to product development
Easy to accomplish
In line with organizational priorities
How does the finance function relate to company spending?
It plans and controls spending
It produces report about spending
It spends on investments only
It does not relate to spending
Money the business owes is known as
Equity
Assets
Accounts payable
Accounts receivable
Money owed to a business is known as
Equity
Assets
Accounts payable
Accounts receivable
The finance function is usually responsible for which of the following processes:
Budgeting
Manufacturing
Operations
Research
To keep communication flowing with other department, the finance function depends on
Accounts receivable
Information systems
Marketing
Production
The finance function would definitely be involved in a decision regarding
Public relations and publicity
Personal selling
New business projects and strategies
Hiring
Which of the following is a capital investment decision:
How to manage cash flow
How to handle accounts payable
How to finance investments
How to manage inventory
A company's current balance of assets and liabilities falls under the focus of
Return on capital
Working capital management
Capital investment decisions
The cash conversion cycle
Determining which projects a business should invest in is known as
Return on capital
The cash conversion cycle
Capital structuring
Capital budgeting
Selling shares in the company to raise money for a new venture is referred to as ? funding.
Equity
Dividend
Debt
Accounts payable
Which of the following is a key component of managing working capital:
Financing
Capital budgeting
Cash conversion cycle
Capital structure
The cash conversion cycle should be
At equilibrium
As short as possible
As long as possible
On an upward trend
Which of the following is a measure of how well a business generates cash flow:
Accounts receivable
Capital structure
Accounts payable
Return on capital
When return on capital is positive, the company is
Growing in value
Losing value
Low on cash
Paying out dividends
The operations function consists mainly of activities that are performed on a ? basis.
Daily
Weekly
Monthly
Yearly
Which of the following is an example of one of a business's inputs:
Services
Products
Employees
Goods
Operations managers have two main goals in mind - efficiency (keeping costs low) and
Legality (keeping the business in good standing with the law)
Productivity (keeping business running fast)
Reputation (keeping up the business's good name)
Effectiveness (keeping customers satisfied)
The foundation of the operations function is
Maintenance and repaird
Production planning
Purchasing
Quality contol
Which of the following is NOT a main factor in bsuiness's site selection decision:
Community
Media
Costs
Labor
Which operations activity is also referred to as procurement?
Logistics
Inventory conrol
Quality control
Purchasing
A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality
Guarantee
Delivery
Inspection
Assurance
A clothing manufacturer builds quality into its operating system, placing responsibility on each employee. This process is known as quality
Guarantee
Delivery
Inspection
Assurance
the money it takes to keep inventory in stock is called a ? cost.
Holding
Stockout
Purchasing
Production
Running out of inventory can result in
Higher taxes
Lost sales
Higher productivity
More satisfied customers
Deciding how to transport good is part of which operations activity?
Logistics
Scheduling
Safety and security
Maintenance and repairs
An operations manager must determine the sequence materials will take through the production process. This activity is known as
Site selection
Expense control
Routing
Scheduling
Which of the following is a true statement about scheduling:
Scheduling for business is the same thing as personal scheduling
Many businesses do not need to use scheduling
Scheduling has the same timeline, regardless of the company
Both manufacturers and service businesses rely on scheduling
Complying with environmental laws is part of which operations activity?
Logistics
Safety and security
Purchasing
Inventory control
Maintenance and repairs is an operation activity that includes
Production planning
Site selection
Custodial work
Financial analysis
Because operations managers control so much of a business's money, they must focus on
Keep costs low
Hiring the best employees
Creating effective advertising campaigns
Generating publicity
Operations activities vary depending on a business's
Product
Name
Tax return
Address
The difference between service providers' and manufacturers' operations activities is that service providers produce ? outputs.
Expensive
Useful
Intangible
Tangible
Which form of technology creates tangible prototypes and products?
Social media
Computer-aided design (CAD)
Smartphones
3D Printing
Operations managers must work closely with managers and employees in
The marketing department only
All other parts of the business
Competing businesses
Foreign markets
The process of keeping financial records of a business is known as
Accounting
Controlling
Financing
Bookkeeping
The overall purpose of accounting is to
Maintain accurate reports
Compile the business's expenses
Keep track of sales
Control the finances of the business
Why are accurate accounting records important to a business?
They prevent any financial losses
The show how the business is doing
They increase the return on investments
They give the business an image of success
Which of the following groups makes regular use of a business's managerial accounting information:
Managers
Customers
Creditors
Investors
A creditor is most likely to examine a business's financial accounting records if the business is
Applying for a bank loan
Selecting a new market
Using cash accounting
Complying with regulations
Riley is an employee of the federal govern who studies the financial reports of major businesses in a specific industry. The government's purpose in assigning this task to Riley is to
Determine creditworthiness
Search for profitable investments
Decide if funds are available for pay raises
Identify trends in the industry
For an accounting system to be useful to the business, the accounting information it contains must be
Accurate and up to date
Approved by the chief executive officer
Posted by an accountant
Recorded using the accural method
Two employees used a business's computerized accounting system to change some records. They were able to steal $50,000 from the business because the accounting system lacked which of the following:
Protection from theft and fraud
An affordable price
A manual system as backup
Printed financial statements
Checks, receipts, invoices, and purchase order are examples of
Financial statements
Department ledgers
Source documents
Accounting standards
What type of accounting method would most likely be used by a small business owner who does not offer credit?
Check method
Accrual method
COD method
Cash method
Which type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts?
Check method
Cash method
COD method
Accrual method
Accounting records for a business show that the week's total sales revenues were $125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an example of
Classifying financial information
The cash accounting method
An income statement
The accrual method of accounting
Which of the following is a true statement:
Bookkeeping is the same as accounting
Bookkeeping does not use computers
Bookkeeping is limited to information on sales
Bookkeeping records business transactions
Which of the following presents the first three steps in the accounting cycle in the correct order:
Post, analyze, and journalize
Analyze, post, and journalize
Analyze, journalize, and post
Post, journalize, and analyze
Which of the following makes comparisons of the financial conditions at multiple organizations possible:
Bookkeeping
Source documents
Accounting standards
Trial balance
Which of the following is a requirement for a good accounting system:
It should be update annually
It should provide needed information quickly
It should eliminate the need for an accountant
It should be replaced every two or three years
Which of the following categories of information are found on a balance sheet:
Income, expenditures, profit
Assets, liabilities, owner's equity
Assets, liabilities, margin
Revenues, expenses, profit
A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review?
Budget
Balance sheet
Income statement
Operating budget
What accounting record would summarize a business's profit or loss for a previous year?
Bank statement
Inventory record
Income statement
Balance sheet
Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year:
Balance sheet
Cash flow statement
Income statement
Bank statement
Marketing links producers to
distributors
retailers
marketers
customers
Marketing is described as creating
exchanges
needs
advertisements
gaps
Which of the following is a marketing activity:
Balancing customer needs with wants
Leading a project team
Communicating with customers
Lowering operational expenses
What provides the basis for all marketing goals and actions?
Pricing
Planning
Budgeting
Retailing
Which of the following influences the process of determining price:
Customers’ perception of value
Publicity
Purchase location
Sales promotion
Which of the following is a method used to communicate with customers:
Personal selling
Manufacturing
Customer orientation
Marketing concept
Which of the following is an example of communicating with customers:
Creating a new product
Sponsoring a charity event
Choosing a store to distribute products
Developing a marketing plan
The purpose of communicating with customers is to
gather participants for a survey.
befriend customers.
determine prices.
attract customers’ interest.
In an overall sense, where does marketing occur?
Wherever advertisements are
Wherever stores are
Wherever businesses are
Wherever customers are
Of the following, which is a durable good:
Coffee mug
Insect repellent
Hamburger
Lip balm
Which of the following activities is an aspect of marketing a service:
Finding out customers’ favorite coffee flavors
Determining how much to charge for a haircut
Developing a new, improved cell phone
Advertising the state of Michigan on television
Which of the following items cannot be marketed:
Holiday
Health
Hopefulness
Hawaii
In the marketing concept, whose point of view matters most?
Seller’s
Buyer’s
Marketer’s
Planner’s
According to the marketing concept, which option demonstrates customer orientation?
Convincing a buyer to buy
Researching a firm’s competitors
Finding out what a buyer wants
Advertising the features of a product
According to the marketing concept, which option shows company commitment?
Leaving marketing to the marketing department
Teaching marketing to college marketing students
Setting aside funds to research what customers want
Pricing a product to maximize profitability per item
According to the marketing concept, keeping company goals in mind means
making product prices low.
containing marketing costs.
putting marketing second to other company goals.
maintaining the firm’s purpose.
Overall, what does marketing allow us to do?
Stop buying online
Live our daily lives
Feel better about shopping
Limit our spending
Which of the following is the most common reason for businesses to search for ways to make their products better and cheaper:
Competition
Publicity
E-commerce
Service marketing
Marketing encourages people from different countries to __________ frequently.
travel
train
think
trade
Without marketing, producers and customers would be
in close communication with each other.
highly dependent on advertising agencies.
disconnected from each other.
exposed to many new and improved products.
