Final Exam Review

Front

A favorable balance of trade occurs when the value of:

Back

Imports are less than the value of exports.

Front

A Plus Inc. issues corporate bonds to raise funds for a new facility. Which of the below answers accurately describes the situation?

Back

These bonds would be recorded in the liabilities section of the balance sheet.

Front

If Jane’s experience is typical, we can conclude that the standard of living has:

Back

Declined, but the quality of life has increased.

Front

Which of the following determines the degree of decentralization a firm might use?
Options:
The degree to which lower level management is empowered to make decisions.
The chain of command used to follow the flow of authority from top of the hierarchy to the lowest levels.
The geographical area served by the firm's operations.
The degree of product standardization desired by the marketplace.

Back

The degree to which lower level management is empowered to make decisions.

Front

Which of the following statements about factors of production is the most accurate?
The five factors of production are energy, capital, labor, leadership and money.
Weath creation in poor nations is slowed by chronic shortages of labor.
Each of the factors of production is equally important in creating wealth.
Entrepreneurship and knowledge are the most important in creating wealth.

Back

Entrepreneurship and knowledge are the most important in creating wealth.

Front

________ is the management function of creating a vision for the organization and guiding and motivating employees to help achieve the goals and objectives of the organization.

Back

Leading

Front

Fayol's _____________ principle states that each worker should report to one, and only one, boss.

Back

Unity of Command

Front

_______ planning focuses on daily tasks and decisions.

Back

Operational

Front

A(n) _________ is a graphical representation which shows the organization’s approach to departmentalization as well as key company roles and reporting relationships.

Back

Organization chart

Front

Angie owns 500 shares of Ludwig Corp. stock worth $20,000. Ludwig Corp. issues a 4 for 1 stock split. What does Angie now own?

Back

2,000 shares @ $20,000