A10 Fin Final-1

2009 DECA Ontario Regionals Test 1022
FINANCE CLUSTER EXAM
1. Businesses usually are unable to enter into legally binding contracts with A. tourists. C. foreigners. B. senior citizens. D. minors. 2. Under the Clean ater Act! the "n#ironmental $rotection Agency has the authority to A. monitor water le#els in ri#ers and streams. B. set water %uality standards for industry. C. decide where you must get your water su&&ly. D. determine how much water you can use for your industry. '. hich of the following &ieces of legislation allows for the consolidation of commercial and in#estment ban(s! insurance com&anies! and securities firms) A. *ecurities "+change Act of 1,'C. *arbanes./+ley Act of 2002 B. 0ramm.1each.Bliley Act D. 0lass.*tegall Act hich of the following is a ta+.deductible gift) A. Charitable donation B. 2acation home
-.
C. *toc(s D. 3nherited items
4.
hat can a financial.ser#ices business do to ensure that it is following go#ernment regulations5 A. 6onitor ser#ice &rocedures C. De#elo& a business &lan B. 3m&ro#e technical systems D. Conduct a com&liance audit
7. 8ow can a business maintain its ethical res&onsibility of &rotecting the &ri#acy of its customers9 financial information5 A. :e#iew in#entory systems C. 6onitor com&etitors9 acti#ities B. De#elo& collection &rocedures D. 3m&lement security &olicies ;. hen a manager tells an em&loyee to ta(e charge of a &ro<ect! the em&loyee is recei#ing A. social directions. C. non#erbal directions. B. oral directions. D. written directions. hich of the following is a rule of good listening) A. "liminate bac(ground noise. B. 1isten with em&athy.
=.
C. Be thin(ing about what you will say ne+t. D. *tand as close as &ossible to the s&ea(er.
,.
hen gi#ing a #erbal &resentation! a s&ea(er who distinctly #oices the sounds of words is using &ro&er A. &ronunciation. C. tone. B. enunciation. D. #ocabulary. hich of the following actions is it im&ortant for a s&ea(er to ta(e when s>he ma(es an oral business &resentation to a large grou&) A. *&ea( loudly enough for the audience to hear the message B. Turn away from the audience when &resenting #isual aids C. A#oid eye contact with anyone in the audience D. :ela+ the audience by swaying bac( and forth when s&ea(ing
10.
11. The main form of written communication within a business is A. memorandums. C. staff meetings. B. business letters. D. tele&hone calls. 12. hich of the following ty&es of messages &resents e#aluati#e information) A. Analytic C. *im&le B. "+&lanatory D. Com&le+
Co&yright ? 2010 by 6BA :esearch and Curriculum Center@! Columbus! /hio
1'. A sim&le! or short! re&ort differs from a com&le+ re&ort in that the sim&le re&ort is A. not in memo form. C. less formal. B. more com&rehensi#e. D. not used in decision ma(ing. 1-. 3nformation that is informally &assed to the staff of a business is referred to as AAAAAAAAAA communication. A. gra&e#ine C. formal B. #ertical D. horizontal 14. BThe customer is A1 AC* right!B is a &hiloso&hy many businesses try to follow in order to A. ma(e em&loyees9 <obs easier. C. create &ositi#e customer>client relations. B. &re#ent any conflict with customers>clients. D. hel& em&loyees handle selling ob<ections. 17. *toc( bro(ers sometimes ha#e difficulty meeting the needs of customers who are A. decisi#e. C. silent. B. agreeable. D. &atient. 1;. A good way for ban( tellers to &re#ent customer com&laints is by A. &ressuring customers to o&en additional accounts. B. discussing all of the ban(Ds &roducts. C. determining each customerDs needs. D. as(ing customers &ersonal %uestions about their ethnicity. 1=. hat do finance &rofessionals need to do to build long.term relationshi&s with their clients5 A. Be honest! o&en! and trustworthy C. Eollow.u& with clients e#ery two years B. 3n#est all clients9 money conser#ati#ely D. :e%uire clients to sign a short.term contract
1,. Businesses use data.cleansing a&&lications to A. generate necessary re&orts. B. calculate statistical data.
C. du&licate internal records. D. u&date their databases.
20. Eor her best friend9s birthday! Feisha is sho&&ing for a uni%ue itemGno substitute will do! and &rice is no ob<ect. hat ty&e of item is Feisha sho&&ing for5 A. Con#enience C. *ho&&ing B. *&ecialty D. 3ndustrial 21. :onnie9s :etail 6art recently began a layaway &rogram for large.tic(et items. By introducing this lay. away &rogram! :onnie9s ho&es to increase AAAAAAAAAA utility. A. &ossession C. time B. &lace D. form 22. 3f customers feel that a &roduct9s &rice is too high! they will &robably A. buy less of the &roduct. C. ma(e a formal com&laint. B. call the Better Business Bureau. D. try to negotiate the &rice. 2'. ith :osita9s &izza sho&! financial analysis is used to A. obtain funding for su&&lies. C. o#ersee the ba(ing &rocess. B. attract customers. D. de#elo& the best reci&e. hich of the following is not an e+ternal factor affecting &rofit) A. Chance C. "conomy B. :is( D. Demand
2-.
24. $otential losses that businesses face are called A. liabilities. B. business ris(s.
C. insurable ris(s. D. uninsurable ris(s.
'
27. The &ractice of allowing wor(ers to assume some higher le#el decision ma(ing is called <ob A. analysis. C. enlargement. B. containment. D. enrichment. 2;. hy does the 0ross Domestic $roduct include only finished goods5 A. To account for &ublic goods C. To omit welfare &ayments B. To a#oid double counting D. To correct for inflation
2=. Brent li(es to use his emotional intelligence to describe his feelings in accurate terms. hat benefit of emotional intelligence is he e+&eriencing5 A. Communicating needs effecti#ely C. Understanding other &eo&le9s needs B. :es&onding to criticism D. :es&onding to difficult &eo&le 2,. 1ac( of initiati#e cannot be tolerated for long in most occu&ations. hich of the following is not a result of em&loyee initiati#e) A. An em&loyee who recei#es an B"m&loyee of the 6onthB award B. An em&loyee9s recei#ing high <ob e#aluation ratings C. An em&loyee gi#en added res&onsibility D. An em&loyee9s com&leting an in#entory assignment on time '0. 8ow em&loyees beha#e and how they treat other &eo&le at wor( often ha#e an effect on whether they A. recei#e fair wages. C. earn #acation time. B. recei#e benefits. D. get &romoted. '1. hich of the following statements about change in the wor(&lace is true) A. An em&loyee often can change the beha#ior of cowor(ers. B. Being rece&ti#e to change hel&s em&loyees to be successful. C. "m&loyees acce&t change better if it is une+&ected. D. "m&loyees usually can refuse to ma(e changes they don9t li(e. hich of the following is a way to demonstrate em&athy) A. De#elo& a good imagination. C. Fee& an o&en mind. B. Use tact when s&ea(ing. D. *ym&athize with a cowor(er.
'2.
''. *miling at customers and loo(ing them in the eye is what ty&e of communication5 A. Hegati#e C. Hon#erbal B. 2erbal D. "ffecti#e '-. Erederic( has been criticized by his su&er#isor and (nows the criticism is <ustified! but he still feels defensi#e. This &hysiological res&onse to stress is the AAAAAAAAAA res&onse. A. eustress C. fight or flight B. o#er.reaction D. stimulus '4. 8ow does a goal differ from a #ision5 A. There is no differenceGthe two are the same. B. A goal could mean different things to different &eo&le. C. A goal is abstract and indefinite. D. A goal is concrete and measurable. '7. hy is acce&ting res&onsibility for your own actions im&ortant to effecti#e human relations s(ills5 A. 3t hel&s you to be ob<ecti#e. C. 3t hel&s you to be enthusiastic. B. $eo&le will be able to de&end on you. D. $eo&le will not ta(e ad#antage of you.
2009 DECA Ontario Regionals Test 1022 ';.
hene#er a business e+tends credit to customers! it allows them to obtain goods and ser#ices immediately with A. &ayment to be made at a future date. C. no interest charges for ,0 days. B. no identification re%uired. D. &ayment s&read o#er a 12.month &eriod. hat do many indi#iduals establish when &lanning for future financial needs5 A. Chec(ing account C. 1ine of credit B. 1i#ing will D. College fund hat is the (ey to successful in#esting5 A. A#oiding o&&ortunity costs B. 3nflation
'=.
',.
C. 0etting started early D. The rule of ;2
-0. Commercial ban(s and bro(erage firms are e+am&les of A. insurance institutions. C. financial intermediaries. B. legislati#e grou&s. D. non&rofit organizations. -1. Cocoa beans and corn are e+am&les of in#estments that &eo&le ma(e in which of the following financial mar(ets) A. *electi#e &ro&erty C. *oft commodities B. 3nsurance D. 6oney -2. *u&er#ised by the Eederal :eser#e Board! The DAB Com&any &ro#ides in#estment ad#isory ser#ices! insurance underwriting! securities underwriting! and merchant ban(ing ser#ices. The DAB Com&any is an e+am&le of aInJ A. financial auditing institution. C. financial holding com&any. B. accounting firm. D. commodities in#estor. -'. hich of the following is an e+am&le of arbitrage) A. An indi#idual earns interest on his>her money by agreeing to lea#e it in a financial institution for a certain timeframe. B. An indi#idual buys 10 shares of stoc( for K140 &er share on one mar(et! and immediately sells each share for K200 on another mar(et. C. A business &laces a &ercentage of its income into a retirement account for em&loyees. D. A business sells cor&orate bonds to obtain funds to finance ma<or e+&ansion efforts. hich of the following is characteristic of an emerging mar(et) A. 1ow gross domestic &roduct due to high foreign in#estment B. *trong and highly de#elo&ed infrastructure C. 8igh.yield bond mar(ets that o&erate in a secure economic climate D. Unstable stoc( mar(ets in a transitional economy
--.
-4. Eorm 10.F is most li(e A. the bottom line. B. Eorm 10.L. -7.
C. the annual re&ort. D. the cash flow statement.
hat might a di#idend &ayout tell you about a com&any5 A. 3t9s rein#esting its &rofits bac( into the business. B. 3t9s trying to rid itself of cash. C. 3t9s a well.established com&any. D. 3t9s &aying bac( a loan.
-;. 3t9s a good idea for an in#estor to watch the numbers on a stoc( table A. once a year. C. o#er a &eriod of time. B. <ust for a gi#en day. D. when di#idends are &aid.
2009 DECA Ontario Regionals Test 1022 -=.
hat (ind of insurance will hel& to &ay your hos&ital bill if you are seriously ill5 A. 8omeowner9s C. 1iability B. Disability D. 8ealth
-,. The im&act of some business ris(s can be reduced if the business transfers the ris( to another business by A. &urchasing insurance. C. em&loying security guards. B. hiring a ris( s&ecialist. D. installing burglar alarms. 40. A business has an in#entory #alued at K;40!000. This amount would a&&ear in the business9s balance sheet under A. current assets. C. cash. B. liabilities. D. income. 41. To stay in business! a firm that has &eriods of cash shortages and cash sur&luses should &lan to AAAAAAAAAA its cash flow. A. s&end C. in#est B. monitor D. control 42. hich of the following is an e+am&le of an e+&ense that a business would include in the o&erating. e+&enses category of an income statement) A. Customer returns C. 3nsurance &ayments B. Cost of raw materials D. *hi&&ing charges
4'. 6oney owed to the business is (nown as A. assets. B. e%uity. 4-.
C. accounts recei#able. D. accounts &ayable.
hen Alana &re&ares a re&ort so that all of the financial data is clearly disclosed! she is ensuring that the information is A. com&arable. C. timely. B. trans&arent. D. fle+ible. hich of the following is a conse%uence of &oor financial.information management) A. *im&lified &rocesses C. 3neffecti#e leadershi& B. 3naccurate data D. Understandable feedbac(
44.
47. The reason that businesses use #irtual auditor technology to scan their financial records is to A. detect correlations among customer data. C. calculate debt.e%uity ratios. B. ensure that they are com&lying with laws. D. analyze their financial statements. 4;. By installing firewalls on its com&uter networ(s! a business can &rotect its online customers9 credit.card information from A. trade barriers. C. in#estment scams. B. ta+ e#asion. D. identity theft. 4=. hich of the following is a technological tool that businesses use to archi#e their financial records) A. Direct.res&onse software C. "lectronic data interchange B. Digital microfilm scanner D. eb.de#elo&ment &rograms
4,. Businesses often use the &atterns and relationshi&s detected during the data mining &rocess to A. select intermediaries. C. &redict trends. B. identify &rocedures. D. negotiate contracts.
70. Ale+ is using a com&uter software &rogram to de#elo& the o&erating budget for his small com&any. 8e has two &art.time em&loyees who wor( 12 hours &er wee(. 8ow should Ale+ categorize the com&any9s &ayroll in his budget5 A. *ales C. "+&ense B. 3ncome D. Charges 71. 3f Mennifer wants to determine the degree to which the business uses its debt to finance its assets! she should use a financial analysis a&&lication that indicates the business9s A. de&reciation rates. C. cash budget. B. le#erage ratio. D. transaction costs. 72. 3n which of the following situations would a firm use cost.analysis a&&lications) A. To &redict sales #olume for a certain &eriod of time B. To determine the number of delin%uent accounts C. To assess income changes o#er a certain &eriod of time D. To e#aluate the amount of money associated with in#entory storage 7'. hat function allows users to customize and automate tas(s when de#elo&ing a database5 A. *&lit C. Brea( B. 6acro D. Consolidate
7-. 1arge cor&orations that sell stoc( to the &ublic are re%uired by the *ecurities and "+change Commission to &ro#ide AAAAAAAAAA to their stoc(holders. A. regular di#idends C. co&ies of e+&ense re&orts B. accurate financial statements D. organizational charts 74. A business needs to accurately re&ort its financial &osition because that information indicates the business9s A. net worth. C. &rice &olicy. B. sales forecast. D. target mar(et. 77. A business that is e+&eriencing a cash.flow deficit should ta(e ste&s to A. reduce income. C. increase costs. B. lower e+&enses. D. s&end re#enues. 7;. A business uses the financial accounting system to re&ort the business9s financial &osition to A. regional managers. C. e+ternal users. B. boo((ee&ers. D. internal users. 7=. hat is a &otential benefit to a business that uses financial information to identify trends5 A. "nsured &rofitability C. 3m&ro#ed forecasting B. "nhanced liability D. 3ncreased &remiums hich of the following are factors that affect a business9s decision to offer credit to a customer) A. Debt ratio! credit rating! and education C. Credit rating! ob<ecti#es! and income B. 3ncome! debt ratio! and credit rating D. Debt ratio! education! and ob<ecti#es hile Farl re#iews financial re&orts! he com&ares and contrasts similar data from different %uarters and years. The &rimary reason that Farl is re#iewing the re&orts is to A. reduce costs. C. analyze #ariances. B. ma(e im&ro#ements. D. change &rocesses.
7,.
;0.
;1. An im&ortant function of human resources management in business is A. e%ui&ment ac%uisition. C. domain de#elo&ment. B. technical in#estment. D. em&loyee recruitment.
2009 DECA Ontario Regionals Test 1022 ;2.
hich of the following is not a touch &oint businesses could utilize to reinforce com&any image) A. 3nteraction with a sales&erson C. Tele#ision ad#ertisement B. "m&loyee holiday &arty D. Bill or in#oice
;'. Cou ha#e been as(ed to %uic(ly locate information com&aring the number of home foreclosures in Ar(ansas in 2000 with those in 2010. hich of the following searches should yield the fastest! most rele#ant search results) A. Bhome foreclosuresBN Ar(ansasN years) 2000 /: 2010 B. Ohome foreclosures in Ar(ansas in 2000 AHD 2010P C. Ar(ansas home foreclosures between 2000 and 2010 D. Ohome foreclosuresN Ar(ansasPN O2000 /: 2010P ;-. Cour web search results contain U:1s from a #ariety of sources. hich of the following sources should &ro#ide the most reliable data) A. A go#ernment agency C. A &ersonal blog B. A term &a&er D. A i(i&edia site ;4. A benefit of informed business decisions is that they A. hurt a business9s chances at com&eting. B. are usually bad decisions.
C. cost less money. D. reduce a business9s ris(.
;7. /ne way that many businesses use database software &rograms is to A. analyze customer information. C. &re&are go#ernmental re&orts. B. design com&any stationery. D. monitor accounting functions. ;;. hat ty&e of information about e%ui&ment is im&ortant for businesses to (ee& in their records5 A. *erial numbers C. 3n#entory status B. 6echanical re&airs D. $roduction &rocess
;=. 6a+ton 6art is being &ressured by its #endors to &ay for in#entory it &urchased more than '0 days ago. 8owe#er! 6a+ton 6art has not recei#ed its accounts recei#able from customers. hat business record has 6a+ton 6art failed to monitor successfully5 A. 3ncome statement C. Balance sheet B. Cash flow D. /&en to buy ;,. Cour statistical findings show that the mean and the median of the following data are the same) Data *et A) 2! 4! =! 10! 10 Data *et B) ;! ;! ;! ;! ; Data *et A) 6ean Q ;! 6edian Q ; Data *et B) 6ean Q ;! 6edian Q ; Must by loo(ing at the data! you can tell the data results are %uite different. hat statistic do you need to use to show that difference5 A. 6ode C. 0eometric mean B. 2ariance D. 6easure of central tendency =0. /&erations managers must wor( closely with managers and em&loyees in A. all other &arts of the business. C. com&etiti#e businesses. B. the mar(eting de&artment only. D. foreign mar(ets. =1. Accidents in the wor(&lace may be &re#ented by all of the following techni%ues e+ce&t A. correcting &oor lighting. C. ta(ing &eriodic in#entory. B. &ro#iding em&loyee training. D. ins&ecting e%ui&ment regularly.
=2. 6onitoring acti#ities at the &oint of sale can &rotect the business from A. &ayroll fraud. C. sho&lifting losses. B. liability claims. D. theft by em&loyees. ='. 3f a business is &lanning a &ro<ect that will ta(e -0 hours to com&lete and must be done in one wee(! which two em&loyees should be assigned the &ro<ect if the business has four &art.time em&loyees who wor( the following schedule) "m&loyee AG6on.Eri! ,.12N "m&loyee BG6on.Eri! 1.-)'0N "m&loyee CG6on.Eri! ;)'0.12N "m&loyee DG6on.Eri! 11.2 A. "m&loyees B R C B. "m&loyees A R D C. "m&loyees C R A D. "m&loyees D R C
=-. 0eneral 6otors decided to &roduce a new car called the B*har(.B *ince the &arts of the car will be easily interchangeable and the com&any e+&ects to &roduce a large %uantity of cars! the best method of &roduction would be AAAAAAAAAA &roduction. A. unit C. batch B. mass D. custom =4. Alert sales&eo&le can hel& businesses control e+&enses by discouraging A. e+changing. C. sho&lifting. B. &urchasing. D. selling. =7. Determine whether the following statement is true or false) 8ouse(ee&ing &ractices do not affect the success of a business. A. Ealse! house(ee&ing is the most im&ortant factor affecting business success. B. True! house(ee&ing &ractices are unrelated to business success. C. True! customers are more concerned with &rice than with a&&earance. D. Ealse! a business9s &oor house(ee&ing can damage the business. =;. 0oals which normally ta(e a year or more to achie#e are referred to as AAAAAAAAAA goals. A. long.term C. immediate B. intermediate D. short.term ==. hich of the following acti#ities reflects creati#ity) A. Com&leting a sales chec( according to com&any &olicy B. :e&lacing merchandise sold from a window dis&lay C. :eferring an irate customer to the store manager D. *uggesting a new use for an e+isting &roduct hen using e+&loratory inter#iews to identify occu&ational interests! you should try to inter#iew someone who A. has an e+ecuti#e &osition in the com&any. C. holds the (ind of <ob you want. B. used to ha#e the (ind of <ob you want. D. hires &eo&le for the (ind of <ob you want.
=,.
,0. 6ichelle9s &rimary reason for starting her own business is her desire to ma(e her own schedule. 6ichelle is loo(ing forward to the AAAAAAAAAA she ho&es to ha#e as a business owner. A. fle+ibility and inde&endence C. ta+ brea(s and deductions B. ad#anced technology D. &ersonal commitment
2009 DECA Ontario Regionals Test 1022 ,1.
hich of the following is an e+am&le of an a&&ro&riate attitude for a <ob a&&licant to ha#e about a <ob inter#iew) A. 3 can do any <ob that 39m as(ed to do. B. 3 ha#e s(ills that this com&any could use. C. 3 thin( this com&any would be luc(y to get me. D. 3 (now all about this com&any and its &roducts. hich of the following statements most accurately describes the financial.ser#ices industry today) A. 3t is highly segmented! with se&arate businesses for se&arate ser#ices. B. Ban(s! insurance com&anies! securities firms! and other financial institutions are sometimes owned by a single large firm offering a com&lete range of financial ser#ices. C. The only &lace to &ursue a career as a securities bro(er is a traditional financial securities firm on all *treet. D. The financial.ser#ices industry is largely unregulated with little federal o#ersight.
,2.
,'. A three.day e+hibition in a con#ention hall featuring the most u&.to.date com&uter e%ui&ment! software! and related goods is an e+am&le of which of the following) A. Central mar(et C. Eloor &lan B. Trade show D. arehouse club ,-. As an em&loyee of a financial.ser#ices firm! "lise hel&s her clients reduce their debt! build their wealth! and sa#e for their retirement. hich certification is "lise mostly li(ely to need to &erform her <ob) A. Certified Ta+ *&ecialist ICT*J C. Certified 1oan /fficer IC1/J B. Certified Einancial $lanner ICE$J D. Chartered 6ar(et Technician IC6TJ ,4. After &assing the 0eneral *ecurities :egistered :e&resentati#e "+amination! a business&erson obtains a license that allows him>her to wor( as aInJ A. accountant. C. underwriter. B. stoc(bro(er. D. estate &lanner. ,7. /ne way to build &rofessional finance relationshi&s at the local le#el is by A. wor(ing with well.(nown securities firms. B. submitting &ro&osals to web.based financial businesses. C. &ro#iding e+isting clients with referrals. D. <oining community organizations. ,;. 8ow can a business reduce ris(s that are associated with a &oor &ublic image) A. 3m&lement an ethics &rogram C. "ncourage fraudulent beha#ior B. 6aintain minimal in#entory le#els D. /ffer credit to few customers ,=. To limit the access of em&loyees to clients9 confidential information! a financial business might re%uire the em&loyees to A. de#elo& a routing system. C. restrict digital signature o&tions. B. use com&uter &asswords. D. limit their use of the 3nternet. ,,. To reduce the ris( of loss due to fire or &ower outages! a financial business should &rotect its com&uter data by A. im&lementing an authorization &rocess. C. conducting bac(u& &rocedures. B. using encry&tion techni%ues. D. monitoring data.transmission rates. 100. The &rimary reason that firms must ta(e ste&s to control their le#els of business ris( is to A. reduce the chance of financial losses. C. contribute to the well.being of society. B. increase their #isibility in the mar(et. D. increase their financial liability le#els.
10
1. D 6inors. Businesses usually are &re#ented from entering into legally binding contracts with certain grou&s of &eo&le because these &eo&le are not considered to ha#e the ca&acity to understand the conse%uences of their actions. /ne of these grou&s includes minors! those &eo&le under the legal age. 3n most cases! minors cannot enter into legally binding contracts because they are not old enough to be res&onsible for the conse%uences. Businesses usually may enter into legally binding contracts with &eo&le who are adults! older than the legal age! regardless of whether they are foreigners! senior citizens! or tourists. */U:C") B1)002 */U:C") Bo#Se! C. 1.! R Thill! M. 2. I200=J. Business in action I-th ed.J T&&. '=1.'=2U. U&&er *addle :i#er! HM) $earson $rentice 8all. 2. B *et water %uality standards for industry. *etting water %uality standards is &art of the agency9s em&hasis on society9s health. The "$A has no authority o#er where you get your water su&&ly or how much you use. hile the agency may test &ollution le#els in ri#ers and streams! it has no interest in the water le#els that are found there. */U:C") B1)0;' */U:C") U.*. "n#ironmental $rotection Agency. In.d.J. What are water quality standards? :etrie#ed *e&tember 20! 200,! from htt&)>>www.e&a.go#>waterscience>standards>about> '. B 0ramm.1each.Bliley Act. The 0ramm.1each.Bliley Act re&eals &art of the 0lass.*tegall Act of 1,'' by allowing different ty&es of financial institutions to form mergers or consolidate. The *ecurities "+change Act of 1,'- re%uires the disclosure of certain financial information! regulates the issuance of securities! and outlaws insider.trading &ractices. The *arbanes./+ley Act of 2002 regulates cor&orations9 and &ublic accounting firms9 acti#ities. */U:C") B1)1'' */U:C") Answers.com. I200,J. Gramm-Leach-Bliley Act of 1999. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.answers.com>to&ic>gramm.leach.bliley.act.of.1,,, -. A Charitable donation. 0ifts are money! financial &roducts! or &ro&erty gi#en to an indi#idual or organization. *ome gifts! such as charitable donations! are ta+ deductible. This means that the donor &ays a reduced amount of ta+ or is e+em&t from &aying the ta+! de&ending on the ty&e and #alue of the gift. 2acation homes! stoc(s! and inherited items are ta+able gifts. */U:C") B1)1'*/U:C") 3nternal :e#enue *er#ice. I200=! /ctober 2;J. Frequently asked questions on ift ta!es. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.irs.go#>businesses>small>article>0!!idQ10=1',!00.htmlV' 4. D Conduct a com&liance audit. Einancial.ser#ices businesses must follow many go#ernment regulations. These regulations affect the way that businesses record and re&ort financial data. To ensure that the business is following all of the regulations! the business should conduct a com&liance audit. A com&rehensi#e com&liance audit can detect discre&ancies and &roblems. Eor e+am&le! a com&liance audit might indicate that u&dated com&liance software will resol#e or correct a noncom&liance issue. De#elo&ing a business &lan and monitoring ser#ice &rocedures are not actions that will ensure that the business is following go#ernment regulations. */U:C") CC)00' */U:C") Beaumier! C. I200;! MuneJ. "ow to audit com#liance in the financial ser$ices industry. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.(nowledgeleader.com>Fnowledge1eader>content.nsf>dce,'ca=c1f'=-d7=724;1200'7f07c>,1-cac;-cb=c=d0f==24;'-400;cf'ca>KE31">8owW20toW20Audit W20Com&lianceW20inW20theW20EinancialW20*er#icesW203ndustry.&df
Co&yright ? 2010 by 6BA :esearch and Curriculum Center@! Columbus! /hio
Test 1022
FINANCE CLUSTER EXAMKEY
11
7. D 3m&lement security &olicies. Businesses ha#e an ethical res&onsibility to maintain the &ri#acy of their customers9 financial information. Businesses must ta(e &recautions to ensure that customers9 credit! loan! and other ty&es of financial data are (e&t confidential. To maintain confidentiality! businesses must de#elo& and im&lement security &olicies. The &olicies may restrict the em&loyees9 access to customers9 financial information. The &olicies may also in#ol#e the use of com&uter safety measures! such as firewalls and encry&tion techni%ues. Collection &rocedures are the acti#ities that the business uses to collect funds owed by others. De#elo&ing collection &rocedures! monitoring com&etitors9 acti#ities! and re#iewing in#entory systems are not actions that will hel& businesses &rotect the &ri#acy of their customers9 financial information. */U:C") E6)00' */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&&. '44.'4,J. 6ason! /8) *outh. estern Cengage 1earning. ;. B /ral directions. hen a manager tells an em&loyee to ta(e charge of a &ro<ect! the em&loyee is recei#ing oral directions. hen a &erson s&ea(s! s>he is not gi#ing non#erbal directions or written directions. Directions for ta(ing charge of a &ro<ect are not social directions. */U:C") C/)11, */U:C") L* 1A$ 2-G*imon *ays =. B 1isten with em&athy. "m&athy is the ability to &ut oneself in another &erson9s &lace. 1istening with em&athy hel&s the listener to understand the s&ea(er9s &oint of #iew. Cou should stand a reasonable distance from the s&ea(er. *tanding too close may be inter&reted as aggressi#eness. 3f you are thin(ing about what you will say ne+t! you may not hear e#erything that the s&ea(er says. Bac(ground noise e+ists in all en#ironments and cannot be eliminated. */U:C") C/)01; */U:C") "#erard! F.".! R Burrow! M.1. I2001J. Business #rinci#les and mana ement I11th ed.J T&&. 24=.24,U. Cincinnati) *outh. estern. ,. B "nunciation. $ro&er enunciation in#ol#es clearly and distinctly #oicing the sounds of words. Using &ro&er enunciation is im&ortant when gi#ing #erbal &resentations because it ma(es it easier for listeners to understand the message. $ronunciation is the manner of saying words. 2ocabulary includes all words understood by an indi#idual. Tone communicates emotions and attitudes through the #oice. */U:C") C/)1-; */U:C") e8ow! 3nc. I1,,,.200,J. "ow to enuciate. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.ehow.com>howA20,241=Aenunciate.html 10. A *&ea( loudly enough for the audience to hear the message. hen ma(ing an oral &resentation to a grou&! the s&ea(er should s&ea( loudly enough for e#eryone in the audience to hear what s>he is saying. 3f audience members cannot hear what the s&ea(er is saying! they might misunderstand or misinter&ret the message. A s&ea(er should try not to turn away from the audience when &resenting #isual aids and should maintain eye contact with the audience. Because swaying bac( and forth can distract the audience! the s&ea(er should a#oid this ty&e of mo#ement. */U:C") C/)024 */U:C") 8yden! M. *.! Mordan! A. F.! *teinauer! 6. 8.! R Mones! 6. M. I2007J. %ommunicatin for success I'rd ed.J T&. ,4U. 6ason! /8) Thomson *outh. estern.
Test 1022
12
11. A 6emorandums. 6emorandums are the main form of written communication within a business. 6emorandums are informal letters or notes between a com&any9s em&loyees. 1etters are the &rinci&al form of written communication between businesses. Tele&hone calls and staff meetings are not forms of written communication. */U:C") C/)017 */U:C") 8yden! M. *.! Mordan! A. F.! *teinauer! 6. 8.! R Mones! 6. M. I2007J. %ommunicatin for success I'rd ed.J T&&. 2,=.2,,U. 6ason! /8) Thomson *outh. estern. 12. A Analytic. 3nformational messages communicate (nowledge! facts! or data to the message recei#er. Analytic messages s&ecifically communicate information that the message sender or someone else has e#aluated! com&iled! or inter&reted! which gi#es the message meaning. Eor e+am&le! if a manager writes a memo stating that a &ro<ect is o#er budget and bac(s u& the statement with numerical data and e+am&les! the manager is &ro#iding e#aluati#e IanalyticJ information. "+&lanatory messages sim&ly state information in a neutral and ob<ecti#e way. The sim&licity or com&le+ity of an e#aluati#e message de&ends on the message to&ic. */U:C") C/)0', */U:C") 8yden! M. *.! Mordan! A. F.! *teinauer! 6. 8.! R Mones! 6. M. I2007J. %ommunicatin for success I'rd ed.J T&&. 21;.21=U. 6ason! /8) Thomson *outh. estern. 1'. C 1ess formal. A sim&le! or short! re&ort is less formal than a long! or com&le+! re&ort. 3t is often &resented in a memo form so that the reci&ients can read it %uic(ly and use the information in their decision ma(ing. A sim&le re&ort is less com&rehensi#e than a com&le+ re&ort. */U:C") C/)0,*/U:C") 1oc(er! F./. I2000J. Business and administrati$e communication I4th ed.J T&&. '77.'7;U. Boston) 3rwin>6c0raw.8ill. 1-. A 0ra&e#ine. 0ra&e#ine communication e+ists in most com&anies. 3t is an informal! oral communication method in which information is &assed around the com&any but not formally announced or #erified. The direction of information flow may be either #ertical or horizontal. */U:C") C/)01*/U:C") 1ehman! C. R DuErene! D. I2004J. Business communication I1-th ed.J T&&. 11.1'U. 6ason! /8) *outh. estern. 14. C Create &ositi#e customer>client relations. $olicies that establish a&&ro&riate attitudes toward customers>clients hel& to ensure that em&loyees will treat customers in a way that will create &ositi#e relations. *uch &olicies do not &re#ent all conflict with customers>clients because they do not guarantee that the business can always do what the customer wants. These &olicies are not established for the &ur&ose of ma(ing em&loyees9 <obs easier. Customer ob<ections are reasons customers ha#e for not buying! and they are handled with selling techni%ues that may in#ol#e disagreeing &olitely with the customer. */U:C") C:)00' */U:C") :o(es! B. I2000J. %ustomer ser$ice& Business '((( I&&. =! ==.=,J. 6ason! /8) *outh. estern. 17. C *ilent. *ilent customers are shy! insecure! or too sensiti#e to tal( #ery much e#en when they need hel&. The stoc( bro(er may ha#e difficulty meeting the needs of this (ind of customer because it is hard to identify those needs. Customers who are &atient! agreeable! and decisi#e are much easier to hel&. */U:C") C:)00, */U:C") "3 1A$ 1G6a(ing 6ad 0lad
Test 1022
1'
1;. C Determining each customerDs needs. Customer com&laints often occur when customers ma(e im&ro&er buying decisions or are incon#enienced. Ban( tellers can hel& customers a#oid dissatisfaction by accurately determining their needs and ser#ing them &rom&tly. As(ing customers &ersonal %uestions about their ethnicity is illegal. $ressuring customers to o&en new accounts will result in com&laints if the accounts fail to meet customer needs. The ban( teller should discuss only the ban( &roducts a&&licable to each customer rather than discussing all ban( &roducts. */U:C") C:)010 */U:C") Dlabay! 1.:.! Burrow! M.1.! R Fleindl! B. I200,J. )ntro to *usiness I;th ed.J T&. 142U. 6ason! /8) *outh. estern Cengage 1earning. 1=. A Be honest! o&en! and trustworthy. hile it is im&ortant for finance &rofessionals to hel& their clients manage their finances and grow their wealth! it is also im&ortant that they earn their clients9 trust. Einance &rofessionals earn their clients9 trust by beha#ing ethically and being honest and o&en. By doing so! finance &rofessionals are more li(ely to build long.term relationshi&s with their clients. Einance &rofessionals must hel& clients set financial goals with which the clients are comfortableGsome clients can or want to ma(e ris(y in#estments! while others ta(e a more conser#ati#e a&&roach. "arning trust and hel&ing clients meet their financial goals also in#ol#e ongoing! consistent! and fre%uent communication with their clients. :e%uiring clients to sign a short.term contract will not always hel& finance &rofessionals build long.term relationshi&s with their clients. */U:C") C:)012 */U:C") $e&&ers! D. R :ogers! 6. I200-J. +ana in customer relationshi#s& A strate ic framework I&&. 2'4.2'=J. 8obo(en! HM) Mohn iley R *ons. 1,. D U&date their databases. Businesses use data.cleansing a&&lications to ensure that their customer databases contain useful! rele#ant! and accurate data. The data.cleansing &rocess remo#es du&licate records! u&dates e+&ired data! and com&letes incom&lete data fields. hen a business9s database is current and u&.to.date! it can generate accurate re&orts that hel& the business ma(e well.informed decisions. Businesses do not use data.cleansing a&&lications to calculate statistical data. */U:C") C:)02*/U:C") Fnol B"TA. I200,J. %,+ data cleansin - mana ement. :etrie#ed *e&tember 11! 200,! from htt&)>>(nol.google.com>(>neil.se%ueira>crm.data.cleansing. management>s2w,&;=(2%by>1V 20. B *&ecialty. *&ecialty goods are consumer goods with s&ecial or uni%ue characteristics that consumers are willing to e+ert s&ecial efforts to obtain. The s&ecialty item Feisha desires will ta(e a lot of money and effort to ac%uire. A sho&&ing good is a consumer good &urchased after consumers com&are goods and stores in order to get the best %uality! &rice! and>or ser#ice. Feisha is not concerned with &rice. A con#enience good is a consumer good &urchased %uic(ly and without much thought or effort. Feisha has &ut a lot of thought into this &urchase. 3ndustrial goods are &urchased for resale! not consumer usage. */U:C") "C)002 */U:C") Burrow! M.1. I2007J. +arketin & )nstructor.s wra#around edition I2nd ed.J T&. 2'-U. 6ason! /8) Thomson>*outh. estern. 21. A $ossession. $ossession utility is usefulness created when ownershi& of a &roduct is transferred from the seller to the user. A layaway &rogram ma(es it easier for a consumer to obtain &ossession. $lace utility is usefulness created by ma(ing sure that goods or ser#ices are a#ailable at the &lace where they are needed or wanted by consumers. Time utility is usefulness created when &roducts are made a#ailable at the time they are needed or wanted by consumers. Eorm utility is usefulness created by altering or changing the form or sha&e of a good to ma(e it more useful to the consumer. */U:C") "C)00*/U:C") "C 1A$ 1'GUse 3t IUtilityJ
Test 1022
1-
22. A Buy less of the &roduct. 1i(ewise! if customers feel that the &rice is relati#ely low! they will buy more. Customers affect &rices of &roducts through the use of their economic #otesGby deciding to buy or not to buy. 6ost retail &rices are not negotiable or of interest to the Better Business Bureau! which tries to &rotect consumers from fraud. 6any customers will com&lain about &rices! but few would ta(e the time to ma(e a formal! written com&laint. */U:C") "C)007 */U:C") Clar(! B.! *obel! M.! R Basteri! C.0. I2007J. +arketin dynamics I&. 104J. Tinley $ar(! 31) 0oodheart. illco+. 2'. A /btain funding for su&&lies. ith :osita9s &izza sho&! financial analysis is used to obtain funding for su&&lies. Attracting customers is &art of mar(eting. /#erseeing a &rocess is li(ely to ta(e &lace within o&erations management! not financial analysis. And! de#elo&ing reci&es is &art of o&erations management. */U:C") "C)0;1 */U:C") "C 1A$ 1,G*trictly Business IBusiness Acti#itiesJ 2-. B :is(. The e+ternal factors affecting &rofit include the economy! demand! and chanceGnot ris(. :is( in#ol#es weighing the &ossible outcomes and choosing the result most li(ely to ha&&en. */U:C") "C)010 */U:C") "C 1A$ 2G:is( :ewarded I$rofitJ 24. B Business ris(s. They fall into three general categories) human! economic! and natural. *ome of these ris(s are insurable! and others are uninsurable ris(s. 1iabilities are a business9s debts or losses and can be the result of ta(ing ris(s. */U:C") "C)011 */U:C") "C 1A$ 'G1ose! in! or Draw IBusiness :is(J 27. D "nrichment. Mob enrichment in#ol#es adding interest and satisfaction to a tas(. Mob analysis is a detailed study of a <ob. Mob enlargement is adding more tas(s to a wor(er9s &resent <ob. Containment is a distractor. */U:C") "C)01*/U:C") 6anagement.hub.com. In.d.J. Facilitatin /o* enrichment and enlar ement in human resources mana ement. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.management. hub.com>hr.enrichment.html 2;. B To a#oid double counting. Businesses &roduce a #ariety of goods that are used as com&onents of other goods. To a#oid including these intermediate goods in the 0D$ count! thereby inflating actual 0D$! the intermediate goods are only included in the 0D$ count when they become com&onents of their finished goods. $ublic goods are those items that are &aid for with ta+ money! thus being BfreeB to anyone who wants to use them. They are only counted in 0D$ when they are finished goods. elfare &ayments are not an as&ect of finished goods. 3nflation ma(es the #alue of a dollar worth less in the future than it is today. */U:C") "C)01; */U:C") 6cConnell! C.:.! R Brue! *.1. I2004J. 0conomics& 1rinci#les2 #ro*lems2 and #olicies I17th ed.J T&&. 112.11'U. Boston) 6c0raw.8ill>3rwin.
Test 1022
14
2=. A Communicating needs effecti#ely. hen you are aware of your own emotions! you can s&ea( about your needs and wants in an e+act way. Cou won9t describe your feelings in inade%uate terms. 8ence! Brent was en<oying the ad#antage of communicating his needs effecti#ely. 3n this situation! Brent was not understanding or res&onding to others9 needs or difficulties! nor was he res&onding to criticism. */U:C") "3)001 */U:C") "3 1A$ 7G"L and Cou I"motional 3ntelligenceJ 2,. D An em&loyee9s com&leting an in#entory assignment on time. An em&loyee9s com&leting an in#entory assignment on time is not necessarily the result of initiati#e since the &erson is &erforming basic <ob e+&ectations. Added res&onsibility! higher <ob e#aluation ratings! and #arious awards are direct results of demonstrating initiati#e. */U:C") "3)02*/U:C") "3 1A$ 2G8ustleX ITa(ing 3nitiati#e at or(J '0. D 0et &romoted. 8ow em&loyees beha#e and how they treat other &eo&le at wor( can affect how successful they become in their chosen career. 3t can determine whether they recei#e a &romotion! a raise! or the o&&ortunity to wor( on a &articular &ro<ect. 8ow em&loyees beha#e and how they treat other &eo&le does not ha#e an effect on whether they earn #acation time! recei#e benefits! or recei#e fair wages. */U:C") "3)00*/U:C") "3 1A$ -G or( :ight I"thical or( 8abitsJ '1. B Being rece&ti#e to change hel&s em&loyees to be successful. The business world is dynamic and constantly changing. To be successful! em&loyees must be able to ada&t to it. An em&loyee cannot change othersGthe desire to change must come from within oneself. "m&loyees acce&t change with less resistance if they are &re&ared for it in ad#ance. */U:C") "3)027 */U:C") Fimbrell! 0.! R 2ineyard! B.*. I2007J. 3ucceedin in the world of work I&&. -=-.-==J. Hew Cor() 0lencoe>6c0raw.8ill. '2. B Use tact when s&ea(ing. Tact is the ability to do or to say the right thing in any circumstance. "m&athy is the ability to &ut yourself in another &erson9s &lace. Using tact is one way to demonstrate em&athy. De#elo&ing a good imagination and (ee&ing an o&en mind are ways to de#elo& em&athy. To sym&athize with a cowor(er is to feel sorry for that &erson. */U:C") "3)0'0 */U:C") "3 1A$ 12G8a#e a 8eart I"m&athyJ ''. C Hon#erbal. Hon#erbal communication transmits a message without the use of words. 2erbal communication is carried out by s&ea(ing. *miling at customers and loo(ing them in the eye is a &ositi#e a&&roach. 8owe#er! this cannot be called effecti#e communication since it is limited. */U:C") "3)00; */U:C") 1oc(er! F./. I2000J. Business and administrati$e communication I4th ed.J T&&. '1;.'20U. Boston) 3rwin>6c0raw.8ill. '-. C Eight or flight. The fight or flight res&onse is the normal human reaction to feeling Bunder attac(.B The human body reacts to stress by &re&aring for defense or retreat. "ustress is the term for BgoodB stress that (ee&s us alert. /#er.reaction and stimulus res&onses do not describe the &hysiological res&onse to stress that results in feeling defensi#e. */U:C") "3)02= */U:C") Camauchi! F.T. In.d.J. 3tress mana ement& 4en self-care techniques. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.reachoutmichigan.org>learn>stresmgt.html
Test 1022
17
'4. D A goal is concrete and measurable. A goal and a #ision are two different things. A goal is a concrete achie#ement that you want to com&lete. 0oals tend to be more s&ecific and measurable than #isions. *ince a goal is s&ecific! it means the same thing to all &eo&le. 3t isn9t abstract and indefinite li(e a #ision. */U:C") "3)07' */U:C") L* 1A$ 11G$icture This '7. B $eo&le will be able to de&end on you. Ta(ing full res&onsibility for your own actions and ne#er blaming others for your mista(es means you are reliable. $eo&le will (now they can de&end on you to do what you say you will do. This does not hel& you to be ob<ecti#e or enthusiastic! and it will not (ee& &eo&le from trying to ta(e ad#antage of you. */U:C") "3)0'; */U:C") "3 1A$ 4GCan Cou :elate5 ';. A $ayment to be made at a future date. A benefit of credit to customers is that they can ma(e &urchases and ta(e &ossession of the goods or ser#ices without ha#ing to ma(e &ayment at the time of &urchase. *ometimes! credit is offered with deferred interest charges or a scheduled &ayment &lan! but this is not always the case. A credit customer may be as(ed for identification! es&ecially if s>he is not carrying the a&&ro&riate credit card or credit identification. */U:C") E3)002 */U:C") Fimbrell! 0.! R 2ineyard! B.*. I2007J. 3ucceedin in the world of work I&. -2,J. Hew Cor() 0lencoe>6c0raw.8ill. '=. D College fund. 3n many cases! &aying for college is a future financial need for which many indi#iduals and married cou&les &lan. 3n order to ma(e sure sufficient money will be a#ailable to &ay for college! indi#iduals often establish a college fund. This may be set u& with a ban( or an in#estment com&any. $eo&le often set aside a certain amount to in#est on a monthly basis so the fund will ha#e a certain #alue by the time it is needed to &ay college e+&enses. A li#ing will in#ol#es a &erson9s wishes concerning medical issues. A line of credit is a ty&e of loan. A chec(ing account is used to manage current income and e+&enses. */U:C") E3)07*/U:C") Fa&oor! M.:.! Dlabay! 1.:.! 8ughes! :.M.! R 8oyt! .B. I2004J. Business and #ersonal finance I&. 277J. Hew Cor() 0lencoe>6c0raw.8ill. ',. C 0etting started early. 0etting started early is the (ey to successful in#esting. The sooner you begin to ta(e ad#antage of the com&ounding growth of the stoc( mar(et! the better. Com&ounding is your best friend because! right now! time is on your side. As a teenager! you ha#e more years ahead of you to in#est than your grand&arents! your &arents! and e#en your older siblings. 3nflation is an increase in the cost of goods and ser#ices. /&&ortunity costs are the trade.offs that occur when you choose one alternati#e o#er anotherN they are im&ossible to a#oid. The rule of ;2 is a tric( for determining how long it will ta(e to double your money at a certain interest or return rate. */U:C") E3)2;0 */U:C") L* 1A$ '0G*u&ersize Cour 6oney -0. C Einancial intermediaries. 3ntermediaries ImiddlemenJ hel& mo#e financial &roducts between &roducers and end users. Commercial ban(s! bro(erage firms! financial.&lanning firms! insurance institutions! and credit unions are e+am&les of financial intermediaries. 1egislati#e grou&s Ie.g.! U.*. CongressJ de#elo& and &ass laws. A non&rofit organization is a business or organization whose intent is to ma(e enough money to su&&ort its mission. */U:C") E3)''7 */U:C") BusinessDictionary.com. I200,J. Financial intermediary. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.businessdictionary.com>definition>financial.intermediary.html
Test 1022
1;
-1. C *oft commodities. A financial mar(et is an organized effort or e+change that facilitates the buying and selling of financial assets. There are many ty&es of financial mar(ets! including the commodities mar(et. Commodities are resources! including agricultural goods and mined goods Ie.g.! gold! sil#erJ that are often used to ma(e other goods. Agricultural goods such as cocoa beans and corn are ty&es of soft commodities. 6oney mar(ets facilitate the buying and selling of short.term! low.ris( financial &roducts Ie.g.! treasury billsJ. *electi#e &ro&erty and insurance do not describe ty&es of financial mar(ets. */U:C") E3)''; */U:C") 3n#esto&edia. In.d.J. 3oft commodity. :etrie#ed *e&tember 1,! 200,! from) htt&)>>www.in#esto&edia.com>terms>s>softcommodity.as& -2. C Einancial holding com&any. Because financial holding com&anies &ro#ide a wide #ariety of financial ser#ices and related &roducts! the Eederal :eser#e Board su&er#ises their acti#ities. The &rimary ser#ices that an accounting firm &ro#ides include accounting! ta+ &re&aration! auditing! and boo((ee&ing ser#ices. *ome financial holding com&anies may offer accounting ser#ices. Commodities in#estors in#est their funds in goods IfuturesJ such as grains! li#estoc(! raw materials! etc. */U:C") E3)4;' */U:C") Answers.com. I200,J. Financial holdin com#any 5F"%6. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.answers.com>to&ic>financial.holding.com&any.fhc -'. B An indi#idual buys 10 shares of stoc( for K140 &er share on one mar(et! and immediately sells each share for K200 on another mar(et. Arbitrage is &rofiting from the sale of a financial instrument Ie.g.! stoc(J or good on a different mar(et. Arbitrage often in#ol#es the buying and selling of goods and other ty&es of ser#ices. Eor e+am&le! a &erson who buys a set of football tic(ets from a s&ort organization for K100 and sells them on ".bay to another &erson for K400 is engaging in arbitrage. hen an indi#idual earns interest on his>her money by agreeing to lea#e it in a financial institution for a certain timeframe! s>he is in#esting in a certificate of de&osit. Businesses that set aside money for their em&loyees9 retirement are contributing to a &ension &lan. A business that sells bonds is using debt financing to raise funds for its e+&ansion efforts. */U:C") E3)4;*/U:C") 6offatt! 6. In.d.J. What is ar*itra e? :etrie#ed *e&tember 1,! 200,! from htt&)>>economics.about.com>cs>finance>a>arbitrageA'.htm --. D Unstable stoc( mar(ets in a transitional economy. "merging mar(ets are growing mar(ets Ie.g.! stoc(! bond! commodities! etc.J that result when a country initiates reforms that mo#e it from a closed economy to an o&en or mar(et economy. Because the mar(ets are new! they are untried and relati#ely unstable! which is a high ris( for in#estors. 8owe#er! these mar(ets also ha#e the &otential to &ro#ide in#estors with high returns! as the country9s business acti#ity increases and its economy grows. De#elo&ing countries tend to e+&erience gains in gross domestic &roduct due to higher &roduction and business acti#ity! which is often facilitated by high foreign in#estment. The infrastructure of de#elo&ing countries often im&ro#es when the go#ernment and in#estors &ro#ide the financial resources to su&&ort it. */U:C") E3)4;4 */U:C") Charles *chwab. I200,J. Glossary& 0mer in market. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.schwab.com>&ublic>schwab>home>newAtoAin#esting>glossary5cmsidQ$. 2=;;0=;Rl#l1QhomeRl#l2QnewAtoAin#estingVe -4. C The annual re&ort. Eorm 10.F is the annual re&ort that a com&any must file with the *"C. 3t is less attracti#e than the annual re&ort that com&anies send to their shareholders. Eorm 10.L is a %uarterly re&ort. The bottom line and cash flow statements a&&ear in 10.Fs. */U:C") E3)2;*/U:C") L* 1A$ '7GThe *ource 3s ith Cou
Test 1022
1=
-7. C 3t9s a well.established com&any. Ty&ically! well.established com&anies are the ones that &ay di#idends. Com&anies that are still growing tend to &ut their &rofits bac( into their com&anies and! therefore! do not &ay di#idends. hether or not a com&any is trying to rid itself of cash! or is &aying bac( a loan! cannot be determined by the numbers in the di#idend column of a stoc( table. */U:C") E3)2;4 */U:C") L* 1A$ ';GTable Tal( -;. C /#er a &eriod of time. atching numbers o#er a &eriod of time is a good idea because in#estors can get a sense of what is normal for a stoc( &rice. 1oo(ing at the numbers once a year! on a gi#en day! or when di#idends are &aid does not gi#e you enough time to obtain this (ind of information. */U:C") E3)2;4 */U:C") L* 1A$ ';GTable Tal( -=. D 8ealth. 8ealth insurance &ays for different (inds of medical care! de&ending u&on the ty&e of &olicy. A basic &olicy might co#er minimum medical e+&enses! while a &olicy that has ma<or medical co#erage might co#er the entire bill. Disability insurance &ro#ides income for ill or in<ured wor(ers while they are off the <ob. 8omeowner9s insurance &rotects the homeowner9s &ersonal &ro&erty and home. 1iability insurance &rotects against lawsuits that result from in<uries to others. */U:C") E3)0=1 */U:C") Fimbrell! 0.! R 2ineyard! B.*. I2007J. 3ucceedin in the world of work I&&. --,.-41J. Hew Cor() 0lencoe>6c0raw.8ill. -,. A $urchasing insurance. 3nsurance is a contractual agreement in which one com&any IinsurerJ will &ay for s&ecified losses incurred by the other com&any IinsuredJ in return for installment &ayments I&remiumsJ. $urchasing insurance does not &re#ent or control disaster! but it can &rotect the business from financial loss if a disaster occurs. The other alternati#es are actions the business can ta(e that may hel& to &re#ent losses! but they do not transfer the ris( to another business. */U:C") E3)0=*/U:C") *eleshan(o! F. In.d.J. 1rotect your *usiness with insurance and risk mana ement . :etrie#ed *e&tember 2-! 200,! from htt&)>>www.business.com>directory>financialAser#ices>commercialAfinance>treasury>insurance AandAris(Amanagement> 40. A Current assets. Assets are anything of #alue the business owns. Current assets would include cash on hand! accounts recei#able! and in#entory owned by the business. 3ncome is money recei#ed by a business or an indi#idual from an outside source. 1iabilities are debts that the business owes. */U:C") E3)0=4 */U:C") E3 1A$ 4G*how 6e the 6oney IHature of AccountingJ 41. B 6onitor. 6any businesses (now that there are times when they will ha#e cash shortages and other times when they will ha#e cash sur&luses. 3n order to stay in business! these firms monitor their cash flow to be able to o&erate e#en when sales are down. They &lan to &ut money aside when there are sur&luses in order to co#er e+&enses when there are cash shortages. Businesses often are unable to control their cash flow because it may de&end on when their customers &ay them. Businesses do not s&end all of their cash but sa#e some for times of shortages. Businesses are not able to in#est cash unless they ha#e a sur&lus. */U:C") E3)0,1 */U:C") E3 1A$ 7GCount the Cash ICash ElowJ
Test 1022
1,
42. C 3nsurance &ayments. The o&erating.e+&enses category of an income statement includes all the e+&enses incurred from (ee&ing a business9s doors o&en. *ome e+am&les include insurance &ayments! wages! utilities! and rent. The business &ays these e+&enses in order to o&erate. The o&erating.e+&ense category does not co#er the cost of goods sold>cost of sales! which includes such e+&enses as shi&&ing charges to obtain goods for resale! cost of raw materials to &roduce goods! and items returned by customers. */U:C") E3)0,*/U:C") E3 1A$ -G atch Cour Bottom 1ine I3ncome *tatementsJ 4'. C Accounts recei#able. 6oney owed to the business is (nown as accounts recei#able. "%uity refers to assets the business already owns. Assets are things the business owns that are of #alue. Accounts &ayable refers to money the business owes to others. */U:C") E3)'4*/U:C") E3 1A$ ;G6oney 6atters I:ole of EinanceJ 4-. B Trans&arent. hen financial information is fully disclosed and is &resented in a clear! understandable way! it is trans&arent. Trans&arent information is not buried in a document or &resented in a way that deliberately confuses the reader. Com&arable information e+ists when the data from the re&ort relate to other information. Timely information is current or u&.to.date. Ele+ible data are often used in or a&&licable to different situations. Alana9s re&ort may or may not contain fle+ible! com&arable! or timely information. */U:C") E6)001 */U:C") BasicCollegeAccounting.com. I2007! Ho#ember 10J. +ain qualitati$e characteristics of financial statement. :etrie#ed *e&tember 1,! 200,! from htt&)>>basiccollegeaccounting.com>main.%ualitati#e.characteristics.of.financial.statement> 44. B 3naccurate data. hen com&anies fail to maintain and u&date their financial information! they ha#e inaccurate data. Com&anies loo( at all ty&es of financial data to ma(e business decisions. hen business decisions are based on inaccurate or incorrect information! it could be #ery costly to the com&any. 3neffecti#e leadershi& may be one reason why data are inaccurate. *im&lified &rocesses and understandable feedbac( are &ositi#e results of well.managed financial information. */U:C") E6)002 */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&&. '-1.'-'J. 6ason! /8) *outh. estern Cengage 1earning. 47. B "nsure that they are com&lying with laws. Because large businesses &rocess large amounts of financial transactions and other ty&es of financial information! they use software &rograms to ensure that they are com&lying with the many laws they must follow. A #irtual auditor is a ty&e of com&liance technology that continuously re#iews financial transactions and &rocesses to identify errors and>or com&liance #iolations. By using this technology! the business is reducing its ris( of &enalties and fines that might result from noncom&liance. Businesses use other ty&es of com&uter software to detect correlations among customer data! calculate debt.e%uity ratios! and analyze financial statements. */U:C") CC)00*/U:C") Cummings! M. I2004! *e&tember 1J. 7#front& 3low u#take for $irtual audit tools. :etrie#ed Muly 22! 200,! from htt&)>>businessfinancemag.com>article>u&front.slow.u&ta(e.#irtual.audit. tools.0,01
Test 1022
20
4;. D 3dentity theft. 3dentity theft is a fraud that occurs when an indi#idual &retends to be another &erson in order to obtain money or some other ty&e of benefit. ith the wides&read use of the 3nternet! hac(ers try to brea( into a business9s com&uter system or web site to steal customers9 financial information! such as ban( account numbers or credit card information! which they then use to illegally obtain money or goods. To reduce the ris( of identity theft due to com&uter hac(ers! businesses install firewalls! which are com&uter &rograms that secure and &rotect their com&uter networ(s from unauthorized users. Ta+ e#asion occurs when an indi#idual or business inaccurately re&orts or fails to &ay ta+es. An in#estment scam is a dece&ti#e &lan to use others9 money for &ersonal gain. A trade barrier is an action that bloc(s or restricts the e+change of goods or ser#ices. */U:C") E6)00' */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&&. '44.'4,J. 6ason! /8) *outh. estern Cengage 1earning. 4=. B Digital microfilm scanner. Businesses must (ee& a #ariety of financial information for a certain length of time! often for se#eral years. 6any businesses ha#e sa#ed their archi#ed financial information on microfilm. 6icrofilm is a ty&e of film that stores &hotogra&hed images and te+t in a condensed format for easy storage. A digital microfilm scanner can ta(e e+isting microfilm! which is older technology! and con#ert it into a digital format. The ad#antage to switching microfilm records to a digital format is that businesses can easily #iew the data on com&uters and share information %uic(ly through the 3nternet. Direct.res&onse software is a com&uter &rogram that hel&s businesses automate their direct.mar(eting efforts. "lectronic data interchange I"D3J is a networ( of com&uters that allows businesses to share information. Businesses use web.de#elo&ment &rograms to de#elo& and maintain web sites. */U:C") E6)011 */U:C") Canon. I200,J. %an ) con$ert microfilm to di ital? :etrie#ed *e&tember 1,! 200,! from htt&)>>www.canon. me.com>EorA or(>$roducts>DocumentA3magingA*ystems>DigitalA6icrofilmA*canners>inde+. as& 4,. C $redict trends. Data mining is the &rocess of searching com&uter databases to loo( for &atterns and relationshi&s among information. /ften! businesses use the financial information that they obtain from data mining to &redict trends. Businesses that &redict and understand trends are in a better &osition to act and res&ond to changes that might affect them. Businesses do not use data mining to identify &rocedures! select intermediaries! or negotiate contracts. */U:C") E6)012 */U:C") 8air! M.E.! Bush! :.$.! R /rtinau! D.M. I200,J. +arketin research in a di ital information en$ironment I-th ed.J T&&. ,=.100U. Hew Cor() 6c0raw.8ill 3rwin. 70. C "+&ense. A budget is an estimate of income and e+&ense for a s&ecific &eriod of time. "+&enses are monies that the business s&ends. Because &ayroll in#ol#es &ro#iding money to em&loyees for the wor( they com&lete! it is an e+&ense. 3ncome is the money recei#ed by a business from outside sources. Businesses generate income from sales! in#estments! interest! etc. Charges are fees. 3f the business charges customers for ser#ices! then it would be income. 3f the business must &ay charges for goods or ser#ices! then the charges are e+&enses for the business. */U:C") E6)01' */U:C") $ea#ler! :. I200,J. Business *ud et worksheet. :etrie#ed *e&tember 1,! 200,! from htt&)>>bizfinance.about.com>od>businessbudgeting>a>budgetAw(sheet.htm
Test 1022
21
71. B 1e#erage ratio. Com&uter software a&&lications can calculate and summarize many ty&es of financial data to facilitate the business9s decision.ma(ing &rocesses. A le#erage or debt.e%uity ratio measures the business9s le#el of debt in relation to its assets. 1e#erage is an im&ortant consideration when a business wants to issue stoc( or obtain a loan. De&reciation is the reduction in #alue of goods or assets occurring o#er time. A cash budget is an estimate of cash inflows for a s&ecific time. Transaction costs are the cumulati#e e+&enses associated with a transaction Ie.g.! labor! e%ui&ment! etc.J. */U:C") E6)01*/U:C") 6ayo! 8.B. I200;J. Basic finance& An introduction to financial institutions2 in$estments2 mana ement I,th ed.J T&. 1=;U. 6ason! /8) *outh. estern Cengage 1earning. 72. D To e#aluate the amount of money associated with in#entory storage. To maintain &rofitability! a firm must e#aluate its costs in relation to its #arious business functions! which include &urchasing! mar(eting! human resources! o&erations! etc. Businesses often analyze the #arious costs associated with carrying &roducts. Eor e+am&le! a tem&erature.sensiti#e &roduct may re%uire s&ecial warehousing accommodations! which increase the costs associated with storing the &roduct. Businesses use accounts.recei#able a&&lications to determine the number of delin%uent accounts. 3ncome re&orts summarize income changes. Businesses use budgeting a&&lications to estimate sales #olume. */U:C") E6)01*/U:C") 6icro*trategy.com. In.d.J. Financial analysis. :etrie#ed *e&tember 1,! 200,! from htt&)>>latam.microstrategy.com>financial.analysis> 7'. B 6acro. A macro is a customized (eystro(e or shortcut that commands the database &rogram to &erform certain tas(s automatically! such as inserting a s&ecific table or bolding s&ecific te+t. Using macros can increase efficiency when wor(ing with com&le+ databases. The s&lit function can di#ide te+t or cells. The brea( function inserts &age brea(s. The consolidate function combines data. */U:C") E6)014 */U:C") 6icrosoft Cor&oration. In.d.J. What is a macro? :etrie#ed *e&tember 1,! 200,! from htt&)>>office.microsoft.com>en.us>access>8A0121-20210''.as&+ 7-. B Accurate financial statements. 1arge cor&orations that sell stoc( to the &ublic are re%uired by the *ecurities and "+change Commission to accurately re&ort their financial &osition to stoc(holders. Cor&orations usually do this by &ro#iding financial statements such as the income statement and balance sheet. As a result! cor&orations need to (ee& trac( of financial information and accurately re&ort it in order to com&ly with the re%uirements of the *ecurities and "+change Commission. */U:C") E6)00*/U:C") 0itman! 1. M.! R 6adura! M. I2001J. )ntroduction to finance I&&. 212.21;J. Boston) Addison esley. 74. A Het worth. Het worth is the total #alue of the business. A business determines its net worth by &re&aring #arious financial documents that indicate assets and liabilities. These documents should contain accurate information in order to correctly state the business9s financial &osition. 3f the documents are incorrect! they may indicate that the business is worth more or less than it actually is. Accurately re&orting its financial &osition does not indicate a business9s sales forecast! &rice &olicy! or target mar(et. */U:C") E6)00*/U:C") 0itman! 1. M.! R 6adura! M. I2001J. )ntroduction to finance I&&. -,=.402J. Boston) Addison esley.
Test 1022
22
77. B 1ower e+&enses. By monitoring its cash flow! a business can &lan how and when it will &ay its bills. 3f the amount of inflowing cash declines o#er an e+tended &eriod of time! then the business might need to ta(e ste&s to lower its e+&enses and costs! which might include ordering less in#entory or laying off em&loyees. 3f cash inflow steadily increases! then the business might consider e+&ansion. */U:C") E6)004 */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&&. '-2.'-'J. 6ason! /8) *outh. estern Cengage 1earning. 7;. C "+ternal users. A business uses the financial accounting system to re&ort its financial &osition to e+ternal users! those who are not in#ol#ed in the day.to.day o&erations of the business. These financial accounting re&orts &ro#ide information about the &rofitability of the business that those outside the business! such as in#estors or creditors! might use to decide if they want to in#est in the business or gi#e the business a loan. Boo((ee&ers and regional managers are internal users. Businesses use the management accounting system to re&ort the business9s financial &osition to internal users. */U:C") E6)007 */U:C") 0uerrieri! D.M.! 8aber! E.B.! 8oyt! .B.! R Turner! :.". I200;J. Accountin & ,eal-world a##lications - connections IEirst.Cear CourseJ T&&. '-.'4U. Hew Cor() 0lencoe>6c0raw.8ill. 7=. C 3m&ro#ed forecasting. A trend is the direction in which something is mo#ing. 3nternal and e+ternal financial information can hel& a business identify trends! such as changes in the o#erall economy or the business9s sales! which can hel& the business forecast &otential earnings more accurately. Trends may indicate increased &rofitability! but &rofitability cannot be ensured. $remiums are &ayments for insurance &olicies. 8igher insurance &remiums would be costly to the business. A liability is debt! usually money! the business owes. */U:C") E6)00= */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&. ='J. *outh. estern Cengage 1earning. 7,. B 3ncome! debt ratio! and credit rating. To reduce the ris( of non&ayment or default on a loan! a business considers se#eral factors before it e+tends credit to its customers. Data such as the customer9s income! debt ratio! and credit rating indicate to the business if the customer is a good credit ris( or not. The customer9s ob<ecti#es and educational le#el are not &rimary considerations. */U:C") E6)00, */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&&. 277.2;0J. *outh. estern Cengage 1earning. ;0. C Analyze #ariances. By com&aring and contrasting two or more sets of financial data! a business&erson can determine if there are differences and &atterns among the data. Detecting these differences and &atterns facilitates business decision ma(ing! which may include ma(ing im&ro#ements! reducing costs! or changing &rocesses. */U:C") E6)010 */U:C") 6icrosoft. I200,J. %onductin $ariance analysis. :etrie#ed *e&tember 1,! 200,! from htt&)>>office.microsoft.com>en.us>e+cel>8A0114-41-10''.as&+ ;1. D "m&loyee recruitment. 8uman resources management is the &rocess of &lanning! staffing! leading! and organizing the em&loyees of the business. An im&ortant as&ect of the human resources function is see(ing out and attracting %ualified &otential em&loyees! which is em&loyee recruitment. Technical in#estment! domain de#elo&ment! and e%ui&ment ac%uisition are not &rimary acti#ities of the human resources function in business. */U:C") 8:)-10 */U:C") 0as&ar! M.! Bierman! 1.! Folari! M.! 8ise! :.! *mith! 1.! R Arreola.:isa! A. I2007J. )ntroduction to *usiness I&.1,,J. Boston) 8oughton 6ifflin.
Test 1022
2'
;2. B "m&loyee holiday &arty. An em&loyee holiday &arty is not necessarily a touch &oint because it does not allow the com&any to connect with customers and &otential customers. 3nteraction with a sales&erson! seeing a tele#ision ad#ertisement! and recei#ing a bill or in#oice are all touch &oints businesses can utilize to reinforce com&any image to customers. */U:C") 6F)01, */U:C") 6F 1A$ 'GMust Do 3tY:ight ICom&any Actions and :esultsJ ;'. A B8ome foreclosuresBN Ar(ansasN years) 2000 /: 2010. hen %uotes are &ut around &hrases! search engines will select only those websites containing the e+act &hrase. By &utting Ar(ansas within the %uotes! you would delete results that had Ar(ansas a&&earing after the &hrase home foreclosures. Adding the year9s designation before 2000 /: 2010! lets the com&uter (now that you are not searching for footage! &hone numbers! etc. By using /: rather than AHD! the results will contain one or the other yearsN they would not need to contain both years for the websites to a&&ear in the results. */U:C") HE)0;= */U:C") 0oogle.com. I200,J. Goo le search *asics& +ore search hel#. :etrie#ed *e&tember 21! 200,! from htt&)>>www.google.com>su&&ort>websearch>bin>answer.&y5answerQ1'7=71 ;-. A A go#ernment agency. A go#ernment agency! such as the Bureau of 1abor *tatistics! should contain unbiased! accurate information. A term &a&er and a &ersonal blog would &robably be biased based on the writer9s #iew&oint. Although i(i&edia is an o&en source of information that is constantly u&dated! you might ha#e recei#ed wi(i information when it was inaccurate. */U:C") HE)0;, */U:C") Claudia Chan! C.N 1eung! M.N R 6iu! *. I200=J. ,elia*le we*sites& "ow to sort out the trustworthy sites and the dishonest ones. :etrie#ed *e&tember 21! 200,! from htt&)>>www.slideshare.net>guest-0-1d>reliable.websites.&resentation ;4. D :educe a business9s ris(. 3nformed business decisions are better decisions! and they reduce a business9s ris(. 3nformed decisions hel& businesses com&ete better. They may or may not cost less money. */U:C") HE)110 */U:C") HE 1A$ 'G3n the Fnow IHature of 3nformation 6anagementJ ;7. A Analyze customer information. Database software &rograms are designed to sort! arrange! locate! and analyze a wide #ariety of information. 6any businesses use database software to analyze information that relates to customers! such as their names! addresses! ty&e of &urchases! and amount s&ent. Then! this information can be used to identify customers who might be interested in s&ecific &roducts or who li#e in certain &arts of the country. The business also can rearrange the information according to different criteria. ord.&rocessing software &rograms are used to design stationery and &re&are re&orts. *&readsheet software is used for accounting &ur&oses. */U:C") HE)00, */U:C") Earese! 1.*.! Fimbrell! 0.! R oloszy(! C.A. I2002J. +arketin essentials I'rd ed.J T&&. 17'.174U. oodland 8ills! CA) 0lencoe>6c0raw.8ill. ;;. A *erial numbers. Businesses should record the serial numbers of all e%ui&ment. These are uni%ue numbers that are used for identification &ur&oses. *erial numbers are found on all ty&es of business e%ui&ment and are useful when ma(ing e%ui&ment.related in%uiries and when trac(ing stolen &ro&erty. 3n#entory information deals with the materials a business needs for &roducing the goods or ser#ices it sells! or the items it buys to resell. Businesses do not need to (now how e%ui&ment was &roduced! and it is not usually necessary to (ee& trac( of e#ery mechanical re&air. */U:C") HE)001 */U:C") HE 1A$ 1G:ecord 3t IBusiness :ecordsJ
Test 1022
2-
;=. B Cash flow. By monitoring its cash flow statement! 6a+ton 6art (nows when it is running short on cash and can ta(e needed ste&s to alle#iate u&coming cash shortages. 3f necessary! 6a+ton 6art should be &re&ared to ta(e out a short.term loan to co#er in#entory costs. The income statement &ro#ides a &icture of a business9s &rofit or loss conditions. The balance sheet shows a sna&shot of the business9s assets! liabilities! and owner9s e%uity. /&en.to.buy documents indicate how much money the business has to in#est in additional in#entory. */U:C") HE)01*/U:C") 6ariotti! *.! R Towle! T. I2007J. 0ntre#reneurshi#& "ow to start and o#erate a small *usiness I10th ed.J T&. -;7U. Hew Cor() The Hational Eoundation for Teaching "ntre&reneurshi&! 3nc. ;,. B 2ariance. 2ariance is a measure of how data &oints differ from the mean. 3ts calculation will hel& you to show others how dis&ersed the data were from the mean of ;. The mode! li(e the median and mean! is a measure of central tendency rather than de&icting dis&ersion. The mode is the number that a&&ears most often in the data results. A geometric mean is used in business to show a#erage rates of growth. This! too! would be a measure of central tendency. */U:C") HE)0,' */U:C") Fno+! M.A. R "strella! A. I2004! *e&tember 17J. )ntroduction to statistics. :etrie#ed *e&tember 21! 200,! from htt&)>>math.about.com>gi>dynamic>offsite.htm5 ziQ1>ZM>CaRsdnQmathRzuQhtt&W'AW2EW2Eic&.giss.nasa.go#W2EeducationW2Estatistics W2E =0. A All other &arts of the business. /&erations managers must wor( closely with managers and em&loyees in all other &arts of the business. This is because o&erations acti#ities affect e#ery other business function! including mar(eting! finance! human resources! etc. De&ending on the business! o&erations managers may or may not wor( with managers in foreign mar(ets. /&erations managers do not wor( with managers at com&etiti#e businesses. */U:C") /$)1=, */U:C") /$ 1A$ 'G*mooth /&erations IHature of /&erationsJ =1. C Ta(ing &eriodic in#entory. Ta(ing in#entory is a necessary acti#ity for most businesses! but it is not an accident.&re#ention measure. Training em&loyees in safety &recautions and the &ro&er use of e%ui&ment should reduce the &ossibility of accidents. Correcting &oor lighting and ins&ecting e%ui&ment regularly will hel& to &re#ent unsafe conditions that my lead to accidents. */U:C") /$)00, */U:C") Fimbrell! 0.! R 2ineyard! B.*. I2007J. 3ucceedin in the world of work I&&. 22'.22-J. Hew Cor() 0lencoe>6c0raw.8ill. =2. D Theft by em&loyees. *tealing cash is a way em&loyees defraud businesses. They may ta(e cash from the register or &oc(et the cash &aid by customers for their &urchases. 6ost businesses study register ta&es! watch for sus&icious refunds or #oids! and use other methods to &re#ent thefts. $ayroll fraud occurs in the &ayroll de&artment when em&loyees alter chec(s in their fa#or. *ho&lifting is theft of goods by customers. 1iability insurance &rotects the business against in<uries to customers or em&loyees while on the &remises. */U:C") /$)01' */U:C") Clar(! B.! *obel! M.! R Basteri! C.0. I2007J. +arketin dynamics I&&. -01.-07J. Tinley $ar(! 31) 0oodheart. illco+.
Test 1022
24
='. A "m&loyees B R C. An im&ortant &art of de#elo&ing a &ro<ect &lan is determining how much time it will ta(e to &erform and which em&loyees are a#ailable to com&lete the &ro<ect on time. 3f the business only has &art.time em&loyees! it needs to consider which combination of wor(ers will be able to do the &ro<ect within the one.wee( time frame. 3n this e+am&le! "m&loyee B is wor(ing ' 1>2 hour days from 1 to -)'0 for a total of 1;.4 hours a wee(. "m&loyee C is wor(ing - 1>2 hour days from ;)'0 to 12 for a total of 22.4 hours a wee(. Together! these em&loyees are wor(ing a -0.hour wee( I1;.4 [ 22.4 Q -0J. "m&loyees A and D are each wor(ing three hours a day for a total of 14 hours a wee(. */U:C") /$)001 */U:C") %ha#ter 8& %ost mana ement I200,J. :etrie#ed *e&tember 1,! 200,! from htt&)>>www.stsc.hill.af.mil>resources>techAdocs>gsam->cha&7.&df =-. B 6ass. *ince 06 would be ma(ing a large %uantity of cars! it would want to use mass &roduction. 6ass &roduction is used when a standardized item is &roduced in large %uantities with interchangeable &arts. Batch &roduction in#ol#es &roducing items in s&ecific amounts! usually for seasonal items. Unit or custom &roduction is for indi#idual and custom.&roduced items! such as a custom.tailored suit. */U:C") /$)01; */U:C") BA 1A$ 1GHature of $roduction =4. C *ho&lifting. Businesses lose millions of dollars each year because of sho&lifting. *ales&eo&le can hel& discourage sho&lifting by being alert on the <ob and watching for sus&icious &eo&le. $re#enting sho&lifting hel&s businesses reduce the losses that they would incur if goods were stolen. *ales&eo&le should encourage &urchasing by customers. *ales&eo&le9s <ob is to sell. Discouraging e+changes would not control e+&enses. */U:C") /$)024 */U:C") Clar(! B.! *obel! M.! R Basteri! C.0. I2007J. +arketin dynamics I&&. -04.-07J. Tinley $ar(! 31) 0oodheart. illco+. =7. D Ealse! a business9s &oor house(ee&ing can damage the business. Erom the minute customers enter a business! they are aware of its a&&earance. 3f the business is dusty! dirty! or loo(s as though it is in need of cleaning! customers may not return. A business that does not build a clientele of re&eat customers may not be successful! e#en if its &rices are attracti#e. hile house(ee&ing affects business success! it is seldom the most im&ortant factor. */U:C") /$)0'2 */U:C") Berman! B.! R "#ans! M.:. I200-J. ,etail mana ement& A strate ic a##roach I,th ed.J T&&. '1=.'20U. U&&er *addle :i#er! HM) $rentice 8all. =;. A 1ong.term. *hort.term! immediate! and intermediate goals are normally set for much shorter time &eriods such as a day! a wee(! or a month. */U:C") $D)01= */U:C") $D 1A$ 17G0o Eor the 0oal I0oal *ettingJ ==. D *uggesting a new use for an e+isting &roduct. Creati#ity is the ability to generate uni%ue ideas! a&&roaches! and solutions. The other alternati#es are routine res&onses or <ob res&onsibilities. */U:C") $D)012 */U:C") $D 1A$ 2GCreati#ity
Test 1022
27
=,. C 8olds the (ind of <ob you want. 3nter#iewing someone who currently holds the (ind of <ob you want will yield information on career &aths! &re&aration! ad#antages! and disad#antages of the career. 3nter#iewing &eo&le who hire! used to be in that &osition! or are e+ecuti#es of the com&any may &ro#ide an incom&lete &icture of the career you are interested in. */U:C") $D)02' */U:C") Fimbrell! 0.! R 2ineyard! B.*. I2007J. 3ucceedin in the world of work I&&. 4'.4-J. Hew Cor() 0lencoe>6c0raw.8ill. ,0. A Ele+ibility and inde&endence. 6any indi#iduals become entre&reneurs to en<oy greater fle+ibility and inde&endence. Ele+ibility and inde&endence allow an entre&reneur to manage his>her own wor( and time based on her>his needs and desires. hile some entre&reneurs may loo( forward to other &er(s! such as &urchasing and using ad#anced technology or en<oying ta+ brea(s and deductions! neither of these is 6ichelle9s moti#ation in becoming her own boss. As an entre&reneur! an indi#idual must ma(e a &ersonal commitment to his>her business! which means &utting in long hours and e#en wee(ends. "ntre&reneurs seldom start their businesses sim&ly to fulfill this &ersonal commitment. */U:C") $D)077 */U:C") $D 1A$ -G/wn Cour /wn ICareer /&&ortunities in "ntre&reneurshi&J ,1. B 3 ha#e s(ills that this com&any could use. :ecognizing and a&&reciating your own s(ills gi#es you self. confidence and hel&s you to &resent yourself well in a <ob inter#iew. All of the other alternati#es re&resent an o#er.confident or coc(y attitude that is li(ely to ma(e a negati#e im&ression on the inter#iewer. */U:C") $D)02= */U:C") Bailey! 1.M. I200'J. Workin & %areer success for the '1st century I'rd ed.J T&&. 7;.7,U. 6ason! /8) *outh. estern. ,2. B Ban(s! insurance com&anies! securities firms! and other financial institutions are often owned by a single large firm offering a com&lete range of financial ser#ices. *ince deregulation of the financial.ser#ices industry in 1,,, Ithe 0ramm.1each.Bliley ActJ! financial.ser#ices &ro#iders are allowed to offer a broad range of ser#ices. Before deregulation! the industry was highly segmented! with se&arate businesses for se&arate ser#ices. A career as a securities bro(er can be &ursued in many &laces! not <ust at a traditional financial.ser#ices firm on all *treet. The financial.ser#ices industry is highly regulated by the U.*. *ecurities and "+change Commission. */U:C") $D)142 */U:C") L* 1A$ 41GCareers in the 6oney ,'. B Trade show. Trade shows usually are held for only a few days in con#ention centers or e+hibition halls in large cities. Trade shows feature the latest goods and related items in a s&ecific &roduct category! and are good sources of information that can contribute to &rofessional de#elo&ment. They often are held on an annual basis. A three.day e+hibition of com&uter e%ui&ment! software! and related goods is an e+am&le of a trade show. A central mar(et is a city where many ma<or su&&liers of a &roduct are located. A floor &lan is a layout or design for a s&ace. A warehouse club offers large %uantities of consumer items! usually at discounted &rices. */U:C") $D)0'7 */U:C") Burrow! M.1. I2007J. +arketin & )nstructor.s wra#around edition I2nd ed.J T&. 1='U. 6ason! /8) Thomson>*outh. estern.
Test 1022
2;
,-. B Certified Einancial $lanner ICE$J. 6any <urisdictions re%uire finance &rofessionals to obtain certification or licensure to &erform their <obs. Because "lise &erforms duties that in#ol#e financial &lanning! she is most li(ely to ha#e certification as a Certified Einancial $lanner ICE$J! which is a well.(nown certification &rogram in the financial industry. Ta+ s&ecialists obtain a CT* certification. 1oan officers obtain a C1/ certification. Business&eo&le who wor( as technical in#estment analysts obtain a C6T certification. */U:C") $D)0=2 */U:C") CondoBy/wner.com I200'J. Glossary. :etrie#ed *e&tember 24! 200,! from htt&)>>www.condobyowner.com>glossary.as& ,4. B *toc(bro(er. *toc(bro(ers are re%uired to obtain a license to trade securities. To obtain the license! stoc(bro(ers must ta(e and &ass the 0eneral *ecurities :egistered :e&resentati#e "+amination. Accountants obtain the Certified $ublic Accountant IC$AJ certificationN insurance underwriters obtain the Chartered 1ife Underwriter IC1UJ certificationN and estate &lanners obtain the Accredited "state $lanner IA"$J certification. */U:C") $D)0=2 */U:C") 6organ! ". I2007! August 21J. "ow to *ecome a stock *roker. :etrie#ed *e&tember 1,! 200,! from htt&)>>ezinearticles.com>58ow.To.Become.A.*toc(.Bro(erRidQ2;4,2; ,7. D Moining community organizations. By <oining community organizations! such as a local &rofessional or trade association! the local chamber of commerce! or Fiwanis Club! financial.ser#ices &rofessionals increase their o&&ortunity to networ( with others who li#e and wor( in the same region. Hetwor(ing is the e+change of information with others for the &ur&ose of &rofessional or business de#elo&ment or ad#ancement. Hetwor(ing can hel& financial.ser#ices &rofessionals to build new business relationshi&s! obtain referrals! and ac%uire leads to increase clientele. *ubmitting &ro&osals to web.based financial businesses and wor(ing with well.(nown securities firms do not necessarily hel& to build &rofessional finance relationshi&s at the local le#el. Einancial.ser#ices &rofessionals want to obtain referrals from others. */U:C") $D)14' */U:C") 6isner! 3. I2002! December 2'J. Want to /oin a networkin rou#? :etrie#ed *e&tember 1,! 200,! from htt&)>>www.entre&reneur.com>mar(eting>mar(etingideas>networ(ingcolumnisti#anmisner>articl e4=210.html ,;. A 3m&lement an ethics &rogram. Because em&loyees re&resent the business! their unethical beha#ior can negati#ely affect the business9s re&utation. 3f a business de#elo&s a &oor re&utation or &ublic image! customers may ta(e their business elsewhere. To reduce the ris( of a tarnished re&utation! the business should im&lement an ethics &rogram. An ethics &rogram might include ongoing ethics training! which &ro#ides continuous guidance for the em&loyees as to what constitutes ethical beha#ior on the <ob. The business should discourage fraudulent beha#ior! offer credit to customers who meet the business9s credit criteria! and maintain o&timal in#entory le#els so that the &roducts are a#ailable when customers need themN these actions &romote a &ositi#e &ublic image for the com&any. */U:C") :6)0-1 */U:C") 8ead! 0. I2004! EebruaryJ. Why link risk mana ement and ethics? :etrie#ed *e&tember 1,! 200, from htt&)>>www.irmi.com>e+&ert>articles>2004>head02.as&+ ,=. B Use com&uter &asswords. A business must ta(e &recautions to secure its clients9 confidential information. To reduce the ris( of unauthorized access to confidential information! businesses often assign com&uter &asswords to allow authorized em&loyees to #iew secured information. De#elo&ing a routing system! restricting digital signature o&tions! and limiting 3nternet use are not actions that will limit the accessibility of internal business information. */U:C") :6)0-2 */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&&. '4=.'4,J. *outh. estern Cengage 1earning.
Test 1022
2=
,,. C Conducting bac(u& &rocedures. Bac(u& &rocedures in#ol#e du&licating com&uter entries! records! and transactions on a regular basis and storing the du&licate files in a different location. By ha#ing bac(u& files! the business can retrie#e information that might be lost due to a com&uter crash! a &ower outage! or fire. "ncry&tion is the &rocess of transforming information into a secret code so that only the reci&ient can read it. An authorization &rocess is a way to limit the access to certain information. Using encry&tion techni%ues! im&lementing an authorization &rocess! and monitoring data.transmission rates are not ways in which a business can &rotect its com&uter data from loss due to fire or &ower outages. */U:C") :6)0-2 */U:C") 8alifa+ Business :eferral Hetwor(. In.d.J. 9ata *acku# is the *est data #rotection. :etrie#ed *e&tember 1,! 200,! from htt&)>>hbrn.ca>042,2007.htm 100. A :educe the chance of financial losses. Because ris( in#ol#es the &ossibility of loss! businesses must be diligent to control their le#els of ris(. Businesses can e+&erience financial losses in all areas of the businessGfrom &roduct recalls and &oor hiring selections to &oor credit &olicies and wor(&lace in<uries. Businesses can control their #arious ris(s by im&lementing a&&ro&riate business &olicies! training em&loyees! and ac%uiring ade%uate insurance co#erage. By controlling financial ris(! businesses can limit their debt IliabilitiesJ. hen businesses ha#e low debt! they increase the &otential to earn &rofit! which contributes to the well.being of society. Businesses increase their #isibility in the mar(et in different ways I&ositi#e and negati#eJ and are not always related to controlling their le#els of ris(. */U:C") :6)04= */U:C") Dlabay! 1.:.! R Burrow! M.1. I200=J. Business finance I&. '27J. 6ason! /8) *outh. estern Cengage 1earning.

A10 Fin Final-1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A10 Fin Final-1

Uploaded by

Copyright:

Available Formats

2009 DECA Ontario Regionals Test 1022

FINANCE CLUSTER EXAM

C. *toc(s D. 3nherited items

Co&yright ? 2010 by 6BA :esearch and Curriculum Center@! Columbus! /hio

2009 DECA Ontario Regionals Test 1022

FINANCE CLUSTER EXAM

C. du&licate internal records. D. u&date their databases.

C. insurable ris(s. D. uninsurable ris(s.

2009 DECA Ontario Regionals Test 1022

FINANCE CLUSTER EXAM

2009 DECA Ontario Regionals Test 1022 ';.

FINANCE CLUSTER EXAM

C. 0etting started early D. The rule of ;2

C. the annual re&ort. D. the cash flow statement.

2009 DECA Ontario Regionals Test 1022 -=.

FINANCE CLUSTER EXAM

4'. 6oney owed to the business is (nown as A. assets. B. e%uity. 4-.

C. accounts recei#able. D. accounts &ayable.

2009 DECA Ontario Regionals Test 1022

FINANCE CLUSTER EXAM

2009 DECA Ontario Regionals Test 1022 ;2.

FINANCE CLUSTER EXAM

C. cost less money. D. reduce a business9s ris(.

2009 DECA Ontario Regionals Test 1022

FINANCE CLUSTER EXAM

2009 DECA Ontario Regionals Test 1022 ,1.

FINANCE CLUSTER EXAM

2009 DECA Ontario Regionals Test 1022

FINANCE CLUSTER EXAM

Co&yright ? 2010 by 6BA :esearch and Curriculum Center@! Columbus! /hio

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

FINANCE CLUSTER EXAMKEY

You might also like