BHS 2017 Sample Finance Exam

Master-Servant Relationship (BL:072)

The amount of control a principal (employer/client) has over an agent (employee/attorney).

Factors that determine a Master-Servant Relationship (BL:072)

Nature of agent’s work, level of agent’s control, and agent’s level of supervision (in law)

Private Enterprise (BL:003)

An economic system where individuals and groups (instead of government) own or control the means of production

Contextual Reasoning (BL:149)

Used to consider each financial transaction’s circumstances and how they compare to historical patterns in the system.

Cross-Source Reasoning (BL:149)

Used to compare financial transactions and processes in multiple financial systems

Revising Stage (Writing Process) (CO:089)

Making bigger changes in writing, rearranging/removing whole sections of writing

Editing Stage (Writing Process) (CO:089)

Giving words/sentences a closer look (ex. changing grammar or word choice)

Shopping Goods (EC:002)

Consumer products purchased by consumers after comparing products and stores to get the best quality/price/service.

Convenience Goods (EC:002)

Goods purchased quickly and without much thought/effort

Pure Risks (EC:011)

Risks that end in loss or no loss

Speculative Risk (EC:011)

Risks that end with loss, no loss, or gain

Classical Theory of Unemployment (EC:082)

The best solution for unemployment is to cut wages

Absolute Advantage (EC:016)

When a nation can produce a product for less than other nations

Comparative Advantage (EC:016)

When a nation specializes and produces goods and services at it’s most efficient

Wholly Earned Subsidiary (EC:066)

A separate legal entity 100% owned and controlled by a parent company

Joint Venture/Strategic Alliances (EC:066)

Arrangement of 2+ business for a short tern relationship by combinding complementary resources (tech/skill/capital/distribution channels) for the benefit of all parties

Franchise (EC:066)

A contractual agreement between a parent company and franchisee (separate entity/company) to distribute the parent company’s goods or services

Independent Trade Intermediary (EC:066)

An independent professional/entity used to move goods/services or facilitate transactions between producers and consumers

Quality Circle (EI:045)

A problem-solving group of coworkers given work situations or problems to study/discuss in order to reccoment solutions to management

Standing Commitee (EI:045)

Works together for a common purpose over a long period of time (ex. 3 years)

Short-Term Commitee (EI:045)

An commitee that works together for an immediate goal

Product Team (EI:045)

Consists of individuals who work together to develop/improve and/or market a product.

Revolving Credit Plan (FI:002)

A credit plan that allows customers to make purchases that are within their credit limit and pay all/part of the balance due each month

Budget Credit Plan (FI:002)

A short-term credit plan (2-3 months)

Open/Account Credit Plan (FI:002)

Regular credit plan requiring payment in full at the end of each credit period

Coupon Credit Plan (FI:002)

Issues coupons to be paid over a period of time and to be used by customers in making purchases

Payments Subtracted from Checkbook (FI:070)

Transaction fees (for checking accounts)

Items Added to Checkbook (FI:070)

Accumulated interest and payroll deposits

Investment Banks (FI:336)

Locates outside sources of money for firms. Helps firms raise funds by issuing securities (stocks and bonds)

Investment Company (FI:336)

Pools investors’ funds and invests the funds based on the needs of the investors

EDGAR (FI:274)

The section of the SEC website that houses companies’ filings: Electronic Data Gathering and Retrieval

Items represented on a Statement of Changers in Owner’s Equity document (FI:630)

New investments, widthdrawals (by the owner), net income or loss (by the business)

Incremental (Marginal/Differential) Analysis (FI:659)

Used to analyze financial information needed for decision making; studying the revenues/costs of alternatives.

Trade-Off Analysis (FI:659)

Is conducted after a company has identified a range of options for addressing operations issues

Fishbone Analysis (FI:659)

A graphic tool used to explore effects and the causes that create or contribute to those effects

Budget Analysis (FI:662)

General overview of variances in projections without causes/details

Standard Cost Analysis (FI:662)

Shows details and causes of variances in projections

Managerial Accounting (FI:657)

Obtaining and analyzing financial data so the business can make decisions on how to operate the business.

Analyzes costs in relation to profit to make decisions about which products to produce and sell

Financial Accounting (FI:657)

Preparing information for external users

Request for Proposal (NF:080)

An invitation for potential vendors to present bids to obtain a contract and perform the work. Includes specific info/detailed instructions about how it should be written. Requires usually a summary of qualifications.

What and why a Business Holds Vendor’s Information (NF:014)

A busines holds vendor’s pricing, delivery terms, and credit policies to award purchasing contracts.

What Information Government Websites post about Jobs (PD:022)

Provides information about employment trends, general job responsibilities, salary ranges, number of workers in the field, employment outlook, etc.

Networking (PD:037)

An effort to connect with individuals who might help an individual to accomplish personal career and professional goals

Board of Directors (PD:214)

Represents the shareholders

Underwriters (RM:041)

Assess the risks of insuring an applicant and approve compensation for loss under the terms of an insurance policy