BMGT 110 F

Final

For a given period, a business is unprofitable when total cost+expenses are greater than:

total revenue

All of the following are categories of the income statement except:

Gross Gains

This is one of the main 5 categories we discusses on the income statement

Gross profit

on the supply and demand curve, the supply is —— sloping, while the demand curve is —— sloping

upward, downward

On the supply and demand curve, price is on the y-axis, while —— is on the x-axis

Both B and C (quantity demanded, quantity supplied)

Fiscal policy is the federal governments policy regarding

I only (Taxes and government spending)

unlike cash-based accounting, Accrual based accounting:

both I and II (recognizes revenue when the product/service is provided to the customer and Accrues costs and expenses when the business uses things)

when we discusses leadership and motivation, we did not TALK about this person

Michael Porter

when faced with a potentially unethical action, this was not one of the 3 gut check questions we might ask ourselves:

is this equitable ?

Measurement and analysis of gross domestic product, consumer price index, and the unemployment rate are all primarily employed in the study of:

Macroeconomics

GDP growth can be influenced by

All of the Above (capital, labor, technology and skills, productivity)

Illegal things cannot be ethical and legal things cannot be unethical

false

A vast majority of the companies in the USA are private (rather than public)

true

The two most important characteristics in forms of ownership include

tax and liability protection

the studies conducted by Elton Mayo led to the conclusion that “people behave differently when they know they are being studied.” Mayo’s discovery is termed:

Hawthorne Effect

According to Maslow, esteem needs can be achieved without first achieving physiological needs

false

Using threats and intimidation to motivate employees who need extrinsic motivation is consistent with which McGregor management approach?

Theory X

The job enrichment and job enlargement techniques of motivation are both supported by

Both I and II (Mazlow’s Hierarchy of Needs, and Herzberg’s motivating factors)

when thinking about how citizens pay —- in the United States, the system is designed in a way that as you make more money, you will pay both a higher dollar amount and be in a higher —- tier.

—

The US corporate tax rate is approximately 30% and tends to be higher than most EUropean countries

False

Entrepreneurship is innate

False

A Limited Liability corporation taxed as a sole proprietorship enables a business owner to get the benefits of pass - through taxation, while also enjoying the risk protection of a corporation.

True

When I liquidate a company, I am selling the assets to pay off the liabilities. Thereafter, the proceeds belong to the equity holders

true

Businesses recognize revenue on the income statement when the service or product is rendered

True

Accrued expenses might appear on the balance sheet as

accounts payable

the equation “assets = liability + owners equity” is

II only (the fundamental balance sheet equation)

what financial statement is a “snapshot of the business” at a specific point in time:

balance sheet

which of the following is NOT a major component of the statement of cash flow:

Exchanging

which of the following describes the ease at which an asset can be converted to cash

liquidity

Gross profit is equal to revenue from sales minus:

Cost of goods soldand other direct costs associated with production.

while private companies pay distributions to shareholders, similarly, public companies pay — to shareholders

dividends

In a law firm providing lawyer services to their clients, the billable hours of the attorneys would be counted as cost of goods sold

true

Time and Money are the two biggest things that entrepreneurs risk when beginning a venture

True

What federal agency regulates the New York Stock Exchange?

Securities and Exchange Commission

The Break-even point formula is: BEP= — / ( Marginal Revenue - Marginal Costs) What is the numerator?

Total Fixed expenses

Assume for my company, each unit I sell is priced at $50, my fixed expenses are $100, and my marginal cost is $25. What is my gross profit?

$25

Assume for my company, each unit I sell is priced at $50, my fixed expenses are $100, and my marginal cost is $25. What is my break even point in units?

4 units

The working capital in a business involves the relationship between accounts receivable and

accounts payableand current liabilities.

assets on the balance sheet come in many varieties. Some assets are cash, others are promises, land, gear, intellectual property, and goodwill.

True

The consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of consumer goods. The CPI is considered to be a metric to assess inflation/deflation

true

One of the tenets of free-market capitalism is that the marketplace set prices, based on the supply and demand curves equilibrium point

True

In our class, we took a self-test to examine our own ethical codes. We primarily were determining our ethic of “justice vs care.”

True

In our class we learned that on the demand curve different people had a different “WTP” for certain products. WTP stands for:

willingness to pay

If I am a company producing a product, I am very interested in knowing each customers WTP. If possible I would like to charge each customer a prices as close to the WTP as possible.

True

If I am a consumer buying a product, my WTP is always the same regardless of the time of day, day of the year, the weather outside, etc.

false

If I am a consumer buying a product, and my WTP is less than the price then I will not buy the product

true

As discussed in class, consistency is a desirable trait for leaders, in that they should try to be a consistent version of themselves as situations or circumstances change

false

Based on total global wealth and the total global population the mathematical majority of rational humans should vote for wealth redistribution

true

one of the arguments against wealth re-distribution, as shown in communist Russia, is the erosion of incentives.

true

The United states is a mixed economy, utilizing some principles of free-market capitalism and some principles of socialism

True

customer acquisition cost formula

sales+advertising+marketing/# of customers in a month

CAC ration

spend 1 dollar in customer acquisition cost, you get at least 5 dollars of lifetime value