QUESTION Open book management improves employees’ quality of life because A) it creates a work environment characterized by reduced stress. B) it ensures employees a steady paycheck. C) it enables employees to buy higher-quality goods and services. D) it frees employees from having to contribute ideas for improving the company’s performance. ANSWER A
QUESTION The “bottom line” is A) the lowest possible revenue a company can earn without having to declare bankruptcy. B) the final decision a CEO makes regarding whether to sell the company or divest a division. C) an accounting calculation that figures out a company’s financial performance based on net profit. D) an equation showing […]
QUESTION Which of the following is a well-stated business goal? A) “Strengthen our ability to manufacture products without error.” B) “Enhance morale and engagement throughout our workforce.” C) “Improve our ability to innovate new products and services.” D) “Increase revenues twofold by the end of the fiscal year.” ANSWER D
QUESTION In a company using open book management, which of the following incentives would likely motivate the majority of employees to improve their performance? A) vacations to resorts on distant, exotic locations B) gift certificates to local cultural and sports events C) a profit-sharing or equity-sharing program D) a bonus check that is a specific […]
QUESTION Financial statements help managers and employees A) understand their company’s previous, current, and possibly future performance. B) improve their standard of living but not their quality of life. C) select other companies that may be worth investing in. D) distinguish differences between their company’s and rival companies’ offerings. ANSWER A
QUESTION Which of the following are NOT reflected in a company’s cash flow statement? A) purchases of office supplies needed by the business B) payments from customers for products C) monies the company owes investors D) rent checks from a property the company is subleasing. ANSWER C
QUESTION You are comparing cash flow statements for your business from the current month and the previous month. Which of the following would you be able to figure out? A) what denominations the business’s cash is in B) whether the business has cash C) how much cash the business has D) whether the business has […]
QUESTION A company can still have cash flow problems if it is profitable. Indicate whether the statement is true or false ANSWER FALSE
QUESTION Which of the following is at issue between Marquand and Stevenson? A) whether online selling is an important factor in business today B) whether information technology has made a significant difference to businesses C) whether doing business is significantly helped by online communications D) what the most important effect of information technology has been […]
QUESTION Which of the following is NOT a financial statement? A) cash flow statement B) general ledger C) income statement D) balance sheet ANSWER B
