Question: Which of the following is a legally required fringe benefit that must be provided by employers with 50 or more employees within a radius of 75 miles of their home office?
Answer Choices: A. Alcohol and drug rehabilitation B. Auto insurance C. Family and medical leave D. Severance pay
Answer: C. Family and medical leave.
Question: Which of the following statements is a characteristic of an internal audit?
Answer Choices: A. It functions primarily as a service to management for the improvement of its financial controls. B. It furnishes the regulatory agencies with information on a company’s financial status and operations. C. It studies the basic operations of a company in order to identify problem areas. D. It employs an outside certified public accountant to verify the records and financial statements of a company.
Answer: A. It functions primarily as a service to management for the improvement of its financial controls.
Question: Which of the following helps increase the assets or decrease the liabilities of a company?
Answer Choices: A. Retained earnings B. Long‑term mortgages C. Accrued payables D. Inventories
Answer: A. Retained earnings.
Question: Linda, a customer‑service agent, was moved from the home‑appliances department to the fashion‑apparel department. Her job title and pay remained the same. This is an example of transferring.
Answer Choices: A. True B. False
Answer: A. True.
Question: Proficiency tests are used to assess if a candidate is able to meet minimum standards of mental alertness.
Answer Choices: True False
Answer: False.
Question: If a manager is a perfectionist, he or she does not need to delegate.
Answer Choices: True False
Answer: False.
Question: Receiving ordered goods and placing them in inventory are the last steps in the purchasing procedure.
Answer Choices: True False
Answer: True.
Question: What is the significance of a variable work schedule?
Answer Choices: A. It permits employees to work at times other than the standard five 8‑hour days. B. It allows employees to adapt to a standard working time while performing various kinds of work. C. It grants only minimal responsibilities to workers, leading to higher productivity. D. It ensures that workers carry out a variety of duties within a specific time span.
Answer: A. It permits employees to work at times other than the standard five 8‑hour days.
Question: How do quality circles motivate employees?
Answer Choices: A. By providing various kinds of financial incentives to employees on a regular basis B. By getting workers to do their work “right the first time,” thus generating pride in workmanship C. By getting employees involved and taking advantage of their creativity and innovativeness D. By providing employees with a fixed process to do their work
Answer: C. By getting employees involved and taking advantage of their creativity and innovativeness.
Question: Using internal sources for recruitment reduces a company’s stability.
Answer Choices: A. True B. False
Answer: B. False.
Question: What is the difference between a bonus and a commission?
Answer Choices: A. A bonus is a reward not specified in advance, whereas a commission is a reward of a given amount per sale. B. A bonus is a form of merit increases, whereas a commission is a form of incentive. C. A bonus is useful in rewarding door‑to‑door selling, whereas a commission is useful for rewarding on special occasions. D. A bonus is based on seniority, whereas a commission is based on contributions to a company’s profits.
Answer: A. A bonus is a reward not specified in advance, whereas a commission is a reward of a given amount per sale.
Question: Which of the following statements is true about communication?
Answer Choices: A. Employees generally disbelieve what the owner says, regardless of whether it is true or not. B. Messages of higher‑status people automatically tend to carry greater credibility than those of lower‑status people. C. Individuals in authority always listen to people who are closer to a problem rather than to other members of their team. D. The use of buzzwords facilitates effective communication.
Answer: B. Messages of higher‑status people automatically tend to carry greater credibility than those of lower‑status people.
Question: Which of the following is true of assigning responsibility for purchasing?
Answer Choices: A. Generally, one person should be given the overall purchasing responsibility. B. Generally, the authority to order should be with a team of experts. C. The person assigned the responsibility for purchasing should not ask for help. D. Responsibility for purchasing should not be assigned to the business owner.
Answer: A. Generally, one person should be given the overall purchasing responsibility.
Question: Which of the following is an advantage of cross‑training?
Answer Choices: A. It helps employees specialize in their area of work. B. It is the most effective way to increase employee attrition. C. It is most effective for young people who cannot finish a high‑school program. D. It is an effective way to keep workers more interested in their jobs.
Answer: D. It is an effective way to keep workers more interested in their jobs.
Question: Which of the following is an example of a current liability?
Answer Choices: A. Accounts payable B. Prepaid expenses C. Inventory D. Mortgage payable
Answer: A. Accounts payable.
Question: Most small businesses are successful in purchasing when they use a single source of supply.
Answer Choices: True False
Answer: False.
Question: Working capital equals current assets minus current liabilities. (True/False)
Answer Choices: True False
Answer: True
Question: Retained earnings help a firm by:
Answer Choices: Increasing assets / reducing liabilities Increasing long‑term mortgages Increasing accrued payables Increasing inventories
Answer: Increasing assets (or decreasing liabilities).