BA 101 (2nd Midterm)

Current Ratio
current assets/ current liabilities
In the most general form, a partnership is created when two or more individuals agree to create a business and jointly own the assets, be responsible for the liabilities, and to share both the profits and the losses. There are many different ways to structure a partnership, and you can limit a partner's "participation" (and their liability) in the partnership agreement.
The laws by which the corporation is run; general guidelines for managing a firm
Domestic Corporation
Operates in the state in which it was incorprated
Foreign Corporation
Incorporated in one state but has operations in another, and there fore the other state considers it a foreign corporation
Alien Corporation
Incorporated in one state but has operations in another country, and there fore the other country considers it a foreign corporation
Also referred to earnings or net income
A monopoly is a market with only one:
Anything owned by the firm
The income the firm provides to its owners, or shareholders, based on profits
Gross margin
Revenue left after deducting direct labor, raw materials, and depreciation expressed as a percentage of sales.
Growth Rate
Annual compound rate at which unit demand will grow.
Labor cost
The per-unit cost of labor in the year just ended.
Sole Proprietorship
The sole proprietor is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self contractors or business owners.
Limited liability compnay
a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
A civil wrong inflicted on others or their property.
calculation for ROS
Net Income/ total sales
calculation for ROA
Net Income/ total assets
calculation for ROE
Net Income/ Owners equity
Which of the following factors is most responsible for the high price of tickets in strong sports markets?
Strong Demand
Violations of the Clean Air Act are enforced by the:
Environmental Protection Agency (EPA)
Chris and Kelly want to open a business in the most efficient way possible with the least interference from government regulation. Which choice might they consider as the most attractive?
Partnership or Limited Liability Company
A Limited Liability Company (LLC) is an attractive choice for many business owners because it offers:
key advantages of a corporation and the simplicity of a partnership.
Which stockholders usually have the right to vote for the board of directors?
common stockholders
Which company created the most profit on each dollar of sales?
Look at net profit
Organizing may be described as
Arranging the organizations resources and activities in a way so it's possible to accomplish the plan.
Using the Round 2 FastTrack Stock Table (page 2), which company has sold the fewest shares of stock?
Look at Shares under stock market summary
A father of four told the Boston Globe he often turns down free sports tickets because he still walks out $100 lighter after paying for all the extras. His reluctance is based on:
the high price of complementary products
A common business relationship created when one person acts on behalf of another and under that person's control is called:
A purposeful unlawful act to deceive or manipulate in order to damage others is called:
Although the Federal Trade Commission regulates a variety of business practices, it allocates a large portion of
resources to curbing:
false and deceptive advertising and promotion
Which of the following was the primary purpose of the Sarbanes-Oxley Act?
Establishes new and enhanced standards with stricter requirements for corporations
What are some opposing views to corporate policies govern ethical conduct?
Ethics cannot be mandated and a business is not a "mini-state" or a platform for social justice
What business entity requires the owner to perform the most functions and possess the broadest range of skills to manage the business?
Sole Proprietorship
What is one of the disadvantages of a partnership?
mutual agency
Based on experiences and evidence to date, the effectiveness of the ethics officers is:
Using the Cash Flow Statement (posted on Blackboard and the one used in class) which company issued stock this year?
Sales of common stock
What ratio measures how much profit was created for each share of stock?
Earnings Per Share
What ratio measure how much profit was created with owner's investments?
Return on Equity
Bondholders are_____of a corporation
What ratio measures how much profit was created for each share of stock?
Earnings Per Share
The money a team spends on an electronic scoreboard represents
A capital investment
Markets develop when:
buyers and sellers freely come into contact with one another
A form of dispute resolution where the parties submit their case to a neutral third party that acts somewhat like a judge is:
From the in-class video, which is also available on Blackboard, what is Second Chance's pricing strategy?
Second Chance offers three types of vests with three distinct price points
In which sport do specialization and division of labor matter the least
Figure Skating