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Finance Cluster Exam
Terms in this set (100)
What group is often affected by administrative law?
A form of business ownership in which the owners own shares of stock is known as a
Financial managers who are legally responsible for their clients' investments must demonstrate fiduciary responsibility, which involves
acting in the best interest of their clients
Which of the following is an estate tax deduction?
A. Valuable art and collectibles left to children
B. Property passing directly to the surviving spouse
C. Charitable contributions that are unqualified
D. Money left to friends or distant relatives
Property passing directly to the surviving spouse
Colin bought 35 shares of stock at $23.50 per share and recently sold all of the stock for $53.00 per share. What type of tax will Colin pay?
The primary reason that financial-services businesses hire compliance officers is to
Ensure that the businesses are following industry regulations
What is an advantage to businesses of using virtual-auditor technology?
The continuous inspection of transactional data
A virtual auditor that determines inconsistencies and errors by examining data from multible financial systems is suing the _____ reasoning process.
Sometimes, the ability to follow directions is a skill that is necessary for survival. This is a ____ skill.
What is one way businesspeople can improve their active listening skills?
Asking questions during speakers' messages to reduce barriers
One reason business employees often use note cards when making oral presentations is because the cards help them to
Remember key points
A persuasive message that asks a person to do something should be written in a way that makes it easy for the person to
What is a characteristic of an effective informal business report?
A request made by an employee to a supervisor is an example of what type of communication?
What is likely to happen to employees who are discourteous to the customers?
They may be fired
Which of the difficult customer types may become your best and most loyal customer once they learn to trust you?
When providing services to clients financial professionals have the responsibility to supply
By using simple data-mining techniques to gather data from internal databases, businesses can often identify
A business selects specific characteristics about its customers and uses software to obtain data from its database, which will help the business identify, evaluate, and group its customers' buying behaviors. The business is using the ____ data-mining technique.
The law of demand states that as the price of a product increases, the demand for that product will
What is a characteristic of the organic organizational business structure?
What is true about private enterprises?
Individuals make economic choices
What factor that affects profit can be controlled by a business?
According to the law of diminishing returns, what is the result of more and more workers being added to the production process if all other factors remain unchanged?
Output will increase proportionately with each worker
Give an example of a country's trade deficit
Imports = $5 million, exports = $3 million
How can you let people know that you really are thinking about what they are saying?
By asking questions
To be considered a person with initiative you must
Demonstrate initiative on a regular basis
Evaluative information about you or your behavior is know as
An example of social change would be change in
Hair and clothing styles
What is one factor that determines a manager's credibility with employees?
Which of the following are characteristics of adaptable people?
Objectivity and attentiveness
How does empathy help coworkers to be fair to each other?
Coworkers with empathy are better able to understand others
Name three federal laws regulating the granting of credit:
1. Equal Credit Opportunity Act
2. Uniform Commercial Credit Code
3. Truth-in-Lending Act
The single most important aspect of making a financial plan and setting goals is
Getting started now
Which of the following factors influences the time value of money?
Compounding can be described as
Earning interest upon interest
The primary purpose of financial institutions is to help clients manage their money, and the primary purpose of insurance companies is to provide insurance projects that help clients ____ their ____.
Thad is investing in a money market, which buys and sells products such as
Recently, the Second-Fourth bank merged with the Wide World Insurance Company. This is an example of
A primary factor that has led to the consolidation of financial firms is the desire
To lower costs
In relation to the business cycle, the stock prices of non-cyclical industries tend to
Steadily decrease during the expansion phase
In the past 20 years, Country X has reformed its trade policies and currency exchange rate system. As a result, foreign investment is increasing, and the country's business activity and gross domestic product is rapidly growing. This is an example of a(n)
Emerging market economy
The section of the SEC website that houses companies' filings is called
What is true about hedge funds?
Investment options for hedge funds are limited in scope
On a stock table, net change shows you the difference between
The day's closing price and the previous day's price
If a stock price rises and falls sharply within a 52-week period, it is said to be
Bonding employees is a way of reducing _____ risk in business.
Which of the following is a reason why accurate accounting is important to business:
To maintain financial control
A business' cash flow statement for one month indicates cash sales of $4,275, credit sales of $2,960, shipping costs of $525, and fixed expenses of $2,380. Calculate the total cash receipts.
Which of the following is a characteristic of a profit-and-loss statement:
Summarizes expenses and revenue from sales
Which of the following business functions monitors and controls the firm's revenue and debt:
To be useful to businesses, financial information should be
Timely and understandable
Recommending corrective measures after identifying differences between budget projections and actual monies spent is considered a(n) _____ function in financial-information management.
A primary reason why businesses implement financial audit trails is to
Reduce risks associated with intentional data tampering
To protect the integrity of archived financial information, businesses might consider using different types of
An advantage to businesses that use master data management applications is the ____ of the data.
An important consideration for financial-services businesses that use data-mining techniques is the way the results are
To facilitate the long-term budgeting process, it is helpful for businesses to use budgeting software applications that allow them to
Which of the following financial analysis applications provides a business with information about its delinquent or aging customer accounts:
What financial analysis application does a business use to evaluate changes in its cash position from month to month?
If a business wants to separate a large SQUL server database table into separate file groups, it would use the ____ function.
The purpose of using the locking function for a database is to
Ensure that only one person can edit data fields
Because the Keller Company is a public corporation, it must provide its shareholders with accurate financial information in a(n)
A business that fails to provide accurate financial information in the required timeframe to a government agency may be subject to
The XTY Company is experiencing a cash-flow problem and is falling behind in paying its bills. It recently received payment on an invoice in the amount of $450 and wants to use it to pay its vendors. Review the following information and determine which vendor the company should pay first: Vendor A, $300, due in two weeks; Vendor B, $75, due five days ago, Vendor C, $325, due 30 days ago; Vendor D, $110, due in three days.
The AMB Company records its financial transactions at the time they occur, even if money is not exchanged. This is an example of a business using the ____ accounting system.
The financial accounting system is used to provide required financial reports to external audiences including
Stockholders and government agencies
As a financial analyst for the Webster Company, and important aspect of Jane's job is to monitor Webster's stock pries, as well as its competitors' stock prices. In the past several weeks, Jane has noted that the industry, in general, has experienced a steady decrease in stock prices. These falling prices indicate that economic conditions are headed toward a ____ market.
If a trend indicates that a business is making more money, the business is most likely to have identified the trend by comparing its ____ from previous time periods.
Before approving a loan application, a bank is likely to analyze the applicant's
A primary reason why businesspeople analyze financial variances is to
Which of the following is an example of a businessperson making a business decision by analyzing financial data
After reviewing sales forecasts and income statements, Angela determines that the company has enough money to hire a new employee
A commission or bonus is an example of a form of
How does the selling function of marketing benefit businesses?
Using a computer-generated slideshow to highlight product information would be most appropriate in which of the following business situations:
Project-team status meeting
Carson is a staff accountant and he needs to look at last year's tax return. However, he can't find it anywhere. Which information management guideline is not being followed in this situation?
Make sure that information is retrievable
Which of the following is a characteristic common to all integrated software packages:
Performs interrelated functions
Businesses that use computer software to track the customers' billing information and sales transactions create records about their customers'
What type of business record would provide a company with information about the movement of its products?
Statistical findings reveal that the Benson Company earned a 35% net profit on the funds it spent on a project. The statistics provided the Benson Company with information about the buisnesses'
Return on investment
Maintenance and repairs is an operations activity that includes
Who is responsible for reporting unsafe conditions or equipment that is not in good operating order?
When project managers prepare to-do lists and schedule activities, they are using ____ skills.
Which of the following marketing functions helps businesses to deliver quality products on time in order to satisfy customer needs:
A company that makes one speciality item at a time is using what type of production system?
Which of the following factors do businesses need to consider in order to make a profit even if their sales are good?
Personal appearance should be important to a businesses' employees because
Their image affects company image
Individuals are more likely to reach their personal goals if they have
Put their goals in writing
A member of a sales team said, "Our sales always decline this time of year. We just need to wait a few months until they pick up again." What barrier to creativity is the sales-team member exhibiting?
Limiting code of behavior
What do people usually take into consideration when identifying occupations that they want to pursue in life?
The job interviewer told Elizabeth at the end of the interview that he couldn't offer her the job because she lacked a particular skill that the job required. Elizabeth's next step should be to
Write the interviewer a follow-up letter
Essential qualifications for working in the financial-services industry include:
1. Good communication skills
2. Mathematical and analytical skills
3. The ability to speak a foreign-language
Successful bank managers and supervisors usually move up the career ladder as a result of beginning their employment as
To maintain their licensure, many finance professionals are required to participate in
Continuing education classes
Joining a professional organization is one way for financial planners to
Build business contacts
What is a potential negative consequence to a business that fails to manage risk by implementing and ethics training program for employees?
One way for a company to manage its risk in relation to its employees' workplace behavior is by
Encouraging employees to report workplace misconduct
Which of the following is a form of technology that businesses use to reduce the risk of robbery and theft within their facilities?
Which of the following is an internal activity that companies use to control their risk levels?
Accurate financial records
Managers need to be familiar with the latest technology, government regulations, innovations and trends within the industry, and competitors' activities. Which category of resource is this?
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