Choose the best answer.

Question

Meeting _____ are the instant recording of verbal exchanges during meetings.

seconds

minutes

recordings

verbatim
2.
Choose the best answer.

Transactions between two companies are known as _____, whereas transactions between a company and an end user are known as _____.

B2D; B2C

B2C; B2B

B2B; B3D

B2B; B2C
3.
Choose the best answer.

_____ are financial obligations or debts owed by an organization to another entity.

Returns

Obligations

Liabilities

Revenues
4.
Choose the best answer.

Finish the return on assets equation.

return on assets =_____ / total assets

daily sales

liabilities

costs

annual revenue
5.
Choose Income if the example is found on an Income statement or Balance if the example is found on a Balance sheet.

shareholders’ equity

revenue

current assets

operating expenses

liabilities

nonoperating expenses

6.
Choose the best answer.

A _____ is any business document that highlights a business dealing.

business minute

business type

business record

none of these
7.
Choose the best answer.

The sale or liquidation of an asset is an example of a(n) _____.

operating expense

operating revenue

nonoperating expense

nonoperating revenue
8.
Choose the best answer.

_____ are debts owed in full within one year of issuance.

Short-term receivables

Long-term receivables

Long-term liabilities

Short-term liabilities
9.
Match the descriptions with the environmental scanning components. Answers may be used more than once.

includes examining government laws and regulations

includes exploring the potential threats of other companies

involves honesty when thinking about what one could have done better

answers the question, “What are the greatest strengths of our competitors?”

includes examining consumer habits

answers the question, “Where are we underperforming and why?”

10.
Choose the best answer.

Using the balance sheet equation, determine the shareholders’ equity if a firm has $550 million in assets and $200 million in liabilities.

$300 million

$250 million

$150 million

$350 million
11.
Match the descriptions with the ratio types.

measures a company’s financial leverage by dividing its total liabilities by its shareholders’ equity

represents a company’s ability to repay its debt, but more slowly, including having to first liquidate inventory

helps an organization determine its ability to meet its financial obligations without liquidating its inventory

12.
Choose the best answer.

The sale of a company’s primary good is known as a(n) _____.

operating revenue

nonoperating expense

operating expense

nonoperating expense
13.
Choose the best answer.

_____ are debts owed in full within one year or more of issuance.

Short-term receivables

Long-term receivables

Short-term liabilities

Long-term liabilities
14.
Choose the best answer.

_____ is a dollar value that represents the total net value of an organization.

Shareholders’ worth

Shareholders’ net gain

Shareholders’ exchange

Shareholders’ equity
15.
Choose the best answer.

Which of these is a legal document used to establish a company as a corporation in the United States?

meeting minutes

articles of incorporation

articles of liability

legal compliance documentation
16.
Choose the best answer.

A downsizing manufacturing company selling off an old plant is an example of _____.

acquisition

accounts receivable

asset-dissolving

liquidation
17.
Choose the best answer.

Which of these is a competitive strategy in which a company tries to earn customer business by having the highest quality products compared to competitors?

profit leader

quality leader

margin leader

cost leader
18.
Choose the best answer.

The management of _____ and _____ are the two biggest internal reasons business records are utilized.

people; groups

teams; groups

business processes; groups

people; business processes
19.
Choose the best answer.

Which of these is the activity of keeping records of financial business dealings?

bookkeeping

record categorizing

business logging

none of these
20.
Choose the best answer.

_____ is money received on a regular basis through business dealings like the selling of goods and services.

Bookkeeping

Liquidation

Income

all of these
21.
Choose the best answer.

Which of these is a competitive strategy in which a company tries to earn customer business by having the lowest prices compared to competitors?

profit leader

quality leader

price leader

cost leader

Answer 1

Here are the best answers to each question:

1. minutes
2. B2B; B2C
3. Liabilities
4. annual revenue
5. • shareholders’ equity - Balance
   • revenue - Income
   • current assets - Balance
   • operating expenses - Income
   • liabilities - Balance
   • nonoperating expenses - Income
6. business record
7. nonoperating revenue
8. Short-term liabilities
9. • includes examining government laws and regulations - External
   • includes exploring the potential threats of other companies - External
   • involves honesty when thinking about what one could have done better - Internal
   • answers the question, “What are the greatest strengths of our competitors?” - External
   • includes examining consumer habits - External
   • answers the question, “Where are we underperforming and why?” - Internal
10. $350 million (Assets - Liabilities = Shareholders' Equity → $550 million - $200 million = $350 million)

• measures a company’s financial leverage by dividing its total liabilities by its shareholders’ equity - Leverage ratio
• represents a company’s ability to repay its debt, but more slowly, including having to first liquidate inventory - Working capital ratio
• helps an organization determine its ability to meet its financial obligations without liquidating its inventory - Current ratio

12. operating revenue
13. Long-term liabilities
14. Shareholders’ equity
15. articles of incorporation
16. liquidation
17. quality leader
18. people; business processes
19. bookkeeping
20. Income
21. cost leader