11) The standards and rules that are recognized as a general guide for financial

reporting are called __________.

A. generally accepted accounting principles
B. standards of financial reporting
C. generally accepted accounting standards
D. operating guidelines
12) Sam's Used Cars uses the specific identification method of costing inentory.
!uring "arch# Sam purchased three cars for $%#&&&# $'#(&&# and $)#'(&# respectiely.
!uring "arch# t*o cars are sold for $)#&&& each. Sam determines that at "arch +1#
the $)#'(& car is still on hand. ,hat is Sam-s gross profit for "arch.
A. $/#(&&
B. $8,250
C. $5,250
D. $750
1+) 0f the follo*ing companies# *hich one *ould not li1ely employ the specific
identification method for inentory costing.
A. Farm implement dealersip
2. 3ard*are store
C. !usic store speciali"ing in organ sales
D. Anti#ue sop
1/) The ma4or reporting standard for management accounts is __________.
A. te $ar%anes&'(ley Act of 2002
B. generally accepted accounting principles
C. the Standards of 5thical Conduct for 6ractitioners of "anagement Accounting and
7inancial "anagement
D. rele)ance to decisions
1() 8n computing 9!6# mar1et prices are used to alue final goods and serices
:ecause __________.
A. mar*et prices do not cange muc o)er time, so it is easy to ma*e comparisons
%et+een years
B. !ar*et prices are not used in computing ,D-
C. mar1et prices reflect the alues of goods and serices
D. if mar*et prices are out of line +it o+ people )alue goods, te go)ernment sets price
ceilings and price floors
1%) ,hen a firm sells a good or a serice# the sale contri:utes to the nation-s income
__________.
A. only if te %uyer of te good or ser)ice is a ouseold or anoter firm
B. .e a)e to *no+ +eter te item %eing sold is a good or a ser)ice in order to ans+er
te #uestion
C. only if te %uyer of te good or ser)ice is a ouseold
!. *hether the :uyer of the good or a serice is a household# another firm# or the
goernment
1') The general term for mar1et structures that fall some*here in;:et*een monopoly
and perfect competition is __________.
A. imperfectly competitie mar1ets
B. incomplete mar*ets
C. oligopoly mar*ets
D. monopolistically competiti)e mar*ets
1<) 7or a college student *ho *ishes to calculate the true costs of going to college#
the costs of room and :oard __________.
A. should :e counted only to the e=tent that they are more e=pensie at college than
else*here
B. sould %e counted in full, regardless of te costs of eating and sleeping else+ere
C. usually e(ceed te opportunity cost of going to college
D. plus te cost of tuition, e#uals te opportunity cost of going to college
1)) A rational decision ma1er __________.
A. ignores te li*ely effects of go)ernment policies +en e or se ma*es coices
B. ignores marginal canges and focuses instead on /te %ig picture0
C. ta1es an action only if the marginal :enefit of that action e=ceeds the marginal
cost of that action
D. ta*es an action only if te com%ined %enefits of tat action and pre)ious actions e(ceed
te com%ined costs of tat action and pre)ious actions
2&) To moe the allocation of resources closer to the social optimum# policyma1ers
should typically try to induce firms in an oligopoly to __________.
A. form )arious degrees of cartels
B. collude +it eac oter
C. compete rather than cooperate *ith each other
D. cooperate rater tan compete +it eac oter
21) "aurice receies $1&& as a :irthday gift. 8n deciding ho* to spend the money# he
narro*s his options do*n to four choices> 0ption A# 0ption 2# 0ption C# and 0ption
!. 5ach option costs $1&&. 7inally he decides on 0ption 2. The opportunity cost of
this decision is __________.
A. te )alue to !aurice of 'ptions A, C and D com%ined
2. the alue to "aurice of the option he *ould hae chosen had 0ption 2 not :een
aaila:le
C. $100
D. $200
22) 8n the mar1et for foreign;currency e=change in the open economy
macroeconomic model# the amount of net capital outflo* represents the ?uantity of
dollars __________.
A. supplied for the purpose of :uying assets a:road
B. supplied for te purpose of selling assets domestically
C. demanded for te purpose of %uying 3.$. net e(ports of goods and ser)ices
D. demanded for te purpose of importing foreign goods and ser)ices
2+) Consider t*o items that might :e included in 9!6> @1) The estimated rental alue
of o*ner;occupied housingA and @2) purchases of ne*ly;constructed homes. 3o* are
these t*o items accounted for *hen 9!6 is calculated.
A. 8tem @1) is included in the consumption component# *hile item @2) is included in
the inestment component.
B. 4tem 516 is included in te in)estment component, +ile item 526 is included in te
consumption component.
C. 'nly item 526 is included in ,D- and it is included in te in)estment component.
D. Bot item 516 and item 526 are included in te consumption component of ,D-.
2/) 5d*ard 6rescott and 7inn Bydland *on the Co:el 6rize in 5conomics in 2&&/.
0ne of their contri:utions *as to argue that if a central :an1 could conince people
to e=pect zero inflation# then the 7ed *ould :e tempted to raise output :y increasing
inflation. This possi:ility is 1no*n as __________.
A. te monetary policy reaction lag
2. the time inconsistency of policy
C. te sacrifice ratio dilemma
D. inflation targeting
2() 8n the open;economy macroeconomic model# other things the same# a decrease
in the interest rate shifts __________.
A. te demand for dollars in te mar*et for foreign&currency e(cange to te left
2. the supply of dollars in the mar1et for foreign;currency e=change to the right
C. te supply of dollars in te mar*et for foreign&currency e(cange to te left
D. te demand for dollars in te mar*et for foreign&currency e(cange to te rigt
2%) 8n general# the longest lag for __________.
A. %ot fiscal and monetary policy is te time it ta*es for policy to affect aggregate demand
B. monetary policy is te time it ta*es to cange policy, +ile for fiscal policy te longest lag
is te time it ta*es for policy to affect aggregate demand
C. fiscal policy is the time it ta1es to change policy# *hile for monetary policy the
longest lag is the time it ta1es for policy to affect aggregate demand
D. %ot fiscal and monetary policy is te time it ta*es to cange policy
2') Deal 9!6 __________.
A. ealuates current production at the prices that preailed in some specific year in
the past.
B. is not a )alid measure of te economy7s performance, since prices cange from year to
year.
C. is a measure of te )alue of goods only8 it e(cludes te )alue of ser)ices.
D. e)aluates current production at current prices.
2<) 3aing indiiduals actually do the 4o: they are applying for as a test to see if they
can do it is __________.
A. an informal means of screening candidates
B. a formal means of screening candidates
C. an approac +it ig relia%ility
D. an approac +it lo+ relia%ility
5. an approach *ith high face alidity
2)) 2uilding a dynamic organization is another *ay of descri:ing *hich function of
management.
A. 9eading
B. $taffing
C. Controlling
D. -lanning
5. 0rganizing
+&) To :e competitie in a glo:al economy# 5uropeans must increase their leel of>
A. :spionage acti)ity
B. Financial su%sidy
C. -ilantropic contri%utions
D. -opulation density
5. 6roductiity
+1) The term used to refer to all 1inds of differences including religious affiliation#
age# disa:ility status# economic class and lifestyle in addition to gender# race#
ethnicity and nationality is>
A. $election
B. !anagerial etics
C. ;ecruiting
!. !iersity
:. :mployment
+2) Se:astian Sta:ilio 4ust 4oined a team of people from throughout his organization
*hose primary tas1 is to recommend alua:le uses for the scrap generated in the
manufacturing process. The team meets t*ice per *ee1A other*ise mem:ers *or1
*ithin the usual organizational structure. The team# not permanent# *hich Se:astian
has 4oined# *ould :e considered a>
A. -ro<ect group
2. 6arallel team
C. -ro<ect team
D. .or* team
:. .or*ing group
++) An inisi:le :arrier that ma1es it difficult for certain groups# such as minorities
and *omen# to moe :eyond a certain leel in the organizational hierarchy is referred
to as the>
A. =o% enricment teory
B. ,lass floor
C. =o% enlargement concept
D. Blac* %o( teory
5. 9lass ceiling
+/) Eour roommate is interested in starting a :usiness and eery:ody has :een
giing him different information a:out :eing an entrepreneur. Since you hae :een
studying a:out entrepreneurship and ne* entures# *hich of these *ould you tell
him is true.
A. !oney sould not %e considered a start&up ingredient
B. Anyone can start a %usiness
C. All entrepreneurs need )enture capital in order to get started
!. Successful entrepreneurs ta1e ery careful# calculated ris1s
:. :ntrepreneurs are teir o+n %osses and completely independent
+() Teams that *or1 on long;term pro4ects :ut dis:and once the *or1 is completed
are 1no*n as>
A. >raditional +or* groups
B. -arallel teams
C. >ransnational teams
!. 6ro4ect and deelopment teams
:. !anagement teams
+%) The most dominant areas in the glo:al economy include>
A. ?ort America, $out America and .estern :urope
2. Corth America# ,estern 5urope and Asia
C. .estern :urope, Asia and Africa
D. ?ort America, Asia and Africa
:. ?ort America, !e(ico and Asia
+') As related to managing of human resources# diersity refers to>
A. !ifferences in demographics @such as age# race# gender# disa:ility status# lifestyle#
eteran status# educational leel# etc.)
B. Differences in employee %enefit plans 5suc as pensions, insurance, )acations,
mem%ersips, etc.6
C. Differences in retention strategies 5suc as training, iring, incenti)es, etc6
D. Differences in pay metods 5suc as ourly, salaried, o)ertime, a"ard&pay,
commissioned, etc.6
:. Differences in recruiting metods 5suc as ne+spapers, scools, flyers, maga"ines,
agencies, etc.6
+<) ,hich of the follo*ing has proen to :e a particularly good predictor for 4o:s that
re?uire cognitie comple=ity.
A. +or* sampling
2. intelligence tests
C. %ea)ioral assessment
D. aptitude tests
:. integrity e)aluations
+)) "anagers *ill utilize __________ s1ills *ith increasing fre?uency as they rise
*ithin an organization.
A. >ecnical
2. Conceptual and decision
C. -rofessional
D. -rofessional
:. 4nterpersonal and communication
/&) The pursuit of lucratie opportunities :y enterprising indiiduals is called>
A. Business incu%ating
B. 4ntrapreneursip
C. $ocial e(perimentation
!. 5ntrepreneurship
:. 4ndependence
/1) An organization that is managed aggressiely and has gro*th and high profits as
primary o:4ecties may :e considered a@n)>
A. $mall %usiness
2. Farge corporation
C. 'nline Business
D. !ultinational corporation
:. :ntrepreneursip )enture
/2) 8n a right;tail test# a statistician came up *ith a z test statistic of 1./%). ,hat is the
p;alue.
A. .&'&<
B. .087@
C. .@2A2
D. .0201
/+) T*ele randomly;chosen students *ere as1ed ho* many times they had missed
class during a certain semester# *ith this result> 2# 1# (# 1# 1# +# /# +# 1# 1# (# 1<. 7or this
sample# the median is _____.
A. 2
B. 2.5
C. 2
!. 2.(
//) 8n a random sample of <1& *omen employees# it is found that <1 *ould prefer
*or1ing for a female :oss. The *idth of the )(G confidence interal for the
proportion of *omen *ho prefer a female :oss is _____.
A. B .0105
B. B .01AC
C. B .0288
!. H .&2&'
/() To estimate the aerage annual e=penses of students on :oo1s and class
materials a sample of size +% is ta1en. The aerage is $<(& and the standard deiation
is $(/. A ))G confidence interal for the population mean is __________.
A. $822.2C to $8C7.C@
B. $82C.82 to $872.18
C. $822.72 to $87C.28
!. $<2(./< to $<'/.(2
/%) Use the follo*ing ta:le to ans*er ?uestion>
6@S I ,) is appro=imately _____.
A. .@0
2. .+&
C. .58
D. .12
/') Use the follo*ing ta:le to ans*er ?uestion>
Are Serice proider and county independent eents.
A. Co
B. 4nsufficient information to determine
C. Des
/<) 8n a net*or1 diagram# an actiity>
A. sould al+ays %e someting te company as ad e(perience +it.
B. must al+ays a)e a single, precise estimate for te time duration.
C. is te largest unit of +or* effort consuming %ot time and resources tat a pro<ect
manager can scedule and control.
!. is the smallest unit of *or1 effort consuming :oth time and resources that a
pro4ect manager can schedule and control.
/)) ,hich one of the follo*ing statements concerning production and staffing plans
is :est.
A. -roduction plans are %ased primarily on information from te master production plan.
B. A master production scedule is a pro<ected statement of income, costs, and profits.
C. Aggregation can :e performed along three dimensions> product families# la:or#
and time.
D. A staffing plan is te intermediate lin* %et+een te %usiness plan and te master
production scedule.
(&) ,hich one of the follo*ing statements concerning production and staffing plans
is :est.
A. .en production and staffing plans are made, aggregation can %e performed only along
t+o dimensionsE products and time.
B. >e impact of production and staffing plans cuts across se)eral functional areas of te
firm.
C. 6roduction and staffing plans specify production rates# *or1force leels# and
inentory holdings# :ut do not account for capacity limitations :ecause they are
aggregated.
D. -roduction and staffing plans attempt to acie)e se)eral o%<ecti)es, all of +ic must %e
consistent +it one anoter.
(1) ,hich one of the follo*ing statements a:out managerial inputs to production and
staffing plans is :est.
A. "ar1eting proides ne* product or serice deelopments.
B. !aterials pro)ide te current staffing le)el.
C. Finance pro)ides la%or and macine standards.
D. Fuman resources pro)ide te training capacity and la%or&mar*et conditions.
(2) A pro4ect has three paths. AJ2JC has a length of 2( days. AJ!JC has a length of
1( days. 7inally# AJ5JC has a length of 2& days. ,hich one of the follo*ing
statements is TDU5.
A. The e=pected duration of this pro4ect is 2( days.
B. >e e(pected duration of tis pro<ect is 25 G 15 G 20 H C0 days.
C. AIDIC is te critical pat.
D. AIBIC as te most slac*.
(+) ,hen your purchases are s*iped oer the :ar;code reader at the point;of;sale
terminals at ,al;"art# a _____ records the data.
A. enterprise resource planning system
2. transaction processing system
C. functional area information system
D. office automation system
:. das%oard
(/) _____ is the integration of economic# social# cultural# and ecological facets of life#
ena:led :y information.
A. glo:alization
B. regionali"ation
C. nationali"ation
D. %usiness en)ironment
(() Search engines and metasearch engines are e=amples of *hich net*or1
application.
A. .e% ser)ices
2. !iscoery
C. Communications
D. 9ocal Area ?et+or*
:. Colla%oration
(%) ,hich of the follo*ing are disadantages of the :uy option for ac?uiring 8S
applications.
A. soft+are may not integrate +it e(isting systems
B. soft+are may not e(actly meet te companyJs needs
C. soft+are may %e impossi%le to modify
!. all of the these are disadantages
:. company +ill not a)e control o)er soft+are impro)ements
(') Cet*or1s ena:le *hich of the follo*ing applications.
A. .e% ser)ices
B. Disco)ery
C. Communications
!. All of the these
:. Colla%oration
(<) 9eocoding is __________.
A. integrating organi"ational transactions +it spatially oriented data%ases
2. integrating maps *ith spatially oriented data:ases and other data:ases
C. encrypting spatial information
D. programming spatially oriented data%ases
:. accessing geograpical information
()) _____ is the efficient and effectie e=ecution of specific tas1s.
A. :(pertise
B. !anagement control
C. 0perational control
D. $trategic planning
:. .isdom
%&) Computer support is greatest for *hich of the follo*ing pro:lems.
A. $emistructured and management control
B. 3nstructured and operational control
C. $emistructured and strategic planning
!. Structured and operational control
:. $tructured and management control
%1) Credit card companies *ould most li1ely use *hich of the follo*ing to chec1 for
fraudulent credit card use.
A. !ata mining
B. :(pert systems
C. ?eural net+or*s
D. !ultidimensional data analysis
:. $tructured #uery languag
%2) The end result of the !ata Fife Cycle is the generation of _____.
A. +isdom
B. data
C. information
!. 1no*ledge
:. decisions
%+) 2ell ,eather# 8nc. has a :eta of 1.2(. The return on the mar1et portfolio is 12.(G#
and the ris1;free rate is (G. According to CA6"# *hat is the re?uired return on this
stoc1.
A. 1/.+'G
B. A.27K
C. 20.C2K
D. 15.C2K
%/) Eou hold a portfolio *ith the follo*ing securities>
Security 6ercent of 6ortfolio 2eta Deturn
K Corporation 2&G 1.+( 1/G
E Corporation +(G .)( 1&G
L Corporation /(G .'( <G
Compute the e=pected return and :eta for the portfolio.
A. 2@.@K, .A@
B. A.AK, 1.02
C. 10.C7K, 1.02
!. ).)G# .)/
%() ,hich of the follo*ing represents an attempt to measure the earnings of the
firm-s operations oer a gien time period.
A. 8ncome statement
B. Cas flo+ statement
C. Balance seet
D. Luarterly statement
%%) The common stoc1holders are most concerned *ith>
A. te ris* of te in)estment.
B. te si"e of te firmJs %eginning earnings per sare.
C. the percentage of profits retained.
D. te spread %et+een te return generated on ne+ in)estments and te in)estorJs
re#uired rate of return.
%') At <G compounded annually# ho* long *ill it ta1e $'(& to dou:le.
A. 12 years
2. ) years
C. C.5 years
D. @8 monts
%<) Tri State 6ic1le Company preferred stoc1 pays a perpetual annual diidend of 2
1M2G of its par alue. 6ar alue of TS6 preferred stoc1 is $1&& per share. 8f inestors-
re?uired rate of return on this stoc1 is 1(G# *hat is the alue of per share.
A. $C.00
2. $1%.%'
C. $27.50
D. $15.00
%)) A machine costs $1#&&&# has a three;year life# and has an estimated salage alue
of $1&&. 8t *ill generate after;ta= annual cash flo*s @AC7) of $%&& a year# starting ne=t
year. 8f your re?uired rate of return for the pro4ect is 1&G# *hat is the C6N of this
inestment. @Dound your ans*er*er to the nearest $1&.)
A. &$150
B. $A00
C. $@A0
!. $('&
'&) ,hich of the follo*ing :est represents operating income.
A. 4ncome from discontinued operations
B. 4ncome from capital gains
C. 4ncome after financing acti)ities
!. 5arnings :efore interest and ta=es
'1) 5=change rate ris1>
A. doesnJt affect trades made in 3$ Dollars.
B. as %een pased out due to recent international legislation.
C. arises from the fact that the spot e=change rate on a future date is a random
aria:le.
D. applies only to certain types of domestic %usinesses.
'2) !isadantages of using current lia:ilities as opposed to long;term de:t include>
A. decreased ris* of li#uidity
B. certainty of interest costs
C. uncertainty of future lia%ilities
D. iger cas flo+ e(posure
5. greater ris1 of illi?uidity# and uncertainty of interest costs
'+) An increase in future alue can :e caused :y an increase in the __________.
A. di)idends paid
2. annual interest rate and num:er of compounding periods
C. original amount in)ested
D. starting )alue
:. rate of return
'/) 6epsiCo calculates unleered :etas for each peer group in order to>
A. eliminate different financial ris1s.
B. eliminate different %usiness ris*s.
C. eliminate <udgment factors.
D. eliminate competiti)e factors.
'() 2ondholders hae a priority claim on assets ahead of>
A. creditors.
2. common and preferred stoc1holders.
C. in)estors
D. sareolders.
'%) ,hen doing Opositioning#O a mar1eting manager should>
A. e(clusi)ely use focus groups.
B. a)oid targeting strategies.
C. rely on ho* customers thin1 a:out proposed andMor e=isting :rands in a mar1et.
D. focus on specific product features of all generic competitors.
:. plan pysical product canges rater tan image canges.
'') O6ositioningO>
A. eliminates te need for <udgment in strategy planning.
B. applies to ne+ products&&%ut not e(isting products.
C. is concerned +it o%taining te %est self space in retail outlets.
!. helps strategy planners see ho* customers ie* competitors' offerings.
:. is useful for com%ining %ut not for segmenting.
'<) The three :asic tas1s of AFF managers# according to the te=t# are>
A. planning# implementation# and control.
B. planning, staffing, and e)aluating.
C. e(ecution, feed%ac*, and control.
D. mar*eting, production, and finance.
:. iring, training, and compensating.
')) Comparing 9!6 for foreign countries can help a mar1eting manager ealuate
potential mar1ets if the manager remem:ers that>
A. 'ter countries most li*ely donJt use te 3$ Dollar as teir primary currency.
B. ,D- estimates may not %e )ery accurate for )ery different cultures and economies.
C. ,D- measures so+ te degree of competition in a mar*et.
D. income tends to %e e)enly distri%uted among consumers in most countries.
5. 9!6 measures sho* people's tendency to :uy particular products.
<&) 8n comparison to the :uying of final consumers# the purchasing of organizational
:uyers>
A. is al+ays emotional.
2. leans :asically to*ard economy# ?uality# and dependa:ility.
C. is e)en less predicta%le.
D. is al+ays %ased on competiti)e %ids from multiple suppliers.
:. is strictly economic and not at all emotional.
816 Coca&Cola is ta*ing ad)antage of te ne+ +illingness of Cinese leaders to engage in
international trade %y mar*eting its soft drin*s in Cina. .at type of opportunity is Co*e
pursuingM
A. test mar*eting
B. product de)elopment
C. mar*et penetration
D. di)ersification
5. mar1et deelopment
<2) The economists' ie* of :uyers>
A. ?one of tese are true
B. assumes tat tey al+ays %uy te lo+est&price alternati)e.
C. empasi"es psycological )aria%les rater tan social influences.
D. is %ased on te idea tat consumers )alue time and select te first alternati)e tey learn
a%out.
5. puts a great deal of emphasis on differences in :uying :ehaior related to
indiidual differences among consumers.
<+) 5conomists' economic;:uyer theory assumes that __________.
A. consumers only +ant te ceapest price
B. consumers sould purcase only lo+&priced products
C. consumers al+ays ma*e rational decisions
!. :uyers logically compare choices in order to ma=imize their satisfaction
:. demograpic data are )ery useful for predicting consumer %ea)ior
</) ,hich of the follo*ing is a :usiness or organizational customer.
A. All of these are :usiness and organizational customers.
B. a +olesaler.
C. a go)ernment agency.
D. a retailer.
:. producers of goods or ser)ices.
<() The managerial process of deeloping and maintaining a match :et*een the
resources of an organization and its mar1et opportunities is called>
A. mar*et planning.
2. strategic @management) planning.
C. mar*eting strategy planning.
D. management %y o%<ecti)e.
:. mar*eting programming.
<%) 9ood mar1eting strategy planners 1no* that>
A. target mar*ets cannot %e large and spread out.
B. te terms Nmass mar*etingN and Nmass mar*eterN mean %asically te same ting.
C. mass mar*eting is often )ery desira%le and effecti)e.
D. firms li*e ?a%isco and .al&!art are too large to aim at clearly defined target mar*ets.
5. target mar1eting does not limit one to small mar1et segments.
<') An Australian *ine producer# facing declining sales at home# set up a ne*
channel of distri:ution to sell *ine in the United States. This seems to :e an effort at>
A. stratification.
B. product de)elopment.
C. mar*et penetration.
!. mar1et deelopment.
:. di)ersification.
<<) 8n *hich of the follo*ing are these steps of a criminal case listed in the correct
order.
A. Arrest, indictment, trial, arraignment
B. Arrest, arraignment, indictment, trial
C. 4ndictment, arraignment, arrest, trial
D. Arraignment, arrest, trial, indictment
5. Arrest# indictment# arraignment# trial
<)) 8n responding to a constitutional challenge to the Computer !ecency Act# the U.S.
Supreme Court ruled that>
A. >e 4nternet +as similar to tele)ision and tat restrictions similar to tose on tele)ision
programming +ere appropriate.
2. The Act *as unconstitutional :ecause its proisions *ere too ague to define.
C. '%scene materials could not %e a)aila%le %et+een CE00 a.m. and 10E00 p.m. local time.
D. Computers and te 4nternet +ere not co)ered %y te free speec pro)isions of te 3.$.
Constitution %ecause tey did not e(ist +en te Constitution +as drafted.
:. >e Act +as constitutional %ecause o%scene speec recei)es no protection.
)&) Pustin *as hired in 7e:ruary of 2&&/ as a salesperson. There is no *ritten
employment contract# and Pustin is paid on a commission :asis. Pustin-s manager
has said to Pustin on seeral occasions that if Pustin continues to meet his sales
?uotas# that the company Q*ill 1eep him around for a long time.R Pustin has al*ays
met his sales ?uotas# :ut is told one day that they hae decided to replace him
:ecause he does not pro4ect the image that the company *ants. 8f Pustin is an at;*ill
employee# *hich of the follo*ing is true.
A. >e employer +ould not %e a%le to fire =ustin on te %asis of pu%lic policy.
2. The statements :y the manager could li1ely gie Pustin contract rights that could
amount to an e=ception to the at;*ill doctrine.
C. >e employer can terminate =ustin only if te employer +ould suffer a loss %y not
terminating im.
D. As an at +ill employee, tere are no restrictions on te employer terminating =ustin.
:. Because tere is no +ritten employment contract, te employer can terminate =ustin.
)1) ,hich of the follo*ing is correct a:out litigating commercial disputes.
A. 4n all states, commercial disputes must %e eard in a limited&<urisdiction court.
B. ?early all states a)e speciali"ed trial courts tat ear commercial disputes.
C. Businesses generally disli*e te concept of speciali"ed trail courts for commercial
disputes %ecause te large num%ers of consumers +o sue %usinesses in tese courts
a)e led te <udges to %ecome generally %iased against %usiness.
!. A fe* states hae esta:lished specialized trial courts for commercial disputes.
:. Commercial disputes, %ecause of teir speciali"ed nature, are first eard at te appellate
court le)el.
)2) 2o:# an employee of Dis1y "anufacturing# 8nc. is accidentally in4ured :y a fello*
*or1er *hile *or1ing his shift. Under *or1ers- compensation# 2o: can>
A. ;eco)er from +or*ersJ compensation only if ;is*y +as negligent in allo+ing te in<ury to
occur.
B. $ue ;is*y or see* +or*ersJ compensation reco)ery, %ut not %ot.
C. See1 *or1ers- compensation only.
D. $ue ;is*y or see* +or*ersJ compensation reco)ery.
)+) 8nformation *hich comes to the 1no*ledge of an agent is>
A. .ill result in termination of te agency arrangement if it is not communicated to te
principal.
B. ;e#uired to %e communicated to te principal in all circumstances.
C. Can %e disclosed to te principal only +it te tird partyJs consent.
!. 8s imputed to the principal.
)/) ,hat is the ma4or conention that proides international protection to patents.
A. >e Digital !illennium >reaty.
B. >e Berne Con)ention of 178C.
C. The 6aris Conention.
D. >e ,eneral Agreement on >ariffs and >rade 5,A>>6.
)() ,hich of the follo*ing is correct a:out the states- po*ers regarding foreign
affairs.
A. Because of te saring of po+ers %et+een te federal go)ernment and te states, states
a)e po+ers o)er foreign affairs e#ual to te po+ers of te federal go)ernment.
B. >e states a)e no po+er o)er foreign affairs %ecause te 3.$. Constitution grants tat
po+er e(clusi)ely to te federal go)ernment.
C. The states can pass la*s so long as they do not unduly :urden foreign
commerce# :ut the states hae no authority to enter into treaties *ith foreign nations.
D. >e states can pass la+s affecting foreign commerce and enter into treaties +it foreign
nations so long as tey first o%tain te consent of te $enate.
:. >e states can pass la+s and enter into treaties +it foreign nations so long as tey do
not unduly %urden foreign commerce.
)%) The 3ouston;:ased energy company that filed for Chapter 11 :an1ruptcy and
*hose :usiness conduct is one of the grossest e=amples of corporate greed and
fraud in America *as>
A. !o%il 'il Company.
B. $ell 'il Company.
C. 5nron Corporation.
D. Fouston 'il and ,as Corporation.
:. :((on Corporation.
)') 9enerally# *hich of the follo*ing statements relating to contractual capacity is
correct.
A. -ersons +it full competence ma*e enforcea%le contracts.
2. "inors ma1e oid contracts.
C. -eople +it limited competence ma*e )oid contracts.
D. -eople +it no competence ma*e )oida%le contracts.
:. -eople +o a)e %een ad<udicated insane ma*e )oida%le contracts.
)<) ,hich country does the te=t descri:e as :ecoming the largest producer and
consumer of many of the *orld's goods.
A. =apan
2. China
C. Canada
D. !e(ico
:. :cuador
))) 0ne study found that manufacturing la:or costs a:out _____ an hour in China#
compared to _____ dollars in the United States.
A. 9ess tan $18 a%out 15
B. $28 a%out 25
C. A%out $28 a%out 15
!. Fess than $1A a:out 2(
:. 9ess tan $18 a%out @0
1&&) Although the U.S. has had a longstanding agreement *ith _____ after the
passage of CA7TA# _____ :ecame the United States' second largest trading partner.
A. Canada, Oene"uela
B. !e(ico, Oene"uela
C. Canada# "e=ico
D. !e(ico, Canada
:. ,reat Britain, -araguay