Why did Extra Energy set debt collectors on me?         
Holly Casswell (pictured) paid the amount being asked for by the debt collectors, and then Extra Energy told her it was an error and the money was due from the previous tenant.
          'Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.' (no replies)        
'..America's pension crisis is a big part of the $400 trillion pension time bomb threatening the global economy and it is deflationary and bond friendly.'

- Leo Kolivakis, America's Corporate Pension Disaster? August 4, 2017


'In order for the Maestro to be right, US inflation expectations have to pick up in a significant way. This won't happen and to understand why, read Gary Shilling's recent comment on three things central bankers don't get about wages.'

- Leo Kolivakis, Is the Maestro Wrong on Bonds? August 2, 2017


'Very recent data confirms slumping household saving ratios in both the US and UK. This was last seen in 2007, just before the bursting debt bubble blew the global economy and financial system to smithereens. The Fed and BoE should surely hang their heads in shame having presided over yet another impending disaster. Why will politicians and the people tolerate this incompetence? Indeed they won’t.'

- Albert (Shades of 2008: UK and US Savings Rate Plunges, Debt Comes Full Circle, August 3, 2017)


'It’s no mystery why central bankers are mystified: Collectively, they are economically illiterate fools engaged in Keynesian and Monetarist group think.

..

On deck is another round of destructive asset price deflation, brought about by Central banks who cannot see the obvious.'

- Mike “Mish” Shedlock, Central Banks Puzzled as Global Inflation Hits Lowest Level Since 2009: Solving the Puzzle, August 3, 2017


'..history and logic both show that concerns over consumer price deflation are seriously misplaced.

Worse yet, in their attempts to fight routine consumer price deflation, central bankers create very destructive asset bubbles that eventually collapse, setting off what they should fear – asset bubble deflations following a buildup of bank credit on inflated assets.'

- Mike “Mish” Shedlock, Historical Perspective on CPI Deflations: How Damaging are They? March 30, 2015


'BIS Deflation Study

The BIS did a historical study and found routine deflation was not any problem at all.

“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the study.

It’s asset bubble deflation that is damaging. When asset bubbles burst, debt deflation results.

Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.'

- Mike “Mish” Shedlock, How Twisted Minds Function, August 2, 2017


Context

'..If you can’t see this next crisis coming, you’re not paying the right kind of attention .. Financial politicians..'

'..the Next 30 Years: “Everything is Deflationary”..'

'..a 30-year bear market..'

          '..If you can’t see this next crisis coming, you’re not paying the right kind of attention .. Financial politicians..' (no replies)        
'..If you can’t see this next crisis coming, you’re not paying the right kind of attention..'

'This Fed has already engineered the next crisis, just as Greenspan kept rates too low for too long, ignored his regulatory responsibility, and engineered the housing bubble and subprime crisis. If you can’t see this next crisis coming, you’re not paying the right kind of attention. The Trump Fed is going to have to deal with that crisis, but we still have many questions as to what a Trump Fed will actually look like or do.'

John Mauldin (Source, Jun 25, 2017)


'..Their empathy circuits get turned off.'

'Powerful people everywhere routinely make decisions that hurt others. We see it in central bankers, politicians, corporate CEOs, religious groups, universities – any large organization. The old saying is right: Power really does corrupt. And corruption is a barrier to sustainable economic growth. This is more than a political problem; it has a serious economic impact.

Recent psychological research suggests that powerful people behave remarkably like traumatic brain injury victims. Controlled experiments show that, given power over others, people often become impulsive and less sensitive to risk. Most important, test subjects often lose empathy, that is, the ability to understand and share the feelings of others.

..

Powerful people also lose a capacity called “mirroring.” When we observe other people doing something, our brains react as if we were doing the same thing. It’s why, when you watch a sporting event, you may unconsciously mimic a golf swing or the referee’s hand signals. Some portion of your brain thinks you are really there. But when researchers prime test subjects with powerful feelings, their mirroring capacity decreases.

You can see why this is a problem. The Protected-class members of the Federal Open Market Committee must feel quite powerful when they gather in that fancy room to make policy decisions. It’s no wonder they forget how their decisions will affect regular working-class people: Their empathy circuits get turned off.'

- Patrick Watson, The Wedge Goes Deeper, June 30, 2017


'..I now feel that it's highly likely we will face a major financial crisis, if not later this year, then by the end of 2018 at the latest..'

'Re-entering the news flow was a jolt, and not in a good way. Looking with fresh eyes at the economic numbers and central bankers’ statements convinced me that we will soon be in deep trouble. I now feel that it's highly likely we will face a major financial crisis, if not later this year, then by the end of 2018 at the latest. Just a few months ago, I thought we could avoid a crisis and muddle through. Now I think we’re past that point. The key decision-makers have (1) done nothing, (2) done the wrong thing, or (3) done the right thing too late.

Having realized this, I’m adjusting my research efforts. I believe a major crisis is coming. The questions now are, how severe will it be, and how will we get through it? With the election of President Trump and a Republican Congress, your naïve analyst was hopeful that we would get significant tax reform, in addition to reform of a healthcare system that is simply devastating to so many people and small businesses. I thought maybe we’d see this administration cutting through some bureaucratic red tape quickly. With such reforms in mind I was hopeful we could avoid a recession even if a crisis developed in China or Europe.

..

One news item I didn’t miss on St. Thomas – and rather wish I had – was Janet Yellen’s reassurance regarding the likelihood of another financial crisis. Here is the full quote.

Would I say there will never, ever be another financial crisis? You know probably that would be going too far, but I do think we’re much safer, and I hope that it will not be in our lifetimes and I don’t believe it will be. [emphasis added]

I disagree with almost every word in those two sentences, but my belief is less important than Chair Yellen’s. If she really believes this, then she is oblivious to major instabilities that still riddle the financial system. That’s not good.

..

Financial politicians (which is what central bankers really are) have a long history of saying the wrong things at the wrong time. Far worse, they simply fail to tell the truth. Former Eurogroup leader Jean-Claude Juncker admitted as much: “When it becomes serious, you have to lie,” he said in the throes of Europe’s 2011 debt crisis.'

- John Mauldin, Prepare for Turbulence, July 9, 2017


'..Market distortions – including valuations, deeply embedded complacency, and Trillions of perceived safe securities – have become only further detached from reality. And the longer all this unstable finance flows freely into the real economy, the deeper the structural maladjustment.'

'This week marks the five-year anniversary of Draghi’s “whatever it takes.” I remember the summer of 2012 as if it were yesterday. From the Bubble analysis perspective, it was a Critical Juncture – for financial markets and risk perceptions, for policy and for the global economy. Italian 10-year yields hit 6.60% on July 24, 2012. On that same day, Spain saw yields surge to 7.62%. Italian banks were in freefall, while European bank stocks (STOXX600) were rapidly approaching 2009 lows. Having risen above 55 in 2011, Deutsche Bank traded at 23.23 on July 25, 2012.

It was my view at the time that the “European” crisis posed a clear and immediate threat to the global financial system. A crisis of confidence in Italian debt (and Spanish and “periphery” debt) risked a crisis of confidence in European banks – and a loss of confidence in European finance risked dismantling the euro monetary regime.

Derivatives markets were in the crosshairs back in 2012. A crisis of confidence in European debt and the euro would surely have tested the derivatives marketplace to the limits. Moreover, with the big European banks having evolved into dominant players in derivatives trading (taking share from U.S. counterparts after the mortgage crisis), counter-party issues were at the brink of becoming a serious global market problem. It’s as well worth mentioning that European banks were major providers of finance for emerging markets.

From the global government finance Bubble perspective, Draghi’s “whatever it takes” was a seminal development. The Bernanke Fed employed QE measures during the 2008 financial crisis to accommodate deleveraging and stabilize dislocated markets. Mario Draghi leapfrogged (helicopter) Bernanke, turning to open-ended QE and other extreme measures to preserve euro monetary integration. No longer would QE be viewed as a temporary crisis management tool. And just completely disregard traditional monetary axiom that central banks should operate as lender of last resort in the event of temporary illiquidity – but must avoid propping up the insolvent. “Whatever it takes” advocates covert bailouts for whomever and whatever a small group of central bankers chooses – illiquid, insolvent, irredeemable or otherwise. Now five years after the first utterance of “whatever it takes,” the Draghi ECB is still pumping out enormous amounts of “money” on a monthly basis (buying sovereigns and corporates) with rates near zero.

..

Thinking back five years, U.S. markets at the time were incredibly complacent. The risk of crisis in Europe was downplayed: Policymakers had it all under control. Sometime later, the Financial Times - in a fascinating behind-the-scenes exposé - confirmed the gravity of the situation and how frazzled European leaders were at the brink of losing control. Yet central bankers, once again, saved the day – further solidifying their superhero status.

I’m convinced five years of “whatever it takes” took the global government finance Bubble deeper into perilous uncharted territory. Certainly, markets are more complacent than ever, believing central bankers are fully committed to prolonging indefinitely the securities bull market. Meanwhile, leverage, speculative excess and trend-following flows have had an additional five years to accumulate. Market distortions – including valuations, deeply embedded complacency, and Trillions of perceived safe securities – have become only further detached from reality. And the longer all this unstable finance flows freely into the real economy, the deeper the structural maladjustment.'

- Doug Noland, Five Years of Whatever It Takes, July 29, 2017


'..This whole episode is likely to end so badly that future children will learn about it in school and shake their heads in wonder at the rank stupidity of it all, just like many of us did when we learned about the Dutch Tulip mania.'

'While I've written about numerous valuation measures over time, the most reliable ones share a common feature: they focus on identifying "sufficient statistics" for the very, very long-term stream of cash flows that stocks can be expected to deliver into the hands of investors over time. On that front, revenues are typically more robust "sufficient statistics" than current or year-ahead earnings. See Exhaustion Gaps and the Fear of Missing Out for a table showing the relative reliability of a variety of measures. In April 2007, I estimated that an appropriate valuation for the S&P 500 stood about 850, roughly -40% lower than prevailing levels. By the October peak, the prospective market loss to normal valuation had increased to about -46%. As it happened, the subsequent collapse of the housing bubble took the S&P 500 about -55% lower. In late-October 2008, as the market plunge crossed below historically reliable valuation norms, I observed that the S&P 500 had become undervalued on our measures.

Again attempting to “stimulate” the economy from the recession that followed, the Federal Reserve cut short-term interest rates to zero in recent years, provoking yet another episode of yield-seeking speculation, where yield-starved investors created demand for virtually every class of securities, in the hope of achieving returns in excess of zero. Meanwhile, Wall Street, suffering from what J.K. Galbraith once called the “extreme brevity of the financial memory,” convinced itself yet again that the whole episode was built on something more solid than quotes on a screen and blotches of ink on paper..

..

..greater real economic activity was never the likely outcome of all this quantitative easing (indeed, one can show that the path of the economy since the crisis has not been materially different than what one could have projected using wholly non-monetary variables). Rather, Ben Bernanke, in his self-appointed role as Mad Hatter, was convinced that offensively hypervalued financial markets - that encourage the speculative misallocation of capital, imply dismal expected future returns, and create temporary paper profits that ultimately collapse - somehow represent a greater and more desirable form of “wealth” compared with reasonably-valued financial markets that offer attractive expected returns and help to soundly allocate capital. Believing that wealth is embodied by the price of a security rather than its future stream of cash flows, QE has created a world of hypervaluation, zero prospective future returns, and massive downside risks across nearly every conventional asset class.

And so, the Fed created such an enormous pool of zero interest bank reserves that investors would feel pressure to chase stocks, junk debt, anything to get rid of these yield-free hot potatoes. That didn’t stimulate more real, productive investment; it just created more investors who were frustrated with zero returns, because someone had to hold that base money, and in aggregate, all of them had to hold over $4 trillion of the stuff at every moment in time.

When you look objectively at what the Fed actually did, should be obvious how its actions encouraged this bubble. Every time someone would get rid of zero-interest base money by buying a riskier security, the seller would get the base money, and the cycle would continue until every asset was priced to deliver future returns near zero. We’re now at the point where junk yields are among the lowest in history, stock market valuations are so extreme that we estimate zero or negative S&P 500 average annual nominal total returns over the coming 10-12 year horizon, and our estimate of 12-year prospective total returns on a conventional mix of 60% stocks, 30% Treasury bonds, and 10% Treasury bills has never been lower (about 1% annually here). This whole episode is likely to end so badly that future children will learn about it in school and shake their heads in wonder at the rank stupidity of it all, just like many of us did when we learned about the Dutch Tulip mania.

Examine all risk exposures, consider your investment horizon and risk-tolerance carefully, commit to the flexibility toward greater market exposure at points where a material retreat in valuations is joined by early improvement in market action (even if the news happens to be very negative at that point), fasten your protective gear, and expect a little bit of whiplash. Remember that the “catalysts” often become evident after prices move, not before. The completion of this market cycle may or may not be immediate, but with the median stock at easily the most extreme price/revenue ratio in history, and a run-of-the-mill outcome now being market loss on the order of -60%, the contrast between recent stability and likely future volatility could hardly be more striking.'

- John P. Hussman, Ph.D., Hot Potatoes and Dutch Tulips, July 31, 2017


Context

(2017) - '..a deeply systemic debt crisis akin to the aftermath of 1929 .. the stage has now been set..'

(Banking Reform - Monetary Reform) - '..debt is our biggest security threat..'

'..the Next 30 Years: “Everything is Deflationary”..'

          (2017) - '..a deeply systemic debt crisis akin to the aftermath of 1929 .. the stage has now been set..' (no replies)        
'..But after a decade of unprecedented expansion of government debt and central bank Credit, the stage has now been set for a more systemic 1929-like financial dislocation.'

'June 27 – Reuters (William Schomberg, Marc Jones, Jason Lange and Lindsay Dunsmuir): “U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash. ‘Would I say there will never, ever be another financial crisis?’ Yellen said… ‘You know probably that would be going too far but I do think we're much safer and I hope that it will not be in our lifetimes and I don't believe it will be,’ she said.”

While headlines somewhat paraphrased Yellen’s actual comment, “We Will not see Another Crisis in Our Lifetime” is reminiscent of Irving Fisher’s “permanent plateau” just weeks before the great crash of 1929. While on the subject, I never bought into the popular comparison between 2008 and 1929 – and the related notion of 2008 as “the 100-year flood”. The 2008/09 crisis was for the most part a private debt crisis associated with the bursting of a Bubble in mortgage Credit – not dissimilar to previous serial global crises, only larger and somewhat more systemic. It was not, however, a deeply systemic debt crisis akin to the aftermath of 1929, which was characterized by a crisis of confidence in the banking system, the markets and finance more generally, along with a loss of faith in government policy and institutions. But after a decade of unprecedented expansion of government debt and central bank Credit, the stage has now been set for a more systemic 1929-like financial dislocation.

As such, it’s ironic that the Fed has branded the banking system cured and so well capitalized that bankers can now boost dividends, buybacks and, presumably, risk-taking. As conventional central bank thinking goes, a well-capitalized banking system provides a powerful buffer for thwarting the winds of financial crisis. Chair Yellen, apparently, surveys current bank capital levels and extrapolates to systemic stability. Yet the next crisis lurks not with the banks but within the securities and derivatives markets: too much leverage and too much “money” employed in trend-following trading strategies. Too much hedging, speculating and leveraging in derivatives. Market misperceptions and distortions on an epic scale.

Compared to 2008, the leveraged speculating community and the ETF complex are significantly larger and potentially perilous. The derivatives markets are these days acutely more vulnerable to liquidity issues and dislocation. Never have global markets been so dominated by trend-following strategies. It’s a serious issue that asset market performance – stocks, bond, corporate Credit, EM, real estate, etc. – have all become so tightly correlated. There are huge vulnerabilities associated with various markets having become so highly synchronized on a global basis. And in the grand scheme of grossly inflated global securities, asset and derivatives markets, the scope of available bank capital is trivial.

I realize that, at this late stage of the great bull market, such a question sounds hopelessly disconnected. Yet, when markets reverse sharply lower and The Crowd suddenly moves to de-risk, who is left to take the other side of what has become One Gargantuan “Trade”? We’re all familiar with the pat response: “Central banks. They’ll have no choice.” Okay, but I’m more interested in the timing and circumstances.

Central bankers are now signaling their desire to proceed with normalization, along with noting concerns for elevated asset prices. As such, I suspect they will be somewhat more circumspect going forward when it comes to backstopping the markets - than, say, back in 2013 with Bernanke’s “flash crash” or with the China scare of early-2016. Perhaps this might help to explain why the VIX spiked above 15 during Thursday afternoon trading. Even corporate debt markets showed a flash of vulnerability this week.'

- Doug Noland, Weekly Commentary: The Road to Normalization, July 1, 2017


Context (Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'

'Unsound Finance gets to the heart of the issue.'

'..Like monetarists, Keynes held no capital theory .. the role time plays..' - Jesús Huerta de Soto

'..Loose financial conditions and record debt issuance..'


'..investors’ fear of missing out is looking increasingly desperate..'

'..a giant passive 'beta' bubble .. This may be the Mother of all beta bubbles..'

'..The same combination prevailed at the 1929, 1972, 1987, 2000, and 2007 market peaks..'


(Banking Reform - Monetary Reform) - '..debt is our biggest security threat..'

          '..the amount of leverage and excess that has accumulated in bond and Credit markets..' (no replies)        
'..the amount of leverage and excess that has accumulated in bond and Credit markets over the past eight years of extreme monetary stimulus.'

'The Fed is not blind. They monitor stock prices and corporate debt issuance; they see residential and commercial real estate market values. Years of ultra-low rates have inflated Bubbles throughout commercial real estate – anything providing a yield – in excess of those going into 2008. Upper-end residential prices are significantly stretched across the country, also surpassing 2007. They see Silicon Valley and a Tech Bubble 2.0, with myriad excesses that in many respects put 1999 to shame. I’ll assume that the Fed is concerned with the amount of leverage and excess that has accumulated in bond and Credit markets over the past eight years of extreme monetary stimulus.

..

The Fed collapsed fed funds from 6.50% in December 2000 to an extraordinarily low 1.75% by the end of 2001. In the face of an escalating corporate debt crisis, the Fed took the unusual step of cutting rates another 50 bps in November 2002. Alarmingly, corporate Credit was failing to respond to traditional monetary policy measures (despite being aggressively applied). Ford in particular faced severe funding issues, though the entire corporate debt market was confronting liquidity issues. Recall that the S&P500 dropped 23.4% in 2002. The small caps lost 21.6%. The Nasdaq 100 (NDX) sank 37.6%, falling to 795 (having collapsed from a March 2000 high of 4,816). No financial instability?

..

I revisit history in an attempt at distinguishing reality from misperceptions. Of course the Fed will generally dismiss the consequences of Bubbles. They’re not going to aggressively embark on reflationary policies while espousing the dangers of asset price and speculative Bubbles. Instead, they have painted the “housing Bubble” as some egregious debt mountain aberration. And paraphrasing Kashkari, since today’s stock market has nowhere as much debt as housing had in 2007, there’s little to worry about from a crisis and financial instability perspective.

Well, if only that were the case. Debt is a critical issue, and there’s a whole lot more of it than back in 2008. Yet when it comes to fragility and financial crises, market misperceptions and distortions play fundamental roles. And there’s a reason why each bursting Bubble and resulting policy-induced reflation ensures a more precarious Bubble: Not only does the amount of debt continue to inflate, each increasingly intrusive policy response elicits a greater distorting impact on market perceptions.

I doubt Fed governor Bernanke actually anticipated that the Fed would have to resort to “helicopter money” and the “government printing press” when he introduced such extreme measures in his 2002 speeches. Yet seeing that the Fed was willing to push its monetary experiment in such a radical direction played a momentous role in reversing the 2002 corporate debt crisis, in the process stoking the fledgling mortgage finance Bubble. And the Bernanke Fed surely thought at the time that doubling its balance sheet during the 2008/09 crisis was a one-time response to a once-in-a-lifetime financial dislocation. I’ll assume they were sincere with their 2011 “exit strategy,” yet only a few short years later they’d again double the size of their holdings.

..

Despite assertions to the contrary, the bursting of the “tech” Bubble unleashed significant financial instability. To orchestrate reflation, the Fed marshaled a major rate collapse, which worked to stoke already robust mortgage Credit growth. The collapse in telecom debt, an unwind of market-based speculative leverage and the rapid slowdown in corporate borrowings was over time more than offset by a rapid expansion in housing debt and the enormous growth in mortgage-related speculative leverage (MBS, ABS, derivatives).

..

I’ve never felt comfortable that Chinese authorities appreciate the types of risks that have been mounting beneath the surface of their massively expanding Credit system. Global markets seemed attentive a year ago, but have since been swept away by the notion of the all-powerful “China put” conjoining with the steadfast “Fed put.” These types of market perceptions create tremendous inherent fragility.'

- Doug Noland, Discussions on the Fed Put, March 25, 2017


'It’s now an all-too-familiar Bubble Dynamic. The greater the Bubble inflates, the more impervious it becomes to cautious “tightening” measures..'

'The problem today is that years of ultra-loose monetary conditions have ensured everyone is crowded on the same bullish side of the boat. Tipping the vessel at this point will be chaotic, and the Fed clearly doesn’t want to be the instigator. Meanwhile, timid little baby-step increases only ensure more problematic market Bubbles and general financial excess.

It’s now an all-too-familiar Bubble Dynamic. The greater the Bubble inflates, the more impervious it becomes to cautious “tightening” measures. And the longer the accommodative backdrop fuels only more precarious Bubble Dynamics, the more certain it becomes that central bankers will approach monetary tightening timidly. Yellen confirmed to the markets Wednesday that the Fed would remain timid – still focused on some theoretical “neutral rate” and seemingly oblivious to conspicuous financial market excess. The fixation remains on consumer prices that are running just a tad under its 2% target. Meanwhile, runaway securities market inflation is completely disregarded.'

- Doug Noland, Another Missed Opportunity, March 18, 2017


'..In terms of Credit Bubble momentum, it’s notable that Net Worth inflated over $2.0 TN in both Q3 and Q4.'

'The unprecedented amount of system-wide debt is so enormous that the annual percentage gains no longer appear as alarming. Non-Financial Debt expanded 4.7% in 2016, up from 2015’s 4.4%. Total Household Debt expanded 3.6%, with Total Business borrowings up 5.6%. Financial Sector borrowings expanded 2.9% last year, the strongest expansion since 2008.

Securities markets remain the centerpiece of this long reflationary cycle. Total (debt and equities) Securities jumped $1.50 TN during Q4 to a record $80.344 TN, with a one-year rise of $4.80 TN. As a percentage of GDP, Total Securities increased to 426% from the year ago 415%. For comparison, Total Securities peaked at $55.3 TN during Q3 2007, or 379% of GDP. At the previous Q1 2000 cycle peak, Total Securities had reached $36.0 TN, or 359% of GDP.

The Household Balance Sheet also rather conspicuously illuminates Bubble Dynamics. Household Assets surged $6.0 TN during 2016 to a record $107.91 TN ($9.74 TN 2-yr gain). This compares to the peak Q3 2007 level of $81.9 TN and $70.0 TN to end 2008. Q4 alone saw Household Assets inflate $2.192 TN, with Financial Assets up $1.589 TN and real estate gaining $557bn.

With Household Liabilities increasing $473bn over the past year, Household Net Worth (assets minus liabilities) inflated a notable $5.518 TN in 2016 to a record $92.805 TN. As a percentage of GDP, Net Worth rose to a record 492%. For comparison, Household Net Worth-to-GDP ended 1999 at 435% ($43.1 TN) and 2007 at 453% ($66.5 TN). Net Worth fell to a cycle low 378% of GDP ($54.4TN) in Q1 2009. In terms of Credit Bubble momentum, it’s notable that Net Worth inflated over $2.0 TN in both Q3 and Q4.

..

UBS analysts forecast (above) $3.3 TN of 2017 Chinese Total Social Financing (TSF). And with TSF excluding national government deficit spending, let’s add another $300bn and presume 2017 Chinese system Credit growth of around $3.6 TN. As such, it’s possible that China and the U.S. could combine for Credit growth approaching an Unparalleled $6.0 TN. There are, as well, indications of an uptick in lending in the euro zone, and Credit conditions for the most part remain loose throughout EM. Importantly, the inflationary biases that have gained momentum in asset and securities markets and, increasingly, in consumer prices and corporate profits provide a tailwind for Credit expansion.'

- Doug Noland, Unparalleled Credit and Global Yields, March 10, 2017


Context

'..the S&P 500 is now far more overvalued than in 2000, 2007, or indeed in any prior point in history..'

          (Banking Reform - Monetary Reform) - '..debt is our biggest security threat..' (no replies)        
'Now that he is president, Trump likes to tout the fact he’s listening to America’s generals. Perhaps he needs to talk to General Mike Millen, the former Chairman of the Joint Chiefs of Staff. Perhaps then he would see that the greatest threat America faces isn’t from China, Russia, or North Korea – it is from the national debt. Until Trump reverses course on military spending, and gets tough on entitlements, his "America First" budget will only make the US worse off.'

- Tho Bishop (Source, March 20, 2017)


'..a crippling national debt..'

'Under a Republican budget resolution, the national debt will explode by a third from an already staggering $19 billion to $29 trillion over the next ten years. Although counterintuitive, Democratic presidents, at least those after World War II, have reduced deficits as a portion of the value of the national economy (GDP) while Republican presidents have increased them — thus accumulating less public debt as a percentage of GDP. Yet neither political party has paid enough attention to this burgeoning national security problem.

National security problem? Yes. General Mike Mullen, while he was Chairman of the Joint Chiefs of Staff, the nation’s top military man, was enlightened enough about long-term health of American power to realize that it takes continuing infusions of money to acquire the weapons and equipment, personnel, training, maintenance and benefits to create a credible military to adequately defend the country. In addition, all other indices of national power — political, diplomatic and cultural — require money too.

To generate those resources, a strong economy is needed. The number one problem dragging down economic growth rates through the George W. Bush and Barack Obama presidencies was a crippling national debt..'

- Ivan Eland, National debt is our biggest security threat: Column, January 11, 2017


Context

'..World Debt Hits $152 Trillion.'

'Our nation and the world are paying a very heavy price for a failed experiment in Inflationism..' - Doug Noland

'..Global policies since the 2008 crisis have spurred the expansion of speculative finance to multiples of pre-crisis levels..'


'Germany Plans to Cut 2017 Debt Sales .. Balanced-Budget..'

'..monetary knowledge .. of currency reform under difficult conditions you have to go to Carl Menger.'

(Banking Reform - Monetary Reform) - '..The Theory of Money and Credit .. an invaluable guide for ending the business cycles of our own time.'


(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'

          Comment on Credit Trends by the Numbers by Credit Trends: Managing Student Loan Debt: Student Loans on the Rise        
[…] Today, the only credit type that expanded during the U.S recession and current nascent recovery are Student Loans. Credit contraction continues for all other loan types, including slowing auto loan contraction with 2010 auto sales increases. […]
          Comment on Debt Reduction: Why Paying Down Your Credit Card Debt Helps Your Credit Score by Credit Trends: Signs of Life in the Credit Universe        
[…] Risk scores are stabilizing and improving as fewer consumers are delinquent. More consumers are paying down debt voluntarily, and lenders are cautiously extending new […]
          Comment on Credit Report Update: How Is Information Updated on My Credit Report? by Making Minimum Payments on Credit Cards Will Cost You in the Long Run        
[…] debt you have and lower your ratio of debt to available credit. (If you want to understand better how your credit score is calculated, take a look at some of our past […]
          Facing Foreclosure? Then You Need to Get on Board With Obama's Mortgage Loan Modification Today        
Believe it or not, you actually hold the upper hand when it comes to Mortgage Loan Modification in this situation. Your lender will have to pay a very high price to foreclose on your home. Added to this, is the mounting pressure from other companies and organizations for your lender to be more lenient with you in these hard times.

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However, with a solution, there is usually always another problem right around the corner. Many people in your circumstances, resort to contacting attorneys, companies and specialists in mortgage foreclosure and loan modification. The fees that you can expect to pay can be astronomical and maybe even push you into further debt.

Some Loan Modification Companies have been reported to charge anywhere between $1500 - $5000 to perform this service. So this, of course, has led the way for certain individuals to fight back and complete the Mortgage Loan Modification process on their own.

If you need a step-by-step system and don't have up to $5000 to spend on Mortgage Loan Modification fees and charges then Click Here to see what other people who have "done it themselves" have to say.
          How Barack Obama's Modification of Your Mortgage Can Really Help Those Suffering Financially        
The New Mortgage Loan Modification Programs were introduced by the Obama administration in March 2009. For those of you struggling to meet your monthly repayments and with the threat of possible foreclosure hanging over you, this could be just the thing you are looking for.

With the agonizing recent recession and slump in housing prices, this has had a huge effect on millions of Americans. The Obama Loan Modification process has been introduced to help you through these hard times.

So what help is the government offering exactly?

Should you own and live in your mortgaged property and have a loan balance of below $729,750 you may be eligible. The government are looking to streamline your payments for up to five years. This may involve lowering the interest rate or extending the term of your mortgage.

For those of you suffering financial hardship and wishing to participate in this plan, you will be required to write and sign a letter stating such and if your overall debts are above 55% of your income, you will have to agree to take part in credit counseling. The final criteria to be eligible is that you must haven taken your loan out prior to January 1st 2009.

The process is a very rigorous form of verification, involving proof of ownership, proof of income and expenditure, through supplying relevant documents. Many industry experts believe that if these plans had been brought in a few years ago, then perhaps the current housing crisis could have been avoided altogether.

There are many companies who can help you through the legal and financial aspects for the Modification of your mortgage.

However, some Loan Modification Companies have been reported to charge anywhere between $1500 - $5000 to perform this service. So this, of course, has led the way for certain individuals to fight back and complete the procedures on their own. To learn how you can complete this process yourself Click Here.
          What's All This About Mortgage Loan Modification Plans?        
The Government has now come up with two plans to help people who have missed payments on their mortgage and are struggling. In this article i wish to introduce you to the one that is called a Loan Modification plan. To qualify, you need to meet the following criteria:-

- Your original mortgage loan cannot be greater than $729,000

- Your mortgage must have completed prior to January 1st 2009

- You will be required to provide proof of your income and expenditure, through payslips, tax returns and bank statements

- If your total debts are in excess of 55% of your income, you have to agree to visit credit counselling

- Finally, you must be living in the mortgaged property and will be required to write a letter in your own handwriting stating that you are in financial hardship

So what can your lender do for you in this situation?

- They can lower your monthly repayments to approximately a third of your monthly income.

- Interest has been known to be dropped to as low as 2%.

- You don't need to pay any fees for the modification as these are covered by the government

- The government are able to reduce your balance by up to $5000 over 5 years as long as you make your payments on time

- Your rate is reduced for the period of 5 years, so you may have to pay more after this period

- You are only ever allowed one modification

Loan Modification Companies have been reported to charge anywhere from $1500 - $5000 to help you with this process. If you don't have that kind of "spare" cash lying around, you will need to complete a "Do-It-Yourself" Loan Modification.

Click Here for More Info On The Do-It-Yourself Loan Modification Kit


          Is Getting A Loan With Bad Credit Really That Hard?        
Have you ever wondered why lenders seem to treat people with a bad credit history so badly? If you have bad credit and apply for a loan, you know, generally you're going to be declined or charged some extortionate rate of interest.

You simply want any potential lender to recognise that you haven't always had a bad credit history. You probably had a decent credit rating once, then, unfortunately some unforseen circumstance or an inevitable event forced you into having your credit record damaged.

However, what guarantee does a lender have that someone who has a perfect credit rating now, may not default on that loan at some time in the future. Circumstances change, things happen and nothing can be 100% guaranteed. It seems as though you are still being punished for what happened in the past.

Lenders have now started to notice, with the rising number of people falling in debt and bad credit, it no longer makes sense not to conduct business with everyone, good credit, bad credit or otherwise. Many specialized loans, credit cards and products have spread through the financial marketplace. You can now get a bad credit loan for a wide variety of purposes. Car Loans, Holiday Loans, Debt Consolidation loans.

A lender may ask for you to put up some form of collateral or asset as security against your loan. This can work well for both parties. A lender has some form assurance by way of an asset, usually your home...and as the borrower who has a bad credit history, in can be a case of once bitten, twice shy. You have been through the hell of bad credit, and all it brings, once. So why would you wish to lose an asset such as your home by making the same mistakes again.

Getting a Loan with bad credit without having to provide any collateral is possible as well. Usually an unsecured loan is only ever offered to people with a great credit rating. Some lenders may accept a borrower with a bad credit history, but you can usually expect to pay a higher rate of interest and sometimes you may be asked to pay a high fee and have to adhere to some near impossible terms of repayment.

Despite that, don't worry, there are lenders out there who will charge a reasonable rate of interest to those wih bad credit. Prior to approaching a lender or even an intermediary company for help, there are a few things you need to consider - You must decide exactly how much you need to borrow. Then the exact dispersal of your loan. Maybe, some of your loan is to consolidate some other debts, while some is to pay some bills and some is merely for pleasure. Then you need to work out an affordable budget and timescale to repay the loan. You don't want to fall into the same trap again of missing payments and eventually defaulting on a loan.

Once you have calculated all this, then you can approach a lender to find out if they can offer a loan that fits within your criteria. Finally, if you have managed to secure that all important loan, this will do wonders for your credit rating. By making your payments in full and on time, this will help to repair that bad credit history.
          Debt Consolidation Loans For Bad Credit To Delay The Further Worsening Of Credit        
The importance of debt consolidation loans can be best understood by people who are suffering with bad credit history. Debt consolidation loans for people with bad credit provides a manner in which they can prevent their financial condition and credit status from further deteriorating.

A debt consolidation loan replaces several small and big debts that a particular person might have incurred. Under this arrangement, a single loan is used to repay all debts of the borrower. Since the loan taken at this instance is not immediately repayable, borrowers get enough time to prepare for repayment.

Borrowers are referred to as bad credit when they have defaulted on debts in the past. Mortgage arrears, County Court Judgements, Individual Voluntary Arrangements, all count towards tarnishing the borrowers’ credit history. Credit history of borrowers is referred to in order to get data about the credibility that a borrower enjoys. A bad credit history would thus imply that the borrower has lesser credibility and thus make him a bad case for debt consolidation loans.

This however is not so. Borrowers with bad credit history are also considered for debt consolidation loans. The logic behind this is that by taking debt consolidation loan, the borrower with bad credit history is making positive efforts to change his/ her credit status. Thus, debt consolidation loan is readily available to people with bad credit history.

A slightly higher interest payment is what you are required to make on the debt consolidation loan if you have a bad credit history. You however need to distinguish between lenders who are charging the justifiable rates of interest and those who aren’t. The task is not as difficult. Just see what other lenders are offering to borrowers with similar circumstances. If that is not enough, you can request a select group of lenders to send their debt consolidation loan quote. The quote provides information about the rate of interest that will be charged, the period for which the loan will be offered and other important terms on which the loan will be granted. It is certain that on comparison, a few quotes will be rejected and some will be selected for further screening through several processes.

Once a debt consolidation loan provider is selected, the process of eliminating debts is initiated. The first step in any debt settlement process will be to make a list of the debts. The list must be as exhaustive as possible so that all debts are included.

The list of debts with the persons to whom each debt is due and the interest rate that each carries will be supplied to the loan provider. Debt consolidation loans have a special feature that borrowers are guided in the debt settlement process. The guiding principle of every debt settlement process is to save maximum for the debtor. Only through a proper negotiation can creditors be forced to write off a particular debt or a part of it. Borrowers do not have the necessary time and skills to make this happen. Thus, the service of the debt consolidation loan provider becomes necessary.

Debt consolidation loans come in either of the two forms, i.e. secured and unsecured loans. A secured debt consolidation loan is one in which the repayment is backed by a collateral. An unsecured debt consolidation loan, on the other hand, has no direct stake on any asset. There are subtle differences in the rates of interest and other terms that make secured debt consolidation loans more preferred in spite of the risk on assets.
          Debt Consolidation Loans Can Resolve Bad Credit Debt        
Replacing several high interest loans or credit cards with one consolidation loan can not only lower your monthly payments, but also save you money due to the lower interest rate on the new loan.

Look at the rates you are paying on your unsecured debts, i.e. credit cards with a rate of between about 13% and over 35%. These are obvious replacement loan candidates. Auto loans and store credit cards are other loans that should be paid off.

If you can get a second mortgage or refinance your current first mortgage, use these funds to pay off these unsecured loans. You should be able to currently save several thousand dollars in interest payments alone. I am assuming a total loan amount above the home debt to be about $20,000.

The other advantage to this plan is to reduce your monthly payments by a substantial amount. This also should allow you to gain a payment schedule that you can easily meet and even reduce quicker over time. Make sure you can pay off this new loan with extra payments with no penalty. It is a good place to put some of that extra money you have each month.

This idea also takes some solid research on your part. All banks and mortgage companies do not operate the same way. Also you want to find the best rate you can get for your debt structure.

Look to these sources for your consolidation loan: Local banks, local mortgage brokers, and the newest provider for these loans, the internet loan providers. There are many companies fighting each other to make these loans to folks like you. Take advantage of your popularity.

Sometimes, debt consolidation companies can discount the amount of the loan. The debt consolidator will buy the loan at a discount, usually when in danger of bankruptcy. The wise debtor can easily shop around for consolidators who will pass along some of the savings. Consolidation usually affects the ability of the debtor to discharge debts in bankruptcy. It’s prudent to weigh this decision rationally.

Take your future in your own hands and make this happen for your financial health. Saving money and paying off your debts faster will open your life to a freedom you have not enjoyed for a long time. A family with minimum debts has eliminated a potential family problem and replaced it with freedom. Do your self a favour and become debt free.
          How to Finance Your Car With Bad Credit        
Have you been searching for somewhere to finance your car with bad credit? In this day and age everyone either needs, wants or has a car. Gone are the days when a car was considered a luxury item. A car is definitely a necessity for most. However, due to your poor credit history, no lender is willing to help. You have even approached your own bank and they have shut the door firmly in your face.

This is when your search to finance your car begins. Although there is a vast array of lenders available, you need to be very careful. I'm sure you have heard many horror stories of people borrowing money and then being held to ransom by the lender. Once they have gone through the reams of small print, they discover that they will need to pay back up to 10 times the amount they borrowed. This, unfortunately, leads to further debt., which in turn can worsen your credit rating and eventually lead to bankruptcy!

Fortunately, this is where certain companies and organizations have evolved to help you. They are intermediary organizations, who will do all the leg work for you. They understand having bad credit can be a difficult time and will provide you with everything you have been looking for. They can show you how to finance your car, even with bad credit. Usually these companies have a huge list of lenders on their books, who are willing to help people in your situation. They can also provide online support and even have access to many unknown government resources. You will usually have to pay a very small one-time fee to get access to this information and remember i said very small!

You can still Finance your Car With Bad Credit, but you will just need to be wary. This is why i believe these intermediary companies are actually a blessing in disguise. The majority of lenders on their books can give you that auto loan online, at a price you can afford. In most cases your auto loan can be agreed and set up within a matter of days.

If you urgently need to Finance Your Car With Bad Credit, then it is time you visited one of these intermediary companies. Click Here to find out exactly what others in your situation are doing and secure that car loan today.
          Improve Your Credit Score - Part 3        
My system actually won't work for everybody.

As a matter of fact, it won't work for people
who don't take action and people who think
that their credit problems will magically go
away.

Then this isn't for them. It simply won't
work for everybody, but for people who do
take action and follow directions and who are
willing to put in a little effort, I think
they get outstanding results.

'THANK YOU' for taking action and doing what it
takes to have great credit.

Here's the special website
-------------------------------------
Get SIX Free Bonuses!
-------------------------------------

*Bonus #1: My PROVEN Step-By-Step Credit
----
Repair Letters
These proven letters are the EXACT letters that
the big credit repair agencies use. Simply put,
they work like crazy! (Just copy, paste, and send)

*Bonus #2: The Budgeting Success Guide!
----
A complete budgeting guide with 3 PDF guides to
help you track your credit card debt, income, and
expenses.

*Bonus #3: The Interest Annihilator Phone Script!
----
Use this simple script to annihilate your interest
rates on your credit cards immediately!

*Bonus #4: Interest Elimination Video
----
Real Life Video Showing How To eliminate your high
interest payments

*Bonus #5: The Complete Transcripts of All
Audio Interviews!
----
Complete Transcripts of the 4 interviews with
credit experts Donna Fox, Scott Bilker, and
Brett Bruce.

*Bonus #6: My "Snowball" Reduction System
----
This special spreadsheet will help you pay
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how to reduce your large bills by "following the plan."

Go here right now and claim your copy before it's
too late

          Do You Have A Poor Credit Rating But Desperately Need A Loan?        
Are you someone who feels completely helpless because you have a poor credit rating and can't seem to get a loan? Being able to secure a loan would actually solve your credit problems and see you on the road to recovery. However, because of a poor credit history or poor credit rating, no lender in their right mind would ever consider you for a loan!

I'm sure that is a very familiar story for many of you. I know myself it is one of the worst feelings that you can ever have. I recall the days of having a fairly decent job and being offered credit left, right and centre. I'm not sure why, but I pretty much accepted all the offers of credit cards or loans. I think it was something to do with the “kid let loose in a sweet shop” scenario. The repercussions never really occurred to me at the time, so I continued to take out credit card after credit card and loan after loan.

If you can't wait any longer to secure a loan then Click Here to register for the "My Miracle Loans" program right now. For those of you who wish to read my story and review, you can access the program at the end of this article.

I think the effects of what I was doing finally hit me a few years down the line. I started to use less and less credit every month and tried to act a lot more responsibly. However, I had got to the stage where my minimum repayments for all my credit was pretty much the same amount as what I earned in a month. I once read a magazine article that stated – in order to repay $10,000 on a credit card, by just making the minimum payment, this would take up to 12 years. Wow! Unfortunately it wasn't just the one credit card I had to repay!

That's when it dawned on me that I had to do something...and quickly. After some careful investigation, I decided a debt consolidation loan and a couple of 0% APR credit cards was the way to go. I had racked up a total of $26,000 in debt. I looked at my current credit card limits and assumed I wouldn't get offered more than a $5000 dollar limit on a new credit card. So my plan was to apply for two 0% APR credit cards and a $16,000 loan. This would allow me to cut up all my credit cards and have all my debts cleared within 5 years. Or so I thought, I didn't count on getting declined for every bit of credit I applied for. My credit score was shot and at an all time low!

That's when I started searching for different methods and other forms of help. Nothing illegal, of course. I just thought to myself, I can't be the first person to find themselves in this situation and I definitely won't be the last! I actually found a total of 8 different companies, courses or websites, that said they could help and even provided me with testimonials of previous satisfied customers. Today I want to talk to you about My Miracle Loans.

My Miracle Loans is a program that will teach you a number of different strategies to obtain a loan. They advise you to read through their techniques and apply what you have learned. My Miracle Loans guarantee a 100% success rate, as long as you carry out their systems and procedures to the letter! They have helped people, like you and me, those with poor credit ratings, bad credit and even bankruptcies to secure credit and finance. My Miracle Loans are responsible for helping their members acquire over $10,000,000 in loans during 2008. They also claim to be able to help anyone secure a loan of $1,000 - $1,000,000 within 7 days! (Although it's very tempting, I think I will always steer clear of the possibility of securing a loan for $1,000,000!)

So what type of people can My Miracle Loans help:-

No job or proof of income – Obviously if you have a lot of money, you wouldn't need their help! You will never be asked for proof of income or to provide evidence of your income.

Bad Credit, No Credit or Slow Credit – There are absolutely no credit checks for some of the methods you will learn. So a poor credit history will not effect the outcome.

A FICO score of 450 – That's Bad! As mentioned above, many of methods you will learn do not require a credit check. So you're covered.

Bankruptcies in the last 7 years – My Miracle Loans dispel the myth that if you have been made bankrupt, you will not be able to borrow any money for up to 7 years. They can show you the exact methods to secure a loan or credit.

No Collateral or Assets – Their system has nothing to do with what worldly possessions you own. You will not be required to provide proof of what you do or do not own.

Been turned down before - Not a problem. These methods will still work for you.

I think that comprehensive list just about covers everyone. My Miracle Loans had quite clearly stated that not all the methods and techniques will work for everyone. Not all individuals are the same. This is why they have provided you with numerous different methods to try. If you do not get accepted for one, you move on and try the next one. They have an iron-clad guarantee that EVERYONE will find success with their program.

So for what purpose can you use the loans that My Miracle Loans will help secure for you?

Business loans – Whether you are purchasing a business, looking to expand or you need supplies. They will help you get whatever you want.

Cash Advance – Do you need a pay-day advance for your job? No problem you can secure that cash advance within 10 minutes!

Car Loans – You can get that luxury car of your dreams and you don't need the salary to match.

Student Loans – This is where my problems originally started. There are many students out there, who are yet to even start college, that may be affected by poor credit.

Debt Consolidation – If you need that peace of mind. Turn all your debts into one loan and make the monthly repayments easier to handle and keep track of.

Home Loans – You have no fear of being turned down, no matter how much you want to borrow. My Miracle Loans guarantee to help you find that dream home.

Personal Loans – A personal loan is usually determined and granted by you having a great credit score. My Miracle Loans will help those of you, who are not in a position to boast about your credit score!

So let me run through the main benefits that My Miracle Loans offer:-

100% success rate – As long as you carry out their instructions correctly, you will never be turned down again for a loan.

Take up to 30 years to repay the money – In many cases, lenders may penalize you for not paying back money as soon as you can. This is not the case with My Miracle Loans.

Receive your cash in 7 days guaranteed – This doesn't have to be a long drawn out process. My Miracle Loans will guarantee that you will receive your money in 7 days or less in the majority of cases.

Use your money for any purpose – as described earlier.

No upfront fees – Paying a company to lend you money does not seem ethical...does it?

Ease of use – this is not a complicated guide on how to write loan proposals or where to find investors and this is definitely not an outdated list of lenders willing to help people with poor credit secure a loan. This is a program that allows you access to many little known and closely guarded techniques.

So what's the catch? There is no catch! My Miracle Loans program will work for you no matter who you are and what your situation may be.

There is little more I can add about this great program. If you find yourself in the situation of having a poor credit rating and you desperately need a loan, you need look no further.

You have absolutely nothing to lose and everything to gain by registering with this fantastic program.

Click here to get started and acquire that loan that will ease all your money problems today.
          Who Else Wants To Know How To Raise Their Credit Score?        


Click Here To Get Access To Your FREE REPORT

Or Read On And Collect Your Free Report At The End Of This Article

Have you ever asked yourself, "How Do I Raise My Credit Score?" Over the years you may have racked up numerous debts. These may include, loans, credit cards and mortgages. As your debts increase through constant interest charges, things seem to get a little harder month after month. Perhaps, you have been unfortunate enough to miss some payments. This, regrettably, has the knock-on effect of additional late-payment charges and will eventually ruin your credit score.

The problem is, once you hit the rocky road of having a bad or low credit score, creditors or lenders will look at you with disdain. Gone are the days of being instantly approved for any form of credit. You are now looked upon as a high risk and no-one seems willing to help you.

This is pretty much what happened to me. I had a fairly decent job and that had helped me to secure various forms of credit. It was never a worry to me then, as i always had enough money coming in to cover at least the minimum payments, if not more. However, eventually mounting interest charges or the end of a 0% credit card deal, started to have an adverse effect on me being able to continue making full and regular payments. I had even got to the stage of using one credit card to make a payment on another credit card. So even though i was making some form of monthly payment, i was increasing my debt at the same time. Not Good! This, ultimately ruined my credit score and brought it to an all time low.

I then started searching for professional credit repair agencies. I soon discovered that many of these agencies make substantial claims to improve and raise your credit score. However, the majority charge a King's ransom for the privilege and they don't seem to deliver on their promises.

This is when i came across Chris Brisson's "37 days to clean credit" course. Chris had been in the same boat as many of us before him. As a college student he had built up a total of $14,000 in student loans and credit card debt. He had a small amount of income coming in and started to miss payments. Chris had managed to get his credit score down to a horrid 520! Once again, like so many of his predecessors, Chris scoured every possible resource to improve his credit score. He eventually admitted he got scammed by these so called "professional" credit reference agencies. This is when Chris decided to do something himself about it.

Chris had made a few discoveries along the way. He then went about legally "stealing" some of top secret methods that credit reference agencies use to remove negative items, inquiries, judgements and bankruptcies. After 37 days, Chris had managed to delete 9 inquiries, 5 late-pays, 4 default accounts and 1 judgement. In the process, Chris boosted his score by 135 points to a respectable 655.

So what exactly does Chris reveal in his Course:-

- How to easily delete 30, 60, 90, 120 or 150 day late-pays from your file

- How to easily set up a budgeting system to track income, expenses and all your payments

- A little known secret technique to getting your credit card APR interest dropped to 0%

- How to stop the harassing collections telephone calls

- How to repair bad credit in less than 30 days

- How to boost your credit score by 50 points even if you have the worst credit in the world.

- How to stop foreclosure and then negotiate with your bank to lower your monthly payment by 10% - 20%

These are just a few of the methods that Chris will go through. There are just far too many helpful little techniques to mention here.

One of my favourite systems i learned from Chris, was how to reduce the interest rate of my current credit card. It was as simple as making a phone call. Mention that you have in front of you a competitors details and that they are offering a 0% deal for six months, which will then turn into a 8% rate. Chris advises to always be polite and state that you will be looking to balance transfer unless they can lower your interest rate. In most cases, the operator will speak to a supervisor, who has the ability to drop your interest rate. To threaten to leave (in a nice way) is the key! So simple, but effective.

Another invaluable source contained within this course, is the copy and paste letters. Chris has structured a number of letters to be sent to creditors depending on what form of credit repair you are looking to achieve. The letters are organized in such a way, that you simply need to insert your own personal details in the blank spaces.

In addition to the course, Chris offers an unbelievable 5 free bonuses. They would usually retail at a value of $757, but are yours for free, once you sign up to Chris's course. I absolutely loved world renowned credit card expert, Scott Bilker's Interest Annihilation Method. This is one of your free bonuses. Scott unveils how to get approved for 0% APR credit cards. Scott also discusses the secret language indicators to use when you speak to your creditors. (yes, it's all down to the actual words you use!) and his 3 step debt elimination strategy system.

So if you have finally had enough of the way that lenders treat you, it's time to do something about it! Chris Brisson has come up with a guaranteed program to help you get the credit rating you have always wanted. So let me just quickly run through what you will get, once you have signed up to Chris Course:-

- The complete "37 days To clean Credit Course"

- The Interest Annihilation Method Audio with Scott Bilker

- The Credit Millionaire System with Donna Fox

- Credit Repair Mystery with Brett Bruce

- 45 "Copy & Paste" proven Credit Repair letters

- Super Budgeting Video Walk through

Don't forget to grab your Free Report on the 6 Deadly Credit Repair Myths as well.

Click Here to get started on raising your Credit Score today.

          Can You Get Guaranteed Loans For Bad Credit?        
Is there such a thing as "Guaranteed Loans For Bad Credit"?

Have you ever found yourself in that situation? - Where your debts are continually mounting up, all of your creditors are phoning you every other day and you're unable to find a real solution to your problems!

That's when you find something financially challenging and unexpected comes along and gives you yet another huge problem and forces you into frantically looking for some immediate funds. However, you can't afford to pay for what you have now, you're in trouble with your creditors and no credible lender is going to look at you.

That's when you start to become inundated with calls and adverts for people who offer Guaranteed Loans For People with Bad Credit. The problem being they are going to charge you the most extortionate of interest rates and monthly repayments.

So where do you get that fast injection of cash?

There have been organizations created to actually make this search far easier for you. They usually provide you with a membership and then issue you with a substantial amount of information via a huge database of lenders willing to help and give you that all important loan.

Usually you will have to pay a small one-time fee..and i mean small, but this will not only give you access to this huge database of lenders, you should also be provided with online or telephone support and also many unknown government resources to help you obtain a loan.

Most of the lenders on the database will offer guaranteed loans for bad credit or even a bankruptcy. The lenders are willing to lend money for almost all purposes whether it be Auto Loan Financing, Personal Loans, Mortgages or Credit Cards.

If you absolutely have to get that loan today and you're still unsure how to get Guaranteed Loans For Bad Credit, then Click Here immediately to learn what other people are doing to get approved.
          The Gateway to Writing Off Bad Debt        

Best Ways of Writing Off Bad Debt They are the leading providers for valued advice on Writing Off Bad Debt completely.

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          Your Portal to Writing Off Bad Debt        

Your Portal to Writing Off Bad Debt They are the leading providers for valued advice on Writing Off Bad Debt completely.

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          Be Careful on Giving Unsolicited Advice        
I love reading up on financial news and learning more about personal finance. And I like helping people as well. Sometimes, I give advice to my family and friends. Although they would listen for the most part, they almost never act on what I tell them to do. It's interesting that despite my honest advice to help them, they would push away everything I say. They would always have some kind of doubt or excuse. Recently my friend is running low on money. He's a real estate agent and he hasn't closed any deals lately. Since I know a few extra bucks would help him, I told him about signing up for credit cards or bank accounts with cash bonus. Or he can play the 0% balance transfer. He thinks it's too much hassle.
I have spoken to several friends in the past two years about contributing to retirement accounts, such as 401k and IRA accounts. They give me the usual answer, "I have no money." I tell them the importance of saving up for retirement. Moreover, I provide them with important financial messages - pay off debt, have emergency money, save up for retirement, invest, etc. They don't seem interested and don't listen. Yet they like to complain about not having money.
Sometimes I feel that they don't want financial advice -- they want MONEY. What they want me to do is not to teach them how to make money, but to hand them cash. Everybody wants to be a millionaire but nobody wants to work for it anymore. It's all about get rich quick.
They tell me they don't have time, and it's not worth making a few extra hundred bucks. If you have a lot of money, I would understand, but if you need money and have the opportunity to do it, why not?
It's hard to teach family as well. They don't seem interested in learning. I tell them to start ROTH IRAs because it really helps if you have low income, the government even give you tax benefits if you qualify. But they say they rather have the money now.
While I'm no certified professional, I know my advice can help my friends and family. They just don't see it. Perhaps they need to learn their own way. I just thought maybe I can give them a shortcut, but sometimes people need to learn the hard way.
I figure I'll save my energy on going out of my way to help people. People just don't appreciate. Instead, I'll focus on those who wants my help. It's a lose-lose situation if they don't appreciate your advice. Because if they miss the opportunity, they would blame you. If they execute your advice improperly and the results come out bad, they would blame you. The moral of the story is never give unsolicited advice.

          Bye-bye Student Loans        

I have about $3,200 in my student loan balance and about $112,000 in my mortgage loan balance. My student loan interest rate is at 3.875% and my mortgage loan rate is at 5.75%. I have $5K cash that I can use to repay my loans. It seems to make more sense to use the extra money to pay off my mortgage loan first. But I've decided with the help of my accountant to just pay off my student loans totally. That way, at least I clear out one debt account. According to my accountant, it would not be much of a tax savings for me even if I put the money in the mortgage loan.

I went online and sent a payment online to my student loan provider for the payoff amount (which is different from the balance). Now I am finally freed of my student loans.


          No San Antonio Bankruptcy Pay Off Credit Card Through Settlement Debt Negotiation        
Credit card debt is causing you pain.

Your stomach is turning over and over as you realize you cannot pay the minimum payments, much less pay the cards off.

Settlement debt negotiations can eliminate credit card debt.

For fear of the calls, letters, etc. from collectors, debtors usually do not think of just not paying their credit cards . They also have been told that their credit will be ruined with credit scores permanently impacted.

What the credit card companies don't tell you is that they would rather settle with you for a few more pennies on the dollar than sell the credit card loan to a debt collector. You see selling to a debt collector allows the investor who bought the debt to make money, not the credit card company or bank.

Settlement debt negotiation to pay off credit cards makes the bank or credit card company more money than their other alternatives.

Most debtors will default on the debt and go bankrupt so none of them, bank or debt collector, make any money. So the window opens for settlement debt negotiation.

To obtain more money from the debtor, it may even be possible to get the debt acknowledged to a credit reporting agency as paid as agreed or settled and not the notation of charged off. Most people are not aware that banks and other regulated lenders must charge off a retail loan, like credit cards, when it becomes 180 days past due. Now that does not mean that the credit card loan is not still owed by the debtor but it means that the loan has become almost worthless to the bank.

Banks normally sell the credit card loans to a collection agency. Collection agencies drive a hard bargain and buy the credit cards balances for pennies on the dollar.

Knowledge of these rights can be both powerful and profitable for you as the debtor. There are other alternatives that you should learn more about if you are faced with not being able to pay your debts.
James (Jim) Montgomery, recognized as a Texas SuperLawyer, explores how bankruptcy and chapter 13 plans can result in paying off credit card debt through debt settlement negotiation in his blog. His paper, "3 Ways To Stop Creditors In Their Tracks can be downloaded for free.
          Comment on Stacy’s Story: The Stress of Debt and Steps to Financial Freedom by Cathy Thomas        
Hello your story is encouraging. Where will you be teaching the Dave Ramsey Financial Peace class in April?
          Interface deal good for the industry         
08/09/2017

The $600 million Interface Security Systems deal has sent—as The Beach Boys once sang—“good vibrations” throughout the security industry, as it provides not only a vote of confidence for what Interface is doing as a modern systems integration company, but also a vote of confidence in the security industry, in general, as companies like Interface represent a new breed of integrator that is staying at the forefront of new technology and innovation.

John E. Mack III, executive vice president, co-head of investment banking and mergers & acquisitions at Imperial Capital, which acted as financial advisor to Interface on the deal, astutely pointed out that this deal goes beyond validation of what Interface is doing in the space.

“This is a very cool story for the sophisticated new-age security provider, which is what Interface is—the 2.0 version of what the right kind of security player should be,” he told Security Systems News. “We spend so much time in this industry talking about the residential side of the business, which is interesting, but there is a massive opportunity on the commercial side of the business that Interface is tapping into that I think is a compelling theme.”

He continued, “There is a lot of validation for a very successful business model here that Prudential is putting up $180 million of new capital, and SunTx is putting up additional capital into the deal. And that you’ve got a very attractive set of debt investors, and just the fundamental backing for the business, is a meaningful part of a positive message for the industry.”

Jeff Frye, SVP for Interface, told SSN that the support from equity partners is not only a stamp of approval for what the company is doing, but the “capital gives us more fuel to build on our current, better than 15 percent compounded annual growth rate, so we know that we can do more with a little more gas in the tank and we are anxious to prove it.”

Frye noted that the equity will allow the company to expand its products and services around providing business intelligence, as security is becoming so much more than just, well, security.

“As a network provider, and a managed services provider of network services and cybersecurity services, we touch a lot of aspects of our customers’ businesses,” Frye explained. “And as a leading purveyor of Internet of Things services, we are able to aggregate intelligence from all of those sensors and data sources to bring actionable insights to a customer’s business. There are some new verticals that we would like to focus on more, including financial services and banking, so this makes that horizon much brighter and much more approachable.”

And it also makes the security industry’s horizon a little brighter.


          Non Traditional Investing        


Non Traditional Investing

With the current decline in home prices some markets are ripe for investment. One such market with tremendous benefits is real estate investing in Austin, Texas. That’s right – real estate investors that are purchasing both commercial and residential properties in Austin are really seeing some huge profits in their investments. They are capitalizing on a very stable market – one that seems to be growing while other areas are in a downturn. So, if you’re considering investing in real estate and you have been looking for areas that you can invest, you should consider Austin Texas. In this article, we will discuss the benefits of investing in Austin Texas. By doing this, we hope that you will have a better idea of the market and can capitalize on this opportunity like many of the other real estate investors are doing. Let’s begin.

First of all, Austin has a wide array of positive elements working in its favor for the real estate investor. These included affordable houses that aren’t at risk to volatile price swings, a growing and vibrant economy, and a large student population. As an investor wild price swings can wipe out your investment and put you in debt. Austin real estate has the big benefit of experiencing slow and steady appreciation. Therefore, this makes it a prime investment for the serious real estate investor.

Second, the recent downturn hasn’t hit Austin to nearly the extent of other markets and so you have great stability in your investment. The population of Austin is growing and so this progression of prices will continue. The growing and vibrant economy presents another advantage as sustainable housing price appreciation can only be achieved with a growing and well-employed population. In fact, many researchers believe that even if the market continues to go down that the properties in Austin will still remain stable.

Third, Austin is a high tech center that is growing in influence and so this promises to provide strong support for housing prices benefiting those investing in Austin real estate. Therefore, the housing market is ripe for the taking. In addition, savvy investors who also purchase commercial real estate and then either rent it to business associates will also find themselves with a worthwhile investment. On the same token, by purchasing properties that are close to these centers, you will most likely receive some hot properties that are ripe for renting.

Finally, as a real estate investor you want a strong rental base so as to provide steady income from your property between the time your purchase the property and the time you sell it. Austin has a great renter population in the form of students thanks to the presence of the University of Texas at Austin.

In conclusion, if you’re a serious or a beginning real estate investor, you should seriously consider investing in real estate in Austin, Texas. Not only is this a great time to invest but you will see some great profits from your investment.

For more information on an austin investment property visit:http://noblecapital.com/noble1.html
          The Democracy Project [Audio]        
Speaker(s): Dr David Graeber, Professor Craig Calhoun | From the earliest meetings for Occupy Wall Street, David Graeber felt that something was different from previous demonstrations. What was it about this particular movement that worked this time? And what can we now do to make our world more democratic again? Graeber presents a vital new exploration of anti-capitalist dissent, looking at the actions of the 99% and revealing the alternative political and economic possibilities of our future. David Graeber is an anthropologist at Goldsmiths, University of London, who has been involved with the Occupy movement most actively at Wall Street. He is widely credited with coining the phrase "We are the 99%" and is the author of the widely praised Debt: The First 5000 Years. His new book The Democracy Project is published by Allen Lane. Craig Calhoun is a world-renowned social scientist whose work connects sociology to culture, communication, politics, philosophy and economics. He took up his post as LSE Director on 1 September 2012, having left the United States where he was University Professor at New York University and director of the Institute for Public Knowledge and President of the Social Science Research Council. He is the author of several books including Nations Matter, Critical Social Theory, Neither Gods Nor Emperors and most recently The Roots of Radicalism (University of Chicago Press, 2012).
          Europe Summit Aims to Revive Lost Momentum Toward Unity         

WITH public opinion soured on the merits of European unity, European Community leaders hope to ``relaunch Europe'' with a special summit tomorrow celebrating ratification of the long-awaited Maastricht Treaty.

``It's important to get the public thinking in terms of Europe again,'' says one Belgian Foreign Ministry official.

But the celebration risks being seen as irrelevant by much of the public it targets, as Europeans worry about record-high unemployment, challenges to their infant-to-elder social-welfare system, and instability on the continent's eastern borders.

``In Germany, at least, people are thinking about their job security, while published opinion is wondering about the future course of Russia, and neither one sees how the EC can have a major impact on those concerns,'' says Josef Janning, deputy director of the research group on Europe at the University of Mainz in Germany. ``People are seeing such issues less in European and more in national terms.''

The Maastricht Treaty, an ambitious blueprint for providing the EC with a monetary union and a common foreign and security policy by the latter part of the decade, was supposed to have been ratified and the process of its implementation begun in January 1992. That the treaty was not fully ratified until this month, when the German constitutional court finally approved it, provides a measure of the public doubt about Maastricht's goals.

In the two-year delay, Maastricht was battered by an initial outright rejection by Danish voters in a referendum, plus rough ratification battles in Britain and France. The European currency crises of October 1992 and this past summer mocked the monetary union goal, while the EC's weak and disjointed response to the war in Bosnia-Herzegovina posed deep questions about the feasibility of a common foreign policy. Operation `restore stature'

Tomorrow's summit, held in Brussels, is a German-French initiative to try to restore both Maastricht's and Europe's public stature. But even in France, where regard for the Community runs high, doubts are strong about what this summit can accomplish.

``No one should expect much of anything concrete out of this summit,'' says Phillipe Moreau-Defarges, an EC specialist at the French Institute of International Relations in Paris. ``There's too much division among the EC countries for decisions to be made.''

One possible area of action that Mr. Moreau-Defarges cites provides a good example of the Community's current lack of a common vision. The summit could give a new boost to earlier economic ``growth initiatives'' that have had trouble getting off the ground, he says.

Elsewhere in Europe, where public spending is already causing record debts, and where skepticism is strong over the actual impact of large public-works programs, enthusiasm for such proposals is slight.

``The German public is definitely not in favor of this kind of centralized program to rebuild Europe's economic strength,'' Dr. Janning says. ``People in Ireland or Portugal may see Brussels [EC headquarters] as a guarantor or creator of jobs,'' he adds, since those countries receive substantial EC development funds, ``but they certainly don't in Germany.''

Germany and France also had wanted to take up another issue at the summit: Community institutional reforms. The larger countries feel their power is too limited by the generally equal rights of smaller members, and concern is growing that the Community's enlargement to include three or four new small members by 1995 will further tilt the balance and generally render the Community more bureaucratic and plodding. Putting off reform

German proposals for streamlining the EC administration met with staunch resistance from small members, and reform will likely be put on hold until the next EC treaty review in 1996.

To demonstrate that Maastricht is now in force, EC leaders are expected to prepare the next stage of economic and monetary union by launching the European Monetary Institute, ``embryo'' of a future European central bank. The institute's location in Germany is likely to be approved, a move that could open the way for decisions on the placement of several other new EC institutions, including a patent office and environmental agency.

Still, there is a lingering feeling that Maastricht, negotiated in 1990, is a treaty already left behind by European events. ``By spring of next year we may very well have a new imperial Russia to contend with, something never imagined when Maastricht was written,'' Janning says. ``Economies are seen more in national terms. [Community] leaders will have to work hard,'' he adds, ``to demonstrate that Maastricht is relevant in these conditions.''

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          What to consider before borrowing        

Exhaust federal loans for both students and parents

For students who are U.S. citizens or permanent residents, maximize your federal education loans first. You must complete a FAFSA to take advantage of federal loans. Any federal loans you are eligible for will be listed on your Financial Aid notification. 

 

Be an educated consumer

Learn the language of student loans, including terms like interest, deferment, repayment, capitalization, forbearance, default, etc.

 

Be selective when choosing a lender

Look for a lender that will give you the best interest rate, lowest fees and best repayment plan. Failure to fully research these items can cause you to incur excessive debt.

 

Borrow only what you need

Avoid the temptation to borrow more, especially if you are informed that you qualify for more than what you need. Remember, you must pay back every dollar borrowed plus interest.

 

Recognize your long term commitment

Realize that borrowing loans can impact your financial choices and priorities after graduation.


          88th Academy Awards        
------------
Note 1: This is the fourth consecutive year when I am doing this. Hopefully this one will be much more readable compared to my previous attempts. Hopefully. (prev: 87th, 86th, 85th) This year, I also wrote a story with the tag-lines of the Oscar-nominated movies.

Note 2: I suspect the ratings for this year's Oscars are going to be very low. I mean, outside of #OscarsSoWhite, Studios and producers need to freakin' make the movies available for viewing online (or in theaters)! I will pay money to watch these movies BEFORE the Oscars goddamit! Events are successful when people talk about it. And to talk about it, people need context. What should we talk about instead of the movies themselves, Clooney's tux, JLaw's stumble, host's fumble, and hot cleavages?
------------


This is one of those years when I am not particularly attached to any movie that has been nominated. Atleast not for the big awards. But this year's Animated and Documentary nominations are a bunch of powerhouses compared to any year in recent history for these categories. It beats me why Inside Out didn't get a Best Picture nod. This just might have been a year when a Pixar movie, or any animated movie for that matter, won the top prize. Instead, we get Oscar-bait movies such as Room, Bridge of Spies, or even The Revenant. Mad Max getting in there is quite a surprise, not so much in retrospect. And yet, the top prize this year remains wide open, probable front-runners being Spotlight, The Revenant, and The Big Short, with the race getting more interesting than the movies themselves.

Emily Blunt's omission from Supporting Actress and Villeneuve's from Director (yep, I loved Sicario!) seems a little strange, but Villeneuve's time will come. His every successive movie gets better than the last! And Quentin, what did you do? He is forgiven though for getting too indulgent, considering that he might be nearing the end of his filmography. I hope though that I get to see him, among others, getting a Directing Oscar some day. Some day.

Right then.




Category / PickNomineesVishesh TippaniHit / Miss
Motion Picture


Spotlight

The Big Short

Brooklyn

Bridge of Spies

Mad Max: Fury Road

The Martian

The Revenant

Room

Spotlight
The Big Short: After The Wolf of Wall Street's rollercoaster ride, this seemed like pony carousel. I mean, we get it. Financial meltdown happened, and no-one responsible went to jail. Bravo! Selena Gomez explaining Collateralized Debt Obligations was cute though. Heh.

Brooklyn: It gets a lot of things right. Saoirse Ronan is an absolute delight to watch on screen, with a well-deserved Actress nomination for her. And the way the movie transports you to the 50s is incredible, effortlessly shattering a lot of things we take for granted today. And we are not talking about an ancient era, just 60-70 years ago. Brooklyn also does not resort to evil-looking people to further the plot in a way Titanic did, and in a way that makes the protagonists' struggles relatable, real, and very palatable - in a way that triggers a "Life is such," response rather than "They deserved this".
"I'd forgotten what this town is like. What were you planning to do, Miss Kelly?" 

Bridge of Spies: This is the "America is the best country in the World" movie for this year. Although both Tom Hanks and Mark Rylance nailed it with chiselled performances. Coen brothers wrote this, perhaps it would have been a much better movie if they directed it as well.
"Aren't you worried?"
"Would it help?"

Mad Max: Fury Road: This movie was an adrenalin-induced delight without end. Stunning camera work, absurdist humour, and louder than loudest everything, so much that one literally felt exhausted after the movie did not give any breathing space during.
"WITNESS ME!"

The Martian: Someone please explain to me why Inside Out is not in this category, and why The Martian isn't in the Best Animated movie category instead? What is the line between special effects and animation? Considering the state of the art for motion capture and 3D rendering techniques, maybe it's time we do away with the distinction. Anyway, The Martian falls flat compared to Gravity, or even Interstellar. Maybe it was just an excuse to rescue Matt Damon... again.

The Revenant: A lot of people, including the Academy, seem to be particularly fond of Iñárritu. I find his movies boring, the technical brilliance notwithstanding. Birdman was perhaps Iñárritu's most enjoyable movie, and I didn't want Birdman to win (Boyhood... sigh). If The Revenant wins this one, of which there is a more than significant chance, it will be several firsts, perhaps the most interesting one being successive wins by the same Director. Sure looks like Leo's year though.

Room: This was a hit or miss and all over the place. Some scenes were striking, in particular the one towards the end where Brie Larson goes back to the Room. Jacob Tremblay was spectacular until he was inside the room, and made his escape. After that it seemed like the director just didn't give a shit anymore.
"There's so much of "place" in the world."

Spotlight: This is my favourite movie from this category. Tense, crisp, great characters, performances, writing, Spotlight ranks high up there.
"We got two stories here: a story about degenerate clergy, and a story about a bunch of lawyers turning child abuse into a cottage industry. Which story do you want us to write? Because we're writing one of them."
Hit!
Director
Alejandro González Iñárritu, The Revenant

Adam McKay, The Big Short

George Miller, Mad Max: Fury Road

Alejandro González Iñárritu, The Revenant

Lenny Abrahamson, Room

Tom McCarthy, Spotlight
As much as I loved Spotlight, I am not sure if Tom McCarthy's time has come for a directing Oscar. The race mostly seems between Iñárritu and Miller, both of whom are really fine directors. If Iñárritu pulls this one off, back-to-back Director Oscars would be a tremendous feat.

Although, if I had my way, Duke Johnson and Charlie Kaufman (directors of Anomalisa),  Andrew Haigh (director of 45 years), would have found a spot here. And when-o-when will Denis Villeneuve's (Sicario) time come?
Hit!
Writing (Original)

Spotlight

Bridge of Spies

Ex Machina

Inside Out

Spotlight

Straight Outta Compton
Bridge of Spies is probably in here because... Coen brothers. Perhaps the movie would have been significantly better had they directed it as well.

Ex Machina had some really smart writing as well, reminded me of "Her" in a lot of ways.
Ava: "What will happen to me if I fail your test?"

I loved the fact that Inside Out got nominated for this, if not for Best Picture. They really got me from the moment the "train of thought" arrives. As cheesy as that is, really made me chuckle.
"Take her to the moon for me."

And as much as Tarantino would like to say "I truly believe in the material" for The Hateful Eight, he needs to sit on the bench for this one.

Spotlight though, crisp, taut, engaging from start to finish truly deserves this one.
"If it takes a village to raise a child, it takes a village to abuse them."
Hit!
Writing (Adapted)

The Big Short

The Big Short

Brooklyn

Carol

The Martian

Room
The Big Short is a no-brainer for this. I haven't read the book so I do not know how it reads, but this is one of those examples of an "adaptation", from a non-fiction, that would have truly meant a LOT of work.

Aaron Sorkin could have been slipped in here (for Steve Jobs), again adapting a non-fiction. Plus, in my opinion, his approach with the source material was remarkable and creative. With all the different sorts of issues Steve Jobs ran into during production, Sorkin was probably the only one who did the cleanest job for this movie.
Hit!
Actor

Leonardo DiCaprio, The Revenant

FINALLY, LEO! Boy am I waiting for his acceptance speech! SIXTH nomination, and what a journey! A story of survival, revenge, and life is also possibly the most fitting way he could have won this one!

But this doesn't go without mentioning the other quite remarkable performances in this category. Trumbo felt a lot like Argo, even besides the 'Hollywood making a movie about Hollywood thing' and John Goodman's huge (literally) presence. And I love this "genre" (if you may) too - Sunset Bldv., Chaplin, The Artist, to name a few.

Michael Fassbender did a fine job and literally saved the movie, but the most striking performance for me from this movie would definitely be that of Winslet's.

There are some roles where it is unimaginable for anyone else doing them except for Eddie Redmayne (you know, the kind of feeling we get quite often for Benedict Cumberbatch). I doubt anyone else would have been able to do Theory of Everything or The Danish Girl.
Hit!
Actress


Charlotte Rampling, 45 Years



Prediction: Brie Larson
Cate Blanchett, Carol

Brie Larson, Room

Jennifer Lawrence, Joy

Charlotte Rampling, 45 Years

Saoirse Ronan, Brooklyn
Brie Larson seems sealed for this category. She isn't on my top 3 out of these 5, so I will be a little bummed about this one.

I am conflicted between Charlotte Rampling and Saoirse Ronan for my top spot. 45 years is a stunning film, and deserved much more than the solitary nomination it received, but Charlotte is really the heart and soul of the film. After Emmanuelle Riva (Amour) lost to JLaw, I would be too pleased to see Charlotte win this one, for a movie that has too many similarities to Amour.

I wouldn't mind Saoirse winning this one either. Her nuanced performance in Brooklyn left you yearning for more.
Hit!
Supporting Actor

Christian Bale, The Big Short


Prediction: Sylvester Stallone
Christian Bale, The Big Short

Tom Hardy, The Revenant

Mark Ruffalo, Spotlight

Mark Rylance, Bridge of Spies

Sylvester Stallone, Creed
The one thing that I loved about The Big Short was Christian Bale's performance. In the very limited time that he occupies the screen, every freakin' scene is fireworks. He would be my pick for this one, but Sylvester Stallone makes for a great Oscar story, so yeah... Mark Rylance.
Supporting Actress

Kate Winslet, Steve Jobs


Prediction: Alicia Vikander
Jennifer Jason Leigh, The Hateful Eight

Rooney Mara, Carol

Rachel McAdams, Spotlight

Alicia Vikander, The Danish Girl

Kate Winslet, Steve Jobs
It's a shame that Alicia Vikander got nominated for The Danish Girl instead of Ex Machina. I am nuts about Alicia Vikander, she is what I would call "vanilla" beautiful. I know she is beautiful, I don't know why, and I find it hard to be able to figure it out. It's like she only registers when she's in front of me, but poof as soon as she's not, enigmatic almost. I think it was a stroke of casting brilliance to cast her in Ex Machina, a role which hinged significantly on this quality of hers in my opinion. You know, artificial... but not really, feels real... but can't put a finger on why.

But between her performance in The Danish Girl, and Kate Winslet's in Steve Jobs, my vote definitely goes to Kate. Them glasses. Sigh. And a performance that stands shoulder-to-shoulder with Fassbender's as Jobs, that's really something.
Hit!
Animated Movie

Anomalisa


Prediction: Inside Out
Anomalisa

Boy & The World

Inside Out

Shaun The Sheep Movie

When Marnie Was There
What a collection of movies in this category! This is a collection which is missing The Peanuts Movie and The Good Dinosaur - movies which in any other year would have made the nomination cut and might even have won!

I want to especially talk about three movie here, Anomalisa, Inside Out, and Boy & The World, although Shaun The Sheep and When Marnie Was There are brilliant movies in their own right.

Anomalisa is one of those movies that leave you going "How on Earth did they pull this off on screen?!" The stillness of this movie, the calm, the poise, the detail - both in the little things and the not-so-little things - is astounding. I could write at length about this movie, but anyone who has spent any time travelling to a smaller city in the US (especially to the mid-west) will get all intricate details they have managed to so gloriously capture. The absolutely shocking sex scene, the long takes, the movie playing almost in real time... Anomalisa is an anomaly done right when it comes to pushing the boundaries of what can be done on animation.

Talking about pushing the boundaries of animated films, Boy & The World is gorgeous! Such raw beauty, it is a spectacle to behold. Lovingly crafted hand-drawn animation, the colors, the playfulness, the airiness, the fireworks-y sparkle, the dazzle, every still of the film could be a framed painting in an art gallery. This is how, I wish, The Peanuts Movie had been made. HAND-DRAWN! I hope we get to see more of Alê Abreu's work.

Inside Out is almost surely going to win this one. Don't get me wrong, it is a great film, perhaps one of Pixar's top 3, if not the best. But it is going to win it for the wrong reasons. Animation has very little to do with what makes Inside Out a great film, which is why it was much better off getting a Best Film nod, along with the Writing nod that it deservedly received.
Hit!
Cinematography

Sicario


Prediction: The Revenant 
Carol

The Hateful Eight

Mad Max: Fury Road

The Revenant

Sicario
The Hateful Eight is on this list because... 70mm, Ben Hur lenses, yada yada yada. It's not the tooling that maketh a genius. Nope. But okay Quentin, you were indulging yourself, you are allowed to do that, of course.

It will be a big surprise if The Revenant does not win this one. The cinematography, after all, is one of the biggest reasons why it has been getting oh-so-much love. But, have you seen Sicario! Especially the one scene where they perform the extraction from Mexico, sent a chill down my spine. That is a scene in the same league as the car scene from Children of Men.
Hit!
Editing

Mad Max: Fury Road

The Big Short

Mad Max: Fury Road

The Revenant

Spotlight

Star Wars: The Force Awakens
If there is one award that Mad Max truly deserves, it's got to be this one. How do you even cut this movie?! Hit!
Production Design

Mad Max: Fury Road

Bridge of Spies

The Danish Girl

Mad Max: Fury Road

The Martian

The Revenant
Hit!
Score

Ennio Morricone, The Hateful Eight

Bridge of Spies

Carol

The Hateful Eight

Sicario

Star Wars: The Force Awakens
The Hateful Eight, again, is here because... Morricone. This is probably Academy's last chance to give a real Oscar to Ennio Morricone rather than the honorary one they had to give him a few years ago.

Sicario and Star Wars (obviously) truly deserve a special mention though.
Hit!
Visual Effects

The Revenant

Ex Machina

Mad Max: Fury Road

The Martian

The Revenant

Star Wars: The Force Awakens
This category is really losing its significance extremely fast. It is too hard to tell what's special effects and what's not, considering almost every movie undergoes huge transformation during post-production. Ex Machina.
Deserved!
Documentary

Winter on Fire: Ukraine's Fight For Freedom


Prediction: Amy
Amy

Cartel Land

The Look of Silence

What Happened, Miss Simone?

Winter on Fire: Ukraine's Fight For  Freedom
Just like the Animated Feature Film category, this was another powerhouse collection of films. I wouldn't mind Amy winning this one, Asif Kapadia is an accomplished director, his Senna ranks amongst my favorite movies. And, to be fair, Amy is an amazing movie, except, I didn't care a lot about the subject matter.

Winter on Fire, on the other hand, is a movie extremely relevant in today's day and age, and has managed to put together some really spine-chilling footage and beautifully. It also managed to give a first-hand glimpse into a country that we (I) know so little about, and around events that are being played out right now on the global political arena.
Hit!

Total: 13 / 15




          Petition: Pawn Mount Rushmore To Cover National Debt Interest        
File photo of Mount Rushmore. (Photo by KAREN BLEIER/AFP/Getty Images)A recent petition created on the White House's official page is calling for government to pawn Mount Rushmore to the federal reserve in order to cover the national debt.
          Tori's Review: Everbound (Everneath #2) by Brodi Ashton        
everbound_brodi_ashton_cover
Everbound by Brodi Ashton
Book Two in the Everneath Series
Published on January 22, 2013 by Balzer + Bray
Young Adult | Fantasy |  Paranormal
358 Pages
GoodreadsAmazon | B&N
Nikki Beckett could only watch as her boyfriend, Jack, sacrificed himself to save her, taking her place in the Tunnels of the Everneath for eternity — a debt that should’ve been hers. She’s living a borrowed life, and she doesn’t know what to do with the guilt. And every night Jack appears in her dreams, lost and confused and wasting away.

Desperate for answers, Nikki turns to Cole, the immortal bad boy who wants to make her his queen — and the one person least likely to help. But his heart has been touched by everything about Nikki, and he agrees to assist her in the only way he can: by taking her to the Everneath himself.

Nikki and Cole descend into the Everneath, only to discover that their journey will be more difficult than they’d anticipated — and more deadly. But Nikki vows to stop at nothing to save Jack — even if it means making an incredible sacrifice of her own.

In this enthralling sequel to Everneath, Brodi Ashton tests the bonds of destiny and explores the lengths we’ll go to for the ones we love.
Immediately after reading Everneath, I had to go out and buy Everbound. I'm not even kidding. I finished Everneath on Friday night, and then I went to Barnes & Noble to buy Everbound Saturday morning. The series is that addicting.

There's just something about Ashton's writing and world that draws me in. In Everneath, I wasn't Team Jack or Team Cole, but, let me tell you, I'm definitely Team Cole now. I'm one for a "tortured" soul, and I'd most certainly call Cole a tortured soul. Everbound really explored the depth to his character more. And the ending really proved to me that Cole, although in love with Nikki, makes his decisions based on his motivations—to win the girl of his dreams.

While I love Cole, Jack on the other hand is lower on my radar. Jack is very dependant on Nikki, which I don't like in a character. I like a character that's strong, independent, and can kick butt. Jack is none of the above. Stuck in the Everneath, Jack is pretty much nonexistent in this novel other than the flashbacks that Nikki has of him. At first, I thought the flashbacks weren't going to work for me, but after the first two or so, they didn't annoy me as much.

Jack is basically the jock who is in love with the unknowing, pining main character and is jealous of every other guy to talks to said girl.

Ashton is extremely good at world-building. She meshes our world with the Everneath's so nicely, creating a wonderful urban fantasy novel. The fantasy aspect of Everbound flows so nicely, and I don't question anything, because Ashton says right out how things are. While Nikki is in the Everneath with Cole, it was so easy for me to picture myself in the Everneath along with Nikki. My one problem with Nikki and Cole going to the Everneath would be the fact that everybody made the Everneath out to be some terrifying and hard-to-navigate place (the labyrinth as well), but it only took them a couple days to reach the center [of the Everneath], which supposedly nobody had done before.

At the end, I'll admit that I guessed the identity of a certain somebody before it was revealed. Albeit, I didn't figure it out until about 10 pages before the big revelation, but nonetheless I figured it out. For some reason, the predictability of Ashton's writing isn't bad. I kind of like it. It's more of the, "YES! I guessed it right!" rather than the, "Oh my god, why do I keep guessing? That makes it a crappy novel."

While I guessed the identity of a certain somebody, I did not guess the very ending. I would've never guessed the very ending. It was just so shocking and amazing. I loved the ending yet at the same time I hated it.

In the end, I really enjoyed Everbound. I can't say I'm excited to read Evertrue though. I've just heard that so many people are disappointed by it. Right now, the Everneath trilogy is one of my favorite trilogies. I really don't want to be disappointed by the third book. Though I have to say that I really want to read Evertrue just to see who Nikki chooses, although I'm pretty sure I already know.



          Ed Balls calls for growth but criticises pension strikes        
Good to see Ed Balls offering a message of hope at today’s Labour Party conference as an alternative to the Tories’ message of doom. Pity he chose to undermine the unions strategy for defending their members’ pensions.
He was at his best when taking on the Tory belief of “private always good, public always” and challenging the government to take up an alternative economic strategy, talking up measures that would promote growth instead of their over-reliance on austerity.
It was particularly interesting to hear how he chose to attack Osborne and Cameron’s economic strategy on the international front:

“Confronted with the biggest most urgent global challenge of our age, all they can do is urge other countries to pile austerity on austerity too… ignoring the lessons of history and the evidence here in Britain, and across the world, that austerity just isn't working. That is not just a failure of leadership – it is a complete abdication of responsibility too.”
The lessons in history he no doubt alludes to are how, during a time of an even worse national debt, the Labour Party was able to introduce the welfare state, NHS, state pensions, and comprehensive education.
Balls could have gone further on these reasons for Labour to be proud. Unfortunately, on the subject of pensions, he chose to criticise the unions for standing up to the government’s (as he put it) “confrontational and unfair” pension changes. He reiterated the party’s leadership’s belief that the decision to strike would be walking into a trap and that “there is nothing George Osborne would like better than a strike this autumn to divert attention from his failing economic plan.”
He said that under Labour pensions contributions and retirement ages would be going up anyway. Why? Was he inviting us to question – whose side are you on Ed? Are you really looking out for the ordinary working people you spoke of today that are struggling to make ends meet who need hope of a better way? You must realise many of these people are the same people you’re criticising for having the audacity for taking a stand against having their pension rights torn up.
Public sector pensions were made more affordable under the last Labour government. Surely that’s something he could be claiming credit for rather than saying he’d cut them as well!
It’s good to see the Labour Party going on the offensive against the Tory austerity measures and calling for the immediate need for growth. However, the party’s leaders need to realise, if strikes do go ahead in November and they fail to support the workers, many of these traditional Labour supporters may never forgive them.

          The Best Part-Time Job in America        

The fix is in. Did you know, Congress only works 33 percent of the year?

The base salary for all rank-and-file members of Congress is $174,000, more than triple the median household income of the United States. In exchange for that generous salary, members of Congress work one out of three days.

The House of Representatives was in session for only 18 hours a week in 2013. Members worked only 130 days in 2015. In case you needed more evidence that Congress doesn’t earn its salary, consider this: House and Senate members only worked eight days in April.

Eight work days in a month, with an annual salary of $174,000. Can you imagine? Must be nice!

Meanwhile, in the real world, the average American worker puts in more hours than a medieval peasant. Full-time U.S. employees use only 54 percent of their paid vacation days, sacrificing the rest for fear of falling behind or being replaced. The idea of a congressman skipping that much vacation is laughable, at best.

I was raised to believe that how people spend their time is a direct reflection of their priorities. The United States holds more than $19 trillion in debt, not including unfunded liabilities. Our health care, immigration, and justice systems are in desperate need of reform. Public schools are underperforming, while families and small businesses are being taxed out of financial security.

Where is our elected leadership? Clearly, they have other priorities.

Members of Congress spend most of their time in their districts, schmoozing with donors, speaking at private events, and securing their next elections. The average House member spent $53,170 of taxpayer money on travel in 2013.

These aren’t legislators, these are professional campaigners.

The American people aren’t being heard by government because the game is rigged. Washington isn’t broken. It’s “fixed.”


          In Defense of Economic Noninterventionism         

A recent Wall Street Journal article has surprisingly good news: US companies are seeing the highest profit growth in two years with “two consecutive quarters of double-digit profit growth for the first time since 2011.” This surprisingly comes not from policies pursued in Washington, but the hard work of the private sector.

The fact that businesses and job creators can make such a phenomenal showing after years of regulatory uncertainty and continued political intervention reminds us of the power of the free market and that the best successes come from the work of the individuals, not collectivists in the public sector.

Perhaps the best reminding of what the last eight years brought us was President Obama’s infamous 2012 campaign speech “If you've got a business, you didn't build that.” Throughout the course of his administration saw a creation of routine legislative and executive actions that were designed to both micromanage business and supposedly “create” jobs. Unfortunately, none of this had the intended success.

Most prominently among the actions from the executive administration while Obama was presidents include significantly increased regulations. Among these have included the Waters of the United States Rule (WOTUS), Dodd-Frank, the stimulus package, and, most spectacularly of all, Obamacare. All of these added a large interventions and onerous barriers in the economy that failed to achieve their stated goal.

WOTUS was probably one of the greatest power grabs by the EPA in recent history. The rule essentially sought to define “navigable waters” in the clean water Act which “brought nearly half of Alaska and a total area in the lower 48 states equivalent to the size of California under the CWA’s jurisdiction.” The proposal, had it not been blocked and rescinded, would have cost thousands of dollars for permits on land that was not previously under the EPA’s jurisdiction, delayed production since a permit can take up to months, and this would have resulted in reduced development and production as well as higher prices.

Though the WOTUS rule was not fully implemented, regulations that did have a massive negative impact on the economy include the Dodd–Frank Wall Street Reform and Consumer Protection Act.

As implemented, Dodd-Frank imposed various new regulations on the financial sector, including creating the Consumer Financial Protection Bureau (CFPB), designated firms as systemically important financial institutions (SIFIs), and instituted price controls on debit and credit card transactions. The result was a climate of over regulation with banks being incentivized to become as large as possible in the hopes of being bailed out while the CFPB became a revolving door for lobbyists and influence peddlers to regulate the market with little to no oversight.

Unsurprisingly, one fifth of the banks in the U.S. banks, totalling 1,708, went under between the law’s creation and 2016, which is about one per day, and by 2015 five large banks controlled 50 percent of the banking industry.

Outside of simple regulation, there was also so called “jobs creations” programs that were supposed to create jobs the President did not think businesses could such as the stimulus package. The program was sold as a job creation plan that would keep unemployment below 8 percent for the low price of $830 billion.

The next four years were marked by above 8 percent unemployment while the money ended up being wasted on worthless projects, including trees in wealthy neighborhoods, a study of erectile dysfunction, and the failed company solyndra which was run by a bundler for the Obama campaign. To make matters worse, though unemployment eventually went down long after the stimulus’s implementation, the labor participation rate reached its lowest in 38 years which shows that people still weren’t working.

However, the crowned jewel of overregulation and job destruction during the Obama administration was ObamaCare. Implemented to expand health insurance coverage, it has repeatedly failed to reach its goals as premiums went up, enrollment failed to reach its projections, and the legislation gave corporate welfare (including promised bailouts) to the insurance lobby. In the end, most of the coops failed and major companies pulled out of the exchanges, resulting in 1,000 counties, including five whole states, only having one insurer, a major failure in the goal of expanded coverage.

Inevitably, the phenomenal intervention in the economy by President Obama failed to achieve the job creation while it instead made made doing business that much harder. With record breaking numbers of regulations, Obama was the first President since the Great Depression to never see 3 percent GDP growth.

The Trump administration in the meantime has pursued a different approach than its predecessor. The Trump administration has seen sixteen regulations cut for every one it has created, had signed four resolutions of disapproval under the Congressional Review Act to overturn regulation within two months as President, and rolled back the clean power plan which could have cost $40 billion per year. All of this marks a significant change in policy that will greatly open up business opportunities and expand economic growth.

However, policy alone does not explain why there has been high profit growth for the last two quarters. As the Wall Street Journal article admits, health care legislation and tax reform have been stalled in the senate. This has caused a climate of uncertainty which businesses have not been happy with.

Nevertheless, they have instead moved on from Washington and instead remained focused on doing business. Political events seem to have taken a backseat to actual business as the number of S&P 500 companies have mentioned the President or his administration during conferences is down by a third as the research firm Sentieo found out. To be blunt, the involvement of Washington and government policy is not driving the current profit growth and the lack of involvement may actually be increasing it.

For a better example of how reduced involvement can improve the economy, look no further than the Depression of 1920. At the time, war time debt had exploded, unemployment peaked at 11.7 percent in 1921, and inflation rates jumped above twenty percent. It had the potential to be even more catastrophic than the Great Depression that started in 1929.

However, the policies pursued were entirely different. The federal budget was severely reduced from $18.5 billion in FY 1919 to $3.3 billion for FY 1922. Taxes at the same time were cut by about 40 percent.

As a result, unemployment dropped to 2.3 percent by 1923 and a crisis had been averted. This was accomplished not by bailouts and and overregulation but by getting the government entirely out of the way. This is a radically different approach than was pursued during the financial panic of 2008 or even the Great Depression.

Overall, there has been a repeated belief that government involvement has made economic advancement harder. As was stated by former President Reagan, “Government is not the solution to our problem; government is the problem.” President Kennedy noted the same when he said “Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort — thereby aborting our recoveries and stifling our national growth rate.”

It should come as no surprise then that business are fully prepared to run their own affairs and is best capable to address its own need, for as JP Morgan Chase CEO Jamie Dimon noted, “We’ve been growing at 1.5% to 2%...because the American business sector is powerful and strong and is going to grow regardless.”

It remains the desire of others that the government should intervene in the economy to make improvements. However, this has always resulted in guaranteed failure. Be it raising the minimum wage in Seattle or increased taxation and regulations in Connecticut, the result is usually lackluster growth and decreased jobs. At the national level, Venezuela’s nationalization and China’s increased infrastructure projects have created the same results, which is to say none.

As history and current events have shown time and time again, the best results come not from government involvement and micromanagement, but from the hard work of free individuals in free markets. More and more, the adaptability of businesses to their consumer’s demands and their ability to whether adversity in the marketplace has always been more efficient than the micromanagement the state perceives. As a result, sometimes the best thing to do is to have the government do nothing so that those who can make the economy better will.


          FreedomWorks' Member of the Month for August 2017: Rep. Trent Franks (R-Ariz.)        

FreedomWorks is proud to name Rep. Trent Franks (R-Ariz.) as Member of the Month for August 2017. Rep. Franks has supported lowering taxes and voting for policies that contribute to FreedomWorks’ pro-growth agenda.

Rep. Franks currently serves on the Judiciary and Armed Services committees. Before being elected to Congress, Rep. Franks spent his time working on children’s issues. He served in the Arizona State Legislature and later worked with the Governor as the cabinet-level director of the Arizona Governor’s Office for Children. Rep. Franks also had a hand in state and local advocacy, founding the Arizona Family Research Institute.

With his conviction to protect the Constitution and support policies to shrink government by cutting wasteful spending and bureaucratic over-regulation, he has maintained a lifetime score of 92 percent on FreedomWorks’ Congressional Scorecard. Our scorecard is calculated by tracking the votes of members of Congress on key issues of economic freedom and individual liberty.

In the 115th Congress, Rep. Franks co-sponsored H.R. 3167, the Debt Ceiling Alternative Act, sponsored by Rep. David Schweikert (R-Ariz.). This bill would hold the federal government accountable for the money it borrows from the American people. It would take a fiscally conservative stance in response to reaching the debt ceiling by requiring the Secretary of the Treasury to issue GDP-linked bonds to pay the principal and interest on public debt.

Rep. Franks, a member of the House Freedom Caucus, has also held a principled stance on healthcare reform He said, "The federal government is not known for its ability to keep entitlement spending under control. ObamaCare has been the perfect example of what healthcare looks like in the hands of an unimaginably large bureaucracy. Premium cost hikes have crippled American families, Medicaid is failing those most in need, and regulation is stifling innovation.”

FreedomWorks is proud to honor Rep. Franks as Member of the Month for August 2017.


          Venezuela is Socialism's Last Nail in the Coffin        

From a so-called “economic miracle” to a human rights disaster, Venezuela has followed in the footsteps of literally every single socialist or communist country ever with its country in complete collapse. Crime is on the rise, the people are starving, protests are going all throughout the country, and unconfirmed rumors are coming out that President Nicolas Maduro is considering leaving.

In the never ending desire to achieve an impossible utopia, Venezuela is living in a nightmare that may serve as the best evidence against government mismanagement.

To be blunt, the people are starving. Roughly 75 percent of the country lost 19 pounds in 2016. This actually coincides with reports that Venezuelans were looking for food in the trash.

It is not just food that Venezuelans seem to be running out of at the moment. The country is lacking medicine, toilet paper, and even goods for religious sacraments as well. All sorts of goods are disappearing from the country faster and faster.

Meanwhile, their economy is in complete shambles. At the start of the year, inflation had hit 800 percent while their GDP had shrunk by 19 percent. To make matters worse, 2016 marked its third year of recession.

Of course, the elite of the country have not seemed to notice the problems their citizens are facing. Accusations fly of the leaders of Venezuela living luxurious lifestyles despite the recession. Unsurprisingly, reports have the daughter of Venezuela’s last President Hugo Chavez at a networth of $4.2 billion.

So the big question is: why is Venezuela falling apart? The simplest answer is government mismanagement as it started taking over the economy. Under the watch of Socialists Hugo Chavez and his successor Nicolas Maduro, the socialist leadership in the country has greatly increased its influence in economic affairs, resulting in decreased investment, business failures, and scarcity.

Over the past decade and a half, the Venezuelan government has nationalized multiple industries, including oil, agriculture, finance, steel, electricity, and telecommunications. Unsurprisingly, this led to significant ruin in the various industries it controlled, especially oil. Case in point, the Chavez regime largely underfunded the investment necessary to bring about increased oil production.

Large portions of oil revenues were transferred to generous social programs but there was lackluster reinvestment to make sure that more oil was produced to keep revenue flowing. As a result, oil production starting dropping consistently after 2007 which saw a major decline in revenue (and helped lead to the debt that caused hyper inflation). Additionally, Chavez demanded more money from oil companies investing in the country and the ones that refused saw their assets seized. With such a clear lack of respect for human rights, it should come as no surprise that foreign investment has been on the decline recently in the country which is also hurting business and revenue.

To make matters worse, many workers were fired and replaced with government loyalists. In one case, a company that had never created an oil well was hired to create several since it had ties to the government. The lack of experienced workers unsurprisingly has also added to the decline of the oil industry that was a huge part of the government’s revenue.

Just about every industry the government has touched has fallen apart. Steel production was reduced by 70 percent after it was nationalized, food production has been on the decline while the government redistributed farmland for the production of food the land was not suited for, and the Venezuelan government is instituting blackouts to reduce consumption to reduce electricity use due to decreased supply. Overall, it seems Venezuela is in the process of running its economy into the ground.

Venezuela has also added newer regulations and laws to improve the economic situation of its country that had the opposite effect. Case in point, the minimum wage was increased recently by 50 percent despite the fact overall wages still decreased by 17 percent. Other reports have increased labor protections actually hurting business while price controls that were implemented to reduce profits and keep prices low also helped to reduce food productions which also helped cause the food crisis. With all this in mind, it should come as no surprise that the number of businesses in Venezuela has gone down from 800,000 in 1998 to 230,000 in 2016, a decline of 570,000.

It is important to remember though that none of this should even be looked at as being done as a love for the people from the state. As was noted by a former education minister, the goal of the people reforms is “‘not to take the people out of poverty so they become middle class and then turn into escuálidos’ (a derogatory term to denote opposition members).” Translation: it’s not for their benefit but to create a dependent class of supporters.

For more evidence of how the government does not care about its people, look no further than its human rights records. The Maduro government has been seizing power by stacking the courts with supportive justices and then met the protests against that with violent crackdowns on dissenters. Meanwhile, accusations of sham elections are now flying in the wake of an election referendum to give him the power to rewrite the country’s constitution. In the end, the increase in power has come to the detriment of the people backed by phony promises.

As is always the case, the promise of helping the people through government intervention completely falls apart. Just like with China and Russia, the result is always economic ruin with the well connected few reaping the benefits. Unfortunately, the US is not free from these mistakes as states like Connecticut or cities like Seattle implementing their own interventions in the economy that results in disaster. If the US wants to head down the path same economic path as Venezuela that leads to destruction and corruption, it will inevitably end there.


          Support the CREATES Act, S. 974 and H.R. 2212        

On behalf of FreedomWorks’ activist community, I urge you to contact your representative and ask him or her to support the Creating and Restoring Equal Access To Equivalent Samples (CREATES) Act, S. 974 and H.R. 2212. This bill would lower prescription drug prices by crushing illegal, anti-competitive, and monopolistic practices by the biggest pharmaceutical companies.

Prescription drug prices have soared above general inflation rates for years, a telltale sign of lacking producer competition. Large moneyed pharmaceutical companies abuse a loophole in the FDA Amendments Act of 2007 that allows them to bar potential competitors from entering the market. They do this by refusing to provide drug samples and safety information that new producers need for medical research required in the FDA approval process of generic drugs.

Without these samples and safety procedures, new producers never earn FDA approval. Meanwhile, existing producers establish monopolies and hike prices.

This especially harms the emerging market for “biosimilars,” innovative remakes of biologic drugs. Biosimilars are often much cheaper to produce than name-brand biologics, reducing costs for millions of Americans.

The CREATES Act would grant relief in court for generic and biosimilar competitors seeking FDA approval. This would clear the pathway for new drugs to enter the market, drastically reducing prices through increased competition. The cost savings stemming from this legislation could reach between 15 percent and 50 percent of current prices for impacted drugs.

Such legislation would reduce both the federal deficit and national debt. Decreasing prescription drug costs would lessen the financial burden on Medicare, saving taxpayers up to $5 billion annually.

As you know, FreedomWorks fights for free markets and smaller government. The CREATES Act would lead to a freer market, less cronyism, and cheaper medication. For these reasons, I urge you to contact your representative and ask him or her to support the CREATES, S. 974 and H.R. 2212.

Sincerely,

Adam Brandon, President, FreedomWorks


          Congress Should Lower Ridiculous Drug Prices by Passing CREATES Act        

Perpetually increasing prescription drug prices ravage everyday Americans. Specifically, name-brand prices outpace inflation by about 50%, largely due to government-protected market power. A beacon of hope for reducing drug prices are the generic and biosimilar drug industries, which produces existing brand drugs and biologics drugs through distinctly cheaper methods. But big Pharma doesn’t want competition, so it does everything it can to block generic and biosimilar innovation. The CREATES Act, H.R. 2212, solves a loophole commonly abused by big pharmaceutical companies for unlawful market advantages in the emerging generics and biosimilars markets.

Existing drug companies exploit the Food and Drug Administration’s (FDA’s) Abbreviated New Drug Application (ANDA) requirements for FDA approval of competitive generic and biosimilar products. This is an unlawful tactic to increase market-power. Biosimilars are a type of biologic drug – drugs manufactured from living cells – that mimic both the composition and the function of an existing biologic drug but employ cheaper production processes. Tragically, established producers prevent aspiring competitors from completing ANDA.

To complete a generic or biosimilar approval process, applicants must acquire sample drugs from existing producers. This allows medical researchers to demonstrate that the functions and properties of the original brand drug and the new generic or biosimilar are, in fact, equivalent. Sadly, many brand companies refuse to provide samples to potential competitors, preventing them from gaining approval. Thus, innovative generics and biosimilars hit the market less frequently, trapping consumers with fewer options and higher prices. While this practice of abusing distribution networks is illegal, there are no enforcement mechanisms preventing it.

Remember the damnable pharmaceutical executive Martin Shkreli, who raised the price of a biologic AIDS drug Daraprim by over 5000% in one night? One of his profit-protection methods was to deny competitor applicants the samples they need to earn FDA approval. Competing with losers like Shkreli would be easy it if weren’t for this loophole. High school chemistry students reproduced Daraprim for less than $2 a pill compared to Shkreli’s $750.

A similar monopolistic scam employed by entrenched pharmaceutical companies involves exploiting shared Risk Evaluation and Mitigation Strategy (REMS) procedures. Producers of existing brand drugs are sometimes required by the FDA to establish safety protocols that protect consumers from safety risks. The FDA encourages companies to share, or streamline, their REMS procedures for maximum safety and congruency among user experiences. If a person taking biologic drug X switches to biosimilar drug X, the shared procedure is supposed to ensure that there are no major differences in how this person safely consumes the drug. In a similar fashion to denying samples, big pharma often refuses to share REMS procedures. When a REMS program has previously been required, FDA cannot approve a generic or biosimilar until a shared REMS has been negotiated or the agency has been given sufficient evidence to waive the requirement. This imposes redundant and costly burdens on biosimilar producers, and ultimately delays market entry for far less expensive but equally safe drugs.

Both of these tactics, refusal to share samples and failure to fairly negotiate shared REMS programs, establish de facto monopolies for original drug producers, but they’re easily fixed by the CREATES Act. Under the CREATES Act, generics and biosimilar manufacturers will be able to seek injunctive relief in court against companies that withhold samples or REMS information. This will improve competition with new generics and biosimilars, reducing prescription drug costs possibly as much as 40%. It will also help sustain Medicare Part D, the national deficit, and debt, by reducing government drug expenses by up to $5 billion per year.

Congress should end illegal monopolies and help Americans afford their medications by passing the CREATES Act, all without increasing the size of government.


          Capitol Hill Update: July 24, 2017        

Schedule:

The House and Senate are in session this week.

There are five (5) legislative days remaining for the House before the August recess and 53 legislative days remaining in the year. The Senate will supposedly work through the first two weeks of the August recess.

House:

The FY 2018 budget resolution, dubbed "Building a Better America," was marked up and approved by the Budget Committee on Thursday in a party-line vote. The budget would reduce the budget deficit by $6.5 trillion over the ten-year budget window and eventually come into balance in FY 2027, creating a $9 billion surplus.

Perhaps one of the most important components of the budget is that it begins the reconciliation process for fundamental tax reform. There are also reconciliation instructions for 11 House committees to find roughly $200 billion savings or reforms in mandatory spending.

The FY 2018 budget resolution isn't on the calendar for the week. It's unclear if House Republican leaders will bring it to the floor.

Additionally, the 21st Century Aviation Innovation, Reform, and Reauthorization (AIRR) Act, H.R. 2997, introduced by Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) could come to the floor for a vote this week. The bill reauthorizes the Federal Aviation Administration (FAA) and reforms the United States' out of date air traffic control (ATC) system. FreedomWorks has released a key vote in support of the 21st AIRR Act.

On Monday, the House will consider 17 bills on the suspension calendar. Most of the bills on the suspension calendar related to veterans or active military issues. There are three bills on the suspension calendar that relate to small businesses and investment. The House will also consider the Intelligence Authorization Act, H.R. 3180, sponsored by Intelligence Committee Chairman Devin Nunes (R-Calif.) on suspension.

There are three bills on the suspension calendar for Tuesday, including the Medicare Part B Improvement Act, H.R. 3178, sponsored by Ways and Means Chairman Kevin Brady (R-Texas), and a yet-to-be-numbered resolution that will impose sanctions on Russia, Iran, and North Korea.

The House will also consider H.J.Res. 111, a resolution of disapproval under the Congressional Review Act, to cancel the Consumer Financial Protection Bureau's (CFPB) giveaway to trial lawyers. The rule put restrictions on the use of arbitration to settle disputes over consumer products. This would lead to more class-action lawsuits, benefiting trial lawyers and hurting consumers. FreedomWorks has signed a coalition letter in support of H.J.Res. 111 and will likely include the vote on our 2017 Congressional Scorecard.

For the balance of the week, the House will consider at least four more bills on the suspension calendar. The Make America Secure Appropriations Act, H.R. 3219, will also come to the floor. This is the consolidated appropriations bill, or "minibus," for the Department of Defense, the Legislative Branch, Military Construction and Veterans Affairs, and Energy and Water. Like virtually every other bill to come to the floor this year under "regular order," the Make America Secure Appropriations Act is subject to a rule to limit or prevent amendments from the floor.

On Thursday at 10:00 am, the Judiciary Committee will hold a hearing entitled "The Need for the Balanced Budget Amendment." The witness list for the hearing has not yet been announced. Twelve constitutional amendments have been introduced in the House that would require a balanced budget. Chairman Bob Goodlatte (R-Va.) is the sponsor of two of them, H.J.Res. 1 and H.J.Res. 2. Rep. Justin Amash (R-Mich.), the primary sponsor of H.J.Res. 15, is among the House conservatives who have introduced a balanced budget amendment.

The committee and subcommittee schedule for the week can be found here.

Senate:

Presumably, the Senate will vote this week on the motion to proceed to the House-passed version of H.R. 1628. It's still unclear on what happens next. A vote to proceed to the House-passed version has always been the first step. The next step will be for an amendment to the bill that will substitute the language of either the Better Care Reconciliation Act or language similar to the 2015 ObamaCare repeal bill, now called the ObamaCare Repeal Reconciliation Act. FreedomWorks' key vote on the motion to proceed applies only if the base text that will be substituted is similar to the 2015 ObamaCare repeal bill.

At least a few Senate Republicans have backed away from their votes for the 2015 ObamaCare repeal bill, which was passed in December 2015 with the support of all but two Republicans, including Sen. Susan Collins. Moderate Republicans who refuse to vote for the 2015 ObamaCare repeal bill have demanded $200 billion in Medicaid funding offered by Majority Leader Mitch McConnell (R-Ky.) to get them to support the Better Care Reconciliation Act.

Some parts of the Better Care Reconciliation Act are in limbo, however, as the Senate parliamentarian has apparently ruled that provisions limiting funding for Planned Parenthood and tax credits for plans that cover abortion will require 60 votes. Other provisions that may require 60 votes include the State Innovation Waivers. Many of these provisions can be altered to make them withstand a Byrd rule challenge, as was done in 2015.

The Senate still has several nominees to consider and, on the legislative front, the FDA Reauthorization Act, S. 934; the National Defense Reauthorization Act; and the debt ceiling are among the items awaiting action.

Separately, Senate Democrats are rolling out their "better deal" economic agenda today, which is a rehashing and repackaging of virtually every leftist policy proposal in recent years. The agenda is Democrats' attempt to find a message after a string of special election losses around the country.

The full committee schedule for the week can be found here.


          BWW Review: SOMETHING ROTTEN at Starlight Theatre        

Dust off your willing suspension of disbelief. Starlight Theatre transforms into Elizabethan London in the year 1595. The play is "Something Rotten." William Shakespeare has not authored his 38 famous plays and 150 sonnets. By masquerading as patron to the struggling Bottom Brothers from Cornwall, the Bard has purloined their ideas and most of their dialog lock, stock, and couplet.

Conjecture about Shakespeare's authorship surged and likely suspects advanced even before the Bard's death in 1616 at age 52. Likely suspects for the real Shakespeare have included Christopher Marlowe and Francis Bacon. But the Bottom Brothers? Really? And that is the more than slightly wacky notion behind this 2015 Broadway crowd pleaser "Something Rotten" which continues through Sunday at Swope Park.

"Something Rotten" ran 745 performances on Broadway and closed on New Year's Day 2017. If this touring production, seems unusually sharp, that could be because it features most of the closing Broadway cast. These guys had so much fun with "Something Rotten," they packed it up, and took it on the road.

Dig out your tap shoes and polish up your funny bone. Sit back and giggle. "Something Rotten" is unabashedly derivative. It is a love letter to Shakespeare and to Broadway musicals. It features two Busby Berkley worthy Honest-to-God showstoppers; "A Musical" and "Make an Omelet."

Lots of "Something Rotten" is deliberately corny and punny and tap dancey, but I have not been so thoroughly entertained in a long time. I guess it shows that my sophistication quotient is stored discreetly in my whoopee cushion. I like it.

Desperate for a hit, show businessy Nick Bottom (Rob McClure) and his earnest brother Nigel (Josh Grisetti) search alternately for truth in life and/or ticket sales. Nigel falls in love with a Puritan blondie named Portia (Autumn Hurlbert). Nick's sharp-as-a-tack pregnant bride Bea (Maggie Lakis) sees the family's desperate financial situation and demands to take in work and help. "It is the 90s," she proclaims in "Right Hand Man." Nick cannot accept the idea and searches for an alternative. He blames his competitor for his trouble with "I Hate Shakespeare" a memorable musical rant.

Meanwhile back on the West End Avenue, Nick is threatened alternately by his patron, the disguised Shakespeare (Adam Pascal), and his Jewish banker Shylock (Jeff Brooks). Shylock offers to forgive Nick's debt if Nick allows him to become a partner. Too bad, Jews are restricted from most jobs at the time. Nick must come up with another idea and fast.

He decides to consult a soothsayer - a fortuneteller. His first stop at a sayer of sooth's shop is cut short by a note on the door that complains it has been closed by unforeseen circumstances.

Second choice is Nostradamus - no not that Nostradamus. This is Thomas Nostradamus (Blake Hammond), a nephew to the French guy. He does see things, if through a bit of a cracked lens. In this case, he convinces Nick he should consider a new kind of play. How about a musical where the songs advance the plot?

This is where the show really takes off and never lands. There are more funny allusions to musical shows of the next three hundred years than a retrospective at the Tony Awards. Some of them you get - Others fly on by. It is like watching an Elizabethan Henny Youngman throwing out one-liners. Their first idea for a show subject is the "Black Death." Close, but no cigar.

Back to Shakespeare! The real man was a little pudgy and bald. This Shakespeare is a blond, nasty, literal rock star who presides over a rave. If this sounds a little bit like Mr. Peabody and his boy Sherman, you've got the idea. It is the kind of creative anachronism you enjoyed in "A Knight's Tale" with the late Heath Ledger.

Of course, the Bottom Brothers run afoul of the law and the church. They and their backers get a choice between beheading and transportation to the new world. Maybe banishment is the better option. Maybe there is a place where true love lives, land for family cottages can be had, musicals have a chance for success, and Jews can become part of the financial backing of show business. Who knew?

The language for this one is relatively mild. The double and triple entendres should not offend many, but they are there. Think of the mildly sexy jokes, you might see on a TV sitcom.

Take a notebook. Keep track of all the show biz allusions. Smile. Don't miss "Something Rotten" at Starlight Theatre. If you have a humorous bone somewhere other than your elbow, you will like this one. Tickets are available at the Starlight website or by telephone at 816-363-7827. To steal a line from "Kiss Me Kate," "Brush Up Your Shakespeare And We'll All Kow Tow."

Photo provided by Starlight Theatre


          Forever in their debt.         

    Prince and Pearl, Duke and Baron, Queen, and Bonnie and Clyde. 

   All seven of our carriage horses are amazing horses. They brave things that would have the average horse badly spooked. We routinely encounter all sorts of crazy things that very few horses would ever tolerate. Heavy traffic, loud motorcycles, and honking cars is the mild stuff. We have had everything from a carriage full of teen girls screaming at the top of their lungs, to mariachi bands, bagpipes, the massive gun fire on New Year's Eve, and even fireworks. Lots more of the typical stuff as well, screaming babies, hyper children, every sort of flapping plastic, and loud event commotion, is all just part of their "norm"  

   Unlike the hack or street carriage horse our special event carriage horses have to perform in a different environment at each job. Someplace they have never seen before and are unfamiliar with. Most people can't fully grasp the level of training much less the immense trust that these horses have in us and us with them to be able to perform under those circumstances, and do it calmly. Good commercial carriage horses have to have a naturally adaptable personality. The reliable ones always do. A large part of their fearlessness is due to the bond they have with their drivers and footmen. It is a mutual bond that is nothing short of divine. 

  This brings me to share with you a little about the human side of the equation. You see, the bond flows both ways. The connection a driver has with his/her horse is equally important. Being flight animals even the best horses can get a little rattled once in awhile and that is where our equine partners trust in his person comes in. A soothing tone of voice, a command given with authority does wonders to let that equine partner know that not only is he being given direction, hes safe because he is not alone. It's hard to describe to the non-horseman, but to those who are, it's as real a thing as the morning sun. Speaking of such things among their peers the horseman simply nods in understanding. 

  So you can probably imagine the deep love and appreciation the horseman/woman has for their horses. We keep each other safe and out of harm's way. We lean on each other for support when things get sideways. The trust that forms between a carriage driver and his/her horse goes far deeper than just affection for a beloved pet. It is a mutual respect like no other. The love and admiration we grow to feel for our horses is immense. Carriage drivers thank God every day for their brave and wonderful horses, and cannot help but to feel forever in their debt.  

          What ails Indian farmers         
Teaser: 
A study finds faulty agricultural policies and practices and not just indebtedness to blame for rising suicides among farmers.
Loans are not the only reason for farmers' distress. (Source: India Water Portal)

Over the last few months, we saw protests by distressed farmers of Maharashtra, Madhya Pradesh and other states over farming crisis and farmer suicides. In what seemed like a knee-jerk reaction, many state governments announced farm loan waivers without thinking if it would actually help the farmers. 

Are loan waivers enough to improve the situation of farmers? Experts think otherwise. They believe that certain core issues of farming have been left unaddressed and need urgent consideration.

What do farmers have to say about the increasing crisis in agriculture and rising suicides? This article titled Lives in debt: Narratives of agrarian distress and farmer suicides published in the Economic and Political Weekly discusses the findings of a study on farmers’ experiences from two districts with high suicide rates in the country--Yavatmal in Maharashtra and Sangrur in Punjab.

The article argues that farmer suicides need to be understood in the context of the broader crisis in agriculture. It is not only indebtedness but a number of core issues related to faulty agricultural policies and practices that contribute to the distress among farmers.

Glaring signs of the crisis in agriculture

  • The contribution of the agricultural sector to India’s GDP has been declining steadily. Nearly half of the workforce in the country, however, is involved in farming.

  • There has been a steady increase in the percentage of farmers having small landholdings. Small landholdings do not support mechanisation and irrigation. Moreover, the absence of land records in many cases prevent these farmers from accessing formal credit, government benefits or crop insurance.

  • A large number of small farm holders are accessing credit mainly from informal sources.

  • Indebtedness among farmers is on the rise with 52 percent of agricultural households in the country being plagued by it.

What causes distress among farmers in Yavatmal and Sangrur?

Although Yavatmal and Sangrur are very different in terms of socioeconomic backgrounds, crop patterns, agricultural practices, the underlying reasons for distress are found to be similar.

  • Flawed cropping patterns aggravating water scarcity

In Sangrur and Yavatmal, where paddy and cotton are grown, the crop choice is not harmonious with the agroclimatic features of the region. BT cotton is very sensitive to the timing and intensity of rainfall. Growing it in Yavatmal that has unpredictable rainfall and no alternative source of irrigation is unsuitable for the region.

As much as 2,000–4,000 litres of water are required to produce one kilo of rice. The high water demand makes rice unsuitable for a place like Sangrur which is highly water stressed with falling water tables due to severe depletion of groundwater resources.

  • Rising input costs

Farmers in both regions complain of rising input prices (seed, water, electricity, fertiliser, pesticide and land rent) and the absence of a proportionate increase in minimum support prices (MSP). In Yavatmal, BT cotton producers are barely able to meet the costs of production, while traders and middlemen make profits at the cost of farmers who are not able to store the harvest and wait for the right price. Farmers in the study question the instability of prices and demand an enhancement of the loan amount from formal credit sources so that they can cover input costs and make farming viable.

In Sangrur, in addition to the high input prices needed for farming, dependence on paddy cultivation increases the demand for water, forcing farmers to spend huge amounts on digging borewells in an area that suffers from severe depletion of groundwater resources.

  • The unending cycle of borrowing, non-repayment and the shame of debt

Rising input costs force farmers to borrow. Since the bank loans are insufficient to meet these high input costs, farmers are compelled to access informal sources of credit. At times, farmers prioritise repayment of loans taken from informal sources over bank loans due to high rates of interest and to retain their rapport with the moneylender to remain credit-worthy. Also borrowing from different sources to repay bank loans to stay within the banking system further pushes farmers into the spiral of debt. This, coupled with crop failure, worsens their situation.

At times, farmers are forced to borrow from their close relatives when other avenues of borrowing such as moneylenders have been tried and exhausted. The shame associated with one’s inability to repay is immense in village society and it is worse if money is borrowed from relatives, which forces many farmers to commit suicide.

  • Rising aspirations and absence of alternative sources of income

Recently, rising aspirations have also led to farmers taking huge loans for non-farming activities such as marriages, ceremonies, cars, gadgets, contributing to their financial burden as many do not have any other source of income.

What is the way out?

The article suggests some fundamental changes to alter the situation.

  • Moving towards cropping patterns that are suitable for the agro-climatic zones and encouraging indigenous patterns of farming that are less cost intensive.
  • Modifying the institutional credit disbursal system by introducing the option of repayment in instalments.
  • Introducing a proportionate loan–land ratio which would enable the farmer to retain his rights for the rest of his landholdings, which can then be used as a source of liquidity.
  • Introducing specific farming credit policies for dryland and rainfed areas.
  • The introduction of cashless loan components to avoid diversion of crop loans towards non-farm expenditures.
  • Restructuring of loans against localised crop failures where specific and targeted compensation packages take extreme weather events or natural calamities into account.
  • Introducing land reforms, correcting the terms of trade that work against farmers and providing them with alternative sources of livelihoods.

A copy of the paper can be downloaded from below:

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          Ryots wronged, take protest to Delhi        
Teaser: 
As the TN farmers’ protest in Delhi enters its fourth week, all eyes are on the Centre which is not budging.
Tamil Nadu farmers protest for drought relief in Delhi.

A woman stands with a begging bowl and a placard strung around her neck. An old man shuffles along barefoot in the street at Jantar Mantar, the official site of a farmers’ protest in the heart of New Delhi. He finds his way through a group of farmers gathered at the protest site on a hot summer afternoon. Dressed in green loincloths, they are lying motionless on the road and the footpath exhausted after their meetings with the deputy speaker of Lok Sabha M. Thambidurai, MDMK general secretary Vaiko and Congress vice president Rahul Gandhi in the past few days.

These are farmers from Tamil Nadu on a protest which is in its fourth week. The drought situation on the Cauvery belt in Tamil Nadu has gone from bad to worse this year with the state witnessing the worst spell in 140 years from a poor northeast monsoon, as per the India Meteorological Department. The state government officially declared a drought in January 2017.

“The Centre has not announced a drought relief package yet despite our long-standing protest. The High Court of Tamil Nadu has issued directions to the state government to write off all agricultural loans. But we will not budge from here till the Centre hears us out,” says Sivaprakash, a farmer from Dindigul in Tamil Nadu.

Sivaprakash is a part of the group of over 100 farmers representing the ‘Desiya Thenidhiya Nathigal Inaippu Vivasayigal Sangam’ (National South Indian River Interlinking Sangam). They have been protesting at Jantar Mantar since March 14, 2017. “Hundreds of farmers have committed suicide given the drought conditions in the state which was preceded by the devastating cyclone Vardah. Even the National Human Rights Commission (NHRC) has sought a detailed report from the state government on this,” says Sivaprakash. Earlier in January, the NHRC had taken suo motu cognisance of the media reports on the suicide of 106 farmers in one month in Tamil Nadu.

Waiting for an ethical response

With the government unmoved by their protest, members of the Sangam resorted to skull protest to intensify their agitation. “Through our skull protest, where we are displaying the skulls of farmers who have committed suicide in the wake of the drought in the state, we are seeking a drought relief package from the Centre. The skulls we are using in the protest symbolise our fate if the state does not help us out. Debt relief is being provided to the wealthy people. What about us, the farmers who have toiled so hard?” asks P. Ayyakannu, president of the Sangam, who hails from the Tiruchirappalli district in Tamil Nadu.  

The state government had in February 2017 sanctioned a drought relief package of Rs 2,247 crore for 32 lakh farmers of the state. “The state government gave Rs 3,000 each as compensation for crop losses to those who depend on seasonal rain and Rs 5,465 per acre to those who depend on irrigation. How is that enough to make up for the losses we have faced?” Ayyakannu asks. “This is highly inadequate and we demand a drought relief package of Rs 40,000 crore from the Centre,” says Saravana Kumar Vasudeva, who belongs to a farmer family in Theni, Tamil Nadu. “We also want a waiver of loans, better support price for our produce, lower input prices and above all, solutions to water scarcity in the region," says Saravana.

Natarajan who has come all the way from Karur in Tamil Nadu says, “I lost my crops to this drought and have an outstanding debt of around Rs 5 lakh from a nationalised bank. How will I repay this? I have no money left. Why can’t the government extend the waiver for loans from nationalised banks like they have done for cooperative banks?”

“We wanted to make a representation to the prime minister about the agrarian situation in Tamil Nadu but even after 28 days, our representatives have not been granted an appointment. This only shows the government's claim that it is sensitive to farmers is hollow,” says Ayakannu. “Farmers would be forced to intensify their agitation unless the issue is settled,” he adds.

Catching the people’s imagination

Agitators at the protest site.The farmers from the Cauvery belt have been joined by farmers from the other states in the protest. “Our livelihoods have been destroyed. To drive home this point, we are using macabre elements in the protest like skulls, rats and snakes. We are carrying begging bowls, shaving half of our heads and staging mock funerals. We even stripped in front of the prime minister’s office yesterday. But other than the media, no one seems to be noticing us despite the gravity of the situation,” says Manohar Patil from Maharashtra who has joined in the protest.

Some of their demands include setting up of the Cauvery Management Board and interlinking of the national rivers to deal with the lack of water in Cauvery. “Why can’t the Centre force the Karnataka government to release water from Cauvery when the Supreme Court has directed Karnataka to do so as many as seven times? The Center talks so much about Ganga but nothing on Cauvery,” says Saravana.

“We are languishing here for days but the Centre has no interest in hearing us out. How do you think our families will survive with no income?” asks Natarajan. “Unable to repay our loans, we are left with no option but to rot in Delhi,” he says.

“Our crisis deepened this year because Karnataka, in spite of the Supreme Court order, refused to release Cauvery water to Tamil Nadu,” says Kuppuswamy, a farmer from Villupuram district of Tamil Nadu. Many agitating farmers are senior citizens and are also demanding a pension scheme where farmers over 60 years of age get Rs 5,000 each.

Whose fault is it anyway?

The Centre considers drought relief as the responsibility of the state. The state, on the other hand, has approached the Centre and sought an assistance of Rs 39,565 crore from the National Disaster Relief Fund for drought relief. Following this, a central team has visited Tamil Nadu to assess the condition and has submitted its report. Union Minister for Agriculture Radha Mohan Singh plans to take it up at a high-level committee meeting soon. However, it may be difficult for the Centre to waive off loans for the Tamil Nadu farmers alone as there are other states too which are in a similar situation. Tamil Nadu farmers may get some financial assistance but will that solve the current crisis of farmer debts and suicides?

Droughts are not just episodic in nature but are a structural problem. Drought or no drought, farmers will continue to fall in debt traps given their dependence on high-cost farming methods using fertilisers, pesticides, machinery and seeds. At the same time, crops are no longer fetching them remunerative prices from which they can profit. The answer to this crisis may be in adopting low-cost sustainable farming methods. Meanwhile farmers should be provided income security to wean them off the debt trap. Let’s wait and watch if the state responds well to the current crisis.

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          Freakonomics on Shemita and the Law of Unintended Consequences        
The always-interesting Freakonomics guys (Steven D. Levitt and Stephen J. Dubner) had a fascinating column in this weekend's NYTimes Magazine. It covers the law of unintended consequences and links some seemingly unrelated topics:
What do a deaf woman in Los Angeles, a first-century Jewish sandal maker and a red-cockaded woodpecker have in common?
I recommend reading the column to find out - as well as to catch how the Shemita-year device of Heter Mechira figures into the discussion. Though their point - that every action can incur all manner of unexpected results - might seem obvious, it doesn't make reading about some specific unintended consequences any less interesting.

This is the relevant passage from the column as regards to Shemitta and Heter Mechira:
How long have such do-good laws been backfiring? Consider the ancient Jewish laws concerning the sabbatical, or seventh year. As commanded in the Bible, all Jewish-owned lands in Israel were to lie fallow every seventh year, with the needy allowed to gather whatever food continued to grow. Even more significant, all loans were to be forgiven in the sabbatical. The appeal of such unilateral debt relief cannot be overestimated, since the penalties for defaulting on a loan at the time were severe: a creditor could go so far as to take a debtor or his children into bondage.

So for a poor Jewish sandal maker having trouble with his loan payments, the sabbatical law was truly a godsend. If you were a creditor, however, you saw things differently. Why should you lend the sandal maker money if he could just tear up the loan in Year Seven? Creditors duly gamed the system, making loans in the years right after a sabbatical, when they were confident they would be repaid, but then pulling tight the purse strings in Years Five and Six. The resulting credit drought was so damaging to poor people that it fell to the great sage Hillel to fix things.

His solution, known as prosbul, allowed a lender to go to court and pre-emptively declare that a specific loan would not be subject to sabbatical debt relief, transferring the debt to the court itself and thereby empowering it to collect the loan. This left the law technically intact but allowed for lenders to once again make credit available to the poor without taking on unwarranted risk for themselves.

The fallow-land portion of the sabbatical law, meanwhile, was upheld for centuries, but it, too, finally gained a loophole, called heter mechira. This allowed for a Jew to temporarily “sell” his land to a non-Jew and to continue farming it during the sabbatical year and then “buy” it back immediately afterward — a solution that helped the modern state of Israel keep its agricultural economy humming.

The trouble is that many of the most observant Israeli Jews reject this maneuver as a sleight of hand that violates the spirit of the law. Many of these traditionalists are also extremely poor. And so this year, which happens to be a sabbatical year, the poorest Jews in Israel who wish to eat only food grown on non-Jewish land are left to buy imported goods at double or triple the regular price — all in order to uphold a law meant to help feed the poorest Jews in Israel.
They make an interesting point. When the Shemitta-year law of forgiving all debts created a situation in which those who needed loans were being refused in pre-Shemitta years, thus harming those (the poor) who most needed the reprieve ostensibly offered by Shemitta, Hillel instituted a system whereby that unintended consequence could be averted. However, while the law of Shemita that commanded that all fields must lie fallow may have allowed poor Jews living in Israel to help themselves to produce during that year, the similar though admittedly far more recently instituted Heter Mechira has not at all been accepted among Charedi Jews. This has created a situation where the Charedim, some of whom number among the poorest of Israeli citizens, instead spend their meager funds on imported produce to avoid buying fruits and vegetables grown on Jewish-owned land with a Heter Mechira - or worse, these families are forced to go without much in the way of fresh produce altogether.

Now, the fact that that individual Halachot might have unintended consequences is far from a Chiddush. I think it's fair to state that just about every law - whether religious or secular - will have some unintended or unplanned-for consequence. Nor should that fact necessarily be a criteria to attempt to change normative Halacha. That said, there is a halachic concept of considering the societal or financial fallout of a psak before rendering it. I have personally seen such a practice in action, when in a situation that forced me to ask a Shaila of a quite eminent Rav regarding the need to replace a certain kitchen appliance that had been rendered unkosher. When I posed the question to the Rav, his first ruling was that we were required to replace a certain component of the appliance only, as opposed to the entire appliance. When I mentioned that I had researched the pricing and found it almost as expensive to do so as to replace the appliance entirely, he paused, told me he was unaware as to how costly the component in question was, and told me to call him back later that evening after he did some research. When I called back later that evening he had decided on a more lenient ruling, and told me how to perform a technique to kasher the appliance instead of replacing the component or the appliance entirely. At first blush, that might seem to be a cop-out of sorts, a less than strict adherence to Halacha in the face of what might have amounted to a bit of financial discomfort. But clearly this very learned Rav felt comfortable amending his ruling based on the hardship a stricter ruling might cause. I should probably add, however, that the same Charedim who do not hold of Heter Mechira might very likely not hold of the ruling I received regarding my kitchen appliance. I will also add the the usual disclaimers regarding how one ruling has absolutely nothing to do with the other aside for the seeming differences in flexibility when it comes to the question of a strict adherence to halacha when it imposes financial hardship.

Some might also find it interesting that the very same Rav who gave me my kitchen appliance psak does not approve of eating produce grown with Heter Mechira. So in the interests of full disclosure, I must note that the OrthoFamily ourselves do not purchase Heter Mechira fruits and vegetables.

Go figure.

(A previous post on Heter Mechira.)
          New World Order        
Last night was hot; the city sweltered in the early spring heat wave. Most of the inhabitants were still trying to hold off on using there air conditioners, since the weather soothsayers on the evening news said a drastic cooling trend was only a day a way.

The night was dark; the waning crescent wouldn?t rise until early morning. It was a perfect night for me to patrol the streets, and root out crime. The only thing is the thugs didn?t cooperate, the streets were empty. The lack of johns had hookers abandoning there corners, clubs were quiet, and no sound from the parks.

The night was too peaceful for this dark and degenerate city. I didn?t like it, but there was nothing for me to do. I pulled out papers I had printed from the internet concerning the New Deal put forth by President Roosevelt, and started reading through them.

A quote by James Paul Warburg struck me as appropriate for the current day, and an ominous prediction of the future. Speaking on Feb. 17, 1950, to the United States Senate Committee on Foreign Relations he said, ?We shall have World Government, whether or not we like it. The only question is whether world government will be achieved by conquest or consent."

I?m starting to believe that my fight against the zombies may be in vain and that the New World Order may be the real enemy. Obazy does everything he can to coddle and the zombies, but are they the real threat to this country. Seeking to tie the dots to an organization bent on controlling the world with a global government, may be beyond the abilities of this costumed crime fighter. But I may be brought into the fight against my will, as I watch our constitution eliminated piece by piece, and our economy handed over to the government in the form of bailouts and stimulus packages. I can only wonder when the citizens, so burdened by debt, will stand up and scream out their rage. Herein lies the apex to the crisis, will the collective conscious of the masses demand help from an all powerful government or will they demand freedom from the tyranny.

I don?t know what the answer will be, for I am the mirrorman, I can tell what one man will do when I look in his eyes, but I cannot read the whole.

I will abide my time, and watch. I will make notes. Eventually I will connect the dots.

Perhaps I have already been brought into the fight. Perhaps.

          Wisconsin Gov. Scott Walker: Anti-union measure ‘doesn’t save any’ money        
Wisconsin Governor Scott Walker said Thursday that his decision to strip the collective bargaining rights of public workers “doesn’t save any” money for taxpayers during a House committee hearing on ways to handle state and municipal debt. Nearly all collective bargaining rights we...
          Worst Debt Ridden Cities/County’s In America!        
Written by Charles Stockdale 1. Central Falls, RI Credit rating: Caa1 2009 revenues: $17,601,000 2009 debt ($000s): $18,753,000 Median household income: $33,520 In August 2011, Central Falls declared bankruptcy largely because of the city’s pension plan, which promised $80 million in retirement benefits. According to the New York Times, the “pension fund will probably run […]
          Frontier Talk and the Industrial Revolution vs. Agrarian movement        
So what was the original american frontier? It was considered the area between urbanized areas and wilderness. Many regard the original American frontier as a place where true freedom existed as westernization occured across this county, and those living in it had to be resourceful and promoted a spirit of self-reliance.

This blog "New American Frontier" is named for this because these freedoms and openness are now somewhat limited- but we must strive to still keep a spirit of independence and self-reliance alive. We are told that we cannot take care of ourselves outside of consumerism and our governments ( both federal and state ).

There is no reason we still cannot be self-reliant and live with less crap in our lives. I read an article recently about consumerism right before the stock market crash in the late 20's. Basically, most people lived an agrarian lifestyle where they met nearly all of their own needs by their land. During the 1830's and up to the 1920's people still produced most of what they needed themselves. The 1920's was a huge time for advertising success in business, and people starting buying. They never stopped. Today, consumerism is at an all time high, and so is our national debt. Most people don't have any sort of savings. Retirement for most in my generation (30 years old) looks bleak. Social Security isn't going to be there either. That's one reason I wanted to purchase my own land and attempt to live on it, good or bad.

In 2003, people now spend 75% more on their mortgages than they did 30 years ago in the 70's based on the same income and what it would buy. The state and local governments want to strap us with more fees to build something than what it costs to build with our own hands and labor, or they want to fine us. This is really a tax. The greed of government knows no bounds.

America's real problems today are core problems that will never be fixed overnight. We need people to spend less, and tell their kids that they can't have everything at wal-mart. I think that people need to re-evaluate themselves, their spending, and where it will lead. The agrarian lifestyle starts to look pretty good as gas prices, food and cost of living is increasing by the day- especially oil.

We have pretty much parked our 1996 diesel suburban at this point except for towing (3/4 ton). We're now driving my 1/2 ton pickup extra cab and squeezing the kids to it instead for $4.00 per gallon gas and 19 mpg vs. 15 mpg at 5.10 per gallon here in California.
          4 Summertime Risks to Your Credit Score        

Last Updated: August 3, 2017Just because summertime is here and you might be taking it easy, that doesn’t mean you should let your guard down when it comes to your finances. In fact, during the summer season, you should be aware of a number of potential threats that can hurt your credit rating. Some of these things are common actions you might take when the temperatures rise; other things are misdeeds that con artists might do to you. Either way, here’s a warning about four summertime risks to your credit score. Overspending It’s so easy to overspend in the summer time. You may have time off from work and so you take an extended vacation. Or perhaps you’re trying to keep the kids busy, so you have them in summer camp or occupied with extra sports or music lessons.  Just be sure to watch your spending on these activities. If you’re not paying for things with cash, and you rack up debt on your credit cards, expect your credit score to take a hit. That’s because the amount of debt you charge on your credit cards accounts for 30% of your FICO credit score. The fix: Only charge what you […]

 

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          Where To Find Quick Money For A Summer Vacation        

Are you planning on taking a “staycation” this summer because you don’t have the money to go on a real vacation away from home? Or are you going to go into debt for a trip because your bank account is near empty? The average American racks up about $1,100 in vacation debt, and according to research from Credit Sesame, men are more likely than women to go into debt for a trip – mainly because guys are more willing to charge an entire vacation on their credit cards, Credit Sesame found. Well, maybe you can have a proper vacation getaway – without going into debt – with a few savvy financial moves. Here are four tips to help you find some quick cash for a vacation this summer.   * Tip #1: Adjust your W-4 withholdings at work The IRS says that nationwide the average tax refund in 2017 was about $3,000. That means most people are probably overpaying their taxes by roughly $250 per month. Basically, you’re giving the government an interest free loan on your money — money you could have now!  To fix that problem, and get cash quickly for your summer vacation, head into your HR […]

 

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          Are You Ready for Homeownership?        

Last Updated: June 11, 2017Are you ready for homeownership? Buying a home will likely be one of the biggest investments of your life. So you want to get it right – especially when it comes to picking the right mortgage and the right mortgage lender. My new Homeownership Smarts course on Money Coach University will turn you into an educated homebuyer and ensure that you get the best possible home loan for your situation.   In this 5-part video course, I will explain: Fixed Rate Mortgage or ARM: Which is best for you? The two most important factors in qualifying for a mortgage FHA Loans Vs. Conventional Loans: What’s the difference? What exactly are mortgage “points” and should you pay them? 5 cardinal rules for successful homeownership   Throughout the course, we will break down important mortgage terms, such as debt-to-income ratios, equity and interest rate caps — all in plain English, so you can understand how mortgages work. Take Homeownership Smarts now if you want to prepare yourself to become a successful homeowner this year or in the years to come!   GET THE FINANCIAL SECURITY YOU'VE ALWAYS WANTED Are you sick and tired of being in debt and living paycheck […]

 

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          Debt Collection Firm Enters Consent Judgment for $1 Million in Restitution with Massachusetts AG        

          Debt Collector Ordered to Pay $25 Million to State of Texas for Illegal Debt Collection Practices        

          FTC Obtains Temporary Restraining Order Freezing Assets of Debt Collection Operation        

          Etisalat Nigeria ‘faces bank takeover’        
Three banks will take over Etisalat Nigeria because of $1.72bn debts, says unconfirmed report in Nigerian newspaper
          As Students Struggle to Pay Tuition, Schools Scramble to Trim Budgets         

HOLLY SNIFF, who is the first person in her family to attend college, found out about making hard choices early on. "I really wanted to go out of state for school, but because of financial reasons I couldn't," says Ms. Sniff, who is now a sophomore at the University of Virginia in Charlottesville.

For as long as she can remember, Sniff has been putting away money for her education. "I saved every dollar I was given as birthday presents or special treats as a child," she says.

Those childhood savings along with summer earnings and additional financial help from relatives got Sniff through her first year of college. But tuition continues to rise, and Sniff, along with millions of other students, is struggling to keep up.

At the same time, both private and public colleges and universities are moving beyond trimming at the margins to control costs.

Many schools are freezing faculty salaries, suspending hiring, delaying building maintenance, limiting course offerings, and even cutting academic departments.

Administrators are finding that they can no longer fund every project, department, or program. In the 1991-92 academic year, 57 percent of all colleges and universities were forced to reduce their operating budgets, according to an annual survey by the American Council on Education in Washington, D.C.

At the University of Vermont, a budget committee's proposal to eliminate the School of Engineering led to an uproar and the eventual resignation of the university's president.

AS state funding shrinks, public universities are being forced to increase class sizes and cut back on student services. Students at California's public universities have staged massive student protests against overcrowded classes and eye-popping tuition increases.

Nationwide, public colleges raised their tuition and fees an average of 10 percent and private-college increases averaged 7 percent this year, according to the College Board's annual survey released last month.

"Given the state of the economy and its impact on state budgets, many people expected much larger [tuition] increases this year, particularly in the public sector," says Donald Stewart, president of the College Board.

The rate of increase for public-college tuition is actually down this year compared with last year's 13 percent rise. And private colleges held their increases to last year's rate.

Yet that doesn't mean tuitions are gravitating back to earthly levels, warns Arthur Hauptman, a college tuition consultant.

"What the public tuition number says is that the recession has eased a little bit," he says. "If things get better [in terms of the economy], you would expect to see some additional reduction in those numbers."

In the '90s, Mr. Hauptman points out, there is much more competition for state funds than there was in the 1980s. Health care, prisons, and elementary and secondary education are all clamoring for funding.

"Despite predictions at the beginning of the '80s that it would be a tough decade, it turned out to be a very good decade for higher education in terms of revenue growth," Hauptman says. "Every major revenue source for colleges grew in real terms during that time - federal, state, tuitions, endowments, sales, and services."

And how were those revenues spent? Some faculty critics argue that the funds were spent on administrative bloat. "The fact is that in the '80s administrative staff at both private and public colleges grew much faster than the faculty," Hauptman says. "It is also true, however, that in the 1980s faculty salaries increased in real terms."

Last year, Rep. Patricia Schroeder (D) of Colorado launched a congressional investigation into the skyrocketing cost of tuition at public colleges.

"When it comes to college education, American families are paying more and getting less," she said. "Since 1980, the cost of sending our kids to college, a key part of the American dream, has doubled or tripled the rate of inflation every single year."

The investigation found that the growing research orientation of public higher education has fed the spiraling tuition costs. The teaching load of professors dropped from the traditional 15 hours per semester to as low as six hours per semester at some institutions, according to the study.

Pinning down the cause of increased tuition at either public or private universities isn't easy. Education is a labor-intensive enterprise that does not lend itself to productivity gains, administrators argue.

"Because faculty salaries have lagged in the past and because of competition for faculty among universities and industry, faculty compensation [increases] now exceed inflation," points out Paul Locatelli, president of Santa Clara University in Santa Clara, Calif.

Yet it is possible to increase teaching loads, reexamine the length of the academic year, and de-emphasize research in an effort to gain productivity, argues Hauptman.

"Colleges want to increase their resources; it's a natural inclination," he says. "If you read the college presidents' letters to the parents, you would assume costs are pushing tuition increases. But I think it's more that the revenues provided by the tuition hikes allow the schools to increase costs."

Meanwhile, students like Holly Sniff are willing to work harder or borrow more in order to get a college degree. Sniff expects to have accumulated about $10,000 in loans before she graduates. "I think I'm better off taking out loans now and using my life savings so that hopefully in the future I can find a better-paying job," she says.

Increased indebtedness raises the stakes for many students. "I'm not really concerned with it now," Sniff says, "but as soon as I graduate I'm going to have to get a good-paying job to pay off all of these loans."

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          Movie Gallery Closing Remaining U.S. Stores        
Movie Gallery will be shutting down their remaining U.S. stores, the announcement comes weeks after the struggling company entered Chapter 11 Bankruptcy for a second time. It is currently unclear whether the bankruptcy will convert to Chapter 7 which is essentially a full on liquidation. When first filling for  bankruptcy in February Movie Gallery’s debts were [...]
          å®Ÿã‚¿ã‚¹ã‚¯ã§æ©Ÿæ¢°å­¦ç¿’を導入するまでの壁とその壁の突破方法        

社内で機械学習の案件があった際に、機械学習の経験者しか担当できないと後々の引き継ぎで問題が起こりがちです。これを防ぐために、機械学習に興味があり、これまで機械学習を経験したことがないエンジニアにも担当できる体制を整えられることが望ましいです。しかし、機械学習のことに詳しく知らないディレクターやエンジニアにとっては、どのような機械学習の理解段階ならばタスクを任せられるかの判断をするのはなかなか困難です。そこで、このエントリでは機械学習を実タスクでやるまでに乗り越えるべき壁だと私が思っているものについて説明します。

第一の壁: 綺麗なデータで機械学習の問題を解ける

  • 講義で扱われるような綺麗なデータを扱える
    • 行列形式になっていて、欠損値や異常値もない
  • 上記のデータを回帰や分類問題として解くことができる
    • 実際に解く際にはライブラリを使って解いてよい
    • 手法を評価する上で何を行なえばよいか(PrecisionやRecallやRMSEなどを計測する)知っている
  • アルゴリズムが導出できなくてもよいが、その手法がどういう問題を解いているのかは大雑把に分かる
    • 回帰/分類だったらどういう目的関数を最適化しているか
    • その目的関数の心はどういうものか
    • 学習や予測がうまくいかないとき、どこに着目すればよいか分かる

第二の壁: 綺麗でない現実のデータで機械学習の問題を解ける

  • 整形されていないデータを機械学習で扱える特徴量の形式特徴量に落としこめる
    • 例: テキストデータをBoW形式に落とせる
    • 例: 異常値、外れ値は前処理で落とせる
  • 必要なパフォーマンスが出るようにチューニングができる
    • 特徴量選択、正則化項、頻度での足切りによるチューニング、ラベル数の偏りがある場合などへの対応
    • 「多少のゴミがあってもいいから取りこぼしが少ないようにして欲しい」「取りこぼしがあってもいいからとにかく綺麗な結果を見せたい」等の要望があったときにどうチューニングすればいいか想像が付く

第三の壁: 機械学習の問題としてどう定義し、サービスに導入していくか

  • その問題は機械学習で解ける問題なのか、そもそも機械学習で解くべき問題なのかの判断が付く
  • 機械学習で解くことが決まったとして、どのように定式化するのか
    • 例: ランキング問題として定式化するのか、分類問題の組み合わせで対処するのか
  • 学習用データや評価用データをどうやって作る/集めるか
    • そもそもどの程度学習/評価データがあればある程度安定して学習/評価できるか知っている
    • 一貫性のあるデータ作りのガイドラインを作れるか(結構難しい…)
    • 闇雲に教師データを追加しても精度は上がるとは限らない

これらの壁をどう乗り越えていくか?

  • 第二段階までの壁は機械学習に関する書籍やBlogやライブラリが最近は山のように存在するので、ハードルは相当下がっている
    • はてなの教科書もあります!
    • 逆に教材がありすぎて何からやればよいか分からない…、という悩みは最近はあると思うので、問題に合わせた最短経路を経験者が示せるとよい
    • kaggle等で未経験者と経験者で同じ問題を解き、どのような工夫をすると精度が上がるか等を一緒にやってみる
  • 第三の壁は経験によるところが大きいため、経験者がメンター的に付いてアドバイスしながら手を動かせるとよい

第四の壁: 機械学習導入後の運用

言語処理のための機械学習入門 (自然言語処理シリーズ)

言語処理のための機械学習入門 (自然言語処理シリーズ)


          Repairing Your Credit Will Not Be As Hard Because It Seems        


It doesn't matter whether you fell victim to people offering free bank cards, spent too much money or was hit very hard using the recession. Chances are that your credit is damaged. Don't despair, because it is possible to get things back to normal.

In case your credit is unquestionably which you cannot have a new card to assist repair it, apply for a secured one. Almost certainly, a secured visa or mastercard will be easy for you to get, but you will need to fund the credit account before buying hence the bank knows that you won't miss any payments. Responsible consumption of credit cards will help rebuild your credit.

A secured visa or mastercard may well be a great choice for the person with a poor credit score. Secured visa or mastercard applications have maximum approval because you must fund a security alarm deposit against your credit limit. Even though this card will be secured through your own money, you can expect to make payments and manage it as being if it were unsecured. This may increase your credit as you show yourself able to make the payments by the due date.

A respectable credit history will make it much easier for you to buy a house by using a mortgage. Maintaining all your home loan payments can help pull your credit score even higher. Possessing a home shows financial stability, which is ideal for your credit. You will want this if you have to borrow a few bucks.

When attempting to rehabilitate your credit, it is very important work together with each credit card company you will be indebted to. Avoid collection to further improve your credit score. Don't hesitate to request for alterations in rates or dates of payment.

One of the primary steps of improving your credit ranking is making sure that your debts will always be paid. Paying your debts punctually as well as the full amount is vital. If you be worthwhile past due lines of credit your credit ranking may go up.

Call all of your charge card companies and make them lower the limit upon them. It will be worthwhile in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.

Just before agreeing to some debt relief agreement, find out how that process is going to impact your credit history. Some agreements cause less damage to your credit rating than the others, and each should be thought about before making an arrangement by using a creditor. They are doing not worry about how your credit score looks they wish to get money.

Examine your charge card charges monthly to ensure they may be correct. If you will find, you don't would like them reporting those to the credit reporting companies, so you'll should contact them immediately.

Be worthwhile any balances the instant you can. Work with paying back a credit card that have the greatest rates or high balances. This step will show creditors that you will be being responsible with credit.

This is certainly to help keep your credit in good standing. When you fail to make the payments promptly, your credit report is affected negatively. This will make it quite challenging so that you can sign up for financing in the future.

You have to understand and browse the charge card statements you receive in the mail. Always check to CKS Financial be sure that you will be being charged correctly, and never being double charged or charged for products which you did not buy. You bear the duty for taking care of your own personal best interests, and you are the only individual who are fully aware of if your statement is accurate.

Will not open more lines of credit that one could afford. Fight the overwhelming urge to express yes to an alternative bank card when it is provided get more info to you at store checkouts, even if there is a large discount offered. Your credit score will be reduced when you open a line of credit.

Hopefully the following tips will be very useful in your endeavors. Though it might take a bit of time, these steps will assist you on the journey of restoring your credit. Just make certain you have patience. You'll discover how valuable the rewards can be, so long as you stay determined.
          timmy o neill and gladiolas in slow motion        

shout out time. this is me doing an impression of my buddy, timmy o´neill. check out his link to the right...and put on a diaper when you look at his photos or read his words b/c if what he does doesn´t make you shaky - what he says will make you laugh so hard you may lose control of bodily functions.
also, i was reading my best friend, rusty´s, blog- and i was struck by a heavy quotation from samuel clemens, aka: mark twain

"twenty years from now you will be more dissapointed by the things you didn´t do, than by the ones you did do."

those who have ears to hear...chiggity check yo self b´foe you wreck yo self. thanks twainer. and thanks rusty (check out his brilliant link, too). ok, onto updates...after enjoying a beer in a spanish pub owned by a frenchman located on the border of spain/france on the night spain lost to france (amen to right place at the right time?) i made my way to the highway to hitchike south. after a long day, 206 cars filled with heartless people, and a sunburn - i broke my pavlovian rhythm of car/requesting and went back into town to find out that a train to barcelona only costs 5 bucks. ha! a small price to pay for stupid tax, but now i know in an even deeper way than before what all of those folks i have passed on the highways feel like.

so, onto barcelona...just two words here: holy crap. yes, i was sucked in by the energy of the ocean, the small corridor streets, the performers on las ramblas and then - boom! - friends of friends. david poe, i am in debt to you, buddy (check out his link if you would like to bath your ears in chocolate silk or www.myspace/davidpoe ) . david gave me some contact information of his friends in barcelona. one wrote back and met up with me one night on the main tourist street where i was flybarring...with 4 of her beautiful girlfriends- who proceeded to jump on the flybar and then take me out for tapas and beers. uhhh.....high school fantasy come true? left-to-right: vanessa, laura, rebekah, charro, mykah, and leticia (the frenchie, not pictured) - a huge thank you for taking care of me!
highlights of barcelona: the ocean (kind of santa monica vibe, rusty) - playing soccer on the beach with swiss, german, spanish and canadian fellas - watching 4 romanian gypsies pickpocket an arabic man on a subway - the long meals and spanish/english lessons with "las golfinas" - remembering the wisdom of the spanish people of balancing work/play...2-3 hour lunches and nights out until they become early mornings again.

¿ahora que? south, south, south. i might write more about this later, but i have found my way to a small farm with 3 horses owned by a middle-aged german woman who should not be running it by herself. too much work. anyone interested in buying a farm in spain? she´s looking for a way out. anyway, i have decided to stay here for a week to help out and center myself after the past month of being a rambling pogohobo. besides, there is a guitar, a hammock (with a mosquito net- muy importante), a bathing pool and i feel a few songs that need to be birthed. whew...many words, i know - thanks for coming with me, friends. i feed off of your comments. one last thought for the day: never be afraid to be a beginner.


my morning view in portbou, spain

this was after an evening with a czech couple traveling together. we had a few bottles of wine and i before i went to sleep i fell into a cactus. i am still finding little needles in my skin a week later. in my friend, dave burden´s words...i am a "dumb hump".


          Earth Hour - Do It 3-29-2008        
Earth Hour - GoogleToday, March 29, 2008 is the first global celebration of Earth Hour. Google, in a show of support, turned its "lights" out on their home page for Earth Hour. Earth Hour was created by the World Wildlife Fund (WWF) in Sydney, Australia in 2007 to inspire people to take action on climate change. Across the world, million of people are showing solidarity by turning off all their lights from 8PM to 9PM. The reason for this: climate change.



Whether you believe or not in climate change or global warming is irrelevant. The global economy is suffering. The US is believed to be in a recession by nearly 90% of people polled by the University of Michigan and Reuters, despite what some people think. People are working harder and earning less. Unemployment is up. Foreclosures are skyrocketing and so is the price of gasoline. Credit card debt is all the rage and finally people are spending less due to necessity not desire, I'm sure! Taking all of the above into consideration, energy conservation is one means anyone can utilize to reduce their cost of living and is perhaps one of the easiest methods to save some money to further your bottom line.

Show your support by signing up for Earth Hour - and support the Earth and yourself.
          51) Which one of the following statements concerning production and staffing plans is best? A. A master production schedule is a projected statement of income, costs, and profits. B. Aggregation can be performed along three dimensions: product families, labor, and time. C. Production plans are based primarily on information from the master production plan. D. A staffing plan is the intermediate link between the business plan and the master production schedule.         

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that: A. you would lose $80 if one of your workers missed an entire 8 hour shift. B. the next worker that offers to work an extra 8 hours should receive at least $80. C. you would be willing pay up to $60 for someone to work another 6 hours. D.         

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel. A. physical, digital B. e-commerce, digital C. physical, financial D. digital, e-commerce E. digital, physical        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          54) When customers access a Web site and make purchases, they generate __________. A. Tracking cookies B. Web data C. Information D. Clickstream data E. Hyperlink data        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information. A. regionalization B. globalization C. nationalization D. business environment         

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          56) Various organizations that promote fair and responsible use of information systems often develop __________. A. a code of ethics B. responsibility charters C. a strategic plan D. a mission statement E. a goals outline        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          57) What is _____ is not necessarily _____. A. Illegal, unethical B. Unethical, legal C. Ethical, illegal D. Unethical, illegal E. Ethical, legal        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          58) _____ provides users with a view of what is happening, where _____ addresses why it is happening. A. Multidimensional data analysis, structured query language B. Multidimensional data analysis, neural networks C. Data mining, multidimensional data analysis D. Data mining, expert system E. Multidimensional data analysis, data mining        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          59) Computer support is greatest for which of the following problems? A. Semistructured and strategic planning B. Semistructured and management control C. Unstructured and operational control D. Structured and operational control E. Structured and management control        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          60) The management cockpit best exemplifies which type of system? A. Decision support system B. Functional area information system C. Expert system D. Digital dashboard E. Group decision support system        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
D.   Other countries most likely don’t use the US Dollar as their primary currency.
E.   GDP measures show the degree of competition in a market.
79) A firm's "marketing mix" decision areas would NOT include:
A.   Promotion.
B.   People. C.   Price. D.   Place. E.   Product.
80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
A.   Brand familiarity B.   Positioning
C.   Market scanning D.   Customer relationship management (CRM)
E.   Market segmentation
81) The "four Ps" of a marketing mix are:
A.   Production, Personnel, Price, and Physical Distribution
B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
82) When evaluating macro-marketing:
A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
83) A cluster analysis of the "toothpaste market" would probably show that:
A.   the broad product-market can be served effectively with one marketing mix.
B.   most consu
          61) _____ is the efficient and effective execution of specific tasks. A. Operational control B. Expertise C. Management control D. Strategic planning E. Wisdom        

BUS/475 Guide 4


1) The cost principle requires that when assets are acquired, they be recorded at __________.
A.   list price B.   selling price C.   exchange price paid D.   appraisal value
2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A.   have been approved for use by the managements of business firms
B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
A.   $8,250
B.   $750 C.   $4,500
D.   $5,250
           
5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
A.   2,133 units
B.   6,200 units
C.   $25,600 D.   4,600 units
           
6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A.   The western division’s vice president’s salary
B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A.   Master budgeting analysis
B.   Exception reporting C.   Responsibility reporting
D.   Static reporting
8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
A.   $6,000 B.   $12,000
C.   $28,000
D.   $18,000
           
9) The cost of an asset and its fair market value are __________.
A.   never the same B.   irrelevant when the asset is used by the business in its operations
C.   the same on the date of acquisition D.   the same when the asset is sold
10) Which one of the following is a product cost?
A.   Indirect labor B.   Sales person’s salaries
C.   Advertising costs D.   Office salaries
11) What exists when budgeted costs exceed actual results?
A.   A budgeting error B.   An unfavorable difference
C.   An excess profit D.   A favorable difference
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                        Income Statement                  Balance Sheet
            Dr.       Cr.                   Dr.       Cr.
Totals              $58,000           $48,000                       $34,000           $44,000
           

Closing entries are necessary for __________.
A.   permanent accounts only B.   both permanent and temporary accounts
C.   permanent or real accounts only D.   temporary accounts only
13) Managerial accounting __________.
A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
           
14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A.   Beer B.   Selling either results in the same additional income for the company
C.   It should sell an equal quantity of both D.   Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A.   the value to Maurice of the option he would have chosen had Option B not been available
B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
           
18) In economics, the cost of something is __________.
A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
           
19) A tax on an imported good is called a __________.
A.   supply tax
B.   trade tax C.   quota D.   tariff
20) Which of the following statements about GDP is correct?
A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
           
21) In computing GDP, market prices are used to value final goods and services because __________.
A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

22) Which of the following statements about GDP is correct?
A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
           
23) Which of the following is not correct?
A.   The U.S. debt per-person is large compared with average lifetime income.
B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
           
24) The part of the balance of payments account that lists all long-term flows of payments is called the:
A.   balance of trade. B.   financial and capital account.
C.   government financial account.
D.   current account.
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
C.   the time inconsistency of policy
D.   inflation targeting
26) In general, the longest lag for __________.
A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
D.   both fiscal and monetary policy is the time it takes to change policy
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
A.   Only item (2) is included in GDP and it is included in the investment component.
B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
D.   Both item (1) and item (2) are included in the consumption component of GDP.

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A.   Professional B.   Interpersonal and communication
C.   Technical D.   Professional E.   Conceptual and decision
29) Which of these represent skills that managers need?
A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
           
30) Building a dynamic organization is another way of describing which function of management?
A.   Staffing B.   Organizing
C.   Leading D.   Controlling
E.   Planning
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
E.   Money should not be considered a start-up ingredient
32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A.   Diversity B.   Managerial ethics
C.   Recruiting D.   Employment E.   Selection
33) A manager's ability to stimulate people to be high performers is referred to as:
A.   Planning B.   Supervising
C.   Controlling
D.   Organizing E.   Leading
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
D.   Just-in-time control (JIT)
E.   ISO 9000
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
D.   A Learning advantage over their competition E.   Larger, faster facilities
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
E.   Diagnostic skills
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
38) Teams that operate separately from the regular work structure and exist temporarily are known as:
A.   Management teams B.   Transnational teams
C.   Self-managed teams
D.   Parallel teams E.   Self-designing teams
           
39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A.   Goal Coordination
B.   Controlling C.   Organizing D.   Staffing E.   Planning
40) As related to managing of human resources, diversity refers to:
A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
           
41) __________ is the process of working with people and resources to accomplish organizational goals.
A.   Controlling B.   Decision making
C.   Planning D.   Supervising E.   Management
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
A.   3 B.   3.5
C.   2.5
D.   2
43) Use the following table to answer question:
 P(S | W) is approximately _____.
A.   .40
B.   .30
C.   .12
D.   .58
           
44) Use the following table to answer question:
 P(M  A) is approximately _____.
A.   .50 B.   .625
C.   .125
D.   .25
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A.   High R2 (due to city size). B.   Positive slope (due to city size).
C.   No correlation. D.   Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
A.   Midrange
B.   Mean C.   Mode D.   Median
           
48) Likely reasons for inaccurate control limits would include which of the following?
A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
49) You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A.   The most you would want to pay for an additional unit of A would be $7.50.
B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
D.   For every additional unit of the objective function you create, you lose 0 units of B.
           
50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
51) Which one of the following statements concerning production and staffing plans is best?
A.   A master production schedule is a projected statement of income, costs, and profits.
B.   Aggregation can be performed along three dimensions: product families, labor, and time.
C.   Production plans are based primarily on information from the master production plan.
D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
           
52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
C.   you would be willing pay up to $60 for someone to work another 6 hours.
D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A.   physical, digital B.   e-commerce, digital
C.   physical, financial D.   digital, e-commerce
E.   digital, physical
54) When customers access a Web site and make purchases, they generate __________.
A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
E.   Hyperlink data
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
A.   regionalization B.   globalization C.   nationalization D.   business environment
           
56) Various organizations that promote fair and responsible use of information systems often develop __________.
A.   a code of ethics B.   responsibility charters
C.   a strategic plan D.   a mission statement E.   a goals outline
57) What is _____ is not necessarily _____.
A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
E.   Ethical, legal
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
A.   Multidimensional data analysis, structured query language
B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
59) Computer support is greatest for which of the following problems?
A.   Semistructured and strategic planning B.   Semistructured and management control
C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
60) The management cockpit best exemplifies which type of system?
A.   Decision support system B.   Functional area information system
C.   Expert system D.   Digital dashboard E.   Group decision support system
61) _____ is the efficient and effective execution of specific tasks.
A.   Operational control
B.   Expertise C.   Management control
D.   Strategic planning E.   Wisdom
62) Geocoding is __________.
A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
63) At 8% compounded annually, how long will it take $750 to double?
A.   48 months
B.   6.5 years C.   9 years D.   12 years
64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A.   Cash flow statement
B.   Balance sheet C.   Income statement D.   Quarterly statement
           
65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
A.   $570 B.   $490 C.   $900 D.   -$150
           
66) Disadvantages of using current liabilities as opposed to long-term debt include:
A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A.   12.5% B.   36.13%
C.   8.0% D.   13.6%
68) Which of the following is most consistent with the hedging principle in working capital management?
A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
D.   Borrow on a floating rate basis to finance investments in permanent assets.
           
69) An increase in future value can be caused by an increase in the __________.
A.   original amount invested B.   annual interest rate and number of compounding periods
C.   rate of return D.   dividends paid E.   starting value
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A.   at equilibrium.
B.   undervalued. C.   a good buy. D.   overvalued.
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt     8%
Cost of preferred stock           12%
Cost of common stock            16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
A.   $1,568
B.   $871 C.   $1,241
D.   $463
72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
           
73) The common stockholders are most concerned with:
A.   the spread between the return generated on new investments and the investor’s required rate of return.
B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
74) PepsiCo calculates unlevered betas for each peer group in order to:
A.   eliminate different financial risks.
B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
75) Which of the following best represents operating income?
A.   Income from discontinued operations
B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
           
77) The basic objective of the U.S. market-directed economic system is to:
A.   achieve a