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2009 DECA Ontario RegionalsTest 1022 FINANCE CLUSTER EXAM 1

1. Businesses usually are unable to enter into legally binding contracts withA. tourists. C. foreigners. B. senior citizens. D. minors.

2. Under the Clean Water Act, the Environmental Protection Agency has the authority toA. monitor water levels in rivers and streams.B. set water quality standards for industry. C. decide where you must get your water supply.D. determine how much water you can use for your industry.

3. Which of the following pieces of legislation allows for the consolidation of commercial and investment banks, insurance companies, and securities firms:

A. Securities Exchange Act of 1934 C. Sarbanes-Oxley Act of 2002 B. Gramm-Leach-Bliley Act D. Glass-Stegall Act

4. Which of the following is a tax-deductible gift:A. Charitable donation C. Stocks B. Vacation home D. Inherited items

5. What can a financial-services business do to ensure that it is following government regulations?A. Monitor service procedures C. Develop a business plan B. Improve technical systems D. Conduct a compliance audit

6. How can a business maintain its ethical responsibility of protecting the privacy of its customers' financial information?

A. Review inventory systems C. Monitor competitors' activities B. Develop collection procedures D. Implement security policies

7. When a manager tells an employee to take charge of a project, the employee is receivingA. social directions. C. nonverbal directions. B. oral directions. D. written directions.

8. Which of the following is a rule of good listening:A. Eliminate background noise. C. Be thinking about what you will say next.B. Listen with empathy. D. Stand as close as possible to the speaker.

9. When giving a verbal presentation, a speaker who distinctly voices the sounds of words is using properA. pronunciation. C. tone. B. enunciation. D. vocabulary.

10. Which of the following actions is it important for a speaker to take when s/he makes an oral business presentation to a large group:

A. Speak loudly enough for the audience to hear the message B. Turn away from the audience when presenting visual aids C. Avoid eye contact with anyone in the audience D. Relax the audience by swaying back and forth when speaking

11. The main form of written communication within a business isA. memorandums. C. staff meetings.B. business letters. D. telephone calls.

12. Which of the following types of messages presents evaluative information: A. Analytic C. Simple B. Explanatory D. Complex

Copyright © 2010 by MBA Research and Curriculum Center®, Columbus, Ohio


13. A simple, or short, report differs from a complex report in that the simple report isA. not in memo form. C. less formal. B. more comprehensive. D. not used in decision making.

14. Information that is informally passed to the staff of a business is referred to as __________ communication.

A. grapevine C. formalB. vertical D. horizontal

15. "The customer is ALWAYS right," is a philosophy many businesses try to follow in order toA. make employees' jobs easier. C. create positive customer/client relations. B. prevent any conflict with customers/clients. D. help employees handle selling objections.

16. Stock brokers sometimes have difficulty meeting the needs of customers who areA. decisive. C. silent.B. agreeable. D. patient.

17. A good way for bank tellers to prevent customer complaints is byA. pressuring customers to open additional accounts.B. discussing all of the bank’s products.C. determining each customer’s needs.D. asking customers personal questions about their ethnicity.

18. What do finance professionals need to do to build long-term relationships with their clients?A. Be honest, open, and trustworthy C. Follow-up with clients every two years B. Invest all clients' money conservatively D. Require clients to sign a short-term contract

19. Businesses use data-cleansing applications toA. generate necessary reports. C. duplicate internal records. B. calculate statistical data. D. update their databases.

20. For her best friend's birthday, Keisha is shopping for a unique item—no substitute will do, and price is no object. What type of item is Keisha shopping for?

A. Convenience C. Shopping B. Specialty D. Industrial

21. Ronnie's Retail Mart recently began a layaway program for large-ticket items. By introducing this lay-away program, Ronnie's hopes to increase __________ utility.

A. possession C. time B. place D. form

22. If customers feel that a product's price is too high, they will probablyA. buy less of the product. C. make a formal complaint.B. call the Better Business Bureau. D. try to negotiate the price.

23. With Rosita's pizza shop, financial analysis is used toA. obtain funding for supplies. C. oversee the baking process. B. attract customers. D. develop the best recipe.

24. Which of the following is not an external factor affecting profit:A. Chance C. Economy B. Risk D. Demand

25. Potential losses that businesses face are calledA. liabilities. C. insurable risks.B. business risks. D. uninsurable risks.


26. The practice of allowing workers to assume some higher level decision making is called jobA. analysis. C. enlargement.B. containment. D. enrichment.

27. Why does the Gross Domestic Product include only finished goods?A. To account for public goods C. To omit welfare payments B. To avoid double counting D. To correct for inflation

28. Brent likes to use his emotional intelligence to describe his feelings in accurate terms. What benefit of emotional intelligence is he experiencing?

A. Communicating needs effectively C. Understanding other people's needs B. Responding to criticism D. Responding to difficult people

29. Lack of initiative cannot be tolerated for long in most occupations. Which of the following is not a result of employee initiative:

A. An employee who receives an "Employee of the Month" awardB. An employee's receiving high job evaluation ratingsC. An employee given added responsibilityD. An employee's completing an inventory assignment on time

30. How employees behave and how they treat other people at work often have an effect on whether theyA. receive fair wages. C. earn vacation time. B. receive benefits. D. get promoted.

31. Which of the following statements about change in the workplace is true:A. An employee often can change the behavior of coworkers. B. Being receptive to change helps employees to be successful.C. Employees accept change better if it is unexpected.D. Employees usually can refuse to make changes they don't like.

32. Which of the following is a way to demonstrate empathy:A. Develop a good imagination. C. Keep an open mind. B. Use tact when speaking. D. Sympathize with a coworker.

33. Smiling at customers and looking them in the eye is what type of communication?A. Negative C. Nonverbal B. Verbal D. Effective

34. Frederick has been criticized by his supervisor and knows the criticism is justified, but he still feels defensive. This physiological response to stress is the __________ response.

A. eustress C. fight or flight B. over-reaction D. stimulus

35. How does a goal differ from a vision?A. There is no difference—the two are the same. B. A goal could mean different things to different people. C. A goal is abstract and indefinite. D. A goal is concrete and measurable.

36. Why is accepting responsibility for your own actions important to effective human relations skills?A. It helps you to be objective. C. It helps you to be enthusiastic.B. People will be able to depend on you. D. People will not take advantage of you.


37. Whenever a business extends credit to customers, it allows them to obtain goods and services immediately with

A. payment to be made at a future date. C. no interest charges for 90 days.B. no identification required. D. payment spread over a 12-month period.

38. What do many individuals establish when planning for future financial needs?A. Checking account C. Line of credit B. Living will D. College fund

39. What is the key to successful investing?A. Avoiding opportunity costs C. Getting started early B. Inflation D. The rule of 72

40. Commercial banks and brokerage firms are examples ofA. insurance institutions. C. financial intermediaries. B. legislative groups. D. nonprofit organizations.

41. Cocoa beans and corn are examples of investments that people make in which of the following financial markets:

A. Selective property C. Soft commodities B. Insurance D. Money

42. Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. The DAB Company is an example of a(n)

A. financial auditing institution. C. financial holding company. B. accounting firm. D. commodities investor.

43. Which of the following is an example of arbitrage:A. An individual earns interest on his/her money by agreeing to leave it in a financial institution for a

certain timeframe. B. An individual buys 10 shares of stock for $150 per share on one market, and immediately sells

each share for $200 on another market. C. A business places a percentage of its income into a retirement account for employees. D. A business sells corporate bonds to obtain funds to finance major expansion efforts.

44. Which of the following is characteristic of an emerging market:A. Low gross domestic product due to high foreign investment B. Strong and highly developed infrastructure C. High-yield bond markets that operate in a secure economic climate D. Unstable stock markets in a transitional economy

45. Form 10-K is most likeA. the bottom line. C. the annual report. B. Form 10-Q. D. the cash flow statement.

46. What might a dividend payout tell you about a company?A. It's reinvesting its profits back into the business. B. It's trying to rid itself of cash. C. It's a well-established company. D. It's paying back a loan.

47. It's a good idea for an investor to watch the numbers on a stock tableA. once a year. C. over a period of time. B. just for a given day. D. when dividends are paid.


48. What kind of insurance will help to pay your hospital bill if you are seriously ill?A. Homeowner's C. Liability B. Disability D. Health

49. The impact of some business risks can be reduced if the business transfers the risk to another business by

A. purchasing insurance. C. employing security guards. B. hiring a risk specialist. D. installing burglar alarms.

50. A business has an inventory valued at $750,000. This amount would appear in the business's balance sheet under

A. current assets. C. cash.B. liabilities. D. income.

51. To stay in business, a firm that has periods of cash shortages and cash surpluses should plan to __________ its cash flow.

A. spend C. invest B. monitor D. control

52. Which of the following is an example of an expense that a business would include in the operating-expenses category of an income statement:

A. Customer returns C. Insurance paymentsB. Cost of raw materials D. Shipping charges

53. Money owed to the business is known asA. assets. C. accounts receivable. B. equity. D. accounts payable.

54. When Alana prepares a report so that all of the financial data is clearly disclosed, she is ensuring that the information is

A. comparable. C. timely. B. transparent. D. flexible.

55. Which of the following is a consequence of poor financial-information management:A. Simplified processes C. Ineffective leadership B. Inaccurate data D. Understandable feedback

56. The reason that businesses use virtual auditor technology to scan their financial records is toA. detect correlations among customer data. C. calculate debt-equity ratios. B. ensure that they are complying with laws. D. analyze their financial statements.

57. By installing firewalls on its computer networks, a business can protect its online customers' credit-card information from

A. trade barriers. C. investment scams. B. tax evasion. D. identity theft.

58. Which of the following is a technological tool that businesses use to archive their financial records:A. Direct-response software C. Electronic data interchange B. Digital microfilm scanner D. Web-development programs

59. Businesses often use the patterns and relationships detected during the data mining process toA. select intermediaries. C. predict trends. B. identify procedures. D. negotiate contracts.


60. Alex is using a computer software program to develop the operating budget for his small company. He has two part-time employees who work 12 hours per week. How should Alex categorize the company's payroll in his budget?

A. Sales C. Expense B. Income D. Charges

61. If Jennifer wants to determine the degree to which the business uses its debt to finance its assets, she should use a financial analysis application that indicates the business's

A. depreciation rates. C. cash budget. B. leverage ratio. D. transaction costs.

62. In which of the following situations would a firm use cost-analysis applications:A. To predict sales volume for a certain period of time B. To determine the number of delinquent accounts C. To assess income changes over a certain period of time D. To evaluate the amount of money associated with inventory storage

63. What function allows users to customize and automate tasks when developing a database?A. Split C. Break B. Macro D. Consolidate

64. Large corporations that sell stock to the public are required by the Securities and Exchange Commission to provide __________ to their stockholders.

A. regular dividends C. copies of expense reports B. accurate financial statements D. organizational charts

65. A business needs to accurately report its financial position because that information indicates the business's

A. net worth. C. price policy. B. sales forecast. D. target market.

66. A business that is experiencing a cash-flow deficit should take steps toA. reduce income. C. increase costs. B. lower expenses. D. spend revenues.

67. A business uses the financial accounting system to report the business's financial position toA. regional managers. C. external users. B. bookkeepers. D. internal users.

68. What is a potential benefit to a business that uses financial information to identify trends?A. Ensured profitability C. Improved forecasting B. Enhanced liability D. Increased premiums

69. Which of the following are factors that affect a business's decision to offer credit to a customer:A. Debt ratio, credit rating, and education C. Credit rating, objectives, and income B. Income, debt ratio, and credit rating D. Debt ratio, education, and objectives

70. While Karl reviews financial reports, he compares and contrasts similar data from different quarters and years. The primary reason that Karl is reviewing the reports is to

A. reduce costs. C. analyze variances. B. make improvements. D. change processes.

71. An important function of human resources management in business is A. equipment acquisition. C. domain development. B. technical investment. D. employee recruitment.


72. Which of the following is not a touch point businesses could utilize to reinforce company image:A. Interaction with a salesperson C. Television advertisement B. Employee holiday party D. Bill or invoice

73. You have been asked to quickly locate information comparing the number of home foreclosures in Arkansas in 2000 with those in 2010. Which of the following searches should yield the fastest, most relevant search results:

A. "home foreclosures"; Arkansas; years: 2000 OR 2010 B. “home foreclosures in Arkansas in 2000 AND 2010” C. Arkansas home foreclosures between 2000 and 2010 D. “home foreclosures; Arkansas”; “2000 OR 2010”

74. Your web search results contain URLs from a variety of sources. Which of the following sources should provide the most reliable data:

A. A government agency C. A personal blog B. A term paper D. A Wikipedia site

75. A benefit of informed business decisions is that theyA. hurt a business's chances at competing. C. cost less money. B. are usually bad decisions. D. reduce a business's risk.

76. One way that many businesses use database software programs is toA. analyze customer information. C. prepare governmental reports.B. design company stationery. D. monitor accounting functions.

77. What type of information about equipment is important for businesses to keep in their records?A. Serial numbers C. Inventory statusB. Mechanical repairs D. Production process

78. Maxton Mart is being pressured by its vendors to pay for inventory it purchased more than 30 days ago. However, Maxton Mart has not received its accounts receivable from customers. What business record has Maxton Mart failed to monitor successfully?

A. Income statement C. Balance sheet B. Cash flow D. Open to buy

79. Your statistical findings show that the mean and the median of the following data are the same:

Data Set A: 2, 5, 8, 10, 10 Data Set B: 7, 7, 7, 7, 7

Data Set A: Mean = 7, Median = 7Data Set B: Mean = 7, Median = 7

Just by looking at the data, you can tell the data results are quite different. What statistic do you need to use to show that difference?

A. Mode C. Geometric mean B. Variance D. Measure of central tendency

80. Operations managers must work closely with managers and employees in A. all other parts of the business. C. competitive businesses. B. the marketing department only. D. foreign markets.

81. Accidents in the workplace may be prevented by all of the following techniques exceptA. correcting poor lighting. C. taking periodic inventory.B. providing employee training. D. inspecting equipment regularly.


82. Monitoring activities at the point of sale can protect the business fromA. payroll fraud. C. shoplifting losses.B. liability claims. D. theft by employees.

83. If a business is planning a project that will take 40 hours to complete and must be done in one week, which two employees should be assigned the project if the business has four part-time employees who work the following schedule:

Employee A—Mon-Fri, 9-12;Employee B—Mon-Fri, 1-4:30;Employee C—Mon-Fri, 7:30-12; Employee D—Mon-Fri, 11-2

A. Employees B & C C. Employees C & AB. Employees A & D D. Employees D & C

84. General Motors decided to produce a new car called the "Shark." Since the parts of the car will be easily interchangeable and the company expects to produce a large quantity of cars, the best method of production would be __________ production.

A. unit C. batchB. mass D. custom

85. Alert salespeople can help businesses control expenses by discouragingA. exchanging. C. shoplifting.B. purchasing. D. selling.

86. Determine whether the following statement is true or false: Housekeeping practices do not affect the success of a business.

A. False, housekeeping is the most important factor affecting business success.B. True, housekeeping practices are unrelated to business success.C. True, customers are more concerned with price than with appearance.D. False, a business's poor housekeeping can damage the business.

87. Goals which normally take a year or more to achieve are referred to as __________ goals.A. long-term C. immediate B. intermediate D. short-term

88. Which of the following activities reflects creativity:A. Completing a sales check according to company policy B. Replacing merchandise sold from a window display C. Referring an irate customer to the store manager D. Suggesting a new use for an existing product

89. When using exploratory interviews to identify occupational interests, you should try to interview someone who

A. has an executive position in the company. C. holds the kind of job you want.B. used to have the kind of job you want. D. hires people for the kind of job you want.

90. Michelle's primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the __________ she hopes to have as a business owner.

A. flexibility and independence C. tax breaks and deductions B. advanced technology D. personal commitment


91. Which of the following is an example of an appropriate attitude for a job applicant to have about a job interview:

A. I can do any job that I'm asked to do.B. I have skills that this company could use.C. I think this company would be lucky to get me.D. I know all about this company and its products.

92. Which of the following statements most accurately describes the financial-services industry today:A. It is highly segmented, with separate businesses for separate services. B. Banks, insurance companies, securities firms, and other financial institutions are sometimes

owned by a single large firm offering a complete range of financial services. C. The only place to pursue a career as a securities broker is a traditional financial securities firm on

Wall Street. D. The financial-services industry is largely unregulated with little federal oversight.

93. A three-day exhibition in a convention hall featuring the most up-to-date computer equipment, software, and related goods is an example of which of the following:

A. Central market C. Floor planB. Trade show D. Warehouse club

94. As an employee of a financial-services firm, Elise helps her clients reduce their debt, build their wealth, and save for their retirement. Which certification is Elise mostly likely to need to perform her job:

A. Certified Tax Specialist (CTS) C. Certified Loan Officer (CLO) B. Certified Financial Planner (CFP) D. Chartered Market Technician (CMT)

95. After passing the General Securities Registered Representative Examination, a businessperson obtains a license that allows him/her to work as a(n)

A. accountant. C. underwriter. B. stockbroker. D. estate planner.

96. One way to build professional finance relationships at the local level is byA. working with well-known securities firms. B. submitting proposals to web-based financial businesses. C. providing existing clients with referrals. D. joining community organizations.

97. How can a business reduce risks that are associated with a poor public image:A. Implement an ethics program C. Encourage fraudulent behavior B. Maintain minimal inventory levels D. Offer credit to few customers

98. To limit the access of employees to clients' confidential information, a financial business might require the employees to

A. develop a routing system. C. restrict digital signature options. B. use computer passwords. D. limit their use of the Internet.

99. To reduce the risk of loss due to fire or power outages, a financial business should protect its computer data by

A. implementing an authorization process. C. conducting backup procedures. B. using encryption techniques. D. monitoring data-transmission rates.

100. The primary reason that firms must take steps to control their levels of business risk is toA. reduce the chance of financial losses. C. contribute to the well-being of society. B. increase their visibility in the market. D. increase their financial liability levels.


1. DMinors. Businesses usually are prevented from entering into legally binding contracts with certain groups of people because these people are not considered to have the capacity to understand the consequences of their actions. One of these groups includes minors, those people under the legal age. In most cases, minors cannot enter into legally binding contracts because they are not old enough to be responsible for the consequences. Businesses usually may enter into legally binding contracts with people who are adults, older than the legal age, regardless of whether they are foreigners, senior citizens, or tourists.SOURCE: BL:002SOURCE: Bovée, C. L., & Thill, J. V. (2008). Business in action (4th ed.) [pp. 381-382]. Upper Saddle

River, NJ: Pearson Prentice Hall.

2. BSet water quality standards for industry. Setting water quality standards is part of the agency's emphasis on society's health. The EPA has no authority over where you get your water supply or how much you use. While the agency may test pollution levels in rivers and streams, it has no interest in the water levels that are found there.SOURCE: BL:073SOURCE: U.S. Environmental Protection Agency. (n.d.). What are water quality standards? Retrieved

September 20, 2009, from http://www.epa.gov/waterscience/standards/about/

3. BGramm-Leach-Bliley Act. The Gramm-Leach-Bliley Act repeals part of the Glass-Stegall Act of 1933 by allowing different types of financial institutions to form mergers or consolidate. The Securities Exchange Act of 1934 requires the disclosure of certain financial information, regulates the issuance of securities, and outlaws insider-trading practices. The Sarbanes-Oxley Act of 2002 regulates corporations' and public accounting firms' activities.SOURCE: BL:133SOURCE: Answers.com. (2009). Gramm-Leach-Bliley Act of 1999. Retrieved September 19, 2009, from

http://www.answers.com/topic/gramm-leach-bliley-act-of-1999

4. ACharitable donation. Gifts are money, financial products, or property given to an individual or organization. Some gifts, such as charitable donations, are tax deductible. This means that the donor pays a reduced amount of tax or is exempt from paying the tax, depending on the type and value of the gift. Vacation homes, stocks, and inherited items are taxable gifts.SOURCE: BL:134SOURCE: Internal Revenue Service. (2008, October 27). Frequently asked questions on gift taxes.

Retrieved September 19, 2009, from http://www.irs.gov/businesses/small/article/0,,id=108139,00.html#3

5. DConduct a compliance audit. Financial-services businesses must follow many government regulations. These regulations affect the way that businesses record and report financial data. To ensure that the business is following all of the regulations, the business should conduct a compliance audit. A comprehensive compliance audit can detect discrepancies and problems. For example, a compliance audit might indicate that updated compliance software will resolve or correct a noncompliance issue. Developing a business plan and monitoring service procedures are not actions that will ensure that the business is following government regulations.SOURCE: CC:003SOURCE: Beaumier, C. (2007, June). How to audit compliance in the financial services industry.

Retrieved September 19, 2009, from http://www.knowledgeleader.com/KnowledgeLeader/content.nsf/dce93ca8c1f384d6862571420036f06c/914cac74cb8c8d0f88257345007cf3ca/$FILE/How%20to%20Audit%20Compliance%20in%20the%20Financial%20Services%20Industry.pdf

Copyright © 2010 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1022 FINANCE CLUSTER EXAM—KEY 11

6. DImplement security policies. Businesses have an ethical responsibility to maintain the privacy of their customers' financial information. Businesses must take precautions to ensure that customers' credit, loan, and other types of financial data are kept confidential. To maintain confidentiality, businesses must develop and implement security policies. The policies may restrict the employees' access to customers' financial information. The policies may also involve the use of computer safety measures, such as firewalls and encryption techniques. Collection procedures are the activities that the business uses to collect funds owed by others. Developing collection procedures, monitoring competitors' activities, and reviewing inventory systems are not actions that will help businesses protect the privacy of their customers' financial information.SOURCE: FM:003SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 355-359). Mason, OH: South-

Western Cengage Learning.

7. BOral directions. When a manager tells an employee to take charge of a project, the employee is receiving oral directions. When a person speaks, s/he is not giving nonverbal directions or written directions. Directions for taking charge of a project are not social directions.SOURCE: CO:119SOURCE: QS LAP 24—Simon Says

8. BListen with empathy. Empathy is the ability to put oneself in another person's place. Listening with empathy helps the listener to understand the speaker's point of view. You should stand a reasonable distance from the speaker. Standing too close may be interpreted as aggressiveness. If you are thinking about what you will say next, you may not hear everything that the speaker says. Background noise exists in all environments and cannot be eliminated.SOURCE: CO:017SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 258-259]. Cincinnati: South-Western.

9. BEnunciation. Proper enunciation involves clearly and distinctly voicing the sounds of words. Using proper enunciation is important when giving verbal presentations because it makes it easier for listeners to understand the message. Pronunciation is the manner of saying words. Vocabulary includes all words understood by an individual. Tone communicates emotions and attitudes through the voice.SOURCE: CO:147SOURCE: eHow, Inc. (1999-2009). How to enuciate. Retrieved September 19, 2009, from

http://www.ehow.com/how_2092518_enunciate.html

10. ASpeak loudly enough for the audience to hear the message. When making an oral presentation to a group, the speaker should speak loudly enough for everyone in the audience to hear what s/he is saying. If audience members cannot hear what the speaker is saying, they might misunderstand or misinterpret the message. A speaker should try not to turn away from the audience when presenting visual aids and should maintain eye contact with the audience. Because swaying back and forth can distract the audience, the speaker should avoid this type of movement.SOURCE: CO:025SOURCE: Hyden, J. S., Jordan, A. K., Steinauer, M. H., & Jones, M. J. (2006). Communicating for

success (3rd ed.) [p. 95]. Mason, OH: Thomson South-Western.


11. AMemorandums. Memorandums are the main form of written communication within a business. Memorandums are informal letters or notes between a company's employees. Letters are the principal form of written communication between businesses. Telephone calls and staff meetings are not forms of written communication.SOURCE: CO:016SOURCE: Hyden, J. S., Jordan, A. K., Steinauer, M. H., & Jones, M. J. (2006). Communicating for

success (3rd ed.) [pp. 298-299]. Mason, OH: Thomson South-Western.

12. AAnalytic. Informational messages communicate knowledge, facts, or data to the message receiver. Analytic messages specifically communicate information that the message sender or someone else has evaluated, compiled, or interpreted, which gives the message meaning. For example, if a manager writes a memo stating that a project is over budget and backs up the statement with numerical data and examples, the manager is providing evaluative (analytic) information. Explanatory messages simply state information in a neutral and objective way. The simplicity or complexity of an evaluative message depends on the message topic.SOURCE: CO:039SOURCE: Hyden, J. S., Jordan, A. K., Steinauer, M. H., & Jones, M. J. (2006). Communicating for

success (3rd ed.) [pp. 217-218]. Mason, OH: Thomson South-Western.

13. CLess formal. A simple, or short, report is less formal than a long, or complex, report. It is often presented in a memo form so that the recipients can read it quickly and use the information in their decision making. A simple report is less comprehensive than a complex report.SOURCE: CO:094SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 366-367].

Boston: Irwin/McGraw-Hill.

14. AGrapevine. Grapevine communication exists in most companies. It is an informal, oral communication method in which information is passed around the company but not formally announced or verified. The direction of information flow may be either vertical or horizontal.SOURCE: CO:014SOURCE: Lehman, C. & DuFrene, D. (2005). Business communication (14th ed.) [pp. 11-13]. Mason,

OH: South-Western.

15. CCreate positive customer/client relations. Policies that establish appropriate attitudes toward customers/clients help to ensure that employees will treat customers in a way that will create positive relations. Such policies do not prevent all conflict with customers/clients because they do not guarantee that the business can always do what the customer wants. These policies are not established for the purpose of making employees' jobs easier. Customer objections are reasons customers have for not buying, and they are handled with selling techniques that may involve disagreeing politely with the customer.SOURCE: CR:003SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 8, 88-89). Mason, OH: South-

Western.

16. CSilent. Silent customers are shy, insecure, or too sensitive to talk very much even when they need help. The stock broker may have difficulty meeting the needs of this kind of customer because it is hard to identify those needs. Customers who are patient, agreeable, and decisive are much easier to help.SOURCE: CR:009SOURCE: EI LAP 1—Making Mad Glad


17. CDetermining each customer’s needs. Customer complaints often occur when customers make improper buying decisions or are inconvenienced. Bank tellers can help customers avoid dissatisfaction by accurately determining their needs and serving them promptly. Asking customers personal questions about their ethnicity is illegal. Pressuring customers to open new accounts will result in complaints if the accounts fail to meet customer needs. The bank teller should discuss only the bank products applicable to each customer rather than discussing all bank products.SOURCE: CR:010SOURCE: Dlabay, L.R., Burrow, J.L., & Kleindl, B. (2009). Intro to business (7th ed.) [p. 152]. Mason,

OH: South-Western Cengage Learning.

18. ABe honest, open, and trustworthy. While it is important for finance professionals to help their clients manage their finances and grow their wealth, it is also important that they earn their clients' trust. Finance professionals earn their clients' trust by behaving ethically and being honest and open. By doing so, finance professionals are more likely to build long-term relationships with their clients. Finance professionals must help clients set financial goals with which the clients are comfortable—some clients can or want to make risky investments, while others take a more conservative approach. Earning trust and helping clients meet their financial goals also involve ongoing, consistent, and frequent communication with their clients. Requiring clients to sign a short-term contract will not always help finance professionals build long-term relationships with their clients.SOURCE: CR:012SOURCE: Peppers, D. & Rogers, M. (2004). Managing customer relationships: A strategic framework

(pp. 235-238). Hoboken, NJ: John Wiley & Sons.

19. DUpdate their databases. Businesses use data-cleansing applications to ensure that their customer databases contain useful, relevant, and accurate data. The data-cleansing process removes duplicate records, updates expired data, and completes incomplete data fields. When a business's database is current and up-to-date, it can generate accurate reports that help the business make well-informed decisions. Businesses do not use data-cleansing applications to calculate statistical data.SOURCE: CR:024SOURCE: Knol BETA. (2009). CRM data cleansing & management. Retrieved September 11, 2009,

from http://knol.google.com/k/neil-sequeira/crm-data-cleansing-management/s2w9p78k2qby/1#

20. BSpecialty. Specialty goods are consumer goods with special or unique characteristics that consumers are willing to exert special efforts to obtain. The specialty item Keisha desires will take a lot of money and effort to acquire. A shopping good is a consumer good purchased after consumers compare goods and stores in order to get the best quality, price, and/or service. Keisha is not concerned with price. A convenience good is a consumer good purchased quickly and without much thought or effort. Keisha has put a lot of thought into this purchase. Industrial goods are purchased for resale, not consumer usage.SOURCE: EC:002SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [p. 234]. Mason,

OH: Thomson/South-Western.

21. APossession. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. A layaway program makes it easier for a consumer to obtain possession. Place utility is usefulness created by making sure that goods or services are available at the place where they are needed or wanted by consumers. Time utility is usefulness created when products are made available at the time they are needed or wanted by consumers. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer.SOURCE: EC:004SOURCE: EC LAP 13—Use It (Utility)


22. ABuy less of the product. Likewise, if customers feel that the price is relatively low, they will buy more. Customers affect prices of products through the use of their economic votes—by deciding to buy or not to buy. Most retail prices are not negotiable or of interest to the Better Business Bureau, which tries to protect consumers from fraud. Many customers will complain about prices, but few would take the time to make a formal, written complaint.SOURCE: EC:006SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 105). Tinley Park, IL:

Goodheart-Willcox.

23. AObtain funding for supplies. With Rosita's pizza shop, financial analysis is used to obtain funding for supplies. Attracting customers is part of marketing. Overseeing a process is likely to take place within operations management, not financial analysis. And, developing recipes is part of operations management.SOURCE: EC:071SOURCE: EC LAP 19—Strictly Business (Business Activities)

24. BRisk. The external factors affecting profit include the economy, demand, and chance—not risk. Risk involves weighing the possible outcomes and choosing the result most likely to happen.SOURCE: EC:010SOURCE: EC LAP 2—Risk Rewarded (Profit)

25. BBusiness risks. They fall into three general categories: human, economic, and natural. Some of these risks are insurable, and others are uninsurable risks. Liabilities are a business's debts or losses and can be the result of taking risks.SOURCE: EC:011SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)

26. DEnrichment. Job enrichment involves adding interest and satisfaction to a task. Job analysis is a detailed study of a job. Job enlargement is adding more tasks to a worker's present job. Containment is a distractor.SOURCE: EC:014SOURCE: Management-hub.com. (n.d.). Facilitating job enrichment and enlargement in human

resources management. Retrieved September 19, 2009, from http://www.management-hub.com/hr-enrichment.html

27. BTo avoid double counting. Businesses produce a variety of goods that are used as components of other goods. To avoid including these intermediate goods in the GDP count, thereby inflating actual GDP, the intermediate goods are only included in the GDP count when they become components of their finished goods. Public goods are those items that are paid for with tax money, thus being "free" to anyone who wants to use them. They are only counted in GDP when they are finished goods. Welfare payments are not an aspect of finished goods. Inflation makes the value of a dollar worth less in the future than it is today.SOURCE: EC:017SOURCE: McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies

(16th ed.) [pp. 112-113]. Boston: McGraw-Hill/Irwin.


28. ACommunicating needs effectively. When you are aware of your own emotions, you can speak about your needs and wants in an exact way. You won't describe your feelings in inadequate terms. Hence, Brent was enjoying the advantage of communicating his needs effectively. In this situation, Brent was not understanding or responding to others' needs or difficulties, nor was he responding to criticism.SOURCE: EI:001SOURCE: EI LAP 6—EQ and You (Emotional Intelligence)

29. DAn employee's completing an inventory assignment on time. An employee's completing an inventory assignment on time is not necessarily the result of initiative since the person is performing basic job expectations. Added responsibility, higher job evaluation ratings, and various awards are direct results of demonstrating initiative.SOURCE: EI:024SOURCE: EI LAP 2—Hustle! (Taking Initiative at Work)

30. DGet promoted. How employees behave and how they treat other people at work can affect how successful they become in their chosen career. It can determine whether they receive a promotion, a raise, or the opportunity to work on a particular project. How employees behave and how they treat other people does not have an effect on whether they earn vacation time, receive benefits, or receive fair wages.SOURCE: EI:004SOURCE: EI LAP 4—Work Right (Ethical Work Habits)

31. BBeing receptive to change helps employees to be successful. The business world is dynamic and constantly changing. To be successful, employees must be able to adapt to it. An employee cannot change others—the desire to change must come from within oneself. Employees accept change with less resistance if they are prepared for it in advance.SOURCE: EI:026SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 484-488). New

York: Glencoe/McGraw-Hill.

32. BUse tact when speaking. Tact is the ability to do or to say the right thing in any circumstance. Empathy is the ability to put yourself in another person's place. Using tact is one way to demonstrate empathy. Developing a good imagination and keeping an open mind are ways to develop empathy. To sympathize with a coworker is to feel sorry for that person.SOURCE: EI:030SOURCE: EI LAP 12—Have a Heart (Empathy)

33. CNonverbal. Nonverbal communication transmits a message without the use of words. Verbal communication is carried out by speaking. Smiling at customers and looking them in the eye is a positive approach. However, this cannot be called effective communication since it is limited.SOURCE: EI:007SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 317-320].

Boston: Irwin/McGraw-Hill.

34. CFight or flight. The fight or flight response is the normal human reaction to feeling "under attack." The human body reacts to stress by preparing for defense or retreat. Eustress is the term for "good" stress that keeps us alert. Over-reaction and stimulus responses do not describe the physiological response to stress that results in feeling defensive.SOURCE: EI:028SOURCE: Yamauchi, K.T. (n.d.). Stress management: Ten self-care techniques. Retrieved September

19, 2009, from http://www.reachoutmichigan.org/learn/stresmgt.html


35. DA goal is concrete and measurable. A goal and a vision are two different things. A goal is a concrete achievement that you want to complete. Goals tend to be more specific and measurable than visions. Since a goal is specific, it means the same thing to all people. It isn't abstract and indefinite like a vision.SOURCE: EI:063SOURCE: QS LAP 11—Picture This

36. BPeople will be able to depend on you. Taking full responsibility for your own actions and never blaming others for your mistakes means you are reliable. People will know they can depend on you to do what you say you will do. This does not help you to be objective or enthusiastic, and it will not keep people from trying to take advantage of you.SOURCE: EI:037SOURCE: EI LAP 5—Can You Relate?

37. APayment to be made at a future date. A benefit of credit to customers is that they can make purchases and take possession of the goods or services without having to make payment at the time of purchase. Sometimes, credit is offered with deferred interest charges or a scheduled payment plan, but this is not always the case. A credit customer may be asked for identification, especially if s/he is not carrying the appropriate credit card or credit identification.SOURCE: FI:002SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (p. 429). New York:

Glencoe/McGraw-Hill.

38. DCollege fund. In many cases, paying for college is a future financial need for which many individuals and married couples plan. In order to make sure sufficient money will be available to pay for college, individuals often establish a college fund. This may be set up with a bank or an investment company. People often set aside a certain amount to invest on a monthly basis so the fund will have a certain value by the time it is needed to pay college expenses. A living will involves a person's wishes concerning medical issues. A line of credit is a type of loan. A checking account is used to manage current income and expenses.SOURCE: FI:064SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal

finance (p. 266). New York: Glencoe/McGraw-Hill.

39. CGetting started early. Getting started early is the key to successful investing. The sooner you begin to take advantage of the compounding growth of the stock market, the better. Compounding is your best friend because, right now, time is on your side. As a teenager, you have more years ahead of you to invest than your grandparents, your parents, and even your older siblings. Inflation is an increase in the cost of goods and services. Opportunity costs are the trade-offs that occur when you choose one alternative over another; they are impossible to avoid. The rule of 72 is a trick for determining how long it will take to double your money at a certain interest or return rate.SOURCE: FI:270SOURCE: QS LAP 30—Supersize Your Money

40. CFinancial intermediaries. Intermediaries (middlemen) help move financial products between producers and end users. Commercial banks, brokerage firms, financial-planning firms, insurance institutions, and credit unions are examples of financial intermediaries. Legislative groups (e.g., U.S. Congress) develop and pass laws. A nonprofit organization is a business or organization whose intent is to make enough money to support its mission.SOURCE: FI:336SOURCE: BusinessDictionary.com. (2009). Financial intermediary. Retrieved September 19, 2009, from

http://www.businessdictionary.com/definition/financial-intermediary.html


41. CSoft commodities. A financial market is an organized effort or exchange that facilitates the buying and selling of financial assets. There are many types of financial markets, including the commodities market. Commodities are resources, including agricultural goods and mined goods (e.g., gold, silver) that are often used to make other goods. Agricultural goods such as cocoa beans and corn are types of soft commodities. Money markets facilitate the buying and selling of short-term, low-risk financial products (e.g., treasury bills). Selective property and insurance do not describe types of financial markets.SOURCE: FI:337SOURCE: Investopedia. (n.d.). Soft commodity. Retrieved September 19, 2009, from:

http://www.investopedia.com/terms/s/softcommodity.asp

42. CFinancial holding company. Because financial holding companies provide a wide variety of financial services and related products, the Federal Reserve Board supervises their activities. The primary services that an accounting firm provides include accounting, tax preparation, auditing, and bookkeeping services. Some financial holding companies may offer accounting services. Commodities investors invest their funds in goods (futures) such as grains, livestock, raw materials, etc.SOURCE: FI:573SOURCE: Answers.com. (2009). Financial holding company (FHC). Retrieved September 19, 2009,

from http://www.answers.com/topic/financial-holding-company-fhc

43. BAn individual buys 10 shares of stock for $150 per share on one market, and immediately sells each share for $200 on another market. Arbitrage is profiting from the sale of a financial instrument (e.g., stock) or good on a different market. Arbitrage often involves the buying and selling of goods and other types of services. For example, a person who buys a set of football tickets from a sport organization for $100 and sells them on E-bay to another person for $500 is engaging in arbitrage. When an individual earns interest on his/her money by agreeing to leave it in a financial institution for a certain timeframe, s/he is investing in a certificate of deposit. Businesses that set aside money for their employees' retirement are contributing to a pension plan. A business that sells bonds is using debt financing to raise funds for its expansion efforts.SOURCE: FI:574SOURCE: Moffatt, M. (n.d.). What is arbitrage? Retrieved September 19, 2009, from

http://economics.about.com/cs/finance/a/arbitrage_3.htm

44. DUnstable stock markets in a transitional economy. Emerging markets are growing markets (e.g., stock, bond, commodities, etc.) that result when a country initiates reforms that move it from a closed economy to an open or market economy. Because the markets are new, they are untried and relatively unstable, which is a high risk for investors. However, these markets also have the potential to provide investors with high returns, as the country's business activity increases and its economy grows. Developing countries tend to experience gains in gross domestic product due to higher production and business activity, which is often facilitated by high foreign investment. The infrastructure of developing countries often improves when the government and investors provide the financial resources to support it.SOURCE: FI:575SOURCE: Charles Schwab. (2009). Glossary: Emerging market. Retrieved September 19, 2009, from

http://www.schwab.com/public/schwab/home/new_to_investing/glossary?cmsid=P-2877087&lvl1=home&lvl2=new_to_investing#e

45. CThe annual report. Form 10-K is the annual report that a company must file with the SEC. It is less attractive than the annual report that companies send to their shareholders. Form 10-Q is a quarterly report. The bottom line and cash flow statements appear in 10-Ks.SOURCE: FI:274SOURCE: QS LAP 36—The Source Is With You


46. CIt's a well-established company. Typically, well-established companies are the ones that pay dividends. Companies that are still growing tend to put their profits back into their companies and, therefore, do not pay dividends. Whether or not a company is trying to rid itself of cash, or is paying back a loan, cannot be determined by the numbers in the dividend column of a stock table.SOURCE: FI:275SOURCE: QS LAP 37—Table Talk

47. COver a period of time. Watching numbers over a period of time is a good idea because investors can get a sense of what is normal for a stock price. Looking at the numbers once a year, on a given day, or when dividends are paid does not give you enough time to obtain this kind of information.SOURCE: FI:275SOURCE: QS LAP 37—Table Talk

48. DHealth. Health insurance pays for different kinds of medical care, depending upon the type of policy. A basic policy might cover minimum medical expenses, while a policy that has major medical coverage might cover the entire bill. Disability insurance provides income for ill or injured workers while they are off the job. Homeowner's insurance protects the homeowner's personal property and home. Liability insurance protects against lawsuits that result from injuries to others.SOURCE: FI:081SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 449-451). New


49. APurchasing insurance. Insurance is a contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premiums). Purchasing insurance does not prevent or control disaster, but it can protect the business from financial loss if a disaster occurs. The other alternatives are actions the business can take that may help to prevent losses, but they do not transfer the risk to another business.SOURCE: FI:084SOURCE: Seleshanko, K. (n.d.). Protect your business with insurance and risk management. Retrieved

September 24, 2009, from http://www.business.com/directory/financial_services/commercial_finance/treasury/insurance_and_risk_management/

50. ACurrent assets. Assets are anything of value the business owns. Current assets would include cash on hand, accounts receivable, and inventory owned by the business. Income is money received by a business or an individual from an outside source. Liabilities are debts that the business owes.SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

51. BMonitor. Many businesses know that there are times when they will have cash shortages and other times when they will have cash surpluses. In order to stay in business, these firms monitor their cash flow to be able to operate even when sales are down. They plan to put money aside when there are surpluses in order to cover expenses when there are cash shortages. Businesses often are unable to control their cash flow because it may depend on when their customers pay them. Businesses do not spend all of their cash but save some for times of shortages. Businesses are not able to invest cash unless they have a surplus.SOURCE: FI:091SOURCE: FI LAP 6—Count the Cash (Cash Flow)


52. CInsurance payments. The operating-expenses category of an income statement includes all the expenses incurred from keeping a business's doors open. Some examples include insurance payments, wages, utilities, and rent. The business pays these expenses in order to operate. The operating-expense category does not cover the cost of goods sold/cost of sales, which includes such expenses as shipping charges to obtain goods for resale, cost of raw materials to produce goods, and items returned by customers.SOURCE: FI:094SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)

53. CAccounts receivable. Money owed to the business is known as accounts receivable. Equity refers to assets the business already owns. Assets are things the business owns that are of value. Accounts payable refers to money the business owes to others.SOURCE: FI:354SOURCE: FI LAP 7—Money Matters (Role of Finance)

54. BTransparent. When financial information is fully disclosed and is presented in a clear, understandable way, it is transparent. Transparent information is not buried in a document or presented in a way that deliberately confuses the reader. Comparable information exists when the data from the report relate to other information. Timely information is current or up-to-date. Flexible data are often used in or applicable to different situations. Alana's report may or may not contain flexible, comparable, or timely information.SOURCE: FM:001SOURCE: BasicCollegeAccounting.com. (2006, November 10). Main qualitative characteristics of

financial statement. Retrieved September 19, 2009, from http://basiccollegeaccounting.com/main-qualitative-characteristics-of-financial-statement/

55. BInaccurate data. When companies fail to maintain and update their financial information, they have inaccurate data. Companies look at all types of financial data to make business decisions. When business decisions are based on inaccurate or incorrect information, it could be very costly to the company. Ineffective leadership may be one reason why data are inaccurate. Simplified processes and understandable feedback are positive results of well-managed financial information.SOURCE: FM:002SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 341-343). Mason, OH: South-


56. BEnsure that they are complying with laws. Because large businesses process large amounts of financial transactions and other types of financial information, they use software programs to ensure that they are complying with the many laws they must follow. A virtual auditor is a type of compliance technology that continuously reviews financial transactions and processes to identify errors and/or compliance violations. By using this technology, the business is reducing its risk of penalties and fines that might result from noncompliance. Businesses use other types of computer software to detect correlations among customer data, calculate debt-equity ratios, and analyze financial statements.SOURCE: CC:004SOURCE: Cummings, J. (2005, September 1). Upfront: Slow uptake for virtual audit tools. Retrieved

July 22, 2009, from http://businessfinancemag.com/article/upfront-slow-uptake-virtual-audit-tools-0901


57. DIdentity theft. Identity theft is a fraud that occurs when an individual pretends to be another person in order to obtain money or some other type of benefit. With the widespread use of the Internet, hackers try to break into a business's computer system or web site to steal customers' financial information, such as bank account numbers or credit card information, which they then use to illegally obtain money or goods. To reduce the risk of identity theft due to computer hackers, businesses install firewalls, which are computer programs that secure and protect their computer networks from unauthorized users. Tax evasion occurs when an individual or business inaccurately reports or fails to pay taxes. An investment scam is a deceptive plan to use others' money for personal gain. A trade barrier is an action that blocks or restricts the exchange of goods or services.SOURCE: FM:003SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 355-359). Mason, OH: South-


58. BDigital microfilm scanner. Businesses must keep a variety of financial information for a certain length of time, often for several years. Many businesses have saved their archived financial information on microfilm. Microfilm is a type of film that stores photographed images and text in a condensed format for easy storage. A digital microfilm scanner can take existing microfilm, which is older technology, and convert it into a digital format. The advantage to switching microfilm records to a digital format is that businesses can easily view the data on computers and share information quickly through the Internet. Direct-response software is a computer program that helps businesses automate their direct-marketing efforts. Electronic data interchange (EDI) is a network of computers that allows businesses to share information. Businesses use web-development programs to develop and maintain web sites.SOURCE: FM:011SOURCE: Canon. (2009). Can I convert microfilm to digital? Retrieved September 19, 2009, from

http://www.canon-me.com/For_Work/Products/Document_Imaging_Systems/Digital_Microfilm_Scanners/index.asp

59. CPredict trends. Data mining is the process of searching computer databases to look for patterns and relationships among information. Often, businesses use the financial information that they obtain from data mining to predict trends. Businesses that predict and understand trends are in a better position to act and respond to changes that might affect them. Businesses do not use data mining to identify procedures, select intermediaries, or negotiate contracts.SOURCE: FM:012SOURCE: Hair, J.F., Bush, R.P., & Ortinau, D.J. (2009). Marketing research in a digital information

environment (4th ed.) [pp. 98-100]. New York: McGraw-Hill Irwin.

60. CExpense. A budget is an estimate of income and expense for a specific period of time. Expenses are monies that the business spends. Because payroll involves providing money to employees for the work they complete, it is an expense. Income is the money received by a business from outside sources. Businesses generate income from sales, investments, interest, etc. Charges are fees. If the business charges customers for services, then it would be income. If the business must pay charges for goods or services, then the charges are expenses for the business.SOURCE: FM:013SOURCE: Peavler, R. (2009). Business budget worksheet. Retrieved September 19, 2009, from

http://bizfinance.about.com/od/businessbudgeting/a/budget_wksheet.htm


61. BLeverage ratio. Computer software applications can calculate and summarize many types of financial data to facilitate the business's decision-making processes. A leverage or debt-equity ratio measures the business's level of debt in relation to its assets. Leverage is an important consideration when a business wants to issue stock or obtain a loan. Depreciation is the reduction in value of goods or assets occurring over time. A cash budget is an estimate of cash inflows for a specific time. Transaction costs are the cumulative expenses associated with a transaction (e.g., labor, equipment, etc.).SOURCE: FM:014SOURCE: Mayo, H.B. (2007). Basic finance: An introduction to financial institutions, investments, &

management (9th ed.) [p. 187]. Mason, OH: South-Western Cengage Learning.

62. DTo evaluate the amount of money associated with inventory storage. To maintain profitability, a firm must evaluate its costs in relation to its various business functions, which include purchasing, marketing, human resources, operations, etc. Businesses often analyze the various costs associated with carrying products. For example, a temperature-sensitive product may require special warehousing accommodations, which increase the costs associated with storing the product. Businesses use accounts-receivable applications to determine the number of delinquent accounts. Income reports summarize income changes. Businesses use budgeting applications to estimate sales volume.SOURCE: FM:014SOURCE: MicroStrategy.com. (n.d.). Financial analysis. Retrieved September 19, 2009, from

http://latam.microstrategy.com/financial-analysis/

63. BMacro. A macro is a customized keystroke or shortcut that commands the database program to perform certain tasks automatically, such as inserting a specific table or bolding specific text. Using macros can increase efficiency when working with complex databases. The split function can divide text or cells. The break function inserts page breaks. The consolidate function combines data.SOURCE: FM:015SOURCE: Microsoft Corporation. (n.d.). What is a macro? Retrieved September 19, 2009, from

http://office.microsoft.com/en-us/access/HA012142021033.aspx

64. BAccurate financial statements. Large corporations that sell stock to the public are required by the Securities and Exchange Commission to accurately report their financial position to stockholders. Corporations usually do this by providing financial statements such as the income statement and balance sheet. As a result, corporations need to keep track of financial information and accurately report it in order to comply with the requirements of the Securities and Exchange Commission. SOURCE: FM:004SOURCE: Gitman, L. J., & Madura, J. (2001). Introduction to finance (pp. 212-217). Boston: Addison

Wesley.

65. ANet worth. Net worth is the total value of the business. A business determines its net worth by preparing various financial documents that indicate assets and liabilities. These documents should contain accurate information in order to correctly state the business's financial position. If the documents are incorrect, they may indicate that the business is worth more or less than it actually is. Accurately reporting its financial position does not indicate a business's sales forecast, price policy, or target market. SOURCE: FM:004SOURCE: Gitman, L. J., & Madura, J. (2001). Introduction to finance (pp. 498-502). Boston: Addison

Wesley.


66. BLower expenses. By monitoring its cash flow, a business can plan how and when it will pay its bills. If the amount of inflowing cash declines over an extended period of time, then the business might need to take steps to lower its expenses and costs, which might include ordering less inventory or laying off employees. If cash inflow steadily increases, then the business might consider expansion.SOURCE: FM:005SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 342-343). Mason, OH: South-


67. CExternal users. A business uses the financial accounting system to report its financial position to external users, those who are not involved in the day-to-day operations of the business. These financial accounting reports provide information about the profitability of the business that those outside the business, such as investors or creditors, might use to decide if they want to invest in the business or give the business a loan. Bookkeepers and regional managers are internal users. Businesses use the management accounting system to report the business's financial position to internal users. SOURCE: FM:006SOURCE: Guerrieri, D.J., Haber, F.B., Hoyt, W.B., & Turner, R.E. (2007). Accounting: Real-world

applications & connections (First-Year Course) [pp. 34-35]. New York: Glencoe/McGraw-Hill.

68. CImproved forecasting. A trend is the direction in which something is moving. Internal and external financial information can help a business identify trends, such as changes in the overall economy or the business's sales, which can help the business forecast potential earnings more accurately. Trends may indicate increased profitability, but profitability cannot be ensured. Premiums are payments for insurance policies. Higher insurance premiums would be costly to the business. A liability is debt, usually money, the business owes.SOURCE: FM:008SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (p. 83). South-Western Cengage

Learning.

69. BIncome, debt ratio, and credit rating. To reduce the risk of nonpayment or default on a loan, a business considers several factors before it extends credit to its customers. Data such as the customer's income, debt ratio, and credit rating indicate to the business if the customer is a good credit risk or not. The customer's objectives and educational level are not primary considerations.SOURCE: FM:009SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 266-270). South-Western

Cengage Learning.

70. CAnalyze variances. By comparing and contrasting two or more sets of financial data, a businessperson can determine if there are differences and patterns among the data. Detecting these differences and patterns facilitates business decision making, which may include making improvements, reducing costs, or changing processes.SOURCE: FM:010SOURCE: Microsoft. (2009). Conducting variance analysis. Retrieved September 19, 2009, from

http://office.microsoft.com/en-us/excel/HA011545141033.aspx

71. DEmployee recruitment. Human resources management is the process of planning, staffing, leading, and organizing the employees of the business. An important aspect of the human resources function is seeking out and attracting qualified potential employees, which is employee recruitment. Technical investment, domain development, and equipment acquisition are not primary activities of the human resources function in business.SOURCE: HR:410SOURCE: Gaspar, J., Bierman, L., Kolari, J., Hise, R., Smith, L., & Arreola-Risa, A. (2006). Introduction

to business (p.199). Boston: Houghton Mifflin.


72. BEmployee holiday party. An employee holiday party is not necessarily a touch point because it does not allow the company to connect with customers and potential customers. Interaction with a salesperson, seeing a television advertisement, and receiving a bill or invoice are all touch points businesses can utilize to reinforce company image to customers.SOURCE: MK:019SOURCE: MK LAP 3—Just Do It…Right (Company Actions and Results)

73. A"Home foreclosures"; Arkansas; years: 2000 OR 2010. When quotes are put around phrases, search engines will select only those websites containing the exact phrase. By putting Arkansas within the quotes, you would delete results that had Arkansas appearing after the phrase home foreclosures. Adding the year's designation before 2000 OR 2010, lets the computer know that you are not searching for footage, phone numbers, etc. By using OR rather than AND, the results will contain one or the other years; they would not need to contain both years for the websites to appear in the results.SOURCE: NF:078SOURCE: Google.com. (2009). Google search basics: More search help. Retrieved September 21,

2009, from http://www.google.com/support/websearch/bin/answer.py?answer=136861

74. AA government agency. A government agency, such as the Bureau of Labor Statistics, should contain unbiased, accurate information. A term paper and a personal blog would probably be biased based on the writer's viewpoint. Although Wikipedia is an open source of information that is constantly updated, you might have received wiki information when it was inaccurate.SOURCE: NF:079SOURCE: Claudia Chan, C.; Leung, J.; & Miu, S. (2008). Reliable websites: How to sort out the

trustworthy sites and the dishonest ones. Retrieved September 21, 2009, from http://www.slideshare.net/guest4041d/reliable-websites-presentation

75. DReduce a business's risk. Informed business decisions are better decisions, and they reduce a business's risk. Informed decisions help businesses compete better. They may or may not cost less money. SOURCE: NF:110SOURCE: NF LAP 3—In the Know (Nature of Information Management)

76. AAnalyze customer information. Database software programs are designed to sort, arrange, locate, and analyze a wide variety of information. Many businesses use database software to analyze information that relates to customers, such as their names, addresses, type of purchases, and amount spent. Then, this information can be used to identify customers who might be interested in specific products or who live in certain parts of the country. The business also can rearrange the information according to different criteria. Word-processing software programs are used to design stationery and prepare reports. Spreadsheet software is used for accounting purposes.SOURCE: NF:009SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 163-165]. Woodland Hills, CA: Glencoe/McGraw-Hill.

77. ASerial numbers. Businesses should record the serial numbers of all equipment. These are unique numbers that are used for identification purposes. Serial numbers are found on all types of business equipment and are useful when making equipment-related inquiries and when tracking stolen property. Inventory information deals with the materials a business needs for producing the goods or services it sells, or the items it buys to resell. Businesses do not need to know how equipment was produced, and it is not usually necessary to keep track of every mechanical repair.SOURCE: NF:001SOURCE: NF LAP 1—Record It (Business Records)


78. BCash flow. By monitoring its cash flow statement, Maxton Mart knows when it is running short on cash and can take needed steps to alleviate upcoming cash shortages. If necessary, Maxton Mart should be prepared to take out a short-term loan to cover inventory costs. The income statement provides a picture of a business's profit or loss conditions. The balance sheet shows a snapshot of the business's assets, liabilities, and owner's equity. Open-to-buy documents indicate how much money the business has to invest in additional inventory.SOURCE: NF:014SOURCE: Mariotti, S., & Towle, T. (2006). Entrepreneurship: How to start and operate a small business

(10th ed.) [p. 476]. New York: The National Foundation for Teaching Entrepreneurship, Inc.

79. BVariance. Variance is a measure of how data points differ from the mean. Its calculation will help you to show others how dispersed the data were from the mean of 7. The mode, like the median and mean, is a measure of central tendency rather than depicting dispersion. The mode is the number that appears most often in the data results. A geometric mean is used in business to show average rates of growth. This, too, would be a measure of central tendency.SOURCE: NF:093SOURCE: Knox, J.A. & Estrella, A. (2005, September 16). Introduction to statistics. Retrieved

September 21, 2009, from http://math.about.com/gi/dynamic/offsite.htm?zi=1/XJ/Ya&sdn=math&zu=http%3A%2F%2Ficp.giss.nasa.gov%2Feducation%2Fstatistics%2F

80. AAll other parts of the business. Operations managers must work closely with managers and employees in all other parts of the business. This is because operations activities affect every other business function, including marketing, finance, human resources, etc. Depending on the business, operations managers may or may not work with managers in foreign markets. Operations managers do not work with managers at competitive businesses. SOURCE: OP:189SOURCE: OP LAP 3—Smooth Operations (Nature of Operations)

81. CTaking periodic inventory. Taking inventory is a necessary activity for most businesses, but it is not an accident-prevention measure. Training employees in safety precautions and the proper use of equipment should reduce the possibility of accidents. Correcting poor lighting and inspecting equipment regularly will help to prevent unsafe conditions that my lead to accidents.SOURCE: OP:009SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 223-224). New


82. DTheft by employees. Stealing cash is a way employees defraud businesses. They may take cash from the register or pocket the cash paid by customers for their purchases. Most businesses study register tapes, watch for suspicious refunds or voids, and use other methods to prevent thefts. Payroll fraud occurs in the payroll department when employees alter checks in their favor. Shoplifting is theft of goods by customers. Liability insurance protects the business against injuries to customers or employees while on the premises.SOURCE: OP:013SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 401-406). Tinley Park,

IL: Goodheart-Willcox.


83. AEmployees B & C. An important part of developing a project plan is determining how much time it will take to perform and which employees are available to complete the project on time. If the business only has part-time employees, it needs to consider which combination of workers will be able to do the project within the one-week time frame. In this example, Employee B is working 3 1/2 hour days from 1 to 4:30 for a total of 17.5 hours a week. Employee C is working 4 1/2 hour days from 7:30 to 12 for a total of 22.5 hours a week. Together, these employees are working a 40-hour week (17.5 + 22.5 = 40). Employees A and D are each working three hours a day for a total of 15 hours a week.SOURCE: OP:001SOURCE: Chapter 6: Cost management (2009). Retrieved September 19, 2009, from

http://www.stsc.hill.af.mil/resources/tech_docs/gsam4/chap6.pdf

84. BMass. Since GM would be making a large quantity of cars, it would want to use mass production. Mass production is used when a standardized item is produced in large quantities with interchangeable parts. Batch production involves producing items in specific amounts, usually for seasonal items. Unit or custom production is for individual and custom-produced items, such as a custom-tailored suit.SOURCE: OP:017SOURCE: BA LAP 1—Nature of Production

85. CShoplifting. Businesses lose millions of dollars each year because of shoplifting. Salespeople can help discourage shoplifting by being alert on the job and watching for suspicious people. Preventing shoplifting helps businesses reduce the losses that they would incur if goods were stolen. Salespeople should encourage purchasing by customers. Salespeople's job is to sell. Discouraging exchanges would not control expenses.SOURCE: OP:025SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 405-406). Tinley Park,

IL: Goodheart-Willcox.

86. DFalse, a business's poor housekeeping can damage the business. From the minute customers enter a business, they are aware of its appearance. If the business is dusty, dirty, or looks as though it is in need of cleaning, customers may not return. A business that does not build a clientele of repeat customers may not be successful, even if its prices are attractive. While housekeeping affects business success, it is seldom the most important factor.SOURCE: OP:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.

87. ALong-term. Short-term, immediate, and intermediate goals are normally set for much shorter time periods such as a day, a week, or a month.SOURCE: PD:018SOURCE: PD LAP 16—Go For the Goal (Goal Setting)

88. DSuggesting a new use for an existing product. Creativity is the ability to generate unique ideas, approaches, and solutions. The other alternatives are routine responses or job responsibilities.SOURCE: PD:012SOURCE: PD LAP 2—Creativity


89. CHolds the kind of job you want. Interviewing someone who currently holds the kind of job you want will yield information on career paths, preparation, advantages, and disadvantages of the career. Interviewing people who hire, used to be in that position, or are executives of the company may provide an incomplete picture of the career you are interested in.SOURCE: PD:023SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 53-54). New


90. AFlexibility and independence. Many individuals become entrepreneurs to enjoy greater flexibility and independence. Flexibility and independence allow an entrepreneur to manage his/her own work and time based on her/his needs and desires. While some entrepreneurs may look forward to other perks, such as purchasing and using advanced technology or enjoying tax breaks and deductions, neither of these is Michelle's motivation in becoming her own boss. As an entrepreneur, an individual must make a personal commitment to his/her business, which means putting in long hours and even weekends. Entrepreneurs seldom start their businesses simply to fulfill this personal commitment.SOURCE: PD:066SOURCE: PD LAP 4—Own Your Own (Career Opportunities in Entrepreneurship)

91. BI have skills that this company could use. Recognizing and appreciating your own skills gives you self-confidence and helps you to present yourself well in a job interview. All of the other alternatives represent an over-confident or cocky attitude that is likely to make a negative impression on the interviewer.SOURCE: PD:028SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 67-69].

Mason, OH: South-Western.

92. BBanks, insurance companies, securities firms, and other financial institutions are often owned by a single large firm offering a complete range of financial services. Since deregulation of the financial-services industry in 1999 (the Gramm-Leach-Bliley Act), financial-services providers are allowed to offer a broad range of services. Before deregulation, the industry was highly segmented, with separate businesses for separate services. A career as a securities broker can be pursued in many places, not just at a traditional financial-services firm on Wall Street. The financial-services industry is highly regulated by the U.S. Securities and Exchange Commission.SOURCE: PD:152SOURCE: QS LAP 51—Careers in the Money

93. BTrade show. Trade shows usually are held for only a few days in convention centers or exhibition halls in large cities. Trade shows feature the latest goods and related items in a specific product category, and are good sources of information that can contribute to professional development. They often are held on an annual basis. A three-day exhibition of computer equipment, software, and related goods is an example of a trade show. A central market is a city where many major suppliers of a product are located. A floor plan is a layout or design for a space. A warehouse club offers large quantities of consumer items, usually at discounted prices.SOURCE: PD:036SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [p. 183]. Mason,

OH: Thomson/South-Western.


94. BCertified Financial Planner (CFP). Many jurisdictions require finance professionals to obtain certification or licensure to perform their jobs. Because Elise performs duties that involve financial planning, she is most likely to have certification as a Certified Financial Planner (CFP), which is a well-known certification program in the financial industry. Tax specialists obtain a CTS certification. Loan officers obtain a CLO certification. Businesspeople who work as technical investment analysts obtain a CMT certification.SOURCE: PD:082SOURCE: CondoByOwner.com (2003). Glossary. Retrieved September 25, 2009, from

http://www.condobyowner.com/glossary.asp

95. BStockbroker. Stockbrokers are required to obtain a license to trade securities. To obtain the license, stockbrokers must take and pass the General Securities Registered Representative Examination. Accountants obtain the Certified Public Accountant (CPA) certification; insurance underwriters obtain the Chartered Life Underwriter (CLU) certification; and estate planners obtain the Accredited Estate Planner (AEP) certification.SOURCE: PD:082SOURCE: Morgan, E. (2006, August 21). How to become a stock broker. Retrieved September 19,

2009, from http://ezinearticles.com/?How-To-Become-A-Stock-Broker&id=275927

96. DJoining community organizations. By joining community organizations, such as a local professional or trade association, the local chamber of commerce, or Kiwanis Club, financial-services professionals increase their opportunity to network with others who live and work in the same region. Networking is the exchange of information with others for the purpose of professional or business development or advancement. Networking can help financial-services professionals to build new business relationships, obtain referrals, and acquire leads to increase clientele. Submitting proposals to web-based financial businesses and working with well-known securities firms do not necessarily help to build professional finance relationships at the local level. Financial-services professionals want to obtain referrals from others.SOURCE: PD:153SOURCE: Misner, I. (2002, December 23). Want to join a networking group? Retrieved September 19,

2009, from http://www.entrepreneur.com/marketing/marketingideas/networkingcolumnistivanmisner/article58210.html

97. AImplement an ethics program. Because employees represent the business, their unethical behavior can negatively affect the business's reputation. If a business develops a poor reputation or public image, customers may take their business elsewhere. To reduce the risk of a tarnished reputation, the business should implement an ethics program. An ethics program might include ongoing ethics training, which provides continuous guidance for the employees as to what constitutes ethical behavior on the job. The business should discourage fraudulent behavior, offer credit to customers who meet the business's credit criteria, and maintain optimal inventory levels so that the products are available when customers need them; these actions promote a positive public image for the company.SOURCE: RM:041SOURCE: Head, G. (2005, February). Why link risk management and ethics? Retrieved September 19,

2009 from http://www.irmi.com/expert/articles/2005/head02.aspx

98. BUse computer passwords. A business must take precautions to secure its clients' confidential information. To reduce the risk of unauthorized access to confidential information, businesses often assign computer passwords to allow authorized employees to view secured information. Developing a routing system, restricting digital signature options, and limiting Internet use are not actions that will limit the accessibility of internal business information.SOURCE: RM:042SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 358-359). South-Western

Cengage Learning.


99. CConducting backup procedures. Backup procedures involve duplicating computer entries, records, and transactions on a regular basis and storing the duplicate files in a different location. By having backup files, the business can retrieve information that might be lost due to a computer crash, a power outage, or fire. Encryption is the process of transforming information into a secret code so that only the recipient can read it. An authorization process is a way to limit the access to certain information. Using encryption techniques, implementing an authorization process, and monitoring data-transmission rates are not ways in which a business can protect its computer data from loss due to fire or power outages.SOURCE: RM:042SOURCE: Halifax Business Referral Network. (n.d.). Data backup is the best data protection. Retrieved

September 19, 2009, from http://hbrn.ca/05292006.htm

100. AReduce the chance of financial losses. Because risk involves the possibility of loss, businesses must be diligent to control their levels of risk. Businesses can experience financial losses in all areas of the business—from product recalls and poor hiring selections to poor credit policies and workplace injuries. Businesses can control their various risks by implementing appropriate business policies, training employees, and acquiring adequate insurance coverage. By controlling financial risk, businesses can limit their debt (liabilities). When businesses have low debt, they increase the potential to earn profit, which contributes to the well-being of society. Businesses increase their visibility in the market in different ways (positive and negative) and are not always related to controlling their levels of risk.SOURCE: RM:058SOURCE: Dlabay, L.R., & Burrow, J.L. (2008). Business finance (p. 326). Mason, OH: South-Western

Cengage Learning.

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