Management Notes

Management Notes

Reference Notes for Management

BS17

Which Of The Following Is True Of Direct Marketing?

by
Which Of The Following Is True Of Direct Marketing?

Which Of The Following Is True Of Direct Marketing?

 Options:

A) Its marketing message is fixed and does not change according to the customer’s requirements.
B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
C) It is presented as company news rather than as a sales-directed communication.
D) It does not involve any interaction between the company and its customers.
E) It is an impersonal promotion tool that hinders two-way communication.

The Correct Answer Is:

B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

Read more

Which of the Following is True About Corporations?

by
Which of the Following is True About Corporations?

Which of the Following is True About Corporations?

 Options:

A) A stockholder is personally liable for the debts of the corporation.
B) The corporation’s life is stipulated in its charter.
C) Stockholders’ acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.
D) Stockholders wishing to sell their corporation shares must get the approval of other stockholders.

The Correct Answer Is:

B) The corporation’s life is stipulated in its charter.

Read more

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

by
If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

 Options:

a. the quota results in efficiency reductions but the tariff does not
b. the tariff results in efficiency reductions but the quota does not
c. they have different impacts on how much is produced and consumed
d. they have different impacts on how income is distributed

The Correct Answer Is:

d. they have different impacts on how income is distributed

Read more

If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars. But if I purchase a stereo produced in the United States I obtain the stereo and the dollars remain in America. This line of reasoning is:

by
If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars. But if I purchase a stereo produced in the United States I obtain the stereo and the dollars remain in America. This line of reasoning is:

If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars. But if I purchase a stereo produced in the United States I obtain the stereo and the dollars remain in America. This line of reasoning is:

 Options:

a. valid for stereos, but nor for most products imported by the U.S.
b. valid for most products imported by the U.S., but not for stereos
c. deceiving since Koreans eventually spend the dollars on U.S. goods
d. deceiving since the dollars spent on a stereo built in the U.S. eventually wind up overseas

The Correct Answer Is:

c. deceiving since Koreans eventually spend the dollars on U.S. goods

Read more

Boeing aircraft company was able to cover its production costs of the first ―jumbo jet‖ in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates:

by
Boeing aircraft company was able to cover its production costs of the first ―jumbo jet‖ in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates:

Boeing aircraft company was able to cover its production costs of the first ―jumbo jet‖ in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates:

 Options:

a. How economies of scale make possible a larger variety of products in international trade.
b. A transfer of wealth from domestic consumers to domestic producers as the result of
trade
c. How a natural monopoly is forced to behave more competitively with international trade.
d. How a natural monopoly is forced to behave less competitively with international trade.

The Correct Answer Is:

a. How economies of scale make possible a larger variety of products in international trade.

Read more

A feasible effect of international trade is that a (an):

by
A feasible effect of international trade is that a (an):

A feasible effect of international trade is that a (an):

 Options:

a. Monopoly in the home market becomes an oligopoly in the world market
b. Oligopoly in the home market becomes a monopoly in the world market
c. Purely competitive firm in the home market becomes an oligopolist
d. Purely competitive firm in the home market becomes a monopolist

The Correct Answer Is:

a. Monopoly in the home market becomes an oligopoly in the world market

Read more

A patent is granted for a specified amount of time because of the assumption:

by
A patent is granted for a specified amount of time because of the assumption:

A patent is granted for a specified amount of time because of the assumption:

 Options:

A. That during this time firm will cover its development costs
B. That firm will earn a sufficient profit during this period
C. To limit the monopoly of the firm
D. That it will stimulate idea and development of a better product

The Correct Answer Is:

D. That it will stimulate idea and development of a better product

Read more

Which of the following features is most important for random-based selection?

by
Which of the following features is most important for random-based selection?

Which of the following features is most important for random-based selection?

 Options:

a) Sample should be drawn form population
b) Every strata of population should be represented in the sample
c) Every item in the population has an equal chance of being selected in the sample
d) Items should be selected at ‘n’ th interval

The Correct Answer Is:

c) Every item in the population has an equal chance of being selected in the sample

Read more

Which of the following statement is true regarding an auditor’s working papers?

by
Which of the following statement is true regarding an auditor’s working papers?

Which of the following statement is true regarding an auditor’s working papers?

 Options:

a) They document the level of independence maintained by the auditor
b) They should be considered as the principle support for the auditor’s report
c) They should not contain details regarding weaknesses in the internal control system
d) They help the auditor to monitor the effectiveness of the audit firm’s quality control

The Correct Answer Is:

b) They should be considered as the principle support for the auditor’s report

Read more

What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

by
What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

 Options:

a) The auditor has ascertained that the balance is materially correct when in actual fact it is not
b) The auditor concludes the balance is materially misstated when in actual fact is not
c) The auditor has rejected an item from sample which was not supported by documentary evidence
d) He applies random sampling on data which is inaccurate and inconsistent

The Correct Answer Is:

a) The auditor has ascertained that the balance is materially correct when in actual fact it is not

Read more

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

by
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

 Options:

a) The auditor concludes balance is materially correct when in actual fact it is not
b) The auditor concludes that the balance is materially misstated when in actual fact it not
c) The auditor has rejected an item for sample which was material
d) None of the above

The Correct Answer Is:

b) The auditor concludes that the balance is materially misstated when in actual fact it not

Read more

In an audit of financial statements, substantive tests are audit procedures that __

by
In an audit of financial statements, substantive tests are audit procedures that __

In an audit of financial statements, substantive tests are audit procedures that __

 Options:

a) may be eliminated for an account balance under certain conditions
b) are designed to discover significant subsequent events
c) will increase proportionately when the auditor decreases the assessed level of control risk
d) may be test of transactions, test of balance and analytical procedures

The Correct Answer Is:

d) may be test of transactions, test of balance and analytical procedures

Read more