CPE EditionDistributed by The CPE Store

www.cpestore.com1-800-910-2755

MBAGuidebook

Steven M. Bragg

MBA

Guidebook

Course Instructions and

Final Examination

The CPE Store819 Village Square Drive

Tomball, TX 773751-800-910-2755

MBA Guidebook

Table of Contents

Page Course Objectives .............................................................................................................. 3 Course Instructions ............................................................................................................ 4 Final Examination ............................................................................................................... 7

- 2 -

COPYRIGHT 2016 – The CPE Store – ALL RIGHTS RESERVED. No portion of this material may be reprinted, repro-duced, transmitted, stored in a retrieval system, or otherwise utilized, in any form or by any means, electronic or mechanical, including photocopying or recording, now existing or hereinafter invented, nor may any part of this course be used for teaching without written permission from the publisher and the author.

- 3 -

Course Objectives

After completing this course, you will be able to: Identify the principle which separates the transactions of a business from those of its owners Determine what the accounting cycle is designed to do Recognize the term for the idea that revenue can only be recognized after it has been earned Ascertain what the balance sheet is used for Discern what profits that appear in retained earnings are adjusted for Pinpoint who requires the most extensive financial statement disclosures Spot an example of a profitability ratio Identify the key assumption underlying the use of the current ratio Choose the most conservative comparison of current assets to current liabilities Discern what the cost of capital is comprised of Determine why preferred stock is more expensive than debt Ascertain when it might be acceptable to derive the weighted average cost of capital using the book value

of debt Identify the concept that discounted cash flow analysis is based on Choose the term for a consistent stream of cash flows over several periods Recognize what net present value analysis is commonly used for Recognize issues with the use of the accounting rate of return Ascertain why the payback method might be a useful capital budgeting analysis tool Select a basic rule of investing in a complex environment Identify the circumstances under which positive leverage is most likely to turn negative Discern when managers are more likely to employ massive financial leverage Choose an example of a tax shield Spot an example of a common loan covenant Determine what it means when a company is said to have organic growth Pinpoint what a company can do if it wants to reduce the risks inherent in its own industry? Recognize what is contained in a teaser letter Ascertain when multiples analysis will be overstated Discern what the discount rate used in a discounted cash flows analysis is based on Determine what the concept of the control premium is based on Recognize what happens when a business consistently reports earnings that do not vary much from pre-

dictions Spot a characteristic of a business that can retain risk Select a characteristic of an enterprise risk management system Choose a common characteristic of a “perfect storm” event Identify what the concept of R&D waste is meant to reflect Ascertain what the mandated gross margin is used for in a target-costing situation Pinpoint the goal of a component replacement in a target-costing project Discern when price skimming occurs Recognize when premium pricing works best Choose a way to guard against the risk of false marketing claims Identify a component included in the calculation of lifetime value Spot common methods for aggregating sales information in the revenue budget Ascertain how the risk of losing larger customers can be mitigated Recognize an appropriate way to improve profits under constraint analysis Select an example of local optimization Choose a key component of a material requirements planning system Pinpoint an activity that a supplier assessment should include Ascertain how to resolve a situation in which a company has a difficult time coordinating the activities of

a large number of suppliers Identify a major advantage of a stable production schedule Spot a tool used for bulk hiring Recognize evidence of a better job prospect based on resume information Discern why telephone screening is used Identify essential components of a team Pinpoint what a recommendation team needs to be successful Ascertain what the lowest-value communication method is for a team Identify the parties included in an ethical decision when viewing an ethical situation from a stakeholder

perspective Select a reason people tend to overlook ethical issues

- 4 -

Recognize steps included in the process of developing a strategy Spot an example of a financial engineering strategy

Course Instructions

To fully benefit from this course, please follow all of the steps below. 1. Read each chapter in the text to get a good understanding of the material. 2. Answer the study guide problems which appear at the end of each chapter. After answering the problems,

compare your answers with the correct answers to ensure that you understand the material. 3. When you feel that you have a good understanding of the material contained in the chapter, answer the ques-

tions on the final examination. 4. When you have completed the final examination, record your answers on the answer sheet provided and sub-

mit it for grading. A score of 70% or better is required to pass. Please also complete the course evaluation and submit it to us along with your answer sheet. Upon passing you will receive a Certificate of Completion stating that you have successfully completed the course and earned the continuing education credit.

Prerequisites and Advance Preparation

No prerequisites or advance preparation are required for this course. CPE Credit

This course is recommended for 21 CPE credits. Final Exam Grading

► Online: Our fastest option, with instant results. Simply go to www.cpestore.com and click the link for online grading. Just follow the instructions from there. When you finish entering your answers, you’ll receive instant test results and a Certificate of Completion to print.

► By Mail: Mail your test and course evaluation to us. We grade the tests the day we receive them and mail

the results and Certificate of Completion to you the following business day. ► By Fax: Just fax your answer sheet to 1-281-255-4337. If you need us to fax the Certificate of Completion

back to you, please provide us with your fax number and write “please fax back” on your answer sheet. If you don’t need the Certificate faxed back, please write “no fax needed” on your answer sheet.

Refunds

The CPE Store guarantees your satisfaction. If, for any reason, you are not completely satisfied with your purchase, return it to us unused within 30 days for a prompt refund, no questions asked. (Sorry, but shipping fees are not refundable.) Customer Service

The CPE Store holds itself to the highest standards. If we have not met your expectations, something is missing, or you just have a question please contact us at 1-800-910-2755 or customerservice@cpestore.com.

- 5 -

About Our Courses

The CPE Store’s courses are developed to satisfy the continuing education requirements of the American Institute of Certified Public Accountants, each state’s Board of Accountancy and the National Association of State Boards of Accountancy (NASBA). If your state requires registration of sponsors, our sponsor number will appear on your Certificate of Completion. Our courses are designed to meet the continuing education requirements of accounting professionals. A great deal of care has been taken to ensure that the course material is both interesting and relevant to the practice of ac-counting. The information presented is, to the best of our knowledge, current and accurate. However, The CPE Store is not in the business of rendering legal, accounting or other professional advice and as such, the material presented in our courses is intended as an overview. If legal advice or other expert assistance is required, the ser-vices of a competent professional should be sought.

- 6 -

- 7 -

MBA Guidebook 21-Credit Course

Final Examination

A score of 70% or higher is required to pass the exam. If you score less than 70% on your first attempt, we will allow you to take the test a second time. Chapter 1 – Accounting Basics 1. Which principle separates the transactions of a business from those of its owners?

A. Reliability B. Full disclosure C. Consistency D. Economic entity

2. What is the accounting cycle designed to do?

A. Provide a clear promotion track for employees B. Define the time period between payrolls C. Identify and record transactions D. Ensure that customers pay on a timely basis

3. The receipt of goods is part of which cycle?

A. Financing cycle B. Purchasing cycle C. Payroll cycle D. Sales cycle

4. What does the out of balance concept apply to?

A. Double entry accounting B. Single entry accounting C. Debits only D. Credits only

5. What term is used for the idea that revenue can only be recognized after it has been earned?

A. Matching principle B. Cost principle C. Materiality principle D. Realization concept

6. Which of the following does not meet the requirements of the accrual method of accounting?

A. Prepaid expenses B. Accrued expenses C. Recording revenues when cash is received D. Reserves for bad debt

Chapter 2 – The Financial Statements 7. What is the balance sheet used to do?

A. Analyze cash flow and understand the sources and uses of cash B. Match revenues to expenses and segregate other comprehensive income C. Compile assets for a reporting period and reveal dividend payments D. Assess an entity’s liquidity and ability to pay its debts

8. The profits that appear in retained earnings are adjusted for which of the following?

A. Dividends B. Losses C. Asset purchases D. Debt incurred

Final Exam

- 8 -

9. One of the reasons a statement of cash flows is needed is the lack of information about _____________ in the other financial statements.

A. Petty cash balances B. Paying back loans C. Accrued expenses D. Gains and losses on asset sales

10. The most extensive financial statement disclosures are required by which of the following?

A. The Securities and Exchange Commission B. Generally Accepted Accounting Principles C. International Financial Reporting Standards D. Financial Accounting Standards Board

Chapter 3 – The Interpretation of Financial Statements 11. Horizontal analysis involves which of the following?

A. Review of all flat-lined revenues B. Comparison of information across multiple periods C. Comparison of proportions of expenses to sales within a period D. Examination of expenses that have exceeded a threshold review level

12. Which of the following is an example of a profitability ratio?

A. Fixed charge coverage B. Fixed asset turnover ratio C. Gross profit ratio D. Quick ratio

13. What is the key assumption underlying the use of the current ratio?

A. Payables will be paid within a normal 30-day payment cycle B. Long-term debts will be paid by current liabilities C. Dividends are paid from current assets D. Current assets will be used to pay for current liabilities

14. What is the most conservative comparison of current assets to current liabilities?

A. Sales to working capital ratio B. Inventory turnover ratio C. Current ratio D. Quick ratio

15. What should be used to estimate the number of days required to convert receivables and inventory into cash?

A. Accounts payable turnover ratio B. Liquidity index C. Fixed charge coverage ratio D. Net profit ratio

16. Which of the following is an item that is included in the numerator of the fixed charge coverage ratio?

A. Net change in inventory B. Net change in cash C. Lease expense D. Operating cash flows

17. Of the following, which item is not added back to net income to arrive at EBITDA?

A. Depreciation B. Taxes C. Interest expense D. Allocations

Final Exam

- 9 -

Chapter 4 – The Cost of Capital 18. The cost of capital is comprised of what?

A. Debt – Working capital + Common stock B. Working capital + Common stock C. Debt + Working capital + Common stock D. Debt + Preferred stock + Common stock

19. If a company has outstanding debt at a 10% interest rate and a 35% income tax rate, what is its cost of debt

for the purpose of calculating the cost of capital? A. 10.0% B. 6.5% C. 3.5% D. 13.5%

20. Why is preferred stock more expensive than debt?

A. Dividends paid on the shares are not tax-deductible B. Dividends paid on the shares are tax-deductible C. Investors expect the price of their shares to appreciate D. The shares must eventually be paid back to investors

21. Which statement is true regarding the use of a long-term time horizon when deriving beta?

A. Tends to amplify recent swings in the stock price B. Has no impact on the calculated beta C. Tends to downplay recent stock price volatility D. Will increase the amount of calculated beta

22. When might it be acceptable to derive the weighted average cost of capital using the book value of debt?

A. The debt is strictly short-term, and so will be replaced soon B. There is no expectation to obtain additional debt financing C. The debt is entirely comprised of bond financing D. The debt is convertible into equity

Chapter 5 – Discounted Cash Flow Techniques 23. Discounted cash flow analysis is based on which concept?

A. Cash received today is more valuable than cash received later B. Cash to be received later is more valuable than cash received today C. Investors place a higher value on invested funds D. Interest rates are always higher for maturity dates further in the future

24. A consistent stream of cash flows over several periods is known as what?

A. The future value of 1 due in n periods B. The present value of 1 due in n periods C. A capital investment D. An annuity

25. Net present value analysis is commonly used for which of the following?

A. The evaluation of capital purchasing requests B. The granting of credit to customers C. The calculation of the future value of an ordinary annuity D. The calculation of the future value of an annuity due

26. The internal rate of return is commonly used to calculate the return on which of the following?

A. An annuity B. An expected investment C. A bond investment D. An investment in convertible securities

Final Exam

- 10 -

Chapter 6 – Business Investment Decisions 27. When reviewing investment proposals, the outcome given the top priority:

A. Increases throughput B. Reduces expenses C. Increases gross margin D. Reduces invested funds

28. Which of the following is not an issue with the use of the accounting rate of return?

A. Reviewing short-term investments B. Does not factor in the time value of money C. No consideration of the increased risk in the variability of forecasts over time D. Does not use cash flow information

29. Why might the payback method be a useful capital budgeting analysis tool?

A. Includes discounted cash flows B. Considers long-term cash flows C. Includes an analysis of the bottleneck operation D. Is a simple calculation for how fast you will earn back your investment

30. A real option refers to which of the following?

A. A situation where only a single outcome is possible B. A stock option with a lengthy vesting period C. The decision options available for a tangible asset D. A type of warrant

31. What is a basic rule of investing in a complex environment?

A. It is impossible to understand the full impact of the investment B. It can be fully modeled if you take enough time to develop a comprehensive model C. Factor interaction must be fully understood before you invest D. Outcomes are likely to fall within a tight tolerance range

Chapter 7 – Capital Structure Analysis 32. How is optimal capital structure defined?

A. The structure that yields the lowest cost of capital B. The point where the cost of additional funds will not generate a positive net present value on addi-

tional projects C. The structure that represents the lowest level of risk D. The structure that results in the lowest interest expense

33. What might trigger a capital structure analysis?

A. An interest payment to a lender B. A prospective change to the corporate credit policy C. The need to fund an acquisition D. The presence of a loan covenant

34. What is an example of a tax shield?

A. Interest expense B. Revenue C. Accounts receivable D. Sales tax liability

35. The use of financial leverage is more beneficial:

A. Due to the tax deductibility of interest expense B. For companies that do not expect to earn a profit C. For non-profit organizations D. When warrants are attached to the debt offered to investors

Final Exam

- 11 -

36. Financial leverage increases the _____________ of a business. A. Equity load B. Fixed cost base C. Number of debt covenants D. Gross profit

37. Positive leverage is most likely to turn negative under which circumstance?

A. The company’s incremental earnings rate is above the after-tax interest rate charged by lenders B. Lenders are willing to extend more credit to the company C. Lenders will issue loans at a fixed rate of interest D. Lenders will only issue loans at a variable rate of interest, and the market rate is increasing

38. When are managers more likely to employ massive financial leverage?

A. Their compensation includes stock grants that must vest B. Their compensation includes stock options that must vest C. Their bonus plans cover short periods of time D. Their bonus plans are based on the level of employee turnover

39. Which of the following is an example of a common loan covenant?

A. Maintaining a minimum level of sales per person B. Maintaining a low inventory turnover ratio C. Not issuing dividends to investors during the term of the loan D. Limiting compensation levels for the production staff

40. The specific maturity structure of debt is of the least concern to whom?

A. A limited liability partnership B. A small family-run business C. A large publicly-held business D. A limited liability corporation

Chapter 8 – Mergers and Acquisitions 41. What does it mean when a company is said to have organic growth?

A. It is in the hydroponics industry B. Its growth is under 10% per year C. It is generating internal growth D. It is growing through acquisitions

42. When a company wants to roll out its concept in a new region, it could consider which strategy?

A. Geographic growth strategy B. Product supplementation strategy C. Full service strategy D. Vertical integration strategy

43. If customers are moving from a company’s products to more-complex models sold by competitors, it should

consider _____________. A. Abandoning the market B. The product supplementation strategy C. Lowering its prices D. The diversification strategy

44. What is it called when a company acquires a key supplier?

A. The horizontal integration strategy B. The vertical integration strategy C. The diagonal integration strategy D. The sourcing strategy

45. What can a company do if it wants to reduce the risks inherent in its own industry?

A. Use the diversification strategy B. Self-insure the risks C. Buy more companies in the same industry D. Pare back on the number of its product offerings

Final Exam

- 12 -

46. A bolt-on acquisition is one in which the acquired business: A. Is always located in an adjacent industry B. Becomes the controlling entity C. Is merged into the parent company D. Is added directly onto the acquirer’s existing business lines

47. What should a business do in order to engage in the low-cost strategy?

A. Concentrate on market niches B. Always offer a full range of products, especially at the high end C. Sell in high volume D. Set premium prices

48. What is an excellent source of information when researching publicly-held companies?

A. The Form 10-K B. Their marketing materials C. Physical analysis of their products D. Independent surveys of their customers

49. What is the letter of intent used to do?

A. Notify the SEC of a hostile takeover bid B. Make an offer to a target company C. Issue an acquisition press release D. Notify the bankruptcy court that a business is liquidating

50. What is a financial buyer more likely to do?

A. Work toward multiple synergies between an acquisition and its other businesses B. Pay the most for a company C. Be extremely selective in their purchases D. Treat an acquisition as an investment that it later sells

51. A teaser letter usually contains which of the following?

A. Any open litigation against the company B. A description of the investment opportunity C. A detailed listing of assets owned D. A summarization of shareholders list

Chapter 9 – Business Valuation 52. Multiples analysis can involve the comparison of ______________ to market value.

A. Gross margin B. Financing costs C. Sales D. Selling and administrative expenses

53. Multiples analysis will be overstated when which of the following occurs?

A. The company has transitory (one-time) revenues B. Fundamentals are better than those of the comparative companies C. There is an outlier in the analysis whose multiple is very low D. The company is larger than those used in the comparison

54. What is the discount rate used in a discounted cash flows analysis based on?

A. The cost of capital of the acquiring entity B. The cost of capital of the acquired entity C. The prime interest rate D. The equivalent zero-risk interest rate

55. If a company is projecting unstable cash flows, you can compensate in the discounted cash flows model by

doing what? A. Reducing the discount rate B. Throwing out high and low outlier values C. Reducing the period over which cash flows are accumulated D. Creating several DCF models for the various alternative scenarios

Final Exam

- 13 -

56. Which statement is true regarding replication value? A. Is the cost to duplicate a drug that is coming off its patent period B. Can result in the payment of an unusually low price for an acquisition C. Is the concept of estimating what it would cost to replicate a business D. Is a method for estimating the cost of an intangible asset

57. What is the concept of the control premium based on?

A. The ability of the controlling entity to redirect a business in any way it chooses B. The reduced likelihood of a shareholder lawsuit at higher price points C. The avoidance of SEC investigations D. The extra transactional costs associated with an acquisition

Chapter 10 – Enterprise Risk Management 58. What happens when a business consistently reports earnings that do not vary much from predictions?

A. Short selling is a common outcome B. It is more difficult to attract lenders C. The cost of capital tends to be higher D. The stock price tends to stay within a narrow range

59. What is a characteristic of a business that can retain risk?

A. A large debt load B. Significant profitability C. A low cash balance D. A start-up business

60. Which of the following is a characteristic of an enterprise risk management system?

A. It tends to maximize the amount of hedging B. It provides more support to silo-based risk management C. It provides a consistent risk management methodology D. It reduces risk across an entire industry

61. A risk profile categorizes what types of information?

A. It breaks out the losses in the income statement that are attributable to risk B. It identifies the risks to which a company’s industry is naturally subjected C. All risks that the Securities and Exchange Commission requires for public reporting D. It lists the main risks that can impact an organization

62. What is a common characteristic of a “perfect storm” event?

A. A general triggering of multiple risks B. A loss triggered by an expected event C. That the loss was triggered by a business activity D. Flooding

Chapter 11 – Product Development 63. The concept of R&D waste is meant to reflect which of the following?

A. The total research and development cost of a business B. The amount of project failure being experienced C. Any negative cost-benefit associated with the R&D effort D. The amount of any negative net present value on projects that are accepted

64. In a target-costing situation, one would use the mandated gross margin to do what?

A. Derive the expected number of units sold B. Calculate the maximum target cost C. Estimate revenue D. Estimate the amount of cost reduction required

Final Exam

- 14 -

65. Arnold International wants to achieve a significant cost reduction through a complete redesign of its red widget product. What is one of the best ways to achieve such a large cost reduction?

A. Work with suppliers to reduce the cost of components B. Redesign the production process C. Reduce the number of product features D. Outsource production

66. In a target-costing project, what is a goal of component replacement?

A. Shift the attention of the cost reduction analysis elsewhere B. Pass a milestone review C. Increase the number of suppliers D. Achieve volume discounts

67. In a target costing program, one would deliberately reduce a product’s planned durability in order to do what?

A. Shorten the product life, thereby forcing customers to buy the product again B. Reduce costs to a target level C. Eliminate difficult-to-acquire materials from the product D. Force customers to upgrade to another product that is more durable

68. What is an impediment to minimizing the number of parts used?

A. The amount of warehouse space involved B. The need to use additional records in the item master file C. The broad range of commodity codes that must be addressed D. The length of time needed to roll out the concept in new product designs

69. Designing for broad tolerance has what effect?

A. Parts can be purchased at a reduced price B. Parts can be stored in less robust containers C. It is more difficult to assemble products D. It is relatively easier to incorrectly identify parts

70. The design for assembly concept applies to which of the following?

A. The generation of a smaller number of engineering drawings B. The production area C. The kitting process D. The disassembly of products when they are returned under warranty

Chapter 12 – Marketing 71. In what situation does price skimming occur?

A. Only in the consumer goods industry B. Only when a product is being phased out C. During the introduction of a new product D. To keep out potential competitors

72. Premium pricing works best for the sale of which of the following?

A. Commoditized products B. High-volume goods C. Products for which there are substitutes available D. Luxury products

73. Full cost plus pricing adds a markup percentage to what?

A. Direct labor only B. Total production costs and selling & administration costs C. Direct materials and allocated overhead D. Direct materials only

74. The centralization of marketing management can assist with the management of which risk?

A. Brand repositioning risk B. Advertising reduction risk C. Incorrect sales forecasting risk D. Marketing governance failures

Final Exam

- 15 -

75. Testing a product in a distant market is a possible risk mitigation for what? A. False marketing claims B. A brand repositioning C. Increased marketing costs D. Product recalls

76. What is one way to guard against the risk of false marketing claims?

A. Stagger advertising expenditures by period B. Spend more money in high-cost distribution channels C. Be an industry watchdog D. Reposition company products

Chapter 13 – Sales 77. The calculation of lifetime value includes which component?

A. Projected interest income on late customer payments B. The funds invested to create new products C. The cost of administering the customer service department D. Payments originating from customer referrals

78. Of the following, which is not a common method for aggregating sales information in the revenue budget?

A. By product line B. By territory C. By warranty claim D. By customer contract

79. A problem with reporting the revenue budget at the product line level is going into too much detail regarding

which of the following? A. Capacity constraints B. Different variations of the product C. Territory-level sales D. Contract-level sales

80. The risk of losing larger customers can be mitigated by doing what?

A. Buying out competitors B. Focusing on changing the mix to a larger number of smaller customers C. Switching to short-term customer contracts D. Switching to a premium priced niche strategy

Chapter 14 – Operations Management 81. In constraint analysis, the buffer:

A. Is inventory positioned in front of the drum operation B. Is inventory positioned behind the drum operation C. Is a sufficient amount of finished goods inventory to assure immediate fulfillment of customer orders D. Is the equivalent of safety stock in the ordering process

82. Under constraint analysis, what is an appropriate way to improve profits?

A. Add supplemental staff to downstream operations B. Add supplemental staff to the bottleneck operation C. Add capacity to downstream machines D. Review product quality at downstream locations

83. Sprint capacity is needed to:

A. Fulfill large customer orders in a short period of time B. Replace manual labor with a higher degree of automation C. Have the ability to rebuild the inventory buffer D. Reduce the corporate investment in production equipment

Final Exam

- 16 -

84. What is an example of local optimization? A. Do not restrict overtime if it is being spent on the bottleneck B. Sell a machine that is not being utilized C. In the absence of a constraint, lower prices to attract more sales D. Redesign products to reduce their processing time at the bottleneck

85. Which of the following is included in the calculation of throughput?

A. A corporate overhead charge B. Administrative expenses C. Totally variable expenses D. A robust factory overhead allocation

86. When can a product be justifiably canceled?

A. A portion of operating expenses can be avoided as a result of the cancellation B. It has accumulated a large amount of factory overhead C. Producing it would worsen the backlog at the constraint D. Customers only agree to buy it as part of large-volume, low-price deals

87. Having a high quality of design means that a product can be designed that:

A. Meets the quality expectations of the customer B. Has minimal warranty costs C. Contains high-quality materials D. Rarely requires rework

88. External failure costs include which of the following?

A. Product testing costs B. Field service costs C. Process analysis costs D. Scrap costs

89. What is a key component of a material requirements planning system?

A. The periodic inventory system B. The physical inventory count C. The bill of materials D. Kanbans

90. What is the key item needed to achieve very short production runs?

A. Kanbans B. Production cells C. Centralized inventory storage D. Short equipment changeovers

Chapter 15 – Supply Chain Management 91. A supplier assessment should include what activity?

A. Ensuring that the supplier has enough capacity to service the needs of the company B. Ensuring that the governance of the supplier meets the company’s standards C. Whether the supplier is willing to swap ownership shares with the company D. Verification of the existence of any unions

92. What is a consideration when choosing a foreign supplier?

A. The quality of goods delivered B. Purchase order terms C. The risk of changes in the exchange rate between the two countries D. Counterparty risk

93. When a company has a difficult time coordinating the activities of a large number of suppliers, what is a pos-

sible resolution? A. Outsource all production B. Improve the accuracy of all bills of material C. Reduce the number of products offered D. Appoint a small number of lead suppliers

Final Exam

- 17 -

94. What is a major advantage of a stable production schedule? A. More accurate inventory records B. More stable production planning for suppliers C. A more consistent work flow in the warehouse D. A reduced investment in finished goods inventory

Chapter 16 – Recruiting and Hiring 95. What is a tool used for bulk hiring?

A. Hiring an executive recruiter B. Advertising in a specialized magazine C. A recruiter D. A job fair

96. Which of the following is evidence of a better job prospect, based on resume information?

A. Considerable number of words B. No trend line of career advancement C. Non-standard job title D. Reporting employment by year

97. Why is telephone screening used?

A. For candidates supplied by recruiters B. To discuss items not clearly stated on a resume C. To make a final employment decision D. To conduct panel interviews

98. In candidate evaluation, the cloning effect refers to what?

A. The tendency to focus on just one aspect of an applicant B. The tendency to hire friends and family C. The tendency to favor someone who looks like the interviewer D. The tendency to favor someone with the same characteristics as the interviewer

Chapter 17 – Building and Managing Teams 99. Which of the following is not an essential component of a team?

A. Training B. Togetherness C. Shared goal D. Mutual responsibility

100. What does a recommendation team need in order to be successful?

A. Lots of time to make a recommendation B. Direct reporting to the president C. A well-defined direction D. A commitment from management to designate it as a permanent team

101. What is the lowest-value communication method for a team?

A. Texting B. Face-to-face C. Videoconferencing D. E-mail

Chapter 18 – Business Ethics 102. Viewing ethical situations from a stakeholder perspective increases the number of parties to be included in

an ethical decision. This expanded group includes which of the following? A. Relatives B. Suppliers C. Government entities D. Regulators

Final Exam

- 18 -

103. Which of the following is not a reason people tend to overlook ethical issues? A. There is a monetary relationship, and the paying entity is involved B. There is a third party intermediary that screens the ethical behavior C. The hierarchical nature of the chain of command is hiding the issue D. Ethical situations tend to start small and gradually increase in size

Chapter 19 – Business Strategy 104. The process of developing a strategy includes which of the following?

A. Only a high-level analysis of how to achieve goals B. A historical analysis of regulatory changes C. The avoidance of market share claimed by new entrants D. Documenting the current capabilities of the company

105. What is an example of a financial engineering strategy?

A. Faster cycle time B. Disruptive technology C. Split up D. New distribution channel

Thank you for taking our course. We hope you enjoyed it.

MBA GuidebookCourse Number: B268201Qualifies for 21 hours of CPE credit

Name as it should appear on your Certificate: Where should we send your results?

____________________________________________________

License State(s): ____________________________________

License Number: ___________________________________

Date Course Completed: ____________________________

* Answer each question A, B, C, or D, as appropriate.* Be sure you are answering questions from the "Final Examination" not from the "Study Guide"* For instant online grading, go to www.cpestore.com and click the link for Online Grading

1. 22. 43. 64. 85.

2. 23. 44. 65. 86.

3. 24. 45. 66. 87.

4. 25. 46. 67. 88.

5. 26. 47. 68. 89.

6. 27. 48. 69. 90.

7. 28. 49. 70. 91.

8. 29. 50. 71. 92.

9. 30. 51. 72. 93.

10. 31. 52. 73. 94.

11. 32. 53. 74. 95.

12. 33. 54. 75. 96.

13. 34. 55. 76. 97.

14. 35. 56. 77. 98.

15. 36. 57. 78. 99.

16. 37. 58. 79. 100.

17. 38. 59. 80. 101.

18. 39. 60. 81. 102.

19. 40. 61. 82. 103.

20. 41. 62. 83. 104.

21. 42. 63. 84. 105.

Page 1 of 1

If you are mailing or faxing your test to us for 

grading, please fill in Member ID ___________ and 

Validation number ____________________.

Course EvaluationCourse # ________________

Your Name ______________________

Were the stated learning objectives met?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

If applicable, were prerequisite requirements appropriate and sufficient?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely m N/A

Was the text well-written, accurate and easy to understand?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

Was the final exam well-written, accurate and easy to understand?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

Were course materials relevant and did they contribute to the achievement of the learning objectives?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

Was the time allotted to the learning activity appropriate?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

If applicable, were the individual instructors effective?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely m N/A

Were you satisfied with the ordering process?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

Were your course materials in good condition when they arrived?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

Did you receive your materials in a timely manner?m 1 - Not at all m 2 - Marginally m 3 - Somewhat m 4 - Mostly m 5 - Absolutely

What is your preferred method for completing your CPE?m Textbook m PDF materials downloaded from the internet m Online courses m Live seminars

Would you like us to notify you by email of our weekly specials and new courses?m No m Yes, my email address is _____________________________________ m Already receiving

Are there any particular topics you would like to see covered in a CPE course or any additional services you wouldlike to see us provide?

Please provide any additional feedback, either positive or negative, regarding our products or our service:

The CPE Store819 Village Square Drive

Tomball, TX 77375Phone 1-800-910-2755

www.cpestore.comFax 281-255-4337

About the Course

About the Service

About You

Comments PleaseComments Please

About the Service

About the ServiceAbout the Course