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Business Operations Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. How is the Indemnity principle different from the Subrogation rights?

Question 2 2. Samantha is a CEO of a large marketing company. She is trying to determine what external factors may impact the business in the next few months. She is concerned about the 2018 midterm elections and has decided to invest money into a PAC of a pro-business independent candidate. Another cause for concern is the increasing number of complaints regarding her IT sector. Which of the following may impact her business, and how can she manage these factors?

Question 3 3. In economics, the term investment refers to what?

Question 4 4. Leno's Tux Boutique is in dire need of additional blue bow ties for the start of wedding season. He has to quickly order more for his inventory. Which of the following would NOT incur a shortage cost for the business?

Question 5 5. How does technological change affect risk management?

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Question 6 6. How does insurance allow a person or business to manage risk?

Question 7 7. Which one of the following is an example of environmental change related to the external political environment?

Question 8 8. Which of the following statements is NOT true regarding investment?

Question 9 9. What is the basic difference between outsourcing and insourcing?

Question 10 10. Mary is in a car accident, and her car is completely destroyed. Her policy limit for damage to the car is $35,000. Her deductible is $1,000. The value of the car is $28,000. The insurance company is required to pay which amount?

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Question 11 11. How quickly something can be turned into cash refers to its _____.

Question 12 12. An insurance company pays your auto accident claim and then turns around and sues the other driver for negligence in your name. The company wins an award and keeps the money. This is an illustration of which of the following?

Question 13 13. Which of the following is an example of an environmental change related to an economic factor?

Question 14 14. What happens when a computer gets produced this year and distributed to a retail store's inventory?

Question 15 15. Which one of the following is NOT a step involved in risk management?

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Question 16 16. Which of the following terms involves moving a business function in-house rather than having an external vendor complete the task?

Question 17 17.

A company has the following information:

$10,000 in the bank; $25,000 in 90 day CDs; $15,000 in 1 year bonds; $5,000 in money orders; $30,000 in real estate

How much cash and cash equivalents does the company have on-hand?

Question 18 18. Shazam Electronics is a major retailer specializing in a large variety of computer chips. All of the chips have to be stored at a specific temperature, which is a significant expense to Shazam's monthly electric bill. Which of the following categories does this expense refer to?

Question 19 19. Internal controls need to contain written protocols and _____.

Question 20 20. Which of the following is NOT a reason why companies downsize?

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Question 21 21. Which of the following is NOT an element of inventory costs?

Question 22 22. Which of the following is a disadvantage of outsourcing?

Question 23 23. What are the main categories of investment?

Question 24 24. How is investment, in economics, related to spending?

Question 25 25. The _____ refers to the total dollar amount a business paid for the products it sold.

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Question 26 26. A way to monitor a company's credit, collections, cash allocation and disbursement policies as well as its invoicing function is called which of the following?

Question 27 27. The proposition that a prediction based upon a sample of 10,000 occurrences is more accurate than a prediction based upon 100 occurrences is an illustration of the _____.

Question 28 28. Which of the following is an example of a cash equivalent?

Question 29 29. In regard to globalization, which of the following statements about the advances in information technology is TRUE?

Question 30 30. Which of the following activities incur ordering costs?

Business Operations Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

FTCE Marketing 6-12 (057): Test Practice & Study Guide  /  Business Courses
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