Questions and Answers > “SO Controlling” Reading Directions: Business Economics MCQ_ OBJECTIVE A

downloaded from

Scholarfriends

https://scholarfriends.com Downloaded by: writerforacademic@gmail.com | https://scholarfriends.com/singlePaper/273761/questions-and-answers-so-controllingreading-directions-business-economics-mcq-objective-a Distribution of this document is illegal.

“SO Controlling” Reading Directions: Identify the correct answer to each of the following questions.

OBJECTIVE A

1. Which of the following might result if a company had good sales but ignored expenses: a. increased profit c. Inventory loss b.

Business failure d. Reduced overhead 2. Which of the following is a way that a business can use the money it saves by controlling expenses: a.

Expansion c. Orientation b.

Evaluation d. Consolidation 3. Which of the following is a reason why businesses try to control expenses to purchase the most modern equipment: a.

To spend excess cash c. To satisfy suppliers b.

To remain competitive d. To offer good benefits 4. Businesses that are unable to afford regular maintenance because of overspending run the risk of needing to a. hire new employees. C. make costly repairs. b. extend working hours.

D. order more inventory.

5. Which of the following is an area in which expense control can help to create an appropriate image for a business: a.

Culture c. Geography b.

Diversity d. Appearance 6. Businesses often use the money saved by controlling expenses to increase sales through a.

Management. C. promotion. b. price fixing. D. recruitment.

7.How does a business benefit when its expense-control efforts have enabled it to offer good wages and benefits? a.

Qualified workers are retained.

C. Insurance payments are decreased. b.

Operating assets are controlled. d. Spending opportunities are increased.

8. Businesses that buy goods for resale can control their expenses by a. expanding their product lines.

C. taking advantage of cash discounts. b. increasing their inventory levels.

D. buying additional insurance coverage.

9. Businesses that control expenses can carry out research and development activities because they have more

a.

Profits. c. quotas. b. Subsidies.

D. employ

10. What might stockholders do if a corporation was unable to pay dividends because of excessive expenses? a.

Reduce earnings.

C. Invest elsewhere. b. organize a takeover. D. Buy additional shares.

OBJECTIVE B 11. Which of the following is one of the biggest expenses that employees can help a business to control: a.

Taxes c. Rent b.

Advertising d. Payroll 12. Which of the following is a way that employees can help to control expenses by managing their work: a.

Reading magazines c. Leaving early b. taking long breaks d. Meeting deadlines 13.

Which of the following do most businesses establish to help their employees control expenses: a.

Grades and standards c. Legal requirements b.

Policies and procedures d. Product specifications 14. Which of the following actions by employees might result in additional expense for a business: a.

Taking the initiative to find work C. Making personal use of company property b. Reporting incidents of shoplifting d. Giving appropriate discounts to customers

15. One of the ways employees can help businesses to control their utility costs is by a. managing their time. C. turning off lights. b. marking products accurately.

D. treating customers well.

16. Employees who serve customers efficiently help to control expenses by a. decreasing volume. C. improving morale. b. increasing returns. D. reducing complaints.

17.Which of the following might result if employees incorrectly mark prices on goods:

a. b.

Businesses lose profits.

C. Insurers decrease premiums.

Suppliers reduce shipments. D. Creditors lower interest rates.

18. Which of the following is a way that employees who handle sales transactions can help to save the business money: a.

Accepting third-party checks c. Counting out too much change b.

Neglecting to validate credit cards d. Watching for counterfeit money 19. Employees who pay attention to what is going on around them often are able to help businesses control expenses by a. keeping records. C. reporting theft. b. checking schedules. D. asking questions.

20.

What should the people responsible for buying goods for resale or for use in the business do to control expenses? a.

Entertain suppliers c. Pay dividends b.

Negotiate discounts d. Sign contracts