Download NEW 2025 MBA EXIT EXAM QUESTIONS WITH CORRECT ANSWERS and more Exams Business Administration in PDF only on Docsity!
NEW 2 025 MBA EXIT EXAM QUESTIONS
WITH CORRECT ANSWERS
ABC analysis - ANSWER inventory control system that divides the inventory into three classes: A, B, and C, depending on the value and importance of the item accelerated depreciation method - ANSWER allows asset own to take greater amounts of depreciation during early years of asset's life, defers some of the taxes until later years acceptable quality level (AQL) - ANSWER quality standard that allows for a prespecified number of defects acceptance - ANSWER an assent to an offer in accordance with its terms accounting exposure - ANSWER variability in the firm's reported values for NI and net worth that results from changes in exchange rates accounting rate of return - ANSWER capital-budgeting criterion that relates the returns generated by the project, as measured by average accounting profits AFTER tax, to avg dollar size of the investment required; AKA simple ROR or unadjusted ROR accounts receivable turnover - ANSWER annual credit sales/ avg A/R acid test ratio - ANSWER (CA-inv)/CL. more stringent measure of liquidity than current ratio. AKA quick ratio activity-based costing (ABC) - ANSWER system that accumulates costs on the basis of production or service activities at a firm. Assigns costs by activity and links them to specific products
Activity-based management (ABM) - ANSWER system-wide, integrated approach that focuses mgmt's attn on activities with the objectives of improving customer value and the profit achieved by providing this value. ABC is major source of info for this advertising - ANSWER any paid form of non personal communication designed to gain acceptance of the advertiser's message advertising research - ANSWER carried on as an aid or support function to the advertising manager after-tax cash flow - ANSWER the net cash flow (cash rev- cash exp) after taxes have been subtracted. CF generated from operations agency relationship - ANSWER consensual arrangement between 2 persons whereby one agrees to act for the benefit of and under control of the other person aggregate production planning - ANSWER establishment of aggregate production and inventory levels over a medium range time horizon american terms - ANSWER method of exchange-rate quotation that gives the value of a foreign currency in USD amortized loan - ANSWER loan that's paid off in periodic equal installments and includes varying portions of principal and interest during its term analysis of variances (variance analysis) - ANSWER analysis and investigation of causes for variances between std costs and actual costs. variance favorable if actual costs < std costs. unfavorable if actual costs > std costs. need to investigate unfavorable variances further to determine causes, so corrective action can be taken annual report - ANSWER audited document issued annually by all publicly listed corporations to their SH in accordance with SEC regulations. contains info on financial results and overall performance of the previous fiscal year and comments on future outlook
attribute mapping - ANSWER technique for IDing new products by mapping product-line attributes; searching for "attribute space" or possible new attribute combos for new products B2B (business-to-business) e-commerce - ANSWER using B2B trading networks, auction sites, spot exchanges, online product catalogs, barter sites, and other online resources to reach new customers, serve current customers more effectively, and obtain buying efficiencies and better prices B2C (business-to-consumers) e-commerce - ANSWER online selling of goods and services to final customers baby boomers - ANSWER 78 million ppl born during baby boom, WWII-early 1960s bailment - ANSWER exists when possession of property belonging to one person is delivered to another person who intends to assume custody or control over the property and who expressly or implicitly promises to return it to the owner or dispose of it as directed by the owner bait-and-switch advertising - ANSWER technique by which a g/s is advertised at a low price with intention of attracting customers, then switching them over to higher-priced items. seller may have no intention of selling "bait item" cust is often told bait item is out of stock or inferior balance of payments - ANSWER relationship between monies received from exports and monies paid out for imports balance of trade - ANSWER unit of the balance of payments that reflects the value of all goods imported and exported by any nation balanced scorecard - ANSWER approach using multiple measures to evaluate managerial performance. measures may be financial or nonfinancial, internal or external, and ST or LT. scorecard allows determination as to whether manager is achieving certain objectives at the expense of others that may be equally or more important
bankruptcy - ANSWER a legal procedure through which the ownership of a firm's assets is transferred to debt holders. inability to pay debts when due. a business is insolvent in a legal sense when its financial condition is so bad that total liabilities > FMV of assets baud - ANSWER serial info transfer speed with which a modem receives and sends data benchmarking - ANSWER searching for new and better procedures by comparing your own procedures to that of the very best beta (coefficient) - ANSWER measure of risk based on the sensitivity of an individual stock's returns to changes in the returns of a broad stock market index; AKA systematic, market, undiversifiable, and relative risk. Beta < 1: co's stock is less risky than the market better business bureaus (BBB) - ANSWER local business-supported organizations that maintain records on local business firms and provide info to concerned customers. local bureaus are part of a loosely tied national system bill of materials (BOM) - ANSWER structured parts list that shows the manner in which the product is actually put together block diagram - ANSWER diagram using symbols to explain the interconnections and info flow between hardware and software bond rating - ANSWER ratings assigned by an agency (such as S7P or Moody's Investors Service) that provides assessment of bond's credit risk book value - ANSWER depreciated value of a co's assets (OG cost - AD) less O/S liabilities brainstorming - ANSWER technique involving group of people who meet to voice any idea that comes to mind concerning a particular subject in the hopes of generating new ideas brand - ANSWER a name term, sign, symbol, or design, or combo of them intended to distinguish products of one seller from competitors
C2B (consumer-to-business) e-commerce - ANSWER Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms C2C (consumer-to-consumer) e-commerce - ANSWER online exchanges of goods and information between final consumers capacity - ANSWER rate at which work is capable of being produced. ability to perform legally valid acts; the ability to incur legal liability or to acquire legal rights capacity requirements planning (CRP) - ANSWER system for determining if a planned production schedule can be accomplished with available capacity, and if not, making adj as needed capital account - ANSWER components of a country's balance of payments that shows the net flow (inflows - outflows_ of investment capital (financial securities) capital asset pricing model (CAPM) - ANSWER formula according to which a security's expected return = risk-free rate + risk premium. model shows the relationship between an investment's expected (or required) return and its beta. can be used to estimate cost of equity of a firm or project capital budgeting - ANSWER process of making LT planning and CAPEX decisions capital rationing - ANSWER placing a limit on the dollar size of the capital budget capital structure - ANSWER composition of common stock, pref stock, RE, and LT debt maintained by witty in financing its assets cash-flow statement - ANSWER stmt showing from what sources cash has come into business and on what cash has been spent. broken down into operating, investing and financing lmao
caveat emptor - ANSWER latin. "let the buyer beware" before he buys. according to this principle. buyers purchase at their own risk, in the absence of misrepresentations.. does not obligate the seller to volunteer info. more recently: law requires full disclosure by seller of known defects caveat venditor - ANSWER latin. "let the vendor beware." without specific exemptions, seller is liable for action on the part of the buyer for any alterations in the contract or warranty, whether explicit or implied. basis of the consumer rights movement CBR - ANSWER abbreviation for crude birth rate. number of new births per 1,000 population CDR - ANSWER crude death rate. number of deaths per 1,000 people cellular manufacturing - ANSWER groups of machinery that are closely associated with each family of parts center-of-gravity method - ANSWER quantitative approach to locating a facility that minimizes the distance or cost of transportation weighted by the volume of goods moved chain links - ANSWER series of linked data items channels - ANSWER number of waiting lines in a service system channels of distribution - ANSWER all the marketing units through which goods flow from origin to final purchase and use. channel functions provide transfer of title or ownership as goods move from producer to consumer chase plan - ANSWER aggregate production plan that adjusts capacity in response to seasonal demand classical decomposition - ANSWER approach to forecasting that seeks to decompose the underlying pattern of a time series into cyclical, seasonal, trend, and random subpatterns
computer-integrated manufacturing (CIM) - ANSWER computer IS utilizing a shared Manu database for engineering design, factory production, and info mgmt computer-numerically controlled (CNC) machines - ANSWER stand-alone machines controlled by computer concentration ratio - ANSWER represented by sales of the largest firms in an industry concept statement - ANSWER working statement about a product idea outlining strengths and benefits consideration - ANSWER either a detriment to the promisee of a benefit to the promisor, which was bargained for and given in exchange for the promise consignment purchase - ANSWER the merchant does not pay for inventory until items are sold, and can return unsold items. title not taken until final sale is completed consumer behavior - ANSWER process consumers use in deciding among and between goods and services they will purchase consumer product safety commission (CPSC) - ANSWER federal regulatory agency with a 5 member board that administers consumer product safety act of
- board can require a firm to recall, replace, or repair products considered hazardous to consumers consumer research - ANSWER concerned chiefly with the discovery and analysis of consumer attitudes, reactions, and preferences consumer's risk - ANSWER probability of accepting a bad lot continuous improvement (CI) - ANSWER AKA Kaizen. never-ending effort for improvement in every part of firm relative to all its deliverables to its customers
contracts - ANSWER promises, or groups of promises, to do something in the future contractual vertical marketing systems (VMC) - ANSWER formal agreements between channel members that result in a coordinated effort. some types: retail co-ops, wholesaler-sponsored voluntary chains, franchises. contribution (margin) income statement - ANSWER IS that organizes cost by behavior. shows relationship of variable costs and FC, regardless of the functions a given cost item is associated with contribution margin - ANSWER sales- VC. AKA marginal income. amt of money available to cover FC and generate profits control chart - ANSWER graphical means of depicting sample characteristics, such as means, ranges, and attributes, over time used for process control corporate bylaws - ANSWER regulations that govern the internal affairs of the corp, designating such items as the time and place of SH meetings, voting rights, election process for selecting members of board of dir, procedures for issuing and transferring stock certificates, and policies relating to corp records corporate governance - ANSWER system of checks and balances designed to ensure that corporate managers are just as vigilant on behalf of LT SH value as they would be if it was their own money at risk. also process whereby SH assert their ownership rights, through an elected board of directors and the CEO and other officers and managers they appoint and oversee corporate strategies - ANSWER address what business a multiple-business- unit organization will be in and how resources will be allocated among those businesses corporate vertical marketing systems (VMS) - ANSWER a VMS where each unit in the channel is owned and controlled by a single titty corporation - ANSWER a legal titty that has legal existence separate from owners
cross rate - ANSWER effective exchange rate between 2 currencies that can be obtained by exchanging each currency for a third currency current account - ANSWER an account in the balance of payments, analogous to the revenues and expenses of a business, the sum of the merchandise, services, investment income, and unilateral transfer accounts current ratio - ANSWER CA/CL current yield - ANSWER a bond's coupon payment/ price customer relationship management (CRM) software - ANSWER automates customer service and support. provides for customer data analysis and supports e-commerce storefronts cyber investing - ANSWER online investing, such as trading on the internet data interchange format (DIF) file - ANSWER system to transfer computer files from one program to another debt-to-equity ratio - ANSWER total int bearing debt/equity. measures financial leverage decision making under risk - ANSWER decision made when the probability of occurrence of the different states of nature is known decision matrix - ANSWER AKA payoff table. matrix consisting of the decision alternatives, the states of nature, and the decision outcomes decision support system (DSS) - ANSWER branch of a management info system that provides answers to mgmt problems and that integrates the decision maker into the system as a component. provides support to the manager in the decision-making process. analyzes a specific situation and can be modified as manager desires. Ex: planning, forecasting decision theory - ANSWER systematic approach to making decisions especially under uncertainty
decision tree - ANSWER graphical method of showing the sequence of possible decision alternatives deed of trust - ANSWER a three-party device for obtaining a secured interest in real property. the land contract is a security device for securing the balance due on a contract for the sale of land Delphi method - ANSWER qualitative forecasting technique for arriving at group consensus anonymously demographics - ANSWER reflect nature of a given population--ethnic composition, age, sex, housing, marital status, education, earnings, occupation, and any data on which to establish a norm or profile depreciation - ANSWER reduction in value of a fixed asset due to age and use. Econ dear reflects loss of economic value descriptive studies - ANSWER research efforts directed toward obtaining info about a clearly defined problem or objective. part of market research deseasonalized data - ANSWER removal of the seasonal pattern in a data series. facilitates the comparison of month-to-month changes devaluation - ANSWER when a nation reduces the value of its currency in relation to currencies of other nations diffusion process - ANSWER manner in which innovations or new products are adopted by consumers and spread through a segment or social unit. typical progression incl stages of: innovation, minor acceptance, early majority, late majority, and laggards direct quote - ANSWER value of a foreign currency in units of the domestic currency discounted cash flow (DCF) techniques - ANSWER methods of selecting and ranking investment proposals such as the NPV and IRR methods where TVM is taken into account
economic value added (EVA) - ANSWER net operating profit after tax - cost of all capital a firm uses. measure of economic profit, but not accounting profit efficient market - ANSWER market in which prices accurately reflect all available info. arbitrageurs cannot make profits in efficient markets 802.11 - ANSWER family of specifications developed by US institute of Electrical and Electronics Engineers (IEEE). 3 specs. 802.11b (Wi-Fi) enterprise resource planning (ERP) software - ANSWER system that grew out of MFP that computerized inventory control and production planning. key features: ability to prepare master production schedule and bill of materials and generate purchase orders equity multiplier - ANSWER invested capita (assets)/equity. measure of financial leverage eurobanking - ANSWER banking that involves accepting deposits and making loans that are denominated in many different currencies besides the host country's currency eurobond bonds - ANSWER denominated in the currency of countries other than the currency of the country in which they're sold euro commercial paper - ANSWER ST notes that are issued by firms and denominated in currencies of countries other than the one in which they're sold eurodollars - ANSWER dollar denominated deposits in banks located outside US. Most deposited in London. Also includes dollar deposits in international banking facilities in the US european terms - ANSWER method of exchange rate quotation where value of dollar is given in units of foreign currency executive information system (EIS) - ANSWER provides info on how the co is currently performing in its operating and financial actives. provides detailed info as needed to bring mgmt up to date in executive decision making
expert systems - ANSWER computer software involving stored reasoning schemes and containing decision-making processes of business experts in their specialized areas. software mimics the way human experts make decision. system appraises and solves biz problems requiring human intelligence and imagination that involve known and unknown info. components incl: knowledge base, inference engine, user interface, and knowledge acquisition facility exponential smoothing - ANSWER forecasting technique that uses a weighed moving average of past data as the basis for a forecast export import bank - ANSWER a US govt agency that facilitates international trade. primary activity: providing low-cost financing for imports and exports exposure - ANSWER netting a procedure used by multinational firms to reduce costs of hedging transaction exposure. relies on principle of netting inflows and outflows of currencies expropriation - ANSWER involuntary seizure by a host gov't of foreign-owned businesses and other assets without adequate compensation extensible business reporting language (XBRL) - ANSWER freely available electronic language used for financial reporting. is an XML-based framework that provides the financial community a standards-based method to prepare, publish in a variety of formats, reliably extract, and automatically exchange F/S of public co's and the info they contain external funds need - ANSWER internal generated funds - funding needs factor ratings - ANSWER procedure in which each alternative site is rated according to each factor relevant to the decision, and each factor is rating by its importance family brand - ANSWER co with 2 or more products all bearing the same brand identity federal debt - ANSWER amount the govt owes to creditors
foreign bond - ANSWER bond issued by a foreign co in the domestic bond market. unlike eurobonds: when sold in US are denominated in dollars foreign exchange rate - ANSWER price of one nation's currency in terms of another nation's currency forfaiting - ANSWER method of financing the purchase of capital goods by east bloc countries. forfaiter coordinates the activities of exporters, importers, and financial institutions forward premium - ANSWER Percentage by which the forward rate exceeds the spot rate forward rate - ANSWER exchange rate or price of a currency specified in a forward contract fraud - ANSWER intentional misrepresentation of a material fact made with intent to deceive frequency distributions - ANSWER table in which possible values for a variable of interest (weekly wage, cash collection days) are grouped into classes, and the number of observed values that fall into each class is recorded (frequency) functional currency - ANSWER the primary currency in which a foreign subsidiary conducts its business gantt chart - ANSWER graphical representation of a schedule used to plan or monitor progress GATT (General Agreement on Tariffs and Trade) - ANSWER an international agreement to encourage trade by the reduction of tariffs and quotas on foreign g/s generic brand name - ANSWER aspirin and nylon. former brand names now used as general terms for a class of products
gift - ANSWER voluntary transfer of personal property from one person to another without any consideration being given graphical method - ANSWER graphical approach to solving a linear programming (LP) problem. easier to use bu limited to LP problems involving 2 (at most 3) decision variables gross domestic product (GDP) - ANSWER total money value of all final g/s produced by an economy during a year group layout - ANSWER layout in which machine groups are arranged to process families of parts with similar characteristics group of seven - ANSWER major western economic powers: Britain, Canada, France, Germany, Italy, Japan, US. meet periodically to coordinate global monetary policy group technology - ANSWER concept for identifying and classifying part families to efficient mass-production-type layouts. can be designed for items usually manufactured by a process layout hedging - ANSWER any procedure that eliminates or reduces variability in future CFs. if future CFs from investments are uncertain due to uncertainty about future exchange rates, can make add'l investments that offer dollar payouts that are inversely related. net dollar CF from the 2 investments is less variable heuristic line balancing technique - ANSWER technique involving generation of a precedence diagram (technological sequencing requirements) in a particular way. indicates the flexibility available for shifting tasks from column to column to achieve desired balance hotspot - ANSWER provides high-speed wireless internet access at public locations or at home. index of saturation - ANSWER formula: CI x REi CI = # RFi of customers REi = dollar expenditure per customer
