Question 1 (1 point)
A controllable variable is also called a:
Question 1 options:
parameter.
decision variable.
mathematical model.
measurable quantity.
none of the above
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Question 2 (1 point)
Data for a particular subdivision near downtown Houston
indicate that the average price per square foot for a home is $100 with a
standard deviation of $5 (normally distributed). What is the probability that
the average price per square foot for a home is greater than $110?
Question 2 options:
0
0.841
None of the above
0.977
0.023
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Question 3 (1 point)
Below is a payoff table giving profits for various
situations. What decision would a pessimist make?
Question 3 options:
Alternative 2
State of Nature A
Alternative 3
Do Nothing
Alternative 1
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Question 4 (1 point)
Which of the following is part of the determination of EOQ?
Question 4 options:
Total revenue
Annual demand
Cost of production labor
Cost of stockouts
Purchase cost
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Question 5 (1 point)
Mark Achin sells 3,600 electric motors each year. The cost
of these is $200 each, and demand is constant throughout the year. The cost of
placing an order is $40, while the holding cost is $20 per unit per year. There
are 360 working days per year and the lead-time is 5 days. If Mark orders 200
units each time he places an order, what would his average inventory be (in
units)?
Question 5 options:
60
120
None of the above
100
200
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Question 6 (1 point)
Consider the following linear programming problem below.
What is the optimum solution to this problem (X,Y)?
Question 6 options:
None of the above
(0,0)
(0,100)
(50,0)
(400,0)
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Question 7 (1 point)
Given the following small project, the critical path is
__________ days.
Question 7 options:
20
None of the above
16
14
10
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Question 8 (1 point)
A suburban specialty restaurant has developed a single
drive-thru window. Customers order, pay, and pick up their food at the same
window. Arrivals follow a Poisson distribution while service times follow an
exponential distribution. If the average number of arrivals is 6 per hour and
the service rate is 2 every 15 minutes, how much time will elapse (in hours)
from the time a customer enters the line until he/she leaves the restaurant?
Question 8 options:
0.25
3.00
2.25
0.75
0.50
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Question 9 (1 point)
Which of the following is not a popular definition of
quality?
Question 9 options:
Quality is the degree to which a product conforms to design
or specification.
Even though quality cannot be defined, you know what it is.
Quality is fitness for use.
Quality is the totality of features and characteristics of a
product or service that bears on its ability to satisfy stated or implied
needs.
Quality is defined as a competitively priced product that
surpasses customer needs.
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Question 10 (1 point)
-charts indicate
changes in:
Question 10 options:
natural variations.
variation.
none of the above
central tendency.
numbers of defects.
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Question 11 (1 point)
JoAnn Fabrics, Inc. has created a new combination of colors
and fabric types. The firm wants to know how consumers will perceive the new
product. The firm is concerned with the product ____________.
Question 11 options:
image
idea
placement
activation
displacement
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Question 12 (1 point)
Tristan and Juliet, a newly-married couple who intend to go
to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an
online travel site. As they have never seen Europe or used the services of Jizo
before, they were largely dependent on other customers’ feedback and signals
for service quality. Which of the following characteristics of service is
highlighted in this instance?
Question 12 options:
service distinction
service intangibility
service inseparability
service perishability
service variability
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Question 13 (1 point)
An organization that understands and anticipates customer
needs even better than customers do and creates products and services to meet
current and future needs is said to practice ____________ marketing.
Question 13 options:
customer-driven
ambush
societal
customer-driving
affinity
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Question 14 (1 point)
Taking advantage of the trend in multi-generational housing,
Madison Builders is aggressively marketing its “home within a home”
concept, which features a grandparents’ mini-home incorporated into a large
single-family house. Which environmental force is Madison Builders counting on
for its future home sales?
Question 14 options:
Competition
Technological
Political
Economic
Social
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Question 15 (1 point)
John assured his venture capitalists of a 25 percent return
on equity when he began his IT start-up. In order to achieve this result, he
will most likely use which of the following pricing approaches?
Question 15 options:
EDLP
Target return pricing
Customer-based pricing
Value-based pricing
Markup pricing
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Question 16 (1 point)
Which of the following is the first step in the marketing
research process?
Question 16 options:
Developing the research plan
Developing a marketing information system
Interpreting and reporting the findings
Implementing the research plan
Defining the problem and objectives of the study
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Question 17 (1 point)
Which of the following marketing orientations holds that
achieving organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors do?
Question 17 options:
The marketing concept
The production concept
The societal marketing concept
The product concept
The selling concept
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Question 18 (1 point)
A particular automobile company works to keep its customers
happy after each sale, aiming to delight each one of them in order to increase
their customer lifetime value. Which of the following steps of the buyer
decision process does the company exemplify?
Question 18 options:
Information search
Postpurchase behavior
Evaluation of alternatives
Purchase decision
Need recognition
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Question 19 (1 point)
Infectious Websites, e-mail messages, or other marketing
events, such that customers/viewers want to pass news of them along to friends,
is/are known as __________.
Question 19 options:
integrated direct marketing
web communities
spam
viral marketing
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Question 20 (1 point)
Which of the following is true of market-penetration
pricing?
Question 20 options:
It results in drawing in large numbers of buyers quickly,
winning a large market share.
It should be used when the product’s quality and image
support a high price.
It results in the company making fewer and less profitable
sales.
It is best used in conjunction with a market-skimming
pricing strategy.
It involves setting a high price for a new product to appeal
to the elite in society.
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Question 21 (1 point)
Which of the following sections from the statement of cash
flows includes activities that affect net income on the income statement?
Question 21 options:
Activities that affect net income on the income statement
are included in the financing section.
Activities that affect net income on the income statement
are included in the investing section.
Activities that affect net income on the income statement
are not included in any of the above-mentioned sections.
Activities that affect net income on the income statement
are included in the operating section.
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Question 22 (1 point)
Which of the following accounts decreases with a debit?
Question 22 options:
Cash
Both A and B
Prepaid insurance
Interest payable
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Question 23 (1 point)
A company uses the indirect method to prepare the statement
of cash flows. Which of the following items would be subtracted from net income
in determining the net cash flow from operating activities?
Question 23 options:
A loss on the sale of equipment would be subtracted from net
income.
Amortization of a premium on bonds payable would be
subtracted from net income.
Depreciation expense would be subtracted from net income.
An increase in dividends payable would be subtracted from
net income.
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Question 24 (1 point)
What is the title of the form that foreign companies have
used to reconcile their financial statements to U.S. GAAP?
Question 24 options:
Form 10-K
Form20-F
Form SX
Form 10-Q
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Question 25 (1 point)
What do flexible budgets help measure?
Question 25 options:
The amount by which standard and expected prices differ
The sales volume variance
The amount by which standard and expected quantities differ
The efficiency of operations at the actual activity levels
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Question 26 (1 point)
Which of the following is most likely to be the cost driver
for the packaging and shipping activity?
Question 26 options:
Number of setups
Number of orders
Hours of testing
Number of components
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Question 27 (1 point)
Which costing system would better account for a unique
individual product?
Question 27 options:
Variable costing system
Product costing system
Process costing system
Job order costing system
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Question 28 (1 point)
Lowwater Sailmakers manufactures sails for sailboats. The
company has the capacity to produce 25,000 sails per year and is currently
producing and selling 20,000 sails per year. If a special sales order is
accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain
unchanged, what is the change in operating income?
Question 28 options:
Operating income decreases $5,000.
Operating income increases $225,000.
Operating income increases $190,000.
Operating income decreases $125,000.
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Question 29 (1 point)
Western Outfitters Mountain Sports projected 2008 sales of
75,000 units at a unit sale price of $12.00. Actual 2008 sales were 72,000
units at $14.00 per unit. Actual variable costs, budgeted at $4.00 per unit,
totaled $4.75 per unit. Budgeted fixed costs totaled $375,000, while actual
fixed costs amounted to $400,000. What is the sales volume variance for total
revenue?
Question 29 options:
$108,000 favorable
$42,000 unfavorable
$36,000 unfavorable
$144,000 favorable
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Question 30 (1 point)
Which of the following statements is correct with respect to
variable cost per unit, within the relevant range?
Question 30 options:
They will decrease as production increases.
They will decrease as production decreases.
They will remain the same as production levels change.
They will increase as production decreases.
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Question 31 (1 point)
To prevent the dollar from depreciating, the U.S. central
bank that tries to fix the currency value of the dollar can:
Question 31 options:
abandon the U.S. dollar and use another country’s currency
as its legal currency.
sell U.S. dollars in the foreign exchange market.
buy foreign currencies in the foreign exchange market.
buy U.S. dollars in the foreign exchange market.
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Question 32 (1 point)
Which of the following statements is true about the long-run
and short-run aggregate supply curve in the classical model?
Question 32 options:
The long-run and short-run curves start out horizontal and
eventually become vertical.
The long-run aggregate supply curve is not defined, and the
short run curve is vertical.
The long-run aggregate supply curve is vertical, and the
short-run curve is horizontal.
The long-run curve is vertical, and there is no short-run
curve since all adjustments occur quickly.
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Question 33 (1 point)
Refer to the above figure. Between points f and g, the
opportunity cost of producing 75 more bushels of wheat is:
Question 33 options:
25 bushels of beans.
1 bushel of beans.
100 bushels of beans.
4 bushels of beans.
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Question 34 (1 point)
The Consumer Price Index measures:
Question 34 options:
the average of the prices of all goods produced in a country
and goods imported from other countries.
the level of prices with respect to goods and services
purchased by a typical consumer in urban areas.
hourly wage rates of manufacturing workers.
the average of raw material prices paid by producing firms.
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Question 35 (1 point)
Suppose that the income elasticity of demand for peanut
butter is 0.75. Which of the following is true?
Question 35 options:
Peanut butter is an inferior good, because income elasticity
is less than 1.
Peanut butter is a normal good, because income elasticity is
less than 1.
Peanut butter is an inferior good, because income elasticity
is positive.
Peanut butter is a normal good, because income elasticity is
positive.
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Question 36 (1 point)
What is the type of economic system that relies on one
central authority to make economic decisions?
Question 36 options:
Command and control
Price system
Mixed economic system
Free market
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Question 37 (1 point)
A firm will not hire additional workers once:
Question 37 options:
it earns accounting profits.
the company reaches its breakeven output level.
total product is rising.
the additional cost of a worker equals the additional
revenue from the worker.
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Question 38 (1 point)
In the below table, the balance on the current account for
Country X is __________ billion dollars.
Question 38 options:
-85
-150
+75
-200
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Question 39 (1 point)
On a hot summer day, a construction worker enters a
McDonald’s fast-food restaurant. He orders the first Big Mac. He consumes it
within 3 minutes. He then orders a second Big Mac and consumes it in 10
minutes. He eats only half of the third one in 18 minutes and throws away the
rest. The store manager offers him the fourth for free. The construction worker
says: “No thanks.” Why?
Question 39 options:
For the construction worker, total utility increased at an
increasing rate.
Marginal utility increased at an increasing rate.
The law of diminishing marginal utility does not apply to
consumption of Big Macs.
Marginal utility declined as he consumed additional Big
Macs.
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Question 40 (1 point)
Economic growth causes the:
Question 40 options:
production possibilities curve to shift leftward and the
long-run aggregate supply curve to shift leftward.
production possibilities curve to shift rightward and the
long-run aggregate supply curve to shift
rightward.
production possibilities curve to shift rightward and the
long-run aggregate supply curve to shift
leftward.
production possibilities curve to shift leftward and the
long-run aggregate supply curve to shift
rightward.
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Question 41 (1 point)
The __________ summarizes a firm’s revenues, expenses, and
profit during a specific period.
Question 41 options:
retained earnings statement
income statement
statement of cash flows
balance sheet
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Question 42 (1 point)
What should be the primary goal of a financial manager?
Question 42 options:
Maximizing shareholder wealth
Maximizing earnings
Minimizing risk
Maximizing cash flow
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Question 43 (1 point)
The portfolio that maximizes return for a given level of
risk or minimizes risk for a given level of return is called the __________
portfolio.
Question 43 options:
efficient
frontier
investment banker
risk-free
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Question 44 (1 point)
Estimate the required rate of return on a company’s stock
given a stock price of $20 per share, an expected dividend of $2 per share at
the end of the year, and a 3% dividend growth rate.
Question 44 options:
7 percent
3 percent
13 percent
10 percent
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Question 45 (1 point)
$100 is deposited today, $200 is deposited in one year, and
$300 is deposited in two years. These deposits earn 8%. What is their combined
value at the end of three years?
Question 45 options:
$ 644
$782
$585
$ 683
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Question 46 (1 point)
Working capital is:
Question 46 options:
current assets minus current liabilities.
cash on hand.
money invested in short-term projects.
property, plant, and equipment.
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Question 47 (1 point)
What entities are typically net demanders of funds in the
U.S. economy?
Question 47 options:
Individuals and businesses
Businesses and government
Individuals, government, and businesses
Individuals and government
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Question 48 (1 point)
In the U.S., who owns a corporation?
Question 48 options:
Employees
Stockholders
Board of directors
U.S. government
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Question 49 (1 point)
Managerial restrictions that limit the level of capital
project investments is called:
Question 49 options:
equity constraints.
value investing.
limited liability.
capital rationing.
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Question 50 (1 point)
What type of bond pays no interest?
Question 50 options:
Debenture
Speculative
Zero coupon
Secured
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Question 51 (1 point)
Susan is a candidate for mayor. Sarah tells the local
newspaper that Susan is a drug addict. If the newspaper publishes this
information and it is untrue, then it is:
Question 51 options:
intentional malice.
slander.
privileged communication.
libel.
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Question 52 (1 point)
Samantha agrees to sell Sally one lot next to her store. She
gives Sally a legal description of the lot. Sally gives Samantha an unsigned
copy of the contract terms. Samantha then sends a signed letter that mentions a
legal description. Sally sends back a final unsigned contract with her deposit
check attached to it.
Question 52 options:
They have not satisfied the Statute of Frauds.
None of the above.
The handwritten legal description and unsigned draft
contract satisfy the Statute of Frauds.
The handwritten legal description, unsigned draft contract,
the signed letter, and the final unsigned contract with the deposit check have
satisfied the Statute of Frauds.
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Question 53 (1 point)
Ralph Travelor, a U.S. businessperson, owns a gold mine in
Brazil. The government of Brazil seizes the mine and asserts that his previous
profits are just compensation.
Question 53 options:
Brazil will not be protected under the doctrine of sovereign
immunity.
Under the act of state doctrine, Ralph may have little or no
protection against the loss of his property.
None of the above.
Ralph will be protected under the act of state doctrine.
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Question 54 (1 point)
Real property is:
Question 54 options:
either A or B.
immovable.
none of the above.
movable.
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Question 55 (1 point)
If an offeree dies before the offer has been accepted, the
offer:
Question 55 options:
may be accepted by the surviving spouse of the offeree.
is automatically revoked by the death of the offeree.
may be accepted by the guardian appointed for any minor
children of the offeree.
may be rejected by the surviving spouse of the offeree.
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Question 56 (1 point)
The supremacy clause within the U.S Constitution:
Question 56 options:
establishes the Constitution as the only law of the land.
establishes the Constitution and the treaties of the U.S. as
the supreme law of the land.
establishes the Constitution as the supreme law of the land.
none of the above.
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Question 57 (1 point)
Which of the statements is true?
Question 57 options:
A storeowner has a duty to exercise reasonable care to
protect customers.
All of the above.
A storeowner has a duty to warn customers against all risks
in his/her store.
A storeowner need not warn a customer not to pull heavy
items off high shelves.
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Question 58 (1 point)
A portable trailer is an example of:
Question 58 options:
real property.
personal property.
subsurface property right.
none of the above.
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Question 59 (1 point)
When an anticipatory repudiation of a contract occurs, the
injured party may:
Question 59 options:
immediately declare breach of contract.
do nothing and wait for performance per the contract.
all of the above.
consider the contract canceled.
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Question 60 (1 point)
Billy has an online business selling wine. One of his
disgruntled customers sets up a website using his company name and adds the
word “thief” to it. Billy will most likely:
Question 60 options:
both B and C.
prevail in court.
not prevail in court.
could defend his company by buying the offensive Internet
domain.
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Question 61 (1 point)
The basic belief of the quantitative approach is that:
Question 61 options:
there is “one best way” to make an organization
effective and efficient.
you should reward employees on a variable ratio schedule.
you should apply statistical models and computer simulations
to managerial activities.
you should reward employees on a fixed ratio schedule.
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Question 62 (1 point)
Where is motivation derived from, according to the
expectancy theory?
Question 62 options:
Intrinsic pride
Monetary compensation
The performance of others
Social recognition
Promised rewards
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Question 63 (1 point)
Employment planning involves __________.
Question 63 options:
addition of staff, reduction of staff, motivation of staff,
and selection
addition of staff only
addition of staff, reduction of staff, and selection only
addition of staff and reduction of staff only
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Question 64 (1 point)
The last steps of the HRM process deal with __________.
Question 64 options:
compensation only
training and compensation
performance and compensation
skills
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Question 65 (1 point)
The most successful early trait theories focused on
__________.
Question 65 options:
traits that distinguish leaders from non-leaders
traits of followers
traits associated with leadership
traits of famous leaders
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Question 66 (1 point)
When does a company achieve a sustainable competitive
advantage?
Question 66 options:
When buyers prefer its products over competitors’ in the
long term
When it has greatest market share
When it has lowest producer costs
When it has unique access to resources
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Question 67 (1 point)
Organizational design requires a manager to __________.
Question 67 options:
change or develop the structure of an organization
change the culture of an organization
organize groups within an organization
change the logo of an organization
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Question 68 (1 point)
Which step immediately follows the identification of a
problem in the decision-making process?
Question 68 options:
Selecting an option
Developing alternatives
Implementing a decision
Weighing decision criteria
Selecting decision criteria
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Question 69 (1 point)
Which effect does an increase in team size have on project
groups?
Question 69 options:
Faster work progress
Decreased management role
More individualized tasks
More social loafing
Greater cohesiveness
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Question 70 (1 point)
The basic belief of the systems approach is that:
Question 70 options:
organizations are interrelated interdependent parts arranged
to produce a unified whole.
you should reward employees based on a fixed ratio schedule.
you should apply statistical models and computer simulations
to managerial activities.
there is “one best way” to make an organization
effective and efficient.
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Question 71 (1 point)
The suite of communications protocols used in the Internet
is called:
Question 71 options:
URL.
TCP/IP.
HTML.
none of the above.
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Question 72 (1 point)
A program written in a high-level programming language is
called:
Question 72 options:
compiler program.
assembly program.
source code.
object code.
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Question 73 (1 point)
A wide-area network (WAN) is more than one __________
connected together.
Question 73 options:
PAN
LAN
workstation
WLAN
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Question 74 (1 point)
Sending a message by e-mail is an example of __________
communications.
Question 74 options:
synchronous
bisynchronous
asynchronous
none of the above
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Question 75 (1 point)
__________ is a network that can be especially useful in
buildings with no wired local area networks.
Question 75 options:
PAN
Bluetooth
IEEE
WiFi
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Question 76 (1 point)
A(n) __________ server is a computer responsible for
directing internet traffic.
Question 76 options:
ISP
Web
Protocol
DNS
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Question 77 (1 point)
What would be a realistic use for the type of computers
called supercomputers?
Question 77 options:
Sending e-mail
Creating a spreadsheet
Predicting weather
Creating a database
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Question 78 (1 point)
An MIS does not help managers to gain:
Question 78 options:
none of the above.
market niche.
ope
