TExES Business and Finance 276 Practice Test

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• What type of e-commerce model involves an industry-created and controlled network linking industry members and a limited number of suppliers?
• Which statement best describes operating income?
• What is a business plan and what are its essential components?
• Holders of debentures are primarily what type of claim against a company?
• Explain the 4 Ps of marketing and give an example for a product.
• Which of the following is an example of a B2C transaction?
• How is eye contact viewed in certain cultures of the Middle East and Asia?
• What are the stages of the product life cycle and strategic implications for marketing?
• In auto insurance, which statement about payout is correct when the value is within policy limits and a deductible applies?
• Which statement best describes a major IT benefit for business?
• What distinguishes operating income from non-operating income?
• Which statement best describes solvency?
• When demand decreases, which statement is least likely to occur?
• Which item is not typically reported on a balance sheet?
• What is a primary role of financial intermediaries aside from lending?
• Which statement best describes Information Management in a business context?
• Which statement best describes a private industrial network?
• How do accrual accounting and cash-basis accounting differ in recognizing revenue and expenses?
• Which personal attribute has a positive effect on career advancement?
• Which description best defines a personal development plan?
• By using your __ every day, you will improve your work and life satisfaction.
• Employment laws are designed to:
• Which of the following is a common pricing strategy for products or services?
• Tyler is the sole owner and stockholder of the corporation. If Tyler dies, what happens to Tyler's Tires?
• Which of the following best defines a contract?
• In economic terms, which item would be classified as land?
• Which of the following is NOT typically listed as an essential element of a valid contract?
• What is the basic accounting equation?
• In the short run, what is the likely effect of increasing the money supply on prices?
• Which statement describes the primary purpose of a business plan?
• Which item appears in the assets section of the balance sheet?
• What does an income statement reflect about profitability over a period?
• All of the following are characteristics of a long-run period for a firm EXCEPT:
• Define liquidity, solvency, profitability, and efficiency ratios and give one example of each.
• Ethics in financial reporting primarily ensures what?
• Which of the following is a potential disadvantage of downsizing?
• Which HR responsibility ensures the right number of people with the right skills are available to meet organizational goals?
• How would you describe equity financing versus debt financing?
• Which of the following describes a key benefit of CRM?
• Which statement is true about mixed costs?
• In cross-cultural communication, high-context versus low-context differences relate to which aspect?
• What is double-entry accounting and why is it important?
• Which statement best describes the global market?
• A promissory note is an example of which type of financing?
• Which of the following is an example of intellectual property?
• Which statement describes a personal development plan?
• What is price elasticity of demand and how should a business use it to set price?
• Why would a company promote a health and wellness program for its employees?
• SWOT analysis is used in strategic planning to assess which four elements?
• Which statement correctly describes a subsidiary bank?
• What is a primary responsibility of top-level managers?
• Which market structure is defined by a small number of large firms with interdependent pricing?
• Which of the following would appear on the assets side of the balance sheet besides those listed earlier?
• What is diversification in an investment portfolio intended to do?
• What is the first step in the accounting cycle?
• Which year was the Federal Trade Commission established?
• Which is a major component in information systems?
• Which of the following would NOT be considered part of land in economic terms?
• What is the function of the Occupational Safety and Health Administration (OSHA)?
• What is an effective way to communicate varying values and percentages in relation to each other that are not related in time?
• Why is a dollar today generally more valuable than a dollar in the future for investment decisions?
• Which statement best describes the impact of technology on productivity as illustrated by the accounting example?
• Asset turnover formula for generating sales from assets.
• Which element of a contract refers to the parties' legal ability to enter into the agreement?
• Which statement is NOT true of holders of a debenture?
• If you invest $100 today and have $112 in one year, what is the $112 called?
• How do you calculate the current ratio and what does it indicate?
• What is risk management and which steps are typically part of a basic risk assessment?
• Under OSHA, who must pay for protective equipment such as steel-toe boots, hard hat, and gloves?
• The act of both parties agreeing to carry out their promise is which element of a contract?
• Which of the following items qualifies as protective equipment in a manufacturing setting?
• Explain the difference between a loan, line of credit, and a credit card.
• What is the primary advantage of using a distributed database?
• What are the key steps in the budgeting process for a business or educational program?
• Which statement best describes the difference between microeconomics and macroeconomics, with a business example?
• The process component of an information system should include
• What does an income statement primarily show?
• To increase the rate of economic growth, which monetary policy action would be used?
• Payback period limitations: which statement is true?
• What is a balance sheet?
• What is a key way for a company or individual to receive meaningful political support?
• In economics, investment spending is primarily associated with which form of spending?
• Differentiate fixed, variable, and mixed costs with examples.
• Which task is not a common function of a digital audio editor?
• Which statement best describes the Federal Trade Commission's main enforcement role?
• Geothermal heat used to warm a building is considered part of which economic category?
• Which factors are considered when assessing credit risk and lending decisions?
• What is the role of ethics in business decisions and what frameworks help?
• Which statement best describes the implied-in-fact contract?
• In the budgeting process, which step logically follows forecasting revenues?
• What is the break-even point and how is it calculated?
• Which statement is true about information systems components?
• Which statement best describes the difference between assets and liabilities?
• In an auto insurance claim scenario with a policy limit of $35,000, deductible $1,000, and car value $28,000, how much will the insurer pay?
• Under agency law, when can an employer be liable for an agent's actions?
• Which wording best captures the purpose of a business mission statement?
• Which statement best identifies the primary financial statements and what each shows?
• Which statement best reflects factors involved in starting or running a small business?
• Which of the following is NOT typically listed as a primary content area on the TExES Business and Finance 276 exam?
• Define corporate social responsibility and give an example of a business practice.
• Which statement best describes the difference between market research and market intelligence?
• Which entities enforce financial reporting standards in the United States?
• Which of the following below is NOT an example of an operating system?
• In terms of formality, where does an email lie in comparison to a formal letter and a text message?
• Which statement about market segmentation is false?
• How can a corporation raise equity capital?
• Which statement about cumulative preferred stock is correct?
• What is the purpose of employee appraisals?
• A professional football player who plays better when games are nationally televised is exhibiting
• Which is the ethical course of action when an employee makes a mistake but could fix it without informing the client?
• An effective employee appraisal process typically includes which element?
• When a guest orders a drink at a bar, they are expected to pay because:
• Which option best describes the primary tools used by monetary policy?
• Which of the following is a requirement of the Sarbanes-Oxley Act?
• Which statement best describes risk prioritization in risk management?
• Which communication channels did Jim use to inform employees?
• A shift of the supply curve to the right indicates which of the following?
• Which element is required for a contract when required by law to be in a certain form?
• What term describes the hardware that surrounds the system unit?
• When should the question and answer period occur in a business presentation?
• Which chart type is best for showing parts of a whole that add up to 100%?
• Under EEOC guidelines, pay differentials between male and female employees are permissible if based on a legitimate factor such as seniority.
• Which option best represents a long-term goal?
• In the 4 Ps of marketing, what does 'Place' primarily refer to?
• What is exchange rate risk and how can a business hedge it?
• Which entity must securities register with?
• Which option best describes the purpose of the Bank Holding Company Act amendments historically?
• Which exchange rate would most likely be used for a good or service that will be delivered at a future date?
• In economics, investment spending is more closely related to which sector's spending?
• Which statement best defines land in economic terms?
• Which of the following actions would raise equity capital for a corporation?
• Which action would raise equity capital for a corporation?
• Which statement accurately describes top-level managers?
• What is online advertising?
• Which of the following topics is typically covered by employment law?
• Which statement best defines accrual accounting?
• Which question does a business mission statement answer?
• Which funding type involves ownership stakes for investors?
• Which financing involves money borrowed to be repaid?
• What is the formula for Gross Domestic Product (GDP) and what does it indicate for a business?
• Which of the following is a lagging economic indicator?
• In the long run, plant capacity can be:
• Which statement best defines CRM?
• Which statement about the Federal Trade Commission is NOT true?
• Stock whose dividends accumulate if not paid is which of the following?
• Which policy action was among the early steps toward deregulating banks?
• Which organization is primarily responsible for drug safety and protecting the food supply?
• Which provision supported by the Federal Trade Commission allows a consumer to opt in or opt out of providing personal details?
• Define contribution margin and its role in CVP analysis.
• If demand decreases while supply remains constant, what happens to the equilibrium price and quantity?
• Which term best describes a marketing approach focused on managing interactions with customers to improve retention and value?
• Distinguish fiscal policy and monetary policy and their typical business impacts.
• What is the primary purpose of the informational role within a company?
• Which of the following best describes the CFO's responsibilities?
• Which elements are typically included in a code of conduct?
• Why is the informational role essential to a functioning business?
• Valerie intends to pay off her loan in 15 months. This goal is an example of which type?
• If a company's current ratio is 0.8, what does this indicate about its short-term liquidity?
• What is working capital, and why is it important for operations?
• With accounting software, Bob can complete five times as many transactions; this supports the definition of technology as:
• How does a subsidiary bank differ from an affiliate bank?
• Break-even analysis and how it informs pricing decisions.
• Which scenario would cause a surplus in a market?
• A decision is a conscious choice from among two or more alternatives. The restrictions placed on potential solutions by the nature and importance of the problem are called the:
• When a company replaces uniform pay increases with merit pay plans and incentives for groups and individuals, what can it expect?
• What is data privacy and why is it important for business information management?
• Which statement describes a policy limit in auto insurance?
• Which of the following options best represents a comprehensive set of internal controls to prevent fraud?
• What are major factors that affect cross-cultural communication?
• Which instrument does a central bank primarily use to influence the money supply?
• Define assets, liabilities, and equity with examples.
• Which scenario involves ethical decision-making in business finance?
• What is Internal Rate of Return (IRR) and its decision rule?
• What does SWOT stand for in strategic planning?
• Which of the following activities is typically considered a bookkeeping task?
• Which statement is NOT a characteristic of a distributed database?
• Which encryption system generates a public key automatically on demand?
• If the market is in equilibrium and demand shifts to the right, what happens to the equilibrium price and quantity?
• How does monetary policy influence business investment decisions?
• Which statement correctly identifies the market structure most consistent with many firms, differentiated products, and relatively easy entry?
• What is another name for application software?
• What is the effect of a rightward shift in the supply curve on the equilibrium price and quantity?
• What is a primary role of banks and financial intermediaries in the economy?
• Which of the following is a benefit of information technology in business?
• Which statement best defines the concept of data privacy in business?
• How does the global market work?
• Common constraints in decision problems are typically limits on:
• What is a typical effect of expanding the money supply?
• Which statement best describes an opportunity in SWOT analysis?
• Define intellectual property and give examples relevant to a business program.
• If fireworks from a celebration cause damage to a neighbor's home, which legal concept is at issue?
• Identify which of the following is NOT within the jurisdiction of the FDA: