LAW 531 Final Exam Answers

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LAW 531 Final Exam Answers

LAW 531 Final Exam

1. What defense can an employer use to a charge of sexual harassment?      

  • The harassed employee was not made aware of the company’s antiharassment policies.
  • The harassed employee took advantage of the preventive measures provided by the company but still could not avoid being harassed.
  • The employer does not have any complaint mechanisms for employees who are harassed.
  • The employer used reasonable care to prevent and correct the sexually harassing behavior. 

2. Choose the correct statement about the Environmental Protection Agency (EPA).          

  • It is exclusively created to regulate air pollution standards.
  • It has the power to initiate judicial trials in case of violation of environmental laws.
  • It does not enforce environmental laws related to the protection of wetlands.
  • It can enforce federal environmental regulations but cannot make regulations on its own.

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3. What is “riba” in the context of Islamic law?         

  • It is a compilation of decisions of the prophet.
  • It refers to the making of unearned profits.
  • It is the doctrine of proper behavior.
  • It refers to independent reasoning. 

4. The state of Oriel, Selenasia, enacts a law that imposes a 40 percent tax on automobiles that are made outside of Selenasia and sold in the state. However, Oriel does not impose this tax on Selenasian-made automobiles that are sold in Oriel. This scenario resembles a violation of which clause of the U.S. Constitution?           

  • The Multilateral Treaty Clause
  • The Bilateral Treaty Clause
  • The Foreign Commerce Clause
  • The Treaty Clause 

5. Teledor Inc. and Comunika Inc. are two competing cellphone manufacturers. Jane, a customer at Teledor, is told by an employee that Comunika phones have weak battery back-up and are very prone to damage. The employee makes these remarks even though he knows that they are completely false. Jane, who has been contemplating between Teledor and Comunika, is influenced by what she hears and purchases a Teledor phone. What kind of intentional tort should be used against Teledor in this scenario?         

  • Malicious prosecution
  • Disparagement
  • Battery
  • Appropriation

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6. Identify an accurate statement about res ipsa loquitur, a special negligence doctrine.    

  • It applies to cases in which injuries that occurred were not foreseeable.
  • It applies to cases in which the plaintiff also contributed to the negligence.
  • It applies to cases in which it can be assumed that the defendant was in control of the situation in which the injuries occurred.
  • It requires the plaintiff to demonstrate how exactly the situation arose out of the negligence of the plaintiff. 

7. Identify an accurate statement about the doctrine of comparative negligence.      

  • A person who is partially responsible for causing his or her own injuries cannot file a suit against the other party who partly caused the injuries.
  • A plaintiff who is partially responsible for causing his or her own injuries cannot recover damages from the defendant.
  • A plaintiff who is partially responsible for causing his or her own injuries can recover a proportion of the damages from the defendant.
  • A plaintiff who is partially responsible for causing his or her own injuries can recover all the damages from the defendant. 

8. What is true about the applicability of strict liability?      

  • It cannot be applied to products that are defectively manufactured.
  • It can be applied to sellers who fail to warn of generally known dangers.
  • It can be applied to products that are defectively packaged.
  • It cannot be applied to products that were not supported by sufficient instructions. 

9. Which statement best describes an injunction as an equitable remedy?     

  • It requires a breaching party to pay damages to the injured party for both actual and foreseeable losses.
  • It orders a breaching party to perform the acts promised in a contract.
  • It prohibits a party from performing a particular act that may cause injury to another party.
  • It allows a court to change the terms of a contract to make them true to the parties’ intentions.

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10. Identify the true statement in the context of a franchise arrangement.        

  • The franchisee can sell the franchisor’s products but can never manufacture them.
  • The franchisor licenses the franchisee to use the former’s trademarks.
  • The franchisee can manufacture the franchisor’s products but can never distribute them directly to consumers.
  • The franchisor is essentially the owner of the franchisee. 

11. Identify an accurate statement about distributional interest in the context of limited liability companies (LLCs).           

  • A transferee of a distributional interest receives all distributions from the LLC to which the transferor belonged.
  • A member’s distributional interest can be transferred completely, or partly.
  • A transferee of a distributional interest automatically becomes a member of the LLC.
  • A member who transfers his or her distributional interest will no longer be liable for the debts and obligations of the LLC. 

12. What is true about consideration in the context of contracts?          

  • It also encompasses performances and services.
  • It is exclusively in the form of tangible payments such as money or property.
  • It is typically included in gift promises.
  • It is an optional component of a written contract that parties can choose to omit. 

13. What does a current plaintiff need to prove to succeed in a malicious prosecution lawsuit?  

  • The original plaintiff did not initiate the original lawsuit.
  • The original lawsuit had probable cause.
  • The original lawsuit was initiated without malice.
  • The current plaintiff suffered injury because of the original lawsuit.

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14. In which case will a limited partner in a limited partnership have liability that extends beyond the contributions made by him or her?      

  • When the limited partner provides personal guarantee for a loan taken by the partnership
  • When one of the general partners withdraws from the limited partnership
  • When the limited partnership is involved in a tort and needs to pay compensation as ordered by the court
  • When the limited partnership incurs severe losses 

15. Identify a difference between publicly held and closely held corporations.          

  • Shareholders of publicly held corporations participate in management activities; shareholders of closely held corporations do not.
  • Closely held corporations are large; publicly held corporations are comparatively smaller.
  • Publicly held corporations have many shareholders; closely held corporations have fewer shareholders.
  • Closely held corporations trade their shares on organized security markets; publicly held corporations do not. 

16. Identify a difference between treasury shares and outstanding shares in a corporation.         

  • Outstanding shares are the ones that are repurchased by the corporation; treasury shares are not.
  • Outstanding shares have the right to vote; treasury shares do not.
  • Treasury shares are issued by the corporation; outstanding shares are not.
  • Treasury shares cannot be reissued; outstanding shares can be.

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17. What is true about the scope of Good Samaritan laws in the context of special negligence doctrines?   

  • They apply to professionals like lawyers and architects.
  • They protect professionals from liability for their ordinary and gross negligence.
  • They apply to medical health professionals.
  • They protect manufacturers and distributors from product liability. 

18. Quenchers Inc., a heath drink manufacturer, launches a new product called Sprint. The packaging of this drink also includes a statement that says “Fifty times healthier than Green.” Green is a product of Booster Inc., another health drink manufacturer. Quenchers has no research data to back this claim. What type of unfair business practice is illustrated in the scenario?         

  • Deceptive advertising
  • Copyright infringement
  • Bait and switch
  • Restraint of trade 

19. What statement is true about the powers of the Food and Drug Administration (FDA) in the context of drug regulation?       

  • The FDA can only regulate the manufacture of prescription drugs.
  • The FDA’s powers are restricted to the regulation of the sale of drugs.
  • The FDA is not authorized to revoke licenses of drugs that are in use.
  • The FDA has the authority to license new drugs.

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20. Choose the correct statement about limited liability partnerships (LLPs). 

  • They should have one or more general partners personally liable for the debts and obligations of the partnerships.
  • They do not get flow-through tax benefits.
  • They cannot have partners who are professionals such as doctors or lawyers.
  • They are created by state and not federal laws.

21. Identify an accurate statement about the Treaty Clause in the context of the United States and foreign affairs.        

  • It states that a treaty can be formed when one-third of Senate members agree to it.
  • It states that state governments can pass laws that contradict treaties signed by the federal government.
  • It states that the U.S. president is the agent of the United States in dealing with foreign nations.
  • It states that local state governments can also enter into treaties with foreign nations. 

22. What is true of the Economic Espionage Act?   

  • It criminalizes the theft of trade secrets through the use of the Internet.
  • It criminalizes the discovery of trade secrets through reverse engineering.
  • It provides federal protection exclusively to trademarks and service marks.
  • It relieves business owners of the obligation to protect their intellectual property.

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23. What is true of the necessary elements of an environmental impact statement (EIS) according to the National Environmental Policy Act (NEPA)?      

  • It must mention the environmentalist parties that challenged the proposed action in court.
  • It must contain a cost-benefit analysis of the proposed federal action and alternative actions.
  • It must not refer to the expert opinions of engineers, geologists, or other professionals.
  • It must not mention or describe any alternate actions to the proposed federal action. 

24. Which statement is true about the different types of agency relationships?         

  • An employer-employee relationship involves complete transfer of authority to the employee.
  • A principal-agent relationship involves hiring an employee to enter into contracts on behalf of the principal.
  • A principal-agent relationship involves assigning an employee a specific physical task to perform.
  • An employer-employee relationship involves hiring an employee to act as an agent of the employer. 

25. Identify an accurate statement about the Equal Pay Act.        

  • The act states that the employer can lower the wages of employees to remedy a wage disparity.
  • The act states that wages may differ when shift differences are involved.
  • The act exclusively covers federal workers.
  • The act does not encompass private-sector employees. 

26. What is true of a vertical merger?  

  • It combines the operations of two manufacturers in the same market.
  • It creates increased market share.
  • It combines the businesses of a supplier and a customer.
  • It combines the operations of suppliers in the same market.

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27. Tanya and Amit, married for five years, have filed for divorce. They are being assisted by Rebecca in reaching a settlement. Rebecca is a retired judge, who meets with them together, and individually, to discuss the strengths and weaknesses of each of their cases. Which alternative dispute resolution method does this scenario best exemplify?  

  • Mini-trial
  • Judicial referee
  • Mediation
  • Arbitration 

28. What is true about Jewish law?      

  • It is based on the teachings in the Vedas.
  • It is not followed anymore in Jewish home countries.
  • It includes rules for religious and political aspects of life.
  • It excludes doctrines related to marriage and inheritance. 

29. How does the Marine Protection, Research, and Sanctuaries Act, enacted in 1972, extend environmental protection to the oceans?      

  • By requiring the Environmental Protection Agency (EPA) to create a list of toxic air pollutants
  • By removing marine sanctuaries in ocean waters
  • By requiring industries to obtain a permit for dumping wastes into ocean waters
  • By requiring industries to incur the clean up costs for contaminations caused by them

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30. Which statement about personal property is true?       

  • It exclusively refers to tangible property.
  • It can be owned only by one person.
  • It refers to property that is movable.
  • It exclusively encompasses real estate property. 

31. What is the primary function of the International Monetary Fund (IMF)?    

  • To create free trade zones for member countries and thereby bring them together
  • To provide long-term loans to developing countries
  • To ensure smooth and free trade flow among member countries by settling disputes
  • To promote international fiscal stability by providing temporary monetary assistance to member countries 

32. What is a disadvantage of a sole proprietorship?         

  • The owner has to take up legal responsibility for any torts committed in the business.
  • The process of forming a sole proprietorship involves many costs.
  • The sole proprietorship is difficult to dissolve as many shareholders are involved.
  • The owner is required to present several legal documents to obtain federal approval to start the business.

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33. What must a complainant prove in a case of disparate-treatment discrimination?          

  • The employer cited behavioral reasons for rejecting the complainant.
  • The employer rejected the complainant despite the latter having the required qualifications.
  • The employer sought applications from people with qualifications better than the complainant’s.
  • The employer rejected others with the same qualifications. 

34. What is true about Title VII of the Civil Rights Act of 1964 in the context of gender discrimination?      

  • It covers discrimination based on sexual orientation.
  • It does not prohibit discrimination based on pregnancy-related medical conditions.
  • It covers only women.
  • It excludes sexual harassment. 

35. What is a gift causa mortis?

  • A gift that is made in anticipation of theft.
  • A gift that cannot be revoked.
  • A gift that is made in anticipation of death.
  • A gift that is made involuntarily. 

36. Identify a difference between tenancy by the entirety and community property as forms of concurrent ownership.    

  • Tenancy by the entirety allows a spouse to transfer his or her interest without the other spouse’s consent; community property does not.
  • Tenancy by the entirety does not grant the rights of survivorship; community property does.
  • Tenancy by the entirety passes the deceased person’s complete property to the survivor; community property passes only one-half of the property to the survivor.
  • Tenancy by the entirety applies to married couples; community property does not apply to married couples.

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37. Waves, Shimmer, and Mist are manufacturers and sellers of beauty products. Each of these companies independently decides not to sell its products to Redefine, a cosmetic retailer. Which form of vertical restraint does this scenario best exemplify?       

  • Group parallelism
  • Conscious parallelism
  • Malicious boycott
  • Product boycott 

38. Identify the true statement about the rights and duties of partners in a general partnership.   

  • A partner in a general partnership has the right to have the transactions of another partner reviewed by a court.
  • A partner in a general partnership has the right to compete with the partnership by opening another business by himself or herself.
  • A partner in a general partnership has the right to sue the partnership or another partner at law.
  • A partner in a general partnership has the right to use the facilities of the business for personal use. 

39. Which statement about strict liability is true?     

  • It does not protect bystanders and other individuals who were affected by defective products.
  • It does not require a contract to be present between the plaintiff and the defendant.
  • It places liability only on manufacturers and not sellers.
  • It holds the defendant liable only to the purchaser of a defective product.

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40. What is the scope of coverage of Title VII of the Civil Rights Act of 1964? 

  • It applies to state and local governments.
  • It applies to labor unions with five or more members.
  • It applies to employers with five or more employees.
  • It applies to Native American tribes. 

41. Identify an accurate statement about Hindu Law.         

  • It is based on the teachings of the Torah.
  • It currently encompasses doctrines related to marriage.
  • It includes teachings of rabbis.
  • It is currently a combination of classical Hindu law and common law.

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42. Felicia Carter, a famous singer, finds her poster on a billboard of a music academy. Felicia sues the academy because it did not inform her or seek permission to use her poster. What kind of intentional tort does this scenario best exemplify? 

  • Disparagement
  • Appropriation
  • Invasion of the right to privacy
  • Defamation of character 

43. Identify a difference between the International Monetary Fund (IMF) and the World Bank.       

  • The IMF is funded by contributions of developed countries; the World Bank is funded by developing countries.
  • The IMF has its headquarters in Washington, DC; the World Bank in The Hague, the Netherlands.
  • The IMF has more than 180 member countries; the World Bank has 60 member countries.
  • The IMF grants short-term loans to member countries; the World Bank grants long-term loans to developing countries. 

44. Tracy goes to a shopping mall, and she unknowingly drops her identity card. After a while, she realizes that the card is missing and starts looking for it. The card is found by Ben who is also at the mall. Ben decides to contact Tracy and return her identity card. In this scenario, what kind of property would Tracy’s identity card be?      

  • Abandoned property
  • Real property
  • Mislaid property
  • Lost property 

45. Which scenario best exemplifies race discrimination?

  • Sarah and Sandeep apply for the same post at Diadem Inc. The recruiter selects Sandeep because he has more work experience than Sarah.
  • Sarah and Sandeep apply for the same post at Diadem Inc. The recruiter selects Sarah because she has better qualifications and her resume is more impressive.
  • Sarah and Sandeep apply for the same post at Diadem Inc. The recruiter selects Sarah because Sarah is of the same ethnic group as the recruiter.
  • Sarah and Sandeep apply for the same post at Diadem Inc. The recruiter selects Sandeep because he believes that a man would suit the job role better.

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46. Identify a characteristic of an implied agency.   

  • The agency relationship can be deemed void only with the consent of both the parties.
  • The agreement of the agency relationship is in written form.
  • The agency relationship is formed after both the parties have agreed upon common terms.
  • The degree of authority of an agent is defined by the circumstances and facts of a particular scenario. 

47. Identify an accurate statement about the World Trade Organization (WTO).         

  • It has 180 member nations.
  • It has its headquarters in Washington, DC.
  • It has a seven-member appellate body that hears appeals.
  • It has a five-member panel that hears trade disputes. 

48. Identify the true statement about the ownership of mislaid property.          

  • The finder of mislaid property gets complete ownership of the property against the owner of the premises in which the property was mislaid.
  • The original owner cannot reclaim the ownership of mislaid property if it has been in the possession of someone else.
  • The finder of mislaid property can legally acquire partial ownership of the property from the original owner.
  • The owner of the region where the property was mislaid is automatically obliged to take care of the property until the rightful owner finds it. 

49. What is true about a quitclaim deed?        

  • It is most frequently used among sellers and buyers.
  • It provides maximum protection to the grantee as it involves complete transfer of ownership to him or her.
  • It does not include an affirmation that the grantor owns the property that is being transferred.
  • It is exclusively used during the sale of personal property and cannot be used during the sale of real property.

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50. What is true of the Americans with Disabilities Act (ADA)?     

  • An employer cannot conduct medical examinations of an employee post employment.
  • An employer can ask a job applicant about the existence, nature, and severity of his or her disability.
  • An employer can inquire about a job applicant’s ability to perform job-related functions in terms of health.
  • An employer can conduct preemployment medical examinations. 

51. Dany purchases eye drops manufactured by a pharmaceutical company. She unknowingly leaves the bottle of eye drops on her living room table. Dany’s two-year-old daughter finds the bottle and opens it easily. Dany realizes that the seal on the bottle was not strong enough and was removed far too easily. What type of product defect is illustrated in the scenario?   

  • Inadequate instructions
  • Failure to warn
  • Defect in packaging
  • Defect in manufacture

52. Tanvi was the breaching party in a breach of contract lawsuit. The court ordered Tanvi to pay a certain amount of damages to the plaintiff. However, Tanvi refused to pay these damages. The court has now issued a writ that orders the county sheriff to seize and auction the property owned by Tanvi to pay the damages owed to the plaintiff. In this scenario, what kind of writ has been issued in the context of remedies for a breach of contract?         

  • Writ of attachment
  • Writ of quo-warranto
  • Writ of garnishment
  • Writ of payment

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53. What is true of the Sherman Act?  

  • It expressly outlaws monopolies.
  • It does not include criminal sanctions.
  • It excludes predatory pricing.
  • It prohibits illegal restraints of trade. 

54. The country of Tahomia entered into an agreement with the federal government of Batang to reduce trade barriers between the two countries. However, one state in Tahomia has certain laws that prohibit the sale of Batang-made products. According to the constitution of Tahomia, such rules made by the state will automatically become invalid. This scenario closely resembles which clause of the U.S. Constitution?           

  • The Convention Clause
  • The Treaty Clause
  • The Bilateral Treaty Clause
  • The Foreign Clause 

55. Identify the true statement about the formation of a limited partnership.    

  • The contributions made by the partners in a limited partnership do not have to be disclosed.
  • Limited partnerships can be formed informally among general and limited partners.
  • Limited partnerships are required to disclose the nature of their business to legal entities.
  • The name of a limited partnership should always include the surname of the limited partner. 

56. Tamara is a content developer at Moon Loop Inc., a content management company. Her job profile involves describing diagrams and flowcharts. She is not allowed to make decisions or sign agreements on behalf of the company. In this scenario, what agency relationship most likely exists between Tamara and Moon Loop Inc.?          

  • Principal-employer relationship
  • Principal-agent relationship
  • Employee-agent relationship
  • Employer-employee relationship

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57. What is true of the International Monetary Fund (IMF) as a United Nations agency?      

  • It has its headquarters in The Hague, the Netherlands.
  • It does not provide loans to member countries.
  • It is funded by contributions of member countries.
  • It was established before the Great Depression of the 1930s. 

58. StacyMiller Publishers and Scriblotts are two of the largest publishing houses in Paramond. They decide to merge for mutual benefit. What kind of merger does this scenario best exemplify?           

  • Horizontal merger
  • Vertical merger
  • Upward merger
  • Conglomerate Merger 

59. Cetria Inc. has been contracted to manufacture fighter jets for the U.S. Army, following specific guidelines and requirements. After a week of flying the first set of delivered jets, the jets start deteriorating and even cause injuries to the fighter pilots. However, Cetria cannot be held liable for these defects and injuries. What defense is most likely to protect Cetria from liability?       

  • Government contractor defense
  • Generally known danger defense
  • Assumption of risk defense
  • Supervening event defense

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60. Identify an accurate statement about shareholders.    

  • They elect the board of directors of a corporation.
  • They handle the daily operations of a corporation.
  • They have several management duties.
  • They are agents of a corporation. 

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1. A company that attempts to lead its industry in price and convenience by pursuing a focus on lean and efficient operations is pursuing what strategy?  

  • Operational excellence
  • Low-cost leadership
  • Customer intimacy
  • Product leadership 

2. One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience.         

  • technological improvement
  • feature improvement
  • style improvement
  • quality improvement

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3. Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called ________.   

  • market estimation
  • brand association
  • market partitioning
  • market valuation 

4. This is designed to check systematically and continuously whether the premises on which the strategy is based are still valid  

  • Special alert control
  • Strategic surveillance
  • Implementation control
  • Premise control 

5. A firm must know where to position its product based on price and  

  • promotional efforts
  • quality
  • communication
  • region 

6. When performing this analysis, it is good for strategic planners to consider similarities between the benefits the customers derive from the products and services that other firms offer.   

  • Competitive analysis
  • Business analysis
  • Customer analysis
  • Company analysis

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7. What is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image? 

  • Ultimate service benefit
  • Complete marketing benefit
  • Total customer benefit
  • Total management benefit 

8. A valuable result of task environment analysis with respect to geographic, demographic, psychographic and buyer-behavior factors is called         

  • competitor profile
  • financial position
  • vendor profile
  • customer profile 

9. The ability to meet humanity’s needs without harming future generations is now a top priority in most corporate agenda   

  • ethics
  • sustainability
  • rules
  • righteousness 

10. Large-scale, future-oriented plans for interacting with the competitive environment to achieve the company objective refers to its      

  • strategy
  • dynamic policies
  • competitive analysis
  • goals

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11. With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.         

  • single-segment concentration
  • product specialization
  • market specialization
  • selective specialization 

12. Company X’s principal strength is its inbound and outbound logistics system; its relative weakness, however, is after-sales service. Its competitor, Company Y, however is often plagued with lagging shipments and an inflexible distribution setup. Company Y remains successful because it maintains a fully staffed service department and, as a result, the company is known for its dependable service. This type of analysis allows them to identify ways to build on relative strengths and avoid dependence on capabilities at which the other firm excels.      

  • Disaggregating
  • Benchmarking
  • Past performance comparison
  • Industry comparison 

13. The strategic factor that involves the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning.      

  • Political factor
  • Stakeholder factor
  • Economic factor
  • Social factor

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14. Leaders galvanize commitment to embrace change through clarifying strategic intent, building an organization, and        

  • shaping organizational culture
  • developing a vision
  • developing a mission
  • planning strategy 

15. How do functional tactics compare to business strategies? 

  • Functional tactics are more focused on the general direction of the firm than business strategies.
  • Functional tactics are more focused on a commitment to corporate strategy than business strategies.
  • Functional tactics are more specific than business strategies.
  • Functional tactics are more long-term than business strategies. 

16. Under which of the following conditions is the frequency the most important factor in media selection?   

  • When introducing flanker brands
  • When going into undefined target markets
  • When launching infrequently purchased brands
  • When there is high consumer resistance to the product 

17. New-to-the-world products are ________.           

  • new product enhancements that supplement established products
  • low-cost products designed to obtain an edge in highly competitive markets
  • new products that create an entirely new market
  • existing products that are targeted to new geographical markets

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18. BMW’s “The ultimate driving machine,” American Express’ “Don’t leave home without it,” New York Times’ “All the news that’s fit to print,” and AT&T’s “Reach out and touch someone” are all examples of ________.    

  • brand mission
  • brand vision
  • brand slogan
  • brand personality 

19. Which component of a marketing audit includes major developments in income, prices, savings, and credit that affect the company?           

  • Economic
  • Political
  • Cultural
  • Technological 

20. Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a “green marketing” program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program’s chances of being successful?

  • Explain the rules and regulations laid out by governmental agencies to protect the environment.
  • Focus on the efforts and costs incurred by the company to bring these “green” products to consumers.
  • Emphasize benefits to the consumer rather than environmental benefits.
  • Demonstrate that the products will benefit both customers and the society in the long-term. 

21. When diversification involves additions of a business related to the firm in terms of technology, markets or products, it involves           

  • vertical diversification
  • concentric diversification
  • horizontal integration
  • concentrated growth

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22. These social responsibilities are those that are voluntarily assumed by a business or organization. They include public relations activities, good citizenship, and full corporate social responsibility.        

  • Economic responsibility
  • Legal responsibility
  • Employee responsibility
  • Discretionary responsibility 

23. Which control should periodically reassess its approach to the marketplace with a good marketing audit?   

  • Strategic control
  • Marketing control
  • Ethical control
  • Performance control 

24. What type of strategy consists of geographical pricing, price discounts and allowances, promotional pricing, and differentiated pricing?      

  • Regular prices
  • Fixed pricing
  • Price adaptation
  • Altered pricing 

25. A set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored refers to  

  • agency theory
  • the moral hazard problem
  • Adam’s theory
  • ethical responsibilities

Want to download the Paper..?? Click STR 581 Week 6 Capstone Final Examination Part 3

26. Firms using this generic strategy attempt to build customer loyalty by stressing a specific product attribute above other product qualities.      

  • Cost leadership
  • Concentrated growth
  • Focus
  • Differentiation 

27. A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.          

  • switchers
  • hard-core loyals
  • shifting loyals
  • split loyals 

28. This is an important structural decision and resultant separate activities need to be coordinated and integrated back together as a whole so the business functions effectively.        

  • Broadening
  • Differentiation
  • Diversification
  • Preferencing

Want to see the complete Capstone..?? Click STR 581 All Capstones (Week 2 Capstone 1, Week 4 Capstone 2, and Week 6 Capstone 3)

29. This is a historically popular technique through which managers create a quick overview of a company’s strategic situation—it is based on achieving a sound fit between internal resources and the external situation.      

  • Internal analysis
  • Value chain analysis
  • External analysis
  • SWOT analysis 

30. The marketing manager needs to know the cost of the research project before approving it. During which stage of the marketing research process would such a consideration most likely take place?          

  • Step 4 – analyzing the information
  • Step 5 – drafting the report
  • Step 1 – defining the problem
  • Step 2 – developing the research plan 

About Author 

This article covers the topic for the University Of Phoenix STR 581 Week 6 Capstone Final Examination Part 3. The author is working in the field of education from last 5 years. This article covers the basic of STR 581 Week 6 Capstone Final Examination Part 3 from UOP. Other topics in the class are as follows:

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1. Internal reports that review the actual impact of decisions are prepared by:          

  • the controller
  • department heads
  • factory workers
  • management accountants 

2. Horizontal analysis is also known as:         

  • trend analysis
  • vertical analysis
  • linear analysis
  • common size analysis 

3. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?   

  • most common form of organization
  • reduced legal liability for investors
  • lower taxes
  • harder to transfer ownership

Click here to download STR 581 Week 4 Capstone Final Examination Part 2

4. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28.  Serox pays a $1.10 dividend per year.  What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.)          

  • 32%
  • 16%
  • 12%
  • 40%

5. External financing needed: Jockey Company has total assets worth $4,417,665. At year-end it will have net income of $2,771,342 and pay out 60 percent as dividends. If the firm wants no external financing, what is the growth rate it can support?          

  • 30.3%
  • 27.3%
  • 32.9%
  • 25.1% 

6. An unrealistic budget is more likely to result when it:

  • has been developed by all levels of management.
  • has been developed in a top down fashion.
  • has been developed in a bottom up fashion.
  • is developed with performance appraisal usages in mind.

To download the complete paper click STR 581 Week 4 Capstone Final Examination Part 2

7. Which of the following financial statements is concerned with the company at a point in time?           

  • balance sheet
  • retained earnings statement
  • statement of cash flows
  • income statement 

8. Next year Jenkins Traders will pay a dividend of $3.00.  It expects to increase its dividend by $0.25 in each of the following three years.  If their required rate of return if 14 percent, what is the present value of their dividends over the next four years?

  • $12.50
  • $11.63
  • $9.72
  • $13.50 

9. An activity that has a direct cause-effect relationship with the resources consumed is a(n):     

  • product activity
  • cost driver
  • cost pool
  • overhead rate

Click here to download Complete Answers of STR 581 Week 6 Capstone Final Examination Part 3

10. The major element in budgetary control is:        

  • the approval of the budget by the stockholders
  • the valuation of inventories
  • the preparation of long-term plans
  • the comparison of actual results with planned objectives. 

11. Tule Time Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the initial outlay for such a production is $1,500,000 and the appropriate discount rate is 6 percent for the cash flows, then what is the profitability index for the project? 

  • 0.11
  • 1.11
  • 0.90
  • 1.90 

12. How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You know that the firm’s cost of debt capital is 10 percent and the cost of equity capital is 20% What proportion of the firm is financed with debt?  

  • 70%
  • 50%
  • 33%
  • 30% 

13. The most important information needed to determine if companies can pay their current obligations is the: 

  • relationship between current assets and current liabilities
  • relationship between short-term and long-term liabilities
  • projected net income for next year
  • net income for this year

Want to download the Complete Assignment..?? Click STR 581 Week 4 Capstone Final Examination Part 2

14. Process costing is used when:      

  • dissimilar products are involved
  • production is aimed at fulfilling a specific customer order.
  • the production process is continuous.
  • costs are to be assigned to specific jobs. 

15. A cost which remains constant per unit at various levels of activity is a:   

  • fixed cost
  • mixed cost
  • manufacturing cost
  • variable cost 

16.The group of users of accounting information charged with achieving the goals of the business is its: 

  • investors
  • auditors
  • creditors
  • managers 

17. Teakap, Inc. has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006.  It also has current liabilities of $1,041,012, common equity of $1,500,000 and retained earnings of $1,468,347. How much long-term debt does the firm have?      

  • $803,010
  • $2,303,010
  • $1,844,022
  • $2,123,612 

18. The cash conversion cycle?           

  • begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.
  • estimates how long it takes on average for the firm to collect its outstanding accounts receivables balance.
  • begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.
  • shows how long the firm keeps its inventory before selling it.

Click here to download STR 581 Week 4 Capstone Final Examination Part 2

19. Ajax Corp. is expecting the following cash flows – $79,000, $112,000, $164,000, $84,000, and $242,000 – over the next five years.  If the company’s opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.)         

  • $480,906
  • $429,560
  • $414,322
  • $477,235 

20. Jack Robbins is saving for a new car. He needs to have $21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar)

  • $26,454
  • $19,444
  • $22,680
  • $16,670 

21. Which of the following presents a summary of changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?      

  • the statement of net worth
  • the statement of cash flows
  • the statement of working capital
  • the statement of retained earnings 

22. M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.

If Dynamo wishes to change its capital structure from 75 percent equity to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they use?

  • $225
  • $600
  • $375
  • $321

Click here to download STR 581 Week 4 Capstone Final Examination Part 2

23. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time:        

  • that has been arranged from the highest number to the lowest number.
  • to determine the amount and/or percentage increase or decrease that has taken place.
  • to determine which items are in error.
  • that has been arranged from the lowest number to the highest number. 

24. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent.  How much will Jayadev have at the end of 45 years?

  • $2,667,904
  • $5,233,442
  • $1,745,600
  • $3,594,524 

25. Turnbull Corp. had an EBIT of $247 million in the last fiscal year.  Its depreciation and amortization expenses amounted to $84 million.  The firm has 135 million shares outstanding and a share price of $12.80. A competing firm that is very similar to Turnbull has an enterprise value/EBITDA multiple of 5.40.

What is the enterprise value of Turnbull Corp.? Round to the nearest million dollars.

  • $1,344 million
  • $453.6 million
  • $1,315 million
  • $1,787 million 

26. Firms that achieve higher growth rates without seeking external financing:        

  • Have a low plowback ratio
  • are highly leveraged
  • have less equity and/or are able to generate high net income leading to a high ROE.
  • None of these 

27. In a process cost system, product costs are summarized:    

  • on job cost sheets.
  • when the products are sold.
  • after each unit is produced.
  • on production cost reports. 

28. The convention of consistency refers to consistent use of accounting principles:        

  • within industries
  • among accounting periods
  • throughout the accounting period
  • among firms

Click here to download STR 581 Week 6 Capstone Final Examination Part 3

29. If a company’s weighted average cost of capital is less than  the required return on equity, then the firm:        

  • is financed with more than 50% debt
  • is perceived to be safe
  • partnership
  • has debt in its capital structure 

30. Your firm has an equity multiplier of 2.47.  What is the debt-to-equity ratio?         

  • 0
  • 1.74
  • 0.60
  • 1.47 

31. The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called:  

  • master budgeting
  • static reporting
  • responsibility accounting
  • flexible accounting 

32. Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company’s bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.)          

  • $1014
  • $972
  • $923
  • $1,066 

33. Variance reports are: 

  • internal reports for management
  • SEC financial reports
  • external financial reports
  • all of these

Want to see the complete Capstone..?? Click STR 581 All Capstones (Week 2 Capstone 1, Week 4 Capstone 2, and Week 6 Capstone 3)

34. The break-even point is where:      

  • contribution margin equals total fixed costs.
  • total sales equal total variable costs.
  • total sales equal total fixed costs.
  • total variable costs equal total fixed costs. 

35. When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using:    

  • operations costing
  • product costing
  • absorption costing
  • variable costing 

36. Which of the following is considered a hybrid organizational form?           

  • sole proprietorship
  • partnership
  • limited liability partnership
  • corporation 

37. Gateway, Corp.  has an inventory turnover of 5.6.  What is the firm’s days’s sales in inventory?           

  • 57.9
  • 61.7
  • 65.2
  • 64.3 

38. The process of evaluating financial data that change under alternative courses of action is called:           

  • incremental analysis
  • contribution margin analysis
  • cost-benefit analysis
  • double entry analysis

Want to check out the complete paper..?? Visit STR 581 Week 2 Capstone Final Examination Part 1 

39. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?     

  • the modified internal rate of return
  • the profitability index
  • the discounted payback
  • the internal rate of return 

About Author

This article covers the topic for the University Of Phoenix STR 581 Week 4 Capstone Final Examination Part 2. The author is working in the field of education from last 5 years. This article covers the basic of STR 581 Week 4 Capstone Final Examination Part 2 from UOP. Other topics in the class are as follows: 

STR 581 Week 2 Capstone Final Examination Part 1 

STR 581 Week 4 Capstone Final Examination Part 2 

STR 581 Week 6 Capstone Final Examination Part 3

 

For further information on the above topics you can always visit the website www.UopStudents.com

 

 

STR 581 Week 2 Capstone Final Examination Part 1

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1. Because practical considerations make job tryouts for all candidates infeasible, it is necessary to __________ the relative level of job performance for each candidate on the basis of available information.

  • predict
  • accept
  • assign
  • abandon 

2. Some studies indicate the best approach for transformational change may have the chief executive officer create an atmosphere for change

  • but let others decide how to initiate change
  • and begin establishing a vision
  • but carefully set limits for the program
  • and establish a reward system

Click here to download STR 581 Week 4 Capstone Final Examination Part 2

3. Which of the following is a desirable strategy for managers aiming to reduce the negative consequences of rumors?         

  • Initiating disciplinary action against the employee who started the rumor
  • Encouraging employees to communicate their concerns and suggestions
  • Creating a more informal communication environment at the workplace
  • Refusing to comment on issues that appear to be controversial and unfair 

4. A project can be segmented into which of the following?          

  • Work packages
  • Success markers
  • Sub-jobs
  • Events 

5. Which of the following is an element that addresses elimination of waste under lean production?           

  • Group plant loading technology
  • Minimized run times
  • Production ahead of demand
  • Kanban production control system 

6. The Civil Rights Act of 1991 offered what for victims of unintentional discrimination?    

  • race norming
  • adverse impact
  • affirmative action
  • monetary damages and jury trials

To download the complete paper click STR 581 Week 4 Capstone Final Examination Part 2

7. Active listening requires:          

  • summarizing all areas of the performance-interview feedback discussion.
  • verbal communications only
  • summarizing only the areas of agreement
  • interruptions to get your point across 

8. Which of the following is ISO 14000 primarily concerned with?          

  • Time management
  • Quality management
  • Environmental management
  • Continuous improvement management 

9. Training that results in ______ is costly because of the cost of training (which proved to be useless) and the cost of hampered performance.   

  • negative transfer of training
  • applicability of training
  • reinforcement of training
  • simulation of training 

10. As a university student, your institution’s social principles and practices reflect on you, as a stakeholder, in the organization. Therefore, it is your right to question how these practices should be evaluated in relation to the social issues that the school is addressing. If your university provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be said to be ________.         

  • fulfilling its social obligation
  • socially image conscious
  • socially responsive
  • socially aware

Click here to download Complete Answers of STR 581 Week 6 Capstone 3

11. According to the job characteristics model, autonomy is defined as the degree to which          

  • a job requires completion of a whole and identifiable piece of work
  • a job has an impact on the lives or work of other people
  • a job generates direct and clear information about performance
  • a job provides the worker freedom, independence, and discretion 

12. Which of the following is considered a major process flow structure?      

  • Lean Manufacturing
  • Project
  • Lead Time
  • Fabrication 

13. An example of control criteria that can be used in any situation is ________.      

  • employee satisfaction
  • average time to process paperwork
  • client requests completed per hour
  • number of calls taken per day 

14. What can affirmative action assist organizations in achieving that diversity initiatives cannot?           

  • Maximizing creativity
  • Maximizing workforce commitment
  • Correcting specific problems of the past
  • Increased productivity

Want to download the Complete Assignment..?? Click STR 581 Week 4 Capstone Final Examination Part 2

15. Adoration of a charismatic leader by followers can lead to      

  • greater understanding of the company mission
  • difficulty in developing a successor
  • a competitive work environment
  • limiting suggestions of fixes and improvements 

16. Which of the following is considered an organizational blueprint, which prescribes the quantity and time frame for when each end product will be assembled?  

  • WBS (Work Breakdown Structure)
  • MRP (Material Requirements Plan)
  • ERP (Enterprise Resource Planning)
  • MPS (Master Production Schedule) 

17. In performing a SWOT analysis, which of the following would be considered as a threat?      

  • Lack of a strategic plan
  • Competitors
  • Recognized brand
  • Increased product demand 

18. When an employee volunteers to run a canned food drive, this is an example of           

  • employee happiness
  • employee productivity
  • organizational citizenship behavior
  • job satisfaction

Click here to download STR 581 Week 4 Capstone Final Examination Part 2

19. Conflicts can be resolved by withdrawing from them or suppressing them. This conflict-management technique is known as ________.       

  • compromising
  • forcing
  • accommodating
  • avoiding 

20. Sam Meyers manages a telemarketing call center. He has 20 employees working for him who are displeased with the way he yells and threatens to terminate them for what they see as small issues. Which kind of power is Sam using to get the job done? 

  • Reward power
  • Referent power
  • Coercive power
  • Legitimate power 

21. In _____, workers have been fired for refusing to quit smoking, for living with someone without being married, drinking a competitor’s product, motorcycling, and other legal activities outside of work. 

  • invasion of privacy
  • lifestyle discrimination
  • defamation
  • constructive discharge

Click here to download STR 581 Week 4 Capstone Final Examination Part 2

22. Mary arrives at her new job. Before she can begin actually doing the work, she must complete a series of activities including role playing and virtual reality interactions.  What type of training method does Mary’s new employer use?      

  • Simulation
  • Information presentation
  • On-the-job training
  • Organizational development 

23. Which of the following is one of Dr. Eli Goldratt’s rules of production scheduling for optimized production technology?  

  • Utilization and activation of a resource are not the same.
  • If you lose an hour at a bottleneck it is better than making scrap.
  • An hour saved at a bottleneck operation does not increase the process flow.
  • Do not allow bottlenecks to govern the flow of the line. 

24. Deming’s PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma principle?           

  • Standard deviation
  • Project management
  • Control charting
  • Continuous improvement 

25.________ refers to an individual’s belief that he or she is capable of performing a task.

  • Emotional contagion
  • Self-determination
  • Self-efficacy
  • Affect intensity 

26.____________ is the biggest hurdle to overcome in a pay-for-performance plan.

  • Inflation
  • Merit-pay increases
  • Salary cap performance level
  • Compensation equation

Want to see the complete Capstone..?? Click STR 581 All Capstones (Week 2 Capstone 1, Week 4 Capstone 2, and Week 6 Capstone 3)

27. In order to make their firm a learning organization, managers should        

  • avoid the use of cross-functional teams
  • penalize mistakes
  • reinforce interdependence and reduce boundaries
  • increase the degree of departmentalization 

28. During the implementation of a project, which of the following should be the primary focus of a consulting firm?    

  • People management skills
  • Application of the learning curve theory
  • The correct project software
  • Tools and materials availability 

29. The concept that some leadership attributes will work in some situations but not in others can be described by the          

  • leadership effectiveness theory
  • behavioral theory
  • contingency theory
  • tactical theory

Click here to download STR 581 Week 2 Capstone Final Examination Part 1

30. Which of the following statements is true with regard to the effectiveness of tactics?  

  • All tactics are equally effective with regard to upward influence.
  • Individuals from collectivist cultures are typically more likely to use soft tactics that reflect personal power.
  • Soft tactics are less effective than hard tactics when used individually
  • The combination of a soft tactic with reasonable persuasion is more effective than a combination of two hard tactics. 

About Author 

This article covers the topic for the University Of Phoenix STR 581 Week 2 Capstone Final Examination Part 1 The author is working in the field of education from last 5 years. This article covers the basic of STR 581 Week 2 Capstone Final Examination Part 1 from UOP. Other topics in the class are as follows:

STR 581 Week 2 Capstone Final Examination Part 1

STR 581 Week 4 Capstone Final Examination Part 2

STR 581 Week 6 Capstone Final Examination Part 3

 

For further information on the above topics you can always visit the website www.UopStudents.com

 

 

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