AS Associate Of Science In Business Administration 2 — Questions and Answers
Question 1: Which financial statement shows a company's revenues and expenses over a specific period?
- Balance sheet
- Income statement (Correct answer)
- Cash flow statement
- Statement of retained earnings
Correct answer: Income statement
The income statement (also called profit and loss statement) reports revenues, expenses, and net income over a reporting period.
Question 2: In marketing, the '4 Ps' framework includes Product, Price, Place, and:
- Profit
- Promotion (Correct answer)
- People
- Process
Correct answer: Promotion
The classic marketing mix consists of Product, Price, Place, and Promotion, introduced by Jerome McCarthy.
Question 3: What is the primary role of a manager in the 'organizing' function of management?
- Setting company goals
- Allocating resources and assigning tasks (Correct answer)
- Motivating employees
- Measuring performance against goals
Correct answer: Allocating resources and assigning tasks
Organizing involves structuring resources and tasks to achieve organizational objectives efficiently.
Question 4: Which business ownership structure provides limited liability to ALL owners while avoiding corporate double taxation?
- Sole proprietorship
- General partnership
- Limited Liability Company (LLC) (Correct answer)
- C-Corporation
Correct answer: Limited Liability Company (LLC)
An LLC combines limited liability protection with pass-through taxation, avoiding the double taxation faced by C-Corporations.
Question 5: In accounting, the matching principle requires that:
- Assets equal liabilities plus equity
- Expenses be recorded in the same period as the revenues they helped generate (Correct answer)
- All transactions be recorded at historical cost
- Revenue be recognized only when cash is received
Correct answer: Expenses be recorded in the same period as the revenues they helped generate
The matching principle ensures expenses are recognized in the same accounting period as the revenues they helped produce.
Question 6: Which economic concept describes the additional cost of producing one more unit of a good or service?
- Fixed cost
- Average cost
- Marginal cost (Correct answer)
- Opportunity cost
Correct answer: Marginal cost
Marginal cost is the change in total cost resulting from producing one additional unit of output.
Question 7: A SWOT analysis evaluates a company's Strengths, Weaknesses, Opportunities, and:
- Targets
- Threats (Correct answer)
- Trends
- Tactics
Correct answer: Threats
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and is used for strategic planning.
AS Associate Of Science In Business Administration 2
Which financial statement shows a company's revenues and expenses over a specific period?