AS Associate Of Science In Business Administration 3 — Questions and Answers
Question 1: Which type of market structure is characterized by one seller dominating the entire market?
- Perfect competition
- Oligopoly
- Monopoly (Correct answer)
- Monopolistic competition
Correct answer: Monopoly
A monopoly exists when a single firm controls the supply of a product with no close substitutes.
Question 2: In human resources management, 'on-the-job training' differs from 'off-the-job training' because it:
- Costs more money
- Occurs while the employee performs actual work duties (Correct answer)
- Is done only for new hires
- Requires external trainers
Correct answer: Occurs while the employee performs actual work duties
On-the-job training occurs in the actual work environment while employees perform their regular job tasks.
Question 3: What does 'accounts receivable' represent on a company's balance sheet?
- Money the company owes to suppliers
- Money owed TO the company by customers (Correct answer)
- Long-term company debt
- Cash held in reserve
Correct answer: Money owed TO the company by customers
Accounts receivable is a current asset representing money customers owe the company for goods or services already delivered.
Question 4: Which pricing strategy involves setting a high initial price and gradually lowering it over time?
- Penetration pricing
- Cost-plus pricing
- Price skimming (Correct answer)
- Competitive pricing
Correct answer: Price skimming
Price skimming targets early adopters willing to pay a premium before reducing prices to attract more price-sensitive customers.
Question 5: Under the US Federal Reserve system, the 'federal funds rate' is:
- The interest rate on US Treasury bonds
- The rate banks charge the Fed for loans
- The overnight lending rate between banks (Correct answer)
- The prime rate charged to consumers
Correct answer: The overnight lending rate between banks
The federal funds rate is the interest rate at which depository institutions lend reserve balances to other banks overnight.
Question 6: In business statistics, the 'mean' of a data set is calculated by:
- Identifying the most frequently occurring value
- Finding the middle value when data is ordered
- Summing all values and dividing by the count (Correct answer)
- Subtracting the smallest value from the largest
Correct answer: Summing all values and dividing by the count
The arithmetic mean is the sum of all data values divided by the total number of values.
Question 7: Which document outlines the rules and internal management structure of a corporation?
- Articles of incorporation
- Business plan
- Operating agreement
- Corporate bylaws (Correct answer)
Correct answer: Corporate bylaws
Corporate bylaws are internal rules that govern how a corporation is managed, including board procedures and officer roles.
AS Associate Of Science In Business Administration 3
Which type of market structure is characterized by one seller dominating the entire market?