Tests REVISION Part I 1. What does “company” mean? a) name of company b) set of tangible, intangible and personnel components c) a complex activity performed by an entrepreneur independently, under his/her own name, on his/her own responsibility in order to achieve profit. 2. Entrepreneurship: a) creative activity leading to establishment of a company b) set of tangible, intangible and personnel components c) a complex activity performed by an entrepreneur independently, under his/her own name, on his/her own responsibility in order to achieve profit. 3. Who guarantees the liability with their own assets? a) natural persons b) partners in general partnership c) partners in joint-stock company 4. Audit of accounts is compulsory in the case of: a) joint-stock companies b) association c) it is not compulsory 5. Creation of calculations is a part of: a) technical preparation of production b) technological preparation of production c) economic preparation of production 6. Property consists of: a) assets b) liabilities c) nothing from the above 7. Business risk can also consist in: a) insufficient qualifications and expertise of workers b) risk is not taken into account c) selected form of entrepreneurship 8. Balance sheet: a) is one of the basic accounting statements b) is a statement on company assets c) both options are right 9. Capital funds: a) are created from profit b) are not created from profit c) are not related to profit 10. borrowed capital consists of: a) capital funds b) Reserve c) reserve funds CORRECT ANSWERS: 2. 1B, 2C, 3B, 4A, 5C, 6A, 7A, 8C, 9B, 10B Part II 1. What does the term “costs” refer to? a) It is identical with “expenditures” b) It refers to the consumption of production factors incurred to the creation of business revenues including other necessary costs related to the business activities c) money the company invested in order to achieve revenues 2. Direct costs: a) directly allocated to the subject of calculation b) indirectly allocated to the subject of calculation c) overhead costs 3. Costs can be reduced by: a) saving material and energy b) amount of margin c) increase in salary costs 4. Revenue is NOT: a) Markets b) subsidy c) employees salary 5. Zero economic result means that: a) ER = 0 b) ER < 0 c) ER > 0 6. Characteristics of a successful company: a) discrepancy between assets and liabilities b) high costs c) competitive activities in the market 7. Personality of a manager in a company: a) is not important b) does not take responsibility for the results of the work of other workers c) shows universality of knowledge and skills in the complex context 8. Explicit costs are: a) costs traceable in accounting b) costs untraceable in accounting c) costs affected by managerial decision-making 9. Efficiency means: a) to achieve the objective with the minimum possible volume of resources b) ratio of explicit and implicit costs c) nothing from the above 10. Assets structure: a) significantly influences the company liquidity b) refers to the ability of changing assets to money necessary to cover its short-term debts c) both options are right CORRECT ANSWERS: • 1BC, 2A, 3A, 4A, 5A, 6C, 7C, 8A, 9A, 10C • REVISION QUESTIONS • 1. The basic functions according Fayol: • a) planning, management, coordination, control • b) effectiveness and liquidity • c) rewarding • 2. Behaviorism is: • a) science about knowledge • b) science about behaviour • c) science about motivation • 3. Planning: • a) is based on disposable sources but takes into account certain limitations • b) is not essential • c) only short term is significant • 4. Strategy sets: • a) the concept of the whole behaviour of society • b) the long term aims • c) the numerical setting of the expected results • 5. Operative plans: • a) are designed for a short period • b) are designed for a long period • c) are not related to a time period • 6. SWOT analysis: • a) is a selection of the company’s strategy • b) deals with only external influences • c) is a model of BCG strategy • 7. Which option shows the basic sources of a manager’s motivation: • a) needs, habits, interests, ideals, values • b) money, influence, status in the company • c) manipulation, activities, satisfaction • 8. The essential balance principle is: • a) assets=liabilities • b) private capital=external capital • c) working capital=current assets • 9. EQ means: • a) intelligence quotient • b) emotional quotient • c) political quotient • 10. Company aims can be: • a) maximization of profit • b) maximization of turnover • c) all is correct • CORRECT ANSWERS: • 1A, 2B, 3A, 4B, 5A, 6A, 7A, 8A, 9B, 10C