2/21/22, 8:23 AM AE321 Prelim Exam
AE321 Prelim Exam
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Part I. Multiple Choice Questions
Select the best statement or words that corresponds to the question or phrase.
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Identify its rights in the constitution to prevent the new competitor to exist.
Purchase all available raw materials and prevent the competitor from having smooth
operations.
Assess how this would affect the business and determine whether it can improve
production processes, lower costs, and improve its service.
Reduce negative environmental and community impact through corporate social
responsibility and persuade the government to not implement the law.
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120,000
90,000
160,000
240,000
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* 2 points
120,000
240,000
160,000
190,000
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Assess the impact and likelihood of the law suit
Identify the risk of being sued
Control the risk by dissuading the client
Review its production controls
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Payables management includes the analysis of the business's use of trade payables
and short-term non-trade payables but not long-term non-trade payables.
Receivable management involves setting the credit term but not the implementation
of how receivables are collected.
Availability of money marketable securities support the cash management function by
providing a return on excess cash.
Inventory management allows the entity to determine the best level of this asset while
balancing the risk of over- and under- stocking.
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Substantive policies create the overall implementation of the ethics program while
structural policies define the applicable regulations that apply to the organization.
A written code of ethics is necessary for large organizations.
Having policies and procedures on confidential reporting empowers employees to act
ethically.
Advice lines which are available to both managers and employees are highly
recommended to support ethical decisions.
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Option 1
that the overall goal is the maximization of the market value of the equity through
improved income and cashflows.
that cost minimization is the primary concern of the firm.
that exposing the firm to the most risk for the most return should be priority.
that the personal goals of customer and employees are above the goals of the
shareholders.
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Identify investment opportunities and determine whether these are acceptable to their
risk preference.
Create budgets that would enable them to determine excess or inadequacy of cash.
Build credit by encouraging them to acquire as many loan as possible so that the firm
value or the total asset of the firm will increase.
Determine ways to reduce non-value adding costs
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Expect higher economic growth and may plan to produce less of these bags.
Expect higher economic growth and may plan to produce more of these bags.
Expect lower economic growth and may plan to produce less of these bags.
Expect lower economic growth and may plan to produce more of these bags.
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The decrease in money supply will lower the value of each peso, require more peso to
get one USD, hence Zeta's sales in peso will increase.
The decrease in money supply will increase the value of each peso, require less peso
to get one USD, hence Zeta's sales in peso will decrease.
The increase in money supply will increase the value of each peso, require less peso
to get one USD, hence Zeta's sales in peso will decrease.
The increase in money supply will lower the value of each peso, require more peso to
get one USD, hence Zeta's sales in peso will increase.
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Option 1 Option 2
Cannot be determined No effect
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Alpha should choose Supplier A and pay on the 10th day.
Alpha should choose Supplier B and pay on the 10th day.
Alpha can choose either supplier and always pay on the 10th day.
If Alpha chose Supplier B, the former should pay on the 30th day so that it can
maximize the trade discount
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Individuals and businesses are encouraged to spend, hence businesses will expect
higher demand and higher prices.
Individuals and businesses are encouraged to save, hence businesses will expect
higher demand and lower prices.
Individuals and businesses are encouraged to spend, hence businesses will expect
lower demand and lower prices.
Individuals and businesses are encouraged to save, hence businesses will expect
lower demand and lower prices.
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Determine the cause of the high cost of financing.
Determine whether these non-profit-generating assets be sold and be used to
purchase other non-operating assets that can provide a return higher than the cost to
finance these.
Suggest a cost-benefit analysis using capital budgeting techniques on the non-profit-
generating assets.
Request for a more conservative investing and financing policy.
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Financing seasonal needs with short-term funds.
Financing short-term needs with short-term funds.
Financing some long-term needs with short-term funds.
Financing permanent inventory buildup with long-term debt.
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Sales in pesos - financial perspective
Promotion rate - learning and growth
Number of referrals by regular customers - customer perspective
Sales transactions by branch - customer perspective
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Stakeholders are those who own the business and they may have differences in
opinions on the direction of the business.
Agency conflict is present when the agent does not act in accordance to the
expectations of the principal.
An example of an agent is the board of directors who represents the numerous
stockholders.
Rank and file employees may prioritize achieving the identified performance
measures to obtain additional financial compensation but in doing so, may cause
concerns to other employees and departments.
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Only C1 is true.
Only C2 is true.
Both are true.
Both are false.
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a trade-off between profitability and risk.
a trade-off between short-term versus long-term borrowing.
a trade-off between liquidity and marketability.
a trade-off between equity and debt.
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576,000.00
124,707.66
166,276.88
432,000.00
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2/21/22, 11:20 AM AE321 Prelim Exam
AE321 Prelim Exam
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Part 2: Straight Problems
Read each problem carefully and provide the requirement. Write down your solutions on any type of paper
and encircle final answers. Type the specific requirement in the space provided here.
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75.35
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13.02723
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237812.50
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7540
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* 4 points
48800
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