MODULE VI: OPERATING THE ENTERPRISE

ANSWER KEY

1 : ______ is a fundamental application that allows any organization to record the flow of money for internal and external review.
1. Accounting & Billing Software
2. Double Entry System
3. Single Entry and system
4. Both B and C

YOUR ANSWER: Accounting & Billing Software

CORRECT ANSWER: Accounting & Billing Software
DESCRIPTION: An Accounting & billing software is a fundamental application that allows any organization to record the flow of money
for internal and external review, auditing and day to day billing of clients. It is used as a primary tool for assessing the financial health of
an organization and for meeting legal compliance through core financial tools as general ledger, accounts payable and receivable,
purchase order, stock or inventory and billing.

2 : In __________, a firm seeks to build preference for its brand and increase its market share.
1. Decline stage
2. Maturity stage
 3. Growth stage
4. Intoduction stage

YOUR ANSWER: Maturity stage

CORRECT ANSWER: Growth stage
DESCRIPTION: In the growth stage, a firm seeks to build preference for its brand and increase its market share.

3 : _______ is an operation of market exploration to procure goods and services of desired quality, quantity at lowest price and at the desired time.
1. Negotiation
2. Purchasing
3. Both A and B
4. None of these

YOUR ANSWER: Both A and B

CORRECT ANSWER: Purchasing
DESCRIPTION: Purchasing is an operation of market exploration to procure goods and services of desired quality,

4 : Which of the following materials is capable of being shaped after initial heating and solidifying by cooling?
1. Thermoplastics
2. Thermosets
3. Rubber
4. Metals

YOUR ANSWER: Thermoplastics

CORRECT ANSWER: Thermoplastics
DESCRIPTION: Thermoplastics are capable of being shaped after initial heating and solidifying by cooling. Resistant to breakage and
cheap to produce and providing the right plastics are chosen will provide the necessary protection of the product in an attractive
container. E.g. Polystyrene, polyethylene and polyvinyl chloride.

5 : ______ ensures that the maturity schedules of the deposits coincide with the demand for loans.
1. Sales Manager
2. Accounts Manager
3. Fund Manager
4. None of these

YOUR ANSWER: Fund Manager

CORRECT ANSWER: Fund Manager
DESCRIPTION: Funds management is the overseeing and handling of a financial institution's cash flow. The fund manager ensures
that the maturity schedules of the deposits coincide with the demand for loans. To do this, the manager looks at both the liabilities and
the assets that influence the bank's ability to issue credit.

6 : Which of the following is a type of maintenance?

1. Preventive maintenance
2. Routine maintenance
3. Corrective maintenance
4. All of these

YOUR ANSWER: All of these

CORRECT ANSWER: All of these
DESCRIPTION: THE FIVE TYPES OF MAINTENANCE ? Breakdown maintenance or corrective maintenance ? Preventive
maintenance ? Predictive maintenance ? Routine maintenance ? Planned maintenance
7 : ______is the degree of excellence of a product & service and has two aspects.
1. Frequency
2. Quality
3. Both A & B
4. None of these

YOUR ANSWER: Both A & B

CORRECT ANSWER: Quality
DESCRIPTION: ‘Quality’ is the degree of excellence of a product & service and has two aspects.

8 : What is the key skill set in the Purchasing field?

1. None of these
2. Accounting
3. Negotitaion
4. Sales

YOUR ANSWER: Negotitaion

CORRECT ANSWER: Negotitaion
DESCRIPTION: Negotiating is a key skill set in the Purchasing field.

9 : _____is the material that first envelops the product and holds it.
1. Tertiary packaging
2. Secondary packaging
3. Primary packaging
4. None of these
YOUR ANSWER: None of these
CORRECT ANSWER: Primary packaging
DESCRIPTION: Primary packaging is the material that first envelops the product and holds it. This usually is the smallest unit of
distribution or use and is the package which is in direct contact with the contents.

10 : Uncollectible Accounts occurs when ____________

1. Customers do not pay for item
2. Bad Debt
3. Uncollectible Expense placed as selling expense
4. All of the above

YOUR ANSWER: All of the above

CORRECT ANSWER: All of the above
DESCRIPTION: Uncollectible Accounts occur when: o When customers do not pay for items or services purchased on credit. o Bad
Debts are uncollectible accounts receivables. o The uncollectible expense is placed on the income statement as a selling expense.