Chapter 10 Financing and Producing Goods   1. The purpose of a cost-benefit analysis is to ___________     a) determine the short-term needs of a business.     b) determine the long-term needs of a business.     c) finance business expansion.     d) compare the estimated cost of an action, such as business expansion, to its estimated benefits.   2. When you invest in a certificate of deposit at a bank that finances corporate expansion, your reward is ___________     a) the interest earned on the CD.     b) the interest on a corporate bond.     c) dividends on the corporation's stock.     d) the interest the corporation pays on its loan.   3. When the cost of financing is high, ___________     a) more companies will decide that they can profitably expand.     b) a business that borrows money can expect to earn higher profits on its expansion.     c) only businesses that expect to earn the highest profits will borrow money.     d) it is not a good time for a business to expand.   4. Which of the following types of financing is short-term?     a) leasing     b) trade credit     c) bonds     d) a loan with a repayment period of 1-3 years   5. The four factors that affect a company's financing decisions include all the following EXCEPT ___________     a) market climate.     b) financial condition of the company.     c) size of the company.     d) control of the company.   6. Which one of the following steps in the production process includes choosing a business location and production scheduling?     a) planning     b) purchasing     c) quality control     d) inventory control   7. Which of the following statements about the use of technology in production is TRUE?     a) Because the assembly line results in more efficient use of machines and labor, the costs of production are greatly increased.     b) With mechanization, skilled handiwork became even more important to a company's production process.     c) Robotics refers to sophisticated computer-controlled machinery that operates the assembly line.     d) The technological advance in which machines oversee people that are actually doing the work is known as automation.