Question 1 (1 point)
Suppose that 10 golfers enter a tournament and that their
respective skill levels are approximately the same. Six of the entrants are
female and two of those are older than 40 years old. Three of the men are older
than 40 years old. What is the probability that the winner will be either
female or older than 40 years old?
Question 1 options:
1) 0.198
2) 1.100
3) 0.200
4) 0.000
5) 0.900
Save
________________________________________
Question 2 (1 point)
The number of cell phone minutes used by high school seniors
follows a normal distribution with a mean of 500 and a standard deviation of
50. What is the probability that a student uses more than 350 minutes?
Question 2 options:
1) 0.999
2) 0.618
3) 0.382
4) 0.001
5) None of
the above
Save
________________________________________
Question 3 (1 point)
Below is a payoff table giving profits for various
situations. What decision would a pessimist make?
Question 3 options:
1) Alternative
1
2) Alternative
2
3) Alternative
3
4) Do
Nothing
5) State of
Nature A
Save
________________________________________
Question 4 (1 point)
Demand for soccer balls at a new sporting goods store is
forecasted using the following regression equation: Y = 98 + 2.2X where X is
the number of months that the store has been in existence. Let April be
represented by X = 4. April is assumed to have a seasonality index of 1.15.
What is the forecast for soccer ball demand for the month of April (rounded to
the nearest integer)?
Question 4 options:
1) 100
2) 115
3) 123
4) 107
5) None of
the above
Save
________________________________________
Question 5 (1 point)
The “point at which to reorder” depends directly
on which of the following?
Question 5 options:
1) ordering
cost
2) lead-time
3) storage
costs
4) EOQ
5) unit
purchasing cost
Save
________________________________________
Question 6 (1 point)
Which of the following is not a property of all linear
programming problems?
Question 6 options:
1) A
computer program
2) The
presence of restrictions
3) Optimization
of some objective
4) Usage of
only linear equations and inequalities
5) Alternate
courses of action to choose from
Save
________________________________________
Question 7 (1 point)
Given an activity’s optimistic, most likely, and pessimistic
time estimates of 4, 6, and 14 days respectively, compute the PERT expected
activity time for this activity.
Question 7 options:
1) 7
2) 8
3) 6
4) 9
5) None of
the above
Save
________________________________________
Question 8 (1 point)
A suburban specialty restaurant has developed a single
drive-thru window. Customers order, pay, and pick up their food at the same
window. Arrivals follow a Poisson distribution while service times follow an
exponential distribution. If the average number of arrivals is 6 per hour and
the service rate is 2 every 15 minutes, what is the average number of customers
waiting in line behind the person being served?
Question 8 options:
1) 0.75
2) 2.25
3) 0.50
4) 3.00
5) None of
the above
Save
________________________________________
Question 9 (1 point)
Customers enter the waiting line to pay for food as they
leave a cafeteria on a first-come, first-served basis. The arrival rate follows
a Poisson distribution, while service times follow an exponential distribution.
If the average number of arrivals is four per minute and the average service
rate of a single server is seven per minute, what proportion of the time is the
server busy?
Question 9 options:
1) 0.25
2) 0.57
3) 0.75
4) 0.43
5) 0.33
Save
Question 10 (1 point)
Refer to the Table below. Bags of chocolate candy are
sampled to ensure proper weight. The overall average for the samples is 36
ounces. Each sample contains twelve bags. The average range is 1.3 ounces. The
upper control chart limit for the sample averages would be:
Question 10 options:
1) 38.310
2) 37.1258
3) 36.3458
4) 36.6279
5) 35.6542
Question 11 (1 point)
In a bid to attract more customers in a market that has
several competitors, Barrymore’s Bakery slashed the prices of all its products
by 50%. Managers at the firm reasoned that lower prices would draw in even more
customers, making up for the reduction in price several times over. Which of
the following pricing strategies are they using?
Question 11 options:
1) Market-skimming
pricing
2) Market-penetration
pricing
3) Captive-product
pricing
4) Cash
discount pricing
5) By-product
pricing
Save
Question 12 (1 point)
Sunny Brews is a coffeehouse chain based in Boston. It
recently introduced Eva, a mild roast, which became immensely popular. This
exemplifies __________.
Question 12 options:
1) benchmarking
2) diversification
3) mass
customization
4) product
development
5) downsizing
Save
Question 13 (1 point)
Display media includes __________.
Question 13 options:
1) newspapers
2) magazines
3) television
4) company
websites
5) billboards
Save
Question 14 (1 point)
Despite being similar service establishments, McDonalds,
Wendy’s, and Burger King all prepare and deliver their hamburgers differently.
This concept falls mostly under the marketing mix variable of:
Question 14 options:
1) pricing.
2) people.
3) processes.
4) physical
evidence.
Save
Question 15 (1 point)
__________ is the step in the selling process in which the
salesperson asks the customer for the order.
Question 15 options:
1) Handling
objections
2) Closing
3) Approach
4) Presentation
Save
Question 16 (1 point)
Which of the following is the aim of the product concept?
Question 16 options:
1) Improve
the marketing of a firm’s best products
2) Market
only those products with high customer appeal
3) Focus on
the target market and make products that meet those customers’ demands
4) Focus on
making continuous product improvements
5) Ensure
that product promotion has the highest priority
Save
Question 17 (1 point)
____________ segmentation divides the market into segments
based on variables such as age, life-cycle stage, gender, income, occupation,
education, religion, ethnicity, and generation.
Question 17 options:
1) Geographic
2) Benefit
3) Occasion
4) Psychographic
5) Demographic
Save
Question 18 (1 point)
____________ is determined by a customer’s evaluation of the
benefits and costs of a market offering relative to those of competing offers.
Question 18 options:
1) Customer-perceived
value
2) Customer
lifetime value
3) Share of
customer
4) Customer-managed
relationship
5) Brand
value proposition
Save
Question 19 (1 point)
____________ calls for dividing the market into regions,
states, counties, cities, or even neighborhoods.
Question 19 options:
1) Benefit
segmentation
2) Geographic
segmentation
3) Demographic
segmentation
4) Psychographic
segmentation
5) Occasion
segmentation
Save
Question 20 (1 point)
The primary key to delivering customer satisfaction is to
match product performance with ____________.
Question 20 options:
1) the
competitor products’ performance
2) competitive
prices
3) aggressive
advertising
4) limited
customer services
5) customer
expectations
Question 21 (1 point)
Which of the following is the formula to compute the rate of
return on net sales?
Question 21 options:
1) The
formula is (Net income + interest expense)/Average total assets.
2) The
formula is Net income/Net sales.
3) The
formula is (Net income – preferred dividends)/Average common stockholders’
equity.
4) The
formula is (Net income – preferred dividends)/Number of shares of common stock
outstanding.
Save
Question 22 (1 point)
The starting point in the budgeting process is the:
Question 22 options:
1) preparation
of the sales budget.
2) preparation
of the cash budget.
3) preparation
of the budgeted income statement.
4) preparation
of the budgeted statement of cash flows.
Save
Question 23 (1 point)
In a process costing system, the entry to record the use of
direct materials in production would include which of the following?
Question 23 options:
1) Debit to
work in process inventory
2) Debit to
raw materials inventory
3) Debit to
finished goods inventory
4) Credit to
finished goods inventory
Save
Question 24 (1 point)
A company uses the indirect method to prepare the statement
of cash flows. Which of the following items would be subtracted from net income
in determining the net cash flow from operating activities?
Question 24 options:
1) An
increase in dividends payable would be subtracted from net income.
2) Amortization
of a premium on bonds payable would be subtracted from net income.
3) A loss on
the sale of equipment would be subtracted from net income.
4) Depreciation
expense would be subtracted from net income.
Save
Question 25 (1 point)
Which of the following is the formula to compute accounts
receivable turnover?
Question 25 options:
1) The
formula is Cost of goods sold/Average inventory.
2) The
formula is Net credit sales/Average net accounts receivable.
3) The
formula is Average net accounts receivable/One day’s sales.
4) The
formula is Net credit sales/Average inventory.
Save
Question 26 (1 point)
Which of the following is a debt that is due to be paid with
cash, or with goods and services within the next year (or normal operating
cycle if longer)?
Question 26 options:
1) Long-term
liability
2) Quick
liability
3) Current
liability
4) Liquid
liability
Save
Question 27 (1 point)
A statement of cash flows is generated to show:
Question 27 options:
1) how
profits were generated.
2) the
revenues the company has earned.
3) the
expenses the company incurred during the time period.
4) the
inflow and outflow of cash during the time period.
Save
Question 28 (1 point)
Which of the following are period costs?
Question 28 options:
1) Current
assets on the balance sheet
2) Current
liabilities on the balance sheet
3) Costs
incurred and expensed during the accounting period
4) Costs
related to the manufacture of products
Save
Question 29 (1 point)
Lowwater Sailmakers manufactures sails for sailboats. The
company has the capacity to produce 25,000 sails per year and is currently
producing and selling 20,000 sails per year. If a special sales order is
accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain
unchanged, what is the change in operating income?
Question 29 options:
1) Operating
income increases $225,000.
2) Operating
income decreases $125,000.
3) Operating
income decreases $5,000.
4) Operating
income increases $190,000.
Save
Question 30 (1 point)
Items such as buildings and land are:
Question 30 options:
1) liabilities.
2) equity.
3) part of
equity or assets, depending upon the paperwork.
4) assets.
Question 31 (1 point)
The contention that tariffs should be imposed when a foreign
government provides financial assistance to its producers is:
Question 31 options:
1) a
national defense concern.
2) the
infant industry argument.
3) dumping.
4) to
counter foreign subsidies.
Save
Question 32 (1 point)
A firm will not hire additional workers once:
Question 32 options:
1) it earns
accounting profits.
2) the
additional cost of a worker equals the additional revenue from the worker.
3) total
product is rising.
4) the
company reaches its breakeven output level.
Save
Question 33 (1 point)
A basic distinction between the long run and the short run
is that:
Question 33 options:
1) if a firm
produces no output in the long run, it still incurs a cost.
2) the
opportunity costs of production are lower in the short run than in the long
run.
3) in the
long run, some inputs are fixed, while in the short run, all inputs are variable.
4) in the
short run, complete adjustment of all inputs is impossible, while in the long
run all inputs can be adjusted.
Save
Question 34 (1 point)
To prevent the dollar from depreciating, the U.S. central
bank that tries to fix the currency value of the dollar can:
Question 34 options:
1) buy U.S.
dollars in the foreign exchange market.
2) sell U.S.
dollars in the foreign exchange market.
3) abandon
the U.S. dollar and use another country’s currency as its legal currency.
4) buy foreign
currencies in the foreign exchange market.
Save
Question 35 (1 point)
A federal deficit of $300 billion means that:
Question 35 options:
1) the
government has a total debt of $300 billion.
2) government
spending is $300 billion a year.
3) the
government is spending $300 billion a year more than it is collecting in taxes.
4) the
government plans on collecting $300 billion in taxes this year.
Save
Question 36 (1 point)
If the residents of a country specialize in a good in which
they have a comparative advantage and trade with residents in another nation,
the residents in the first country:
Question 36 options:
1) can
consume more than they could without trade.
2) can
produce more than they could without trade.
3) will have
a lower standard of living.
4) will be
exploited by the second nation.
Save
Question 37 (1 point)
If a bank advertises 3 percent interest for a checking
account and the anticipated rate of inflation is 3.5 percent:
Question 37 options:
1) the real
rate of interest earned on the account is 0.5 percent.
2) the real
rate of interest earned on the account is -0.5 percent.
3) the real
rate of interest earned on the account is 6.5 percent.
4) the real
rate of interest earned on the account is 3.25 percent.
Save
Question 38 (1 point)
If a monopolist wishes to increase its output and quantity
sold:
Question 38 options:
1) it must
reduce its price, so its marginal revenue is greater than its price.
2) it must
reduce its price, so its marginal revenue is less than its price.
3) it must
raise its price, so its marginal revenue is greater than its price.
4) it must
raise its price, so its marginal revenue is less than its price.
Save
Question 39 (1 point)
Which of the following will shift the Keynesian short-run
aggregate supply curve to the right?
Question 39 options:
1) A rise in
the price level
2) A fall in
the price level
3) A
decrease in input costs
4) An
increase in input costs
Save
Question 40 (1 point)
Consider a world of two countries producing only wheat and
cloth. In one hour, residents of Country A can produce 1 unit of wheat and 0.5
unit of cloth, whereas residents of Country B can produce 0.3 unit of wheat and
0.4 unit of cloth. Country A should export:
Question 40 options:
1) wheat and
cloth; country B should not export anything.
2) wheat and
country B should export cloth.
3) nothing
and country B should export both wheat and cloth.
4) cloth and
country B should export wheat.
Question 41 (1 point)
A firm should use the __________ when evaluating an
investment.
Question 41 options:
1) the least
costly financing source
2) the
direct source of financing
3) the
weighted average cost of capital
4) cost of
equity
Save
Question 42 (1 point)
What is a characteristic of an efficient market?
Question 42 options:
1) Prices
are unrelated to true value.
2) Prices
slowly adjust to reflect new information.
3) Prices
are unaffected by new information.
4) Prices quickly
adjust to reflect new information.
Save
Question 43 (1 point)
What entities are typically net demanders of funds in the
U.S. economy?
Question 43 options:
1) Individuals,
government, and businesses
2) Individuals
and businesses
3) Individuals
and government
4) Businesses
and government
Save
Question 44 (1 point)
The portfolio that maximizes return for a given level of
risk or minimizes risk for a given level of return is called the __________
portfolio.
Question 44 options:
1) efficient
2) risk-free
3) frontier
4) investment
banker
Save
Question 45 (1 point)
Which of the following is not a commonly used method to
expand a business internationally?
Question 45 options:
1) Licensing
2) Foreign
exchange
3) Exporting
4) Joint
venture
Save
Question 46 (1 point)
At a given sales level, a firm has a degree of operating
leverage of 1.2 and a degree of financial leverage of 2.0. What is the firm’s
degree of total (or combined) leverage?
Question 46 options:
1) 0.8
2) 1.6
3) 2.4
4) 3.2
Save
Question 47 (1 point)
Project A has an NPV of $500 and project B has an NPV of
$800. Management should:
Question 47 options:
1) choose
both projects if they are mutually exclusive projects.
2) choose
project A only if they are mutually exclusive projects.
3) choose
both projects if they are independent projects.
4) choose
project B only if they are independent projects..
Save
Question 48 (1 point)
$100 is deposited today, $200 is deposited in one year, and
$300 is deposited in two years. These deposits earn 8%. What is their combined
value at the end of three years?
Question 48 options:
1) $585
2) $ 644
3) $ 683
4) $782
Save
Question 49 (1 point)
What is the market value of a financial asset?
Question 49 options:
1) The
future value of all future profits
2) The
present value of all future profits
3) The
future value of all future cash flows
4) The
present value of all future cash flows
Save
Question 50 (1 point)
What impact will an increase in risk usually have on the
required rate of return on an investment?
Question 50 options:
1) A
decrease
2) An
increase
3) An
increase and then a decrease
4) No impact
Question 51 (1 point)
An agreement to deliver water bottles to a customer’s home
that does not indicate the duration has an agreement that is:
Question 51 options:
1) for a
reasonable time.
2) one
delivery.
3) not a
contract.
4) a bulk
transfer.
Save
Question 52 (1 point)
If an offeree accepts an offer before it is revoked:
Question 52 options:
1) a void
contract is formed.
2) a
voidable contract is formed.
3) an
unenforceable contract is formed.
4) a valid
contract is formed.
Save
Question 53 (1 point)
A person that breaks a contract will be required to pay
damages to the other party to compensate for:
Question 53 options:
1) losses
that could have been avoided by hiring someone else to perform the contract.
2) emotional
disturbance caused by the breach.
3) a heart
attack induced by the emotional disturbance caused by the breach.
4) damages
resulting necessarily and directly from the breach of the contract.
Save
Question 54 (1 point)
If a contract for the sale of goods does not state the
price, the:
Question 54 options:
1) contract
is void because it is too indefinite.
2) buyer is
required to pay a reasonable price for the goods.
3) buyer can
pay whatever price the buyer in good faith believes is a proper price.
4) seller
can fix whatever price the seller in good faith believes is a proper price.
Save
Question 55 (1 point)
In which of these cases is a contract between Y and Z
binding?
Question 55 options:
1) Y makes a
mistake of material fact.
2) Y and Z
make the same mistake of material fact.
3) Y
recklessly but honestly misrepresents a material fact.
4) Y
innocently misrepresents a material fact.
Save
Question 56 (1 point)
An acceptance occurs when:
Question 56 options:
1) a
particular form of words is stated to the offeror.
2) a
particular mode of expression is made to the offeror.
3) the
offeree reserves the right to reject the offer.
4) a clear
expression of acceptance occurs.
Save
Question 57 (1 point)
Billy has an online business selling wine. One of his
disgruntled customers sets up a website using his company name and adds the
word “thief” to it. Billy will most likely:
Question 57 options:
1) prevail
in court.
2) not
prevail in court.
3) could
defend his company by buying the offensive Internet domain.
4) both B
and C.
Save
Question 58 (1 point)
Which of the following are torts?
Question 58 options:
1) Slander
2) Assault
and battery
3) Wrongful
interference with another’s business rights
4) All of
the above.
Save
Question 59 (1 point)
All goods not existing at the time of a transaction are
called:
Question 59 options:
1) existing
goods.
2) tangible
goods.
3) future
goods.
4) intangible
goods.
Save
Question 60 (1 point)
The Tenth Amendment to the U.S. Constitution provides that
all powers not delegated to the national government are reserved to the:
Question 60 options:
1) states.
2) municipalities.
3) counties.
4) none of
the above.
Question 61 (1 point)
Planning is defined by which of the following?
Question 61 options:
1) Conceptual,
personal, and social
2) Goal
definition, strategy development, coordination of activities
3) Interpersonal,
informational, and decisional
4) None of
the above
Save
Question 62 (1 point)
For what purpose are political skills most useful to a
manager?
Question 62 options:
1) Delegating
tasks to others
2) Securing
scarce resources
3) Performing
job-specific skills
4) Analyzing
business situations
5) Motivating
employees
Save
Question 63 (1 point)
Where are labor laws and practices similar to those in the
United States?
Question 63 options:
1) Australia
2) Canada
3) China
4) Western
Europe
5) Mexico
Save
Question 64 (1 point)
An employee devotes some minimal effort in his job, but
still contributes somewhat toward the financial goals of his organization. What
does he demonstrate?
Question 64 options:
1) Persistence
but not direction
2) Direction
but not energy
3) Energy
but not persistence
4) Energy
but not direction
5) Persistence
but not energy
Save
Question 65 (1 point)
What of the following is one of Maslow’s five basic needs?
Question 65 options:
1) Social
2) Safety
3) Physiological
4) All of
the above
Save
Question 66 (1 point)
Which of the following is a likely result of a situation in
which a manager focuses on informational and decisional roles, but ignores
interpersonal roles?
Question 66 options:
1) Lack of
leadership would have little effect on organizational success.
2) Essential
functions including delineation of tasks and strategic planning would be
largely ignored.
3) Lack of
inspiration and guidance may or may not affect others, depending on the
organization.
4) External
leadership will serve as a strong motivator to ensure organizational progress.
5) There
will no ability to effectively gauge the success or failure of organizational
operations.
Save
Question 67 (1 point)
Planning gives organizations direction that primarily helps
them __________.
Question 67 options:
1) improve
their image in the business community
2) improve
morale of middle managers
3) improve
teamwork and coordinate activities
4) improve
morale of all employees
Save
Question 68 (1 point)
Consider the relationship between workplace actions that are
efficient and those that are effective. Which statement best describes this
relationship as it relates to management?
Question 68 options:
1) No action
can be either efficient or effective; they must be both or neither.
2) The
effectiveness of an action, unlike the efficiency, cannot be accurately
measured.
3) Actions
do not need to be efficient if they are effective.
4) Actions
that are efficient without being effective should not be performed.
5) Effectiveness
is not necessary for effective tasks and actions.
Save
Question 69 (1 point)
Which statement demonstrates the telling style of managerial
leadership, according to the situational leadership theory?
Question 69 options:
1) A manager
describes a basic end goal to staff and then tells them they come to him if
they need further advising.
2) An office
manager allows his employees free rein to work as they choose, as long as they
remain within a set budget.
