Midterm Exam Assessment – The equilibrium price is represented

Midterm Exam Assessment – The equilibrium price is represented

Subject: Economics    / General Economics
Question

Midterm Exam Assessment

Spring 2017

Introduction to Business

Format: This assessment consists of both multiple choice and True/False questions.

• True/False: 20 questions

• multiple choice: 30 questions

Marks: The total marks for this assessment are out of 100 points. The overall weighing of this assessment is 30% of the course final grade.

Time allowed: 60 minutes

Answer Sheet

1 11 21 31 41

2 12 22 32 42

3 13 23 33 43

4 14 24 34 44

5 15 25 35 45

6 16 26 36 46

7 17 27 37 47

8 18 28 38 48

9 19 29 39 49

10 20 30 40 50

Extra Question 1:

Extra Question 2:

Session 1 True/False Questions

True__v__False____1. The equilibrium price is represented by the point where a product’s supply and demand curves intersect.

True__v__False____2. All business decisions cannot be judged as right or wrong, ethical or unethical.

True____False__v__3. A consistent increase in a country’s imports has a favorable impact on its production and employment.

True____False__v__4. The Webb-Pomerene Export Trade Act allows selected U.S. firms willing to enter international trade to form monopolies to compete with foreign monopolistic organizations and also to operate as monopolies within the United States.

True____False__v__5. Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

True____False____6. A common reason for establishing quotas or tariffs is to encourage dumping.

True____False____7. Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

True____False____8. Sociocultural differences, such as variations in body language and personal space, usually have almost negligible impact on international business.

True____False____9. The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

True____False____10. The World Trade Organization agreements are the optional ground rules for international commerce.

True____False____11. The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one market.

True____False____12. The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

True____False____13. In most countries, participation in international business is restricted to large corporations.

True____False____14. Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

True____False____15. A strategic alliance is a partnership formed to create competitive advantage on a worldwide basis.

True____False____16. Direct investment gives lesser power and is the least expensive way to participate in foreign trade.

True____False____17. Multinational corporations (MNCs) are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

True____False____18. Companies doing business internationally have traditionally used a globalization strategy.

True____False____19. A multinational strategy involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences.

True____False____20. Even when products are standardized, advertising often has to be modified to adapt to local cultures.

Session 2 Multiple Choice Questions

21. Which of the following is an advantage of a sole proprietorship?

A. It is heavily regulated by the government.

B. It has limited liability for the debts incurred by the business.

C. It is hard to dissolve.

D. It is unaffected by the death or withdrawal of its owner.

E. It is easy and inexpensive to form.

22. Catalina owns a small restaurant and is solely responsible for its debts and liabilities. She is also entitled to all the profits the restaurant makes after paying off taxes and other expenses. Her business is an example of a(n):

A. joint venture.

B. S corporation.

C. sole proprietorship.

D. partnership.

E. C corporation.

23. A _____ has been defined as “an association of two or more persons who carry on as co-owners of a business for profit.”

A. partnership

B. sole proprietorship

C. C corporation

D. cooperative

E. quasi-public corporation

24. Josh has been asked to be a part of a new business venture that develops wind energy technologies. Since the business involves high risk, he does not want to be held completely liable for the firm’s debts if the project fails. In this case, Josh is most likely to prefer to participate as a(n):

A. member of a cooperative.

B. limited partner.

C. general partner.

D. owner of an S corporation.

E. sole proprietor.

25. The decision-making process in a partnership tends to be faster when:

A. there are numerous partners, who all want to solely control the management of the business.

B. there are two partners and both of them are involved in the day-to-day activities of the business.

C. the partnership is a foreign corporation that conducts its business outside the state in which it was incorporated.

D. the partnership is a domestic corporation with numerous partners.

E. there are numerous partners and the firm has issued public stock.

26. Megha is a taekwondo expert who starts her own martial arts training academy. She conducts taekwondo classes for women and teaches them the art of self-defense. Megha can be regarded as a(n):

A. shareholder.

B. entrepreneur.

C. investor.

D. intrapreneur.

E. inventor.

27. The _____ style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference.

A. free-rein

B. autocratic

C. authoritarian

D. repressive

E. totalitarian

28. Salma owns a Lebanese restaurant that employs around 25 people. She is solely responsible for the management of the restaurant. Her business has to compete with a larger chain of restaurants that offer the same cuisine. Salma’s restaurant can be classified as a:

A. multinational corporation.

B. conglomerate.

C. franchise.

D. public sector holding.

E. small business.

29. Which of the following is an advantage of small businesses over larger firms?

A. Unlike larger firms, small businesses can quickly make and execute business decisions.

B. Unlike larger firms, small businesses have access to a diverse and large workforce.

C. Unlike larger firms, small businesses are not required to pay any taxes.

D. Small businesses are better equipped than larger businesses to cope with growth.

E. Small businesses have better access to highly trained and competent staff than larger firms.

30. A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is known as a(n) _____.

A. promissory note

B. article of incorporation

C. business plan

D. business agreement

E. article of partnership

31. To make profits from a small business, the owner must first provide or obtain _____ to start the business and keep it running smoothly.

A. products

B. employees

C. profits

D. supplies

E. capital

32. The act of financing one’s business by using real personal assets is known as:

A. debt financing.

B. factoring.

C. franchising.

D. equity financing.

E. bootlegging.

33. Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called _____.

A. entrepreneurs

B. category captains

C. venture capitalists

D. trade debtors

E. franchisers

34. When an entrepreneur takes out a loan from a bank, the bank will require him or her to put up _____, a financial interest in the property or fixtures of the business, to guarantee payment of the loan.

A. collateral

B. venture capital

C. trade credit

D. business plan

E. cash flow statement

35. Banks and other financial institutions can grant a small business a _____, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand.

A. line of credit

B. trade credit

C. mutual fund

D. non-recourse loan

E. trust fund

36. Which of the following is one of the commonly reported advantages of franchising?

A. Flexibility in decision making

B. No restrictions on purchasing

C. Management training and support

D. No standardized procedures of operations

E. Decentralized buying power

37. Which of the following statements is true of authentic leaders?

A. Authentic leaders display all the characteristics of autocratic leaders.

B. Authentic leaders make all the relevant decisions and inform employees what they have to do and how.

C. Authentic leaders are an exclusive group of leaders whose leadership behaviors are distinctive from democratic and free-rein leaders.

D. Authentic leaders are identified by the way in which they conduct themselves with stakeholders.

E. Authentic leaders are concerned about the task at hand rather than establishing lasting relationships with stakeholders.

38. If a manager is concerned about doing the work in such a manner that it yields the desired result, then his or her primary managerial concern is:

A. efficiency.

B. effectiveness.

C. standardization.

D. innovation.

E. expertise.

39. Lara was less educationally qualified and experienced than her colleagues when she joined Aurora Systems Inc. However, due to her ability to negotiate effectively with clients, convince her team members to work harder, and understand their needs, she is a senior-level manager today. Which of the following skills can be most attributed to Lara’s success in this scenario?

A. Technical skills

B. Cognitive skills

C. Human relations skills

D. Critical thinking skills

E. Psychomotor skills

40. Melanie is one of the senior managers in the consumer electronics department of a large company. She is part of a team that determines the objectives of the department based on future trends in the industry and decides how to accomplish them. Melanie is involved in the management function of:

A. staffing.

B. recruiting.

C. planning.

D. crowdsourcing.

E. factoring.

41. Managers at Sprocket Inc. have recognized declining sales on their water purifier and must decide upon what has to be done to improve it. Which of the following would be their next step?

A. Defining the situation

B. Developing options

C. Analyzing options

D. Selecting the best option

E. Implementing the decision

42. A declaration of an organization’s fundamental purpose and basic philosophy is known as a(n):

A. protocol.

B. mission.

C. referendum.

D. agenda.

E. target.

43. The top management of Dusk Automobiles Inc. has decided that the company’s objective for the next two years will be to expand the overall business internationally. This is an example of _____.

A. functional planning

B. static planning

C. strategic planning

D. tactical planning

E. operational planning

44. Tactical plans usually cover a period of:

A. five years or more.

B. one year or less.

C. three years.

D. one week or less.

E. ten years.

45. _____ are very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve an organization’s tactical plan and ultimately the strategic plan.

A. Operational plans

B. Protocols

C. Static plans

D. Referendums

E. Executive-level plans

46. _____ is an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer viruses, or airplane crash.

A. Supply chain management

B. Crisis management

C. Value chain management

D. Enterprise resource planning

E. Material requirements planning

47. Which of the following statements is true of the management function of organizing?

A. Organizing is the process of evaluating and correcting activities to keep a business on course.

B. Organizing involves determining and administering appropriate rewards and recognition for employees in an organization.

C. Organizing is a management function that leads to the duplication of resources.

D. Organizing is the last step in the process of managing a business.

E. Organizing helps create synergy, whereby the effect of a whole system equals more than that of its parts.

48. Maria and Harold have just finished interviewing four candidates for a job position in Jackson Office Supplies Inc., a large company based in Houston. In which of the following management functions are Maria and Harold involved?

A. Downsizing

B. Benchmarking

C. Staffing

D. Controlling

E. Directing

49. When Betsy informed her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more raw materials in the current month when compared to the preceding months, she was involved in the management function of:

A. planning.

B. structuring.

C. staffing.

D. controlling.

E. benchmarking.

50. In businesses, _____ include the president and other top executives, such as the chief executive officer, chief financial officer, and chief operations officer, who have overall responsibility for an organization.

A. first-line managers

B. top managers

C. trade creditors

D. external auditors

E. middle managers

Extra question 1.

Which of the following has been a recent trend with regard to the different levels of management within an organization?

A. With technological advances accelerating, the role of privacy officers has declined within organizations.

B. The top management of most organizations spends most of its time directing and controlling workers’ daily performance on the job.

C. Effective managers at enlightened corporations have found that diversity is detrimental for workers and for the bottom line.

D. The ranks of middle managers have been shrinking as more and more companies downsize to be more productive.

E. Most stakeholders support the perks and special treatment the top management of an organization gets.

Extra question 2.

Janet works as a manager at Unicorn Infra Inc. Janet and her team members are primarily responsible for procuring the funds needed for the successful operation of the organization and investing that money to pursue organizational goals. Thus, Janet is a _____.

A. financial manager

B. production manager

C. sales manager

D. human resource manager

E. marketing manager