Question 1
The equation P(A|B) = P(AB)/P(B)
is:
1)
only relevant when events A and
B are collectively exhaustive.
2)
the marginal probability.
3)
the formula for a conditional
probability.
4)
the formula for a joint
probability.
5)
None of the above
Random Section 2
Question 2
Data for a particular subdivision
near downtown Houston indicate that the average price per square foot for a
home is $100 with a standard deviation of $5 (normally distributed). What is
the probability that the average price per square foot for a home is greater
than $90?
1)
0.977
2)
0.023
3)
0
4)
0.159
5)
None of the above
Random Section 3
Question 3
Below is an opportunity loss
table. What decision should be made based on the minimax regret criterion?
1)
Alternative 1
2)
Alternative 2
3)
Alternative 3
4)
State of Nature A
5)
Does not matter
Random Section 4
Question 4
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)?
1)
100
2)
115
3)
123
4)
107
5)
None of the above
Random Section 5
Question 5
Judith Thompson is the manager of
the student center cafeteria. She is introducing pizza as a menu item. The
pizza is ordered frozen from a local pizza establishment and baked at the
cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is
open 45 weeks a year, 5 days a week. The ordering cost is $15 and the holding
cost is $0.40 per pizza per year. What is the optimal number of pizzas Judith
should order?
1)
9 pizzas
2)
28 pizzas
3)
184 pizzas
4)
5 pizzas
5)
None of the above
Random Section 6
Question 6
A straight line representing all
non-negative combinations of X1 and X2 for a particular profit level is called
a(n)
1)
isoprofit line.
2)
sensitivity line.
3)
objective line.
4)
profit line.
5)
constraint line.
Random Section 7
Question 7
Given an activity’s optimistic,
most likely, and pessimistic time estimates of 2, 5, and 14 days respectively,
compute the PERT expected activity time for this activity.
1)
5
2)
6
3)
9
4)
7
5)
None of the above
Random Section 8
Question 8
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
proportion of the time is the server busy?
1)
0.25
2)
3.00
3)
0.75
4)
2.25
5)
0.50
Random Section 9
Question 9
The -chart would be useful when we:
1)
found the fraction of the
production lot defective.
2)
took a number of measurements
and computed the average.
3)
found the number of defective
items in a production lot.
4)
took a number of measurements
and computed the ranges.
5)
none of the above
Question 10
-charts indicate changes in:
1)
natural variations.
2)
variation.
3)
central tendency.
4)
numbers of defects.
5)
none of the above
Random Section 10
Question 11
Which of the following is true of
market-penetration pricing?
1)
It should be used when the
product’s quality and image support a high price.
2)
It involves setting a high
price for a new product to appeal to the elite in society.
3)
It results in drawing in large
numbers of buyers quickly, winning a large market share.
4)
It is best used in conjunction
with a market-skimming pricing strategy.
5)
It results in the company
making fewer and less profitable sales.
Question 12
FlashFlix, a streaming movie
service, created a blog to help parents on budget plan “movie at
home” parties for their kids and their friends, offering prizes to the
best blog story about how the family was coping with a tight budget. To which environmental
force is FlashFlix reacting?
1)
Technological
2)
Social
3)
Political
4)
Economic
5)
Competition
Question 13
Which of the following is a
characteristic of customer-driven marketing?
1)
Companies understand customer
needs even better than customers do.
2)
Customers are unaware of their
needs.
3)
Products are created that meet
both existing and latent needs, now and in the future.
4)
Customers know what they want.
5)
Customers don’t know what is
possible.
Question 14
Which of the following types of
marketing involves marketers sending out letters, brochures, samples, and DVDs
to consumers’ address?
1)
direct-response marketing
2)
direct-mail marketing
3)
direct digital marketing
4)
kiosk marketing
5)
online marketing
Question 15
An organic farmer has identified
three distinct groups that might be interested in his products: vegetarians,
health-conscious individuals, and people identified as trendsetters who try out
new products in the market before others. These three groups are examples of
____________.
1)
marketing mixes
2)
market segments
3)
value propositions
4)
market offerings
5)
marketing intermediaries
Question 16
__________ is the step in the
selling process in which the salesperson asks the customer for the order.
1)
Handling objections
2)
Closing
3)
Approach
4)
Presentation
Question 17
____________ is determined by a
customer’s evaluation of the benefits and costs of a market offering relative
to those of competing offers.
1)
Customer-perceived value
2)
Customer lifetime value
3)
Share of customer
4)
Customer-managed relationship
5)
Brand value proposition
Question 18
Building and maintaining
profitable customer relationships by delivering superior customer value and
satisfaction is called ____________.
1)
customer lifetime value
2)
customer-perceived value
3)
customer relationship
management
4)
partner relationship management
5)
customer equity
Question 19
In most cases, what is the most
expensive promotion tool?
1)
Advertising
2)
Personal selling
3)
Mass media
4)
Public relations
5)
Publicity
Question 20
A marketer wanting to determine
business buyer behavior is most likely to ask which of the following questions?
1)
Are buyers sensitive toward
price changes in consumer markets?
2)
What are the major influences
on buyers?
3)
Are niche markets more
profitable than mass markets?
4)
How do interpersonal factors
affect organizational performance?
5)
Is the role of gatekeepers
relevant in the international business environment?
Random Section 11
Question 21
Which of the following is an asset
that is expected to be converted to cash, sold, or consumed during the next
year (or normal operating cycle if longer)?
1)
Long-term asset
2)
Quick liability
3)
Liquid asset
4)
Current asset
Question 22
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)?
1)
Long-term liability
2)
Quick liability
3)
Current liability
4)
Liquid liability
Question 23
Buildings, land, and equipment
would be classified as:
1)
current assets.
2)
long-term assets.
3)
fixed assets.
4)
B or C.
Question 24
Which of the following is a sunk
cost?
1)
Trade-in value of old vehicle
2)
Depreciation on new vehicle
3)
Purchase price of new vehicle
4)
Purchase price of vehicle to be
traded in
Question 25
If the sales price per unit is
$89, total fixed expenses are $456,000, and the breakeven sales in dollars is
$760,000, what is the variable expense per unit?
1)
$17.80
2)
$35.60
3)
$3.42
4)
$44.50
Question 26
A merchandiser’s purchases are
equivalent to what for a manufacturer?
1)
Cost of goods manufactured
2)
Materials inventory
3)
Cost of goods sold
4)
Work in process inventory
Question 27
Which of the following accounts
decreases with a debit?
1)
Interest payable
2)
Prepaid insurance
3)
Cash
4)
Both A and B
Question 28
The standard variable overhead
rate for Unbeatable Toys is $5. Budgeted fixed overhead is $20,000. Unbeatable
Toys’ budgeted production was 2,000 units for the current period and actual
production was 1,950. What is the production volume variance?
1)
$250 unfavorable
2)
$500 favorable
3)
$250 favorable
4)
$500 unfavorable
Question 29
Which of the following financial
statements reports an entity’s cash receipts and cash payments during the
period?
1)
The balance sheet
2)
The income statement
3)
The statement of retained
earnings
4)
The statement of cash flows
Question 30
Which of the following is not an
element of financial statements contained in the IASB’s Framework for the
Preparation of Financial Statements?
1)
Gain
2)
Income
3)
Expense
4)
Asset
Random Section 12
Question 31
Which of the following statements
is true about scarcity?
1)
Both rich and poor people face
the problem of scarcity.
2)
Scarcity exists only when
supply is insufficient to meet demand.
3)
Scarcity exists only when a
shortage exists.
4)
Scarcity can be eliminated when
a country becomes richer.
Question 32
Economic growth causes the:
1)
production possibilities curve
to shift rightward and the long-run aggregate supply curve to shift
rightward.
2)
production possibilities curve
to shift leftward and the long-run aggregate supply curve to shift
rightward.
3)
production possibilities curve
to shift rightward and the long-run aggregate supply curve to shift
leftward.
4)
production possibilities curve
to shift leftward and the long-run aggregate supply curve to shift leftward.
Question 33
Other things being equal, what is
the effect of deficit spending on interest rates?
1)
Interest rates decline.
2)
Interest rates rise.
3)
Interest rates hold constant,
because the demand for credit decreases.
4)
There is no impact unless the
Federal Reserve decides to alter the money supply.
Question 34
If nominal Gross Domestic Product
(GDP) in 2013 was $8 trillion, and the price level index was 130, then real
Gross Domestic Product (GDP) was about:
1)
$6.2 trillion.
2)
$0.062 trillion
3)
$10.4 trillion
4)
$16.25 trillion
Question 35
Suppose we observe the following
two simultaneous events in the market for beef. First, there is a decrease in
the demand for beef due to changes in consumer tastes. And second, there is a
reduction in supply due to cattle farmers selling their land to real estate
developers. We know with certainty that these two simultaneous events will
cause which of the following?
1)
No change in the equilibrium
quantity and a reduction in the equilibrium price
2)
An increase in the equilibrium
quantity and in the equilibrium price
3)
A decrease in the equilibrium
quantity and an indeterminate change in the equilibrium price
4)
A decrease in the equilibrium
quantity and an increase in the equilibrium price
Question 36
Suppose the U.S. can produce 4 tons
of food or 3 yards of cloth, while Mexico could produce 12 tons of food per
hour and 6 yards of cloth per hour. Assuming constant opportunity costs, it is
likely that:
1)
the United States will export
food.
2)
Mexico will import cloth.
3)
the United States will import
both cloth and food.
4)
Mexico will import both cloth
and food.
Question 37
Microeconomics is the study of:
1)
thebehavior of the economy as a
whole.
2)
how rising prices affect the
level of employment in the economy.
3)
how individuals and firms make
decisions.
4)
the effect that money has in
the economic system.
Question 38
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:
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.
Question 39
Refer to the above figure. Between
points f and g, the opportunity cost of producing 75 more bushels of wheat is:
1)
1 bushel of beans.
2)
4 bushels of beans.
3)
25 bushels of beans.
4)
100 bushels of beans.
Question 40
In a free market, the market price
and quantity in the below figure will adjust to equilibrium values of
:
1)
$1 per gallon and 50 million
gallons.
2)
$4 per gallon and 10 million
gallons.
3)
$2 per gallon and 60 million
gallons.
4)
$2 per gallon and 30 million
gallons.
Random Section 13
Question 41
The present value of a $1,000
perpetuity discounted at 8% is:
1)
$8,000.
2)
$12,500.
3)
$16,000.
4)
$80,000.
Question 42
A compensating balance:
1)
raises the nominal interest
rate.
2)
lowers the nominal interest
rate.
3)
raises the effective interest
rate.
4)
lowers the effective interest
rate.
Question 43
What is the present value of $100
received in one year, $200 received in two years, and $300 received in three
years if the opportunity cost is 12%?
1)
$417
2)
$462
3)
$517
4)
$562
Question 44
What is the payback period of a
$10,000 investment with cash inflows of $3,000 in one year, $5,000 in two
years, and $4,000 in three years?
1)
2 years
2)
2.5 years
3)
3 years
4)
Cannot determine without the
discount rate
Question 45
The after-tax cost of preferred
stock for a firm with a 10% before-tax cost of preferred stock and a 30%
percent marginal tax rate is:
1)
3 percent.
2)
7 percent.
3)
10 percent.
4)
13 percent.
Question 46
According to the DuPont analysis,
return on assets (ROA) consists of:
1)
gross profits x equity margin.
2)
ROE x debt ratio.
3)
profit margin x asset turnover.
4)
ROE / (1 – Debt/Assets).
Question 47
An asset with a beta coefficient
of 0:
1)
moves inversely to the market
portfolio.
2)
moves positively with the
market portfolio.
3)
earns a fixed premium above the
risk-free rate but below the market portfolio.
4)
is unrelated to the market
portfolio.
Question 48
Systematic risk is:
1)
maximized in an efficient
portfolio.
2)
economically unimportant.
3)
nondiversifiable.
4)
zero in a maximized portfolio.
Question 49
Earnings reinvested in the firm
are represented on a balance sheet by:
1)
total equity.
2)
paid-in capital.
3)
current assets.
4)
retained earnings.
Question 50
What is a bond?
1)
A short-term debt contract
2)
A long-term debt contract
3)
Common equity
4)
Preferred equity
Random Section 14
Question 51
Susan is a candidate for mayor.
Sarah tells the local newspaper that Susan is a drug addict. If the newspaper
publishes this information and it is untrue, then it is:
1)
libel.
2)
slander.
3)
intentional malice.
4)
privileged communication.
Question 52
If an offeree dies before the
offer has been accepted, the offer:
1)
may be rejected by the
surviving spouse of the offeree.
2)
may be accepted by the
surviving spouse of the offeree.
3)
is automatically revoked by the
death of the offeree.
4)
may be accepted by the guardian
appointed for any minor children of the offeree.
Question 53
Contractual capacity is the
ability to:
1)
read and write.
2)
sign a written contract.
3)
understand that a contract is
being made and to understand its general nature.
4)
understand the legal meaning of
the contract being made.
Question 54
The failure to do what is called
for by a contract is a:
1)
waiver.
2)
breach.
3)
forbearance.
4)
reservation of right.
Question 55
The Uniform Commercial Code
concerns:
1)
new goods only.
2)
used goods only.
3)
both new and used goods.
4)
none of the above.
Question 56
Which of the statements is true?
1)
A storeowner has a duty to
exercise reasonable care to protect customers.
2)
A storeowner has a duty to warn
customers against all risks in his/her store.
3)
A storeowner need not warn a
customer not to pull heavy items off high shelves.
4)
All of the above.
Question 57
Which of these are actually
contracts?
1)
Unilateral contracts
2)
Bilateral contracts
3)
Quasi contracts
4)
Both A and B
Question 58
Which of the following are torts?
1)
Slander
2)
Assault and battery
3)
Wrongful interference with
another’s business rights
4)
All of the above.
Question 59
The Parole Evidence Rule:
1)
allows no exception for oral
evidence.
2)
may prohibit the introduction
of oral evidence.
3)
never provides for a
modification of a written contract.
4)
all of the above.
Question 60
An agreement to deliver water
bottles to a customer’s home that does not indicate the duration has an
agreement that is:
1)
for a reasonable time.
2)
one delivery.
3)
not a contract.
4)
a bulk transfer.
Random Section 15
Question 61
Which of the following theorists
developed a contingency theory?
1)
Fiedler
2)
Porter
3)
McGregor
4)
Maslow
Question 62
Which of the following is one of
the major characteristics of an organization?
1)
A plan to achieve profit
2)
External support
3)
A single, defined authority
figure
4)
Rules guiding the actions of
members
5)
Specified organizational
hierarchy
Question 63
A person works for a company but
has few supervisory responsibilities and generally reports to officials higher
up within the organization. This describes which of the following?
1)
A middle manager
2)
A first-line manager
3)
A temporary worker
4)
A top manager
5)
A non-managerial employee
Question 64
What occurs during the norming
stage of group work?
1)
Frequent member conflicts
2)
Introduction of purpose
3)
Majority of actual work
4)
Creation of shared expectations
5)
Establishment of member roles
Question 65
The basic belief of the systems
approach is that:
1)
you should apply statistical
models and computer simulations to managerial activities.
2)
organizations are interrelated
interdependent parts arranged to produce a unified whole.
3)
you should reward employees
based on a fixed ratio schedule.
4)
there is “one best
way” to make an organization effective and efficient.
Question 66
For managers, communication can’t
be overemphasized, because __________ requires communication.
1)
Decision making
2)
Planning
3)
Everything a manager does
4)
Supervising and monitoring
employees
Question 67
Which shows an activity that
demonstrates value chain management?
1)
A store expands into new
markets after researching competitive trends.
2)
An office’s top manager earns a
large raise from the company’s home office.
3)
A store suggests prices
retailers should charge for what it produces.
4)
A company cancels some products
that have low profit-margins.
5)
A new type of battery that
improves product life is added to a design.
Question 68
Human resource management involves
training, motivating, and retaining competent employees.
1) True
2) False
Question 69
Which of the following is most
likely a structured problem?
1)
How to load a new program on
your computer
2)
How to prevent your computer
from crashing
3)
How to purchase the computer
that is right for you
4)
How to find the best software
for your computer
5)
How to create a blog on your computer
that is popular
Question 70
The __________ prohibits
discrimination based on race, color, religion, national origin, or sex.
1)
Privacy Act
2)
Equal Pay Act
3)
Civil Rights Act, Title VII
4)
Sarbanes-Oxley Act
Random Section 16
Question 71
Which of the following is not a
component of a Central Processing Unit (CPU)?
1)
Control unit
2)
ters
3)
Random access memory
4)
Arithmetic logic unit
Question 72
Which one of the following is not
a connecting device?
1)
Router
2)
Hub
3)
URL
4)
Switch
Question 73
What is source code?
1)
A program that produces machine
code
2)
File(s) containing statements
that provide program instructions
3)
An open source framework
4)
The object code
Question 74
Microsoft Windows7 and Apple MacOS
X are two examples of __________.
1)
application software packages
2)
operating systems
3)
utilities
4)
programming languages
Question 75
What name best describes a
semiconducting device that contains all of the components of a CPU?
1)
Microchip
2)
Microprocessor
3)
Integrated circuit
4)
Transistor
Question 76
Sandra is the production manager
at a soda manufacturer’s bottling plant. She receives a report that contains
the list of raw materials stored in the warehouse. She notices that the list
also includes items that are not present in the warehouse. The list that she
received would not qualify as good information, because it is __________.
1)
inaccurate
2)
late
3)
voluminous
4)
too narrow in scope
Question 77
A(n) __________ is a place on a
Web page that is programmed to link to other files or documents.
1)
executable file
2)
animation
3)
server
4)
hyperlink
Question 78
Mark is transferring funds online
through the website of a reputed bank. Which of the following will be displayed
in the address bar of his browser that will let him know that the bank is using
the SSL protocol?
1)
ftp
2)
www
3)
https
4)
.com
Question 79
The microprocessor’s speed is
determined by its __________.
1)
clock speed
2)
word size
3)
cache size
4)
all of the above
Question 80
A(n) __________ is a collection of
data that has a name and is stored in a computer.
1)
file
2)
archive
3)
drive
4)
object
