Indicate Whether the Sentence Or Statement Is True Or False

Final Exam

True/False Indicate whether the sentence or statement is true or false.

____ 1. The Federal Reserve System serves member banks by accepting their deposits, lending individuals money, clearing checks and providing other services. ____ 2. All banks belong to the Federal Reserve System. ____ 3. Outstanding checks are those written for over $100. ____ 4. The first step in marketing research is to develop a data collection procedure. ____ 5. When consumers increase their borrowing, interest rates tend to decline. ____ 6. The NC Ports Authority located in Wilmington is an example of a free-trade zone. ____ 7. Some goods would cost more and possibly be unavailable is a disadvantage for widely importing goods. ____ 8. The Cuban cigar is an example of a good that is being embargoed. ____ 9. Global or multinational companies operate in several countries. ____ 10. An advantage of a sole proprietorship is that you have limited capital. ____ 11. A shareholder has one vote per share. ____ 12. An informal trade barrier is created by government actions.

Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

____ 13. Jack is skeptical about allowing other people to keep his money. He will use a local check-cashing outlet to cash his checks and file his income tax. This is an example of which type of financial institution?

a. Depository c. Non-depository b. Mortgage company d. Pawnshop ____ 14. RBC Centura Bank invests over $1 million dollars for Todd. Which type of services of financial institutions is being provided?

a. Lending services c. Payment services b. Trust management d. Storing valuables ____ 15. Micky’s Appliance Store accepts checks that banks draw on its own funds. This is an example of which type of payment services?

a. Cashier’s check c. Electronic b. Certified check d. Money order ____ 16. Tami projected from where funds would come to operate her business until a profit is made. This is an example of what kind of financial planning? a. Expansion c. Operation b. Personal d. Start-up ____ 17. BP Gas Station offers a combo meal for $3.29 at its locations within five miles of fast food restaurants. Which step of the marketing strategy have they performed?

a. Create a marketing mix c. Identify a marketing mix b. Create a target market d. Identify a target market ____ 18. Linda searched the Internet for reviews on a new cosmetic product. This is an example of which type of consumer information source?

a. Media c. Government Agencies b. Product Testing Organization d. Business Sources ____ 19. Joe wanted specific advice on a new bike, so he visited a local bike shop. This is an example of which type of store?

a. Department c. Specialty Retailer b. Convenience d. Mail Order ____ 20. The financial institution most likely to charge the highest rate for a loan would be a:

a. bank c. pawnshop b. credit union d. mortgage company ____ 21. If deposit insurance is most important to you when selecting a financial institution, you are most concerned with:

a. safety c. convenience b. services d. fees ____ 22. What type of checking account usually requires the highest balance to be kept on deposit?

a. an activity account c. a regular account b. a share-draft account d. an interest-earning account ____ 23. The first document that must be completed when opening a checking account is the:

a. deposit slip c. check register b. reconciliation statement d. signature card ____ 24. A personal check with guaranteed payment is a

a. cashier’s check c. certified check b. money order d. traveler’s check ____ 25. A fee that a bank charges for handling a checking account is:

a. service charge c. trust management b. safe-deposit box d. electronic banking ____ 26. All of the following are elements of a check EXCEPT:

a. Payee c. Check Number b. Drawer Account Number d. Check Register ____ 27. Mary, a marketing research manager, is fortunate to have secured an advertising budget of $30,000. This is an example of which marketing function? a. Distribution c. Pricing b. Financing d. Selling ____ 28. Which is an EXAMPLE of personalized promotion?

a. Beck presented a seminar to 3000 c. Mary test drove several SUV’s at the people to promote hand-held Infiniti dealership. computers. b. Jade’s company posted flyers for d. Whole Foods Company sponsored a guest to see about her detox program. health fair.

____ 29. The two steps in a marketing strategy are:

a. Developing a product and promoting it c. Conducting marketing research and to consumers. planning production. b. Identifying a target market and d. Pricing a product and distributing it to developing a marketing mix. customers. ____ 30. Which of the following is an example of a rational buying motive?

a. Love c. Fear b. Economy d. Self-Image ____ 31. When businesses specialize in producing a specific type of product, a channel of distribution will be needed to adjust differences in

a. timing c. location b. assortment d. quantity ____ 32. Depression is BEST defined as:

a. A phase in the business cycle that is c. A period in the business cycle where marked by an extended period of high demand begins to decrease. unemployment, a decline in the sales of goods and services, and business failures. b. A period in the business cycle where d. The peak of the business cycle, where demand begins to increase. the demand for goods and services is high. ____ 33. The business cycle is BEST defined as:

a. An increase in the cost of goods and c. Movement of an economy from one services. condition to another. b. A period in the business cycle where d. Changes in the average prices of demand begins to increase. goods and services purchased by consumers over a period of time. ____ 34. A phase in the business cycle that is marked by an extended period of high unemployment, a decline in the sales of goods and services, and business failures is called:

a. Depression c. Recession b. Prosperity d. Recovery ____ 35. Businesses that change natural materials [raw goods] into a more finished form for manufacturers to process further are called: a. Distributors c. Processors b. Manufacturers d. Retailers ____ 36. Changes in the average prices of goods and services purchased by consumers over a period of time are shown in:

a. Standard of living charts c. Consumer Price Index b. Gross Domestic Product {GDP} d. Unemployment figures ____ 37. Paper mills, oil refineries, steel mills and flour mills are examples of what type of business?

a. Distributors c. Processors b. Manufacturers d. Service Firms ____ 38. A business that sells directly to the consumer is called a:

a. Manufacturer c. Retailer b. Producer d. Wholesaler ____ 39. The peak of the business cycle where the demand for goods and services is high is:

a. Depression c. Recession b. Prosperity d. Recovery ____ 40. Which is NOT an example of a processor?

a. Furniture store c. Oil refinery b. Paper mill d. Steel mill ____ 41. The initiative to combine natural, human and capital resources to produce goods or services is an example of what kind of resources?

a. Capital c. Entrepreneurial b. Human d. Natural ____ 42. A person who purchases and uses goods and services is called a:

a. Consumer c. Loser b. Citizen d. Worker ____ 43. The greatest proportion of consumer income is spent on:

a. Clothing c. Shelter b. Food d. Lottery tickets ____ 44. People who contribute physical and mental energy to the production process are called:

a. capital resources c. human resources b. entrepreneurial resources d. natural resources ____ 45. An economy in which people do things the way they have always been done is called:

a. capitalism c. socialism b. communism d. traditionalism ____ 46. Susan set a goal to make a 95 on her accounting exam. What kind of goal is this?

a. short-term c. long-term b. intermediate d. lifetime ____ 47. Desirable beliefs and principles are called:

a. decisions c. resources b. goals d. values ____ 48. Eddie’s Bakery makes cakes as well as other baked goods. Which economic question does this address?

a. what to produce? c. for whom to produce? b. how to produce? d. when to produce? ____ 49. The state department collects monthly reports of total sales from all newspaper companies in North Carolina. This information would be useful for which measurement of economic activities?

a. borrowing c. investment activities b. consumer spending d. labor activities ____ 50. A report about the economy reveals a decreasing unemployment rate, consumer buying of goods and services is increasing significantly, and the GDP is rising. Which business cycle does this report cover?

a. depression c. recession b. prosperity d. recovery ____ 51. Which of the following would an economist most likely classify as a need?

a. gasoline c. a television b. a high school diploma d. a part-time job to earn extra money ____ 52. An example of a natural resource is:

a. sunlight c. a computer programmer b. a fishing net d. money ____ 53. John has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is

a. the rest he is getting c. the wage from his part-time job b. the score he will earn on the math d. all of the above exam ____ 54. Which of the following addresses the economic question of how to produce?

a. growing corn instead of potatoes c. producing more capital goods and fewer consumer products b. requiring individuals to work in a d. selling natural resources to other particular career countries ____ 55. In which of the following economic systems is the government’s role most limited?

a. mixed c. traditional b. market d. communism ____ 56. The primary reason business owners make investments and take risks is to

a. make a profit c. develop new products b. satisfy customer needs d. make their own decisions ____ 57. A system in which resources are owned and controlled by the government.

a. command economy c. traditional economy b. capitalism d. market economy ____ 58. Equity refers to

a. reduced spending by government c. borrowing to finance a capital project b. ownership in a company or other asset d. increased government taxes ____ 59. Which of the following would most likely cause a budget surplus for government?

a. higher spending c. higher borrowing b. lower spending d. lower taxes ____ 60. Government spends more than it takes in is known as:

a. deflation c. budget deficit b. capital project d. budget surplus ____ 61. An example of foreign currency would be:

a. skittles c. Euro b. M&M’s [peanut] d. dollar ____ 62. Having 4 major airports is an example of which comparative factor?

a. geography c. culture b. economics d. political-legal ____ 63. A diverse and skilled workforce in the areas of financial services, information technology, and education is an example of which factor?

a. geography c. culture b. economics d. political-legal ____ 64. NC has several sports venues such as football, hockey, basketball and baseball teams, this is an example of which factor?

a. geography c. culture b. economics d. political-legal ____ 65. Scenario: Company A produces 8 cars per worker per year.

Which of the companies listed below has an absolute advantage?

a. BMW produces 7 cars per worker per c. Chrysler produces 8 cars per worker year per year b. Ford produces 9 cars per worker per d. Hyundai produces 15 cars per worker year per year. ____ 66. Scenario: Which country below has a comparative advantage to Company A who produces 75 units of beef per worker per hour?

Company C, 30 units of beef per worker per hour Company B, 80 units of beef per worker per hour Company D, 100 units of beef per worker per hour a. none of the above c. Company B b. Company C d. Company D ____ 67. All of the following are possible advantages for importing goods EXCEPT:

a. the goods could have cost less that are c. a better quality of good may have been imported imported and purchased b. the goods might not otherwise be available d. the goods imported from other countries for purchase if not imported might cost local jobs. ____ 68. Scenario: John who lives in the US traveled to Russia and spent $2,400. Barishnakovsky who lives in Russia travels to the US and spends $5,300.

Which is a true statement above the above scenario? a. balance of payment is favorable for c. balance of payment is favorable for Canada Russia b. balance of payment is favorable for d. there is no favorable balance of the US payment ____ 69. If France received more money for its goods and services than it paid out, this is an example of which factor that influences international currency exchange?

a. balance of payments c. economic conditions b. balance of trade d. political stability ____ 70. Iran raised the prices of imported oil in order to increase the trade of their own oil in their nation. This is an example of which international trade barrier?

a. embargoes c. quota b. free-trade zones d. tariffs ____ 71. An organization provides Thailand funds to rebuild its transportation network. This action is an example of which international trade organization?

a. International Money Fund c. World Bank b. Joint Venture d. World Trade Organization ____ 72. All of the following are the main international trade organizations EXCEPT:

a. International Money Fund c. Bank of America b. the World Bank d. World Trade Organization ____ 73. All of the following are the main entry modes for businesses to enter the global marketplace EXCEPT:

a. franchising c. joint venture b. licensing d. copyright infringement ____ 74. Joan made sure all employees were careful while they were filling the new display case. This is an example of which function of management?

a. controlling c. organizing b. implementing d. planning ____ 75. Becky solicited input from Pat, who is one of her employees, about components for a new marketing campaign. This is an example of which style of management?

a. mixed c. tactical b. strategic d. varied ____ 76. George stated precisely the content required for the upcoming marketing campaign to his employees. This is an example of which style of leadership?

a. autocratic c. laissez-faire b. democratic d. objective ____ 77. Donna processes at least 30 applications a day that are faxed, mailed, or emailed. Which human resources manager activity does she perform?

a. managing compensation methods c. planning and staffing b. managing performance of employees d. recruiting and hiring ____ 78. The John A. Roebling Sons Co. produced the cable specifically for the Golden Gate Bridge located in San Francisco. Which type of manufacturing procedure was performed?

a. custom manufacturing c. mass production b. extraction d. materials processing ____ 79. Which is an EXAMPLE of product development?

a. installing a plastic mold c. repairing six laptops b. keeping detail records of banking d. studying new designs for an interior of transactions an automobile ____ 80. John purchased twenty new bar stools for his restaurant. This is an example of which type of business operation?

a. facilities management c. safety and security b. logistics d. scheduling ____ 81. The manager of Bennie’s Community Store buys products that will be sold to local customers from an online distribution company. This is an example of what type of technology application?

a. artificial intelligence c. e-commerce b. computer-aided design d. telecommuting ____ 82. Donna processed reports on her computer that will allow her to determine which employees make the top salaries. This is an example of what type of technology application?

a. artificial intelligence c. robotics b. management information system d. telecommuting ____ 83. Amy had her computer station adjusted so that she would be comfortable while completing challenging tasks for long periods of time. This is an example of what type of concern for using technology?

a. employment trends c. health b. computer crime d. privacy ____ 84. An investment company offers yoga and other similar activities at its work site during lunch. Which social responsiblity is this company addressing?

a. employee wellness c. job safety b. environmental protection d. workplace diversity ____ 85. Which is an example of practicing business ethics? Auto Mart Inc. a. mailed defective parts to several c. refused to credit a customer’s account customers after she complained about their services b. provided a remedy for defected parts d. sends refunds to some of its deserving customers ____ 86. Marie agreed to buy 10 dresses from a local warehouse. The warehouse owner only delivered nine dresses, but insisted that Marie pay for 10. Which protection does Marie need?

a. contract enforcement c. intellectual property b. environmental protection d. safe work environment ____ 87. McCracken Heating Oil Company makes sure that it remains within regulated price range for its product. Which government regulation is being addressed?

a. Purchase of goods c. promotion of fair competition b. employment of workers d. regulation of practices of utility companies ____ 88. The state department collects monthly reports of total sales from all newspaper companies in North Carolina. This information would be useful for which measurement of economic activities?

a. borrowing c. investment activities b. consumer spending d. labor activities ____ 89. Iran raised the prices of imported oil in order to increase the trade of their own oil in their nation. This is an example of which international trade barrier?

a. embargoes c. quota b. free-trade zones d. tariffs ____ 90. Many countries have obtained the rights to sell music and collectibles of entertainers. This is an example of which global marketplace main entry mode?

a. Chain c. Joint venture b. Franchising d. Licensing ____ 91. A company sold 500 shares of stock and still relies on a central body of people for financial directions. This is an example of what type of business?

a. cooperative c. partnership b. corporation d. sole proprietorship ____ 92. Joe invested $500,000 into his sole proprietorship. He lost a $1 million lawsuit and does not have any liability insurance. As a result of the lawsuit, how much will he have to pay?

a. $0 c. $750,000 b. $500,000 d. $1,000,000 ____ 93. Wendy is free of obligation of a role in her business and is an unknown partner, but she collects some of the profits each month. This is an example of what type of partner?

a. dormant c. silent b. limited d. secret ____ 94. Mary works alone in her catering business and enjoys scheduling her daily routine. She is experiencing which advantage of a sole proprietorship over a corporation? a. owner control of decisions c. owner recipient of 100% of the profit b. owner limited life d. owner unlimited liability ____ 95. International Trade Organizations assist multinational companies with global trading. The areas of assistance provided are in regulation, economics, and finance. The main organizations are:

a. International Monetary Fund c. World Trade Organization b. World Bank d. Walmart ____ 96. Scenario: Mary Jones operates her own staffing agency. Mary has about 30 steady employers that request her services to send temporary workers for various jobs. She handles all the financial, advertising, operations, and management issues for the agency. Mary used a gift of $10,000 from her grandmother to start the agency. She would like to expand the agency. She uses all her profit to sustain her personal living arrangements.

After seven days of constant rain, Mary realized soon after the rainy days that water is leaking from several places of the roof. She is planning to borrow money to have the roof repaired.

Question: In the scenario above, the $10,000 from her grandmother is:

a. owner c. source of investment b. advantage d. miscellaneous information ____ 97. Which of the following would not be included in GDP?

a. exports to other countries c. automobiles purchased b. purchases of computers by d. dinner preparation for your family government ____ 98. Productivity would likely increase as a result of:

a. higher taxes c. decreased training programs b. expanded production technology d. lower government spending ____ 99. Which of the following would be an example of international business?

a. a farmer in Iowa using U.S. produced c. a restaurant in Chicago offering Asian equipment menu items. b. a sales staff in South Carolina d. a retail store in Oregon selling craft representing a foreign producer. items from local artists. ____ 100. When a country’s imports exceed its exports, this is a trade

a. surplus c. exchange b. deficit d. balance Final Exam Answer Section

TRUE/FALSE

1. ANS: F 2. ANS: F 3. ANS: F 4. ANS: F 5. ANS: F 6. ANS: T 7. ANS: T 8. ANS: T 9. ANS: T 10. ANS: F 11. ANS: T 12. ANS: F

MULTIPLE CHOICE

13. ANS: C 14. ANS: B 15. ANS: A 16. ANS: D 17. ANS: A 18. ANS: A 19. ANS: C 20. ANS: B 21. ANS: A 22. ANS: D 23. ANS: D 24. ANS: C 25. ANS: A 26. ANS: D 27. ANS: B 28. ANS: C 29. ANS: B 30. ANS: B 31. ANS: B 32. ANS: A 33. ANS: C 34. ANS: A 35. ANS: C 36. ANS: C 37. ANS: C 38. ANS: C 39. ANS: B 40. ANS: A 41. ANS: C 42. ANS: A 43. ANS: C 44. ANS: C 45. ANS: D 46. ANS: A 47. ANS: D 48. ANS: A 49. ANS: B 50. ANS: D 51. ANS: A 52. ANS: A 53. ANS: B 54. ANS: B 55. ANS: B 56. ANS: A 57. ANS: A 58. ANS: B 59. ANS: B 60. ANS: C 61. ANS: C 62. ANS: A 63. ANS: B 64. ANS: C 65. ANS: D 66. ANS: C 67. ANS: D 68. ANS: B 69. ANS: A 70. ANS: D 71. ANS: C 72. ANS: C 73. ANS: D 74. ANS: B 75. ANS: B 76. ANS: A 77. ANS: D 78. ANS: A 79. ANS: D 80. ANS: A 81. ANS: C 82. ANS: B 83. ANS: C 84. ANS: A 85. ANS: B 86. ANS: A 87. ANS: C 88. ANS: B 89. ANS: D 90. ANS: D 91. ANS: B 92. ANS: D 93. ANS: A 94. ANS: A 95. ANS: D 96. ANS: C 97. ANS: D 98. ANS: B 99. ANS: B 100. ANS: B