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BUS 475 Capstone Final Examination Part 1

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BUS 475 Capstone Final Examination Part 1

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01. Article 6 of the Treaty on European Union, called the Maastricht Treaty,
states the EU is “founded” on:

 specific performance
 stare decisis
 private markets
 rule of law

02.Which of the following is the path through which contractionary
monetary policy works?

 Money down implies interest rate up implies investment up implies
income down

 Money down implies interest rate up implies investment down
implies income down

 Money down implies interest rate down implies investment down
implies income down

 Money down implies interest rate down implies investment up
implies income down

03.Marketing research refers to__________.

 the use of information technology to find objective solutions to a
marketing problem

 the process of systematically collecting and analyzing information in
order to define a marketing problem

 the process of defining a marketing problem and opportunity,
systematically collecting and analyzing information, and
recommending actions

 the science of using observable human behavior in order to identify
and solve marketing problems

04. _____ is the process of converting meaning into messages composed of
words and nonverbal signals.

 Translating
 Decoding
 Encoding
 Filtering

05.Sam, a marketing manager, often makes ethical decisions based on what
others feel about those decisions. He often considers opinions from other
managers and employees. Which of the following ethical systems do Sam’s
decisions follow?

 Consequentialism
 Utilitarianism
 Relativism
 Egoism

06.The depreciation of currency will:

 improve a country’s comparative advantage.

 worsen a country’s comparative advantage.
 balance a trade surplus.
 have no impact on a country’s comparative advantage.

07.Which of the following is typically included in the drafting stage of
writing an effective business message?

 Setting a positive and other-oriented tone
 Sending the message to be proofread
 Double-checking everything
 Identifying the primary message and key points

08.If a population is known to be normally distributed, what can be said of
the sample distribution of the sample mean drawn from this population?

 For a sample size n < 30, the sampling distribution of the sample
mean is normally distributed.

 For a sample size n > 30, the sampling distribution of the sample
mean is normally distributed.

 For any sample size n, the sampling distribution of the sample mean
is normally distributed.

 For a sample size n < 50, the sampling distribution of the sample
mean is normally distributed.

09.Marketing refers to__________.

 the activity for creating, communicating, delivering, and exchanging
offerings that benefit its customers, the organization, its
stakeholders, and society at large

 the process of identifying target market segments for a product or
service

 the activity involved in getting a product or service from the
manufacturer to ultimate consumers and organizational buyers

 the production of products or services that will generate the highest
return on investment

10. Lori is using secondary research to develop a business report. How can
she write her report in a way that demonstrates originality in thought?

 Cite all her research sources
 Use the most current documentation guidelines
 Generate her own conclusions and recommendations
 Adopt a methodical approach to decision making

11.Annie, an employee who often attributes her team failures to bad luck,
attributes other teams’ failures to personal shortcomings. Which of the
following cognitive biases do Annie’s attributions exemplify?

 Self-deception bias
 Belief bias
 In-group bias
 Hindsight bias

12.When does the straw man fallacy occur?
 When a person tries to disprove a claim based on its source.
 When a person falsifies or overstates an adversary’s position.
 When a person considers only 2 alternatives even when other
options are available.
 When a decision maker dismisses an alternative that fails to solve the
issue completely.

13.Which of the following types of unemployment is considered to be the
most controllable through demand-side macroeconomic policy?

 Cyclical unemployment

 Natural unemployment
 Structural unemployment
 Frictional unemployment

14.Microeconomics and macroeconomics are:

 Interrelated because both are often taught by the same instructors
 Interrelated because what happens in the economy as a whole is

based on individual decisions
 Virtually identical, though one is much more difficult than the other
 Not related because they are taught separately

15.Federal law and business leaders alike favor ____________ as a means of
governing private business ethics.

 Self-regulation by companies
 Establishment of federal regulators in all private companies to

establish and enforce ethical standards.
 Giving the federal government exclusive jurisdiction regarding ethics

and ethics violation enforcement.
 Creating uniform statutes of business ethics.

16.Which of the following statements is true of the WARN Act?

 It requires employers to give notice to an “at will” employee that
he/she is being fired.

 It requires employers to give notice of a scheduled mass layoff.
 It requires employers to give notice to employees that they are being

subjected to polygraph tests.
 It requires employers to give notice to employees that an

unscheduled drug test will be conducted for all employees.

17.Alex is playing his music at full volume in his dorm room. The other
people living on his floor found this to be a nuisance, but Alex doesn’t care.
Alex’s music playing is an example of:

 positive externality
 normative externality
 negative externality
 Pareto externality

18.According to the Ajzen model, the strongest predictor of an employee’s
behavior is/are__________.

 social norms
 the employee’s values
 the employee’s attitudes
 the employee’s intentions

19.The interdisciplinary field dedicated to understanding and managing
people at work is called:

 management dynamics
 management theory
 organizational behavior
 organizational dynamics

20.Regarding using personality testing as part of the hiring process, experts
have concluded that:

 There are many valid instruments available to managers to test for
personality types.

 Only the Big Five should be used as predictors of job performance.
 The typical personality test is not a valid predictor of job

performance.

 The effects of personality on job performance are so large it cannot
be ignored by managers.

21.In the context of developing persuasive messages, which of the
following is most likely to help you demonstrate a voice of competence?

 focusing only on logical appeals
 using only emotional appeals in your persuasive messages
 developing strong ideas in the interest of your audience
 adopting the tone of mass advertising such as over-the-top appeals

22.Identify an example of spontaneous creativity.
 Settling a disagreement quickly in a simple way.
 Modifying the strategies and procedures of a group.
 Establishing win-win relationships with other people.
 Organizing annual meetings and get-togethers innovatively.

23.Which of the following is useful advice on conducting business across
cultures with those who have limited English ability?

 Speak at your normal, regular pace instead of speaking slowly as this
may be viewed as disrespectful.

 Determine a person's level of communication proficiency within the
first few moments of your interactions with them.

 Use slang and jargon instead of literal language as much as possible.
 Allow those with limited English ability enough time to process their

thoughts into English.

24.Joyce finds that the members of the project team to which she has been
assignment in her management class are all athletes on the college’s
football and basketball teams. She immediately considers dropping the

class because she thinks her experience with that team will be negative.
Joyce is likely reacting to a__________.

 semantic memory
 negativity bias
 stereotype
 self-serving bias

25.According to the Classical growth model, an economy that increases its
saving will grow:

 Quickly since the increase in saving will permit more rapid
technological progress.

 Slowly because interest rates will fall, causing investment to decline.
 Slowly because consumption and aggregate demand will be reduced.
 Quickly since the increase in saving will permit greater investment.

26.A 911 emergency response service needs operators who are bilingual in
English and Spanish. A few applicants of Spanish origin are rejected due to
poor English-speaking skills. They file a complaint on the grounds of
discrimination based on nationality. Their complaint is squashed. Here, the
defense of the federal government is on the grounds of:

 Circumstantial evidence
 Inculpatory evidence
 Exclusionary rule
 Bona fide occupational qualifications

27.The distinction between flexible and fixed individual
differences__________.

 is that managers should hire people based on their attitudes and
emotions

 is that managers have little or no impact on fixed differences

 has no practical value for managers
 is that managers have little or no impact on flexible differences

28.Advertising, personal selling, sales promotion, public relations, and
direct marketing are marketing communications alternatives that make up
a firm’s __________.

 promotional mix
 communication source
 marketing mix
 media strategy

29.What is the main drawback to the Negotiation & Agreement strategy for
overcoming resistance to change?

 ineffective
 too expensive if others decide to also negotiation for compliance
 leads to future problems if people feel manipulated
 time-consuming

30.In order to focus your presentation on people, you should______.
 avoid using presentation software or other technology
 use a lot of "I" statements
 make individuals and groups the subject of your sentences
 include as many photographs as possible in your slides

31.In order to summarize qualitative data, a useful tool is a____________.
 scattergram
 stem-and-leaf diagram
 frequency distribution
 histogram

32.The product life cycle refers to __________.

 a concept that describes the stages a product goes through in the
marketplace — introduction, growth, maturity, and decline

 the average life span of a product
 a concept that describes the stages a product goes through in the

marketplace—early growth, accelerated development, maturity, and
decline
 a concept that describes the stages a new product goes through from
product concept to commercialization

33.The study of similarities and differences among consumers in two or
more nations or societies is referred to as __________.

 cross-cultural analysis
 international sociographics
 market synthesis
 transnational anthropology

34.Other things held constant in a competitive labor market, if workers
negotiate a contract in which the employer agrees to pay an hourly wage of
$17.85 while the market equilibrium hour rate is $16.50, the:

 Quantity of workers supplied will exceed the quantity of workers
demanded.

 Quantity of workers demanded will exceed the quantity of workers
supplied.

 Supply of labor will decrease until the equilibrium wage rate is
$17.85.

 Demand for labor will increase until the equilibrium wage rate is
$17.85.

35.In which of the following situations is a budget surplus most likely to
occur?

 When fiscal policy is expansionary and the economy is contracting
 When fiscal policy is contractionary and the economy is expanding
 When fiscal policy is expansionary
 When the economy is contracting

36.Fred takes Betty to dinner at a very expensive and exclusive restaurant.
The menu does not mention prices. The server takes their order, and both
Betty and Fred enjoyed the meal immensely. When the bill comes, Fred
refuses to pay because the menu had no prices and because he and the
server never engaged in language indicating an offer and acceptance. The
server said, “Are you ready to order?” and when Fred said “Yes,” the server
merely asked, “What may I get you tonight?”

 Fred must pay based on a promissory estoppel theory.
 Fred must pay based on expressed contract theory.
 Fred is correct because no contract was formed.
 Fred must pay based on an implied-in-fact contract theory.

37.A monopoly firm is different from a perfectly competitive firm in that:

 A monopolist’s demand curve is perfectly inelastic whereas a
perfectly competitive firm’s demand curve is perfectly elastic.

 A monopolist can influence market price whereas a perfectly
competitive firm cannot.

 A competitive firm has a u-shaped average cost curve whereas a
monopolist does not.

 There are many substitutes for a monopolist’s product whereas there
are no substitutes for a competitive firm’s product.

38.When two regression models applied on the same data set have the
same response variable but a different number of explanatory variables,
the model that would evidently provide the better fit is the one with
a__________.

 higher coefficient of determination and a lower adjusted coefficient
of determination

 lower standard error of the estimate and a higher adjusted coefficient
of determination

 higher standard of error of the estimate and a higher coefficient of
determination

 lower standard error of the estimate and a higher coefficient of
determination

39.Suppose farmers can use their land to grown either wheat or corn. The
law of supply predicts that an increase in the market price of wheat will
cause:

 farmers to lower the production of corn and wheat.
 farmers to substitute wheat for the production of corn.
 farmers to substitute corn for the production of wheat.
 farmers to raise the production of corn and wheat.

40.The DeBeers company is a profit-maximizing monopolist that exercises
monopoly power in the distribution of diamonds. If the company earns
positive economic profits this year, the price of diamonds will:

 Be equal to the average total cost of diamonds.
 Exceed the marginal cost of diamonds but equal to the average total

cost of diamonds.
 Be equal to the marginal cost of diamonds.
 Exceed both the marginal cost and the average total cost of diamonds

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