3 Mar 2017
BUS 475 Capstone Final Examination Part 1 Answers Sheet
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1. 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
2. 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
3. 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
4. _____ is the process of converting meaning into messages composed of words and nonverbal signals.
5. 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?
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6. 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.
7. 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
8. 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.
9. 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
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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.
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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.
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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
- 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.
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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?
- too expensive if others decide to also negotiation for compliance
- leads to future problems if people feel manipulated
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
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31. In order to summarize qualitative data, a useful tool is a____________.
- stem-and-leaf diagram
- frequency distribution
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
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36. How many parameters are needed to fully describe any normal distribution?
37. Under the regulations of interstate commerce:
- Activities affecting interstate commerce do not come under the power of the deferral government.
- Intrastate activities affecting interstate commerce can be regulated only by the state governments.
- Regulation on any activity is appropriate if it aids interstate commerce.
- The states have the exclusive power to commerce that passes that passes across their lines.
38. 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.
39. 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.
40. 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
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41. 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.
42. 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
43. Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a__________.
- marketing tunnel
- consumer market
- marketing channel
- distribution matrix
44. Your résumé should tell a story of______.
- everything you have learned and done in your previous job
- the value you can provide to a company
- Your educational accomplishments
- how you plan to improve your areas of weakness
45. A receptive developmental network is__________.
- made up of weak ties to multiple developers from a variety of social systems
- made up of numerous strong ties to developers from one social system
- made up of strong ties to several developers from four different social systems
- made up of a few weak ties from one social system
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46. What is true of the features used to judge a person’s credibility?
- Mannerisms and age are two valid features that can be used to judge a person’s credibility.
- Well-educated individuals can be highly relied upon as guides to ethical values.
- Ethnicity, gender, and accent are inapt characteristics for judging credibility.
- Individuals can accurately determine a person’s credibility based on physical characteristics.
47. Identify the statement that accurately describes the Sarbanes-Oxley Act.
- It requires business to have only company insiders as board directors.
- Unlike other Acts, its violations do not result in fines or prosecutions.
- Complying with the act saves time and money, but deteriorates efficiency.
- It was passed to promote business ethics by creating legal requirements.
48. Which of the following can be represented by a discrete random variable?
- the circumference of a randomly generated circle
- The number of defective lightbulbs in a sample of five
- The average distance achieved in a series of long jumps
- The time of a flight between Chicago and New York
49. Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:
- despite the increase in price, quantity demanded rose due to some other factors changing.
- this situation has nothing to do with the law of demand.
- the demand for a college education is positively sloped.
- the law of demand is invalid.
50. Frequent, abusive, threatening phone calls by creditors are most likely to provoke the basis for a claim of _____________.
- malicious representation
- intentional infliction of emotional distress
- false imprisonment and malicious prosecution
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