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GB101 S07 Practice Exam for Students – Posted April 3rd,

GB101 S07 Practice Exam for Students – Posted April 3rd,

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GB101 S07 Practice Exam for Students – Posted April 3
rd
, 2007
GB101 SPRING 2007 PRACTICE EXAM
The final exam will consist of 
100
questions, of which 80% will be drawn from thepractice exam. The other 20% will be additional questions. All questions relate to thetext book readings and the stated learning objectives in the student study guide.
All questions are either true/false or multiple choice.
All Spring 2007 GB101 students will write the exam Saturday May 5
th
, 2007 at9am.
Room assignments and exam policies will be emailed and posted on theBlackboard site.
AND YOU MIGHT BE INTERESTED TO KNOW THAT…
Students who access the practice exam within the first 24 hoursof it being posted seem to score a significantly higher grade ontheir final exam. Similarly, students who access the practiceexam at all seem to score significantly higher than thosestudents who never use the practice exam.
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GB101 S07 Practice Exam for Students – Posted April 3
rd
, 2007
PRACTICE EXAM QUESTIONS
Origin: Chapter 20 Securities Markets1.Government employees represent institutional investors.A)TrueB)FalseOrigin: Chapter 20 Securities Markets2.As interest rates increase, bond prices fall.A)TrueB)FalseOrigin: Chapter 1 Managing Within the Dynamic...,3.John earns the same amount of money this year as he did last year. Thus, hisstandard of living must be the same as it was last year.A)TrueB)FalseOrigin: Chapter 5 Forms of Business Ownership,4.Ellen wants to start a business. She is leaning toward setting up her companyas a sole proprietorship, but she is also looking at other possibilities. Ellen hastwo major goals. First, given her limited personal wealth and eagerness to getstarted, she wants to get her business up and running with the least possiblehassle and expense. Second, she wants to minimize her personal risk in theevent that her company experiences difficulties. If Ellen chooses a soleproprietorship, she would:A)be able to achieve both goals since this form of ownership is both theeasiest to form and the least risky.B)meet her first goal since sole proprietorships are easy and inexpensive toform. However, she would expose herself to a high level of personal riskbecause owners of sole proprietorships have unlimited liability.C)not achieve either goal since proprietorships are both costly to set up andsubject to unlimited liability.D)achieve her second goal, since the owners of sole proprietorships arelegally protected from losing more than the amount they invest in their company. However, she would find that the start-up costs would be higher than if she had incorporated her business.Origin: Chapter 3 Competing in Global Markets,5.The European Union is an example of a common market.A)TrueB)FalseOrigin: Chapter 13 Marketing6.A key element of customer relationship management is to:A)keep the price of goods as low as possible.
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GB101 S07 Practice Exam for Students – Posted April 3
rd
, 2007
B)develop a strategy to achieve the largest possible market share.C)allow customers to participate in the management of the firm.D)learn as much as possible about customers.Origin: Chapter 14 Developing and Pricing...,7.Budd's Floral Shoppe is located in a large town that has several other florists.The owner, Rose Budd, is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock bottomprices.A)TrueB)FalseOrigin: Chapter 3 Competing in Global Markets8.All of the following are advantages of free trade except:A)Free trade helps keep interest rates high.B)The global market consists of over 6 billion potential customers.C)Global competition helps to keep prices down.D)Productivity increases in areas of comparative advantage.Origin: Chapter 9 Producing World-Class Goods...,9.A production process characterized by long production runs to turn out finishedgoods over time is known as a(n):A)assembly process.B)continuous process.C)extended process.D)unrestricted process.Origin: Chapter 20 Securities Markets,10.When possible, businesses prefer to meet their long-term funding by:A)selling common stock.B)issuing preferred stock.C)issuing bonds.D)using retained earnings.Origin: Chapter 1 Managing Within the Dynamic...,11.If they wish to create more wealth, poor nations should focus on policies thatincrease entrepreneurship and the effective use of knowledge.A)TrueB)FalseOrigin: Chapter 7 Management, Leadership, and...,12.When managers determine that an organization is not making sufficientprogress toward achieving its goals and objectives and develop correctivemeasures, they are involved in:A)controlling.B)planning.C)directing.D)accounting.
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