October University for Modern Sciences & Arts

Final Exam

Faculty Management Sciences

Module Code BUS 102
Module Title Introduction to Business
Semester Fall 2019
Time Allowed 180 minutes
Total Mark 100 marks
No. of Pages 5
Material provided
Equipment permitted
Additional Instructions

No books, paper or electronic devices are permitted to be brought into the examination
room other than those specified above.

Form A

1|Page
 October University for Modern Sciences & Arts (MSA)
Faculty of Management Sciences
Module Title: Introduction to Business Module Code: BUS 102
Final Exam – Fall 2019 Time allowed: 180 minutes

Answer the questions of the following sections (Total marks: 100)

Section One: Correct all of the following statements (30 marks)
1. Debt Capital is money acquired from within the firm or through the sale of ownership in the
firm.
2. The stockholder in a corporation has unlimited liability whereas the general partner in a
partnership has a limited liability.
3. Abraham Maslow classified the need to feel secure at work as Self-Esteem Needs.
4. The marketing concept has three parts: (1) customer orientation, (2) effectiveness orientation,
and (3) efficiency orientation.
5. Elton Mayo is the father of scientific management.
6. B2B sales are made through the use of middlemen.
7. One of the advantages of a corporation is its double taxation.
8. Pledging means that inventory is used as collateral.
9. During 1998-2007, Daimler-Benz in Germany and Chrysler Corporation in USA signed a merger
contract to form DaimlerChrysler Company. In the past, they were competitors in the car market.
However, they later decided to merge. The merger resulted in a new firm with more financial
resources and a bigger market share. This merger was an example of a conglomerate merger.
10. Nagwa has just successfully completed a very challenging assignment given to her by her
supervisor at work. The feeling of accomplishment and satisfaction Nagwa experiences as the
result of her success is an example of an extrinsic reward.
11. If a customer is offered the terms of sale of “4/20, net 40”. This means that the customer can
receive a 20 percent discount by making full payment within 4 days of the billing date.
12. Marketing is defined as a function in a business that is responsible for acquiring funds for the
business and managing those funds.
13. A merger occurs when one company buys another company with all its debts.
14. Inability to attract qualified employees is one of the most common ways for a firm to fail
financially.
15. Frank and Lillian Gilbreth developed the Hawthorne Studies.

Section Two: Answer only 20 of the following multiple choice questions (40 marks)
1. __________ financing must be repaid within one year.
A) Short-term
B) Asset
C) Liability
D) Long-term
2. Ashraf is a professional house painter. During busy periods, he often hires college students as
helpers on his jobs. He tells his helpers that he knows the most efficient way to paint a house and
he expects them to follow his instructions exactly. Ashraf’s approach follows the ideas of _____.
A) Peter Drucker
B) Frederick Herzberg
C) William Ouchi
D) Frederick Taylor

2|Page
 October University for Modern Sciences & Arts (MSA)
Faculty of Management Sciences
Module Title: Introduction to Business Module Code: BUS 102
Final Exam – Fall 2019 Time allowed: 180 minutes

3. Which of the following describes a process in which marketers present an accurate description of
a new product to potential customers and ask if they find the idea appealing?
A) Prototype testing
B) Concept testing
C) Test marketing
D) Competitive benchmarking
4. __________ is a source of short-term funding in the form of loans that are not backed by
collateral and it is the most difficult to get except for highly regarded customers.
A) Bonds
B) Unsecured loans
C) Secured loans
D) Equity financing
5. An attempt by employees, management, or a group of investors to purchase an organization
primarily through borrowing is called __________.
A) Horizontal merger
B) Arbitrage agreement
C) Leveraged buyout
D) Factoring
6. The __________ prepares the financial statements of the firm.
A) Accountant
B) Financial manager
C) Marketer
D) Production manager
7. The Hawthorne Studies results encouraged researchers to study __________.
A) Gantt charts
B) Human motivation
C) Time motion studies
D) The one best way
8. Treating people as machines is considered to be a disadvantage of __________.
A) Scientific management
B) Maslow’s hierarchy of needs
C) Theory Y
D) Total quality management
9. Business-to-business markets tend to be __________.
A) Dominated by individuals for personal consumption
B) Geographically concentrated
C) Characterized by having a large number of small buyers purchasing small quantities
D) More emotional than consumer markets
10. Samia moved to a new job. Her manager noticed that she still feels like an outsider at work and
in order to be motivated she has to satisfy her unmet __________ needs that include being loved,
accepted and part of the working group.
A) Physiological
B) Self-actualization
3|Page
 October University for Modern Sciences & Arts (MSA)
Faculty of Management Sciences
Module Title: Introduction to Business Module Code: BUS 102
Final Exam – Fall 2019 Time allowed: 180 minutes

C) Tangible
D) Social
11. Adel and Omar are the only owners of an advertising agency. They both take an active role in
managing the business and they both have unlimited liability. This is called __________.
A) General partnership
B) Limited partnership
C) Sole proprietorship
D) Large corporation
12. Tarek has been hired as a marketing manager for a textbook publishing company. His primary
responsibilities are likely to be concerned with __________.
A) Establishing inventory control methods
B) Ensuring that certain production schedules are met
C) Planning and executing the conception of product, pricing, promotion and distribution of his
firm’s products
D) Preparing job descriptions and job specifications for sales representatives
13. Which of the following companies faces the problem of undercapitalization?
A) Large corporation that has been hit with a major lawsuit because one of its products has a
design flaw that has led to serious injuries
B) Small new company struggling because it has insufficient start-up funds
C) Medium-sized company that has decided to buy out a smaller competitor
D) Company that has recently experienced a significant increase in the cost of labor
14. Dina’s supervisor was so impressed by her work that he named her the employee of the month.
This praise from her supervisor is an example of _________ reward.
A) Extrinsic
B) Intrinsic
C) Secondary
D) Internal
15. HP is a major producer of computers that is considering a merger with one of its suppliers that
produces microprocessors and computer chips. HP believes that such a merger would give them
a guaranteed source of needed components, and would help them to have better control over the
quality of their inputs. If this merger occurs, it would be an example of _________.
A) Vertical
B) Horizontal
C) Conglomerate
D) Acquisition
16. Firms that have adopted _________ seek to do more than simply sell a product. They seek to
learn as much as possible about their customers to satisfy them with goods/services over time.
A) Nonprofit marketing
B) Customer relationship management
C) Management by objectives
D) Human resources management
17. No matter the size, finance is a critical activity for _________.
A) Profit-seeking, but not for nonprofit organizations
4|Page
 October University for Modern Sciences & Arts (MSA)
Faculty of Management Sciences
Module Title: Introduction to Business Module Code: BUS 102
Final Exam – Fall 2019 Time allowed: 180 minutes

B) Profit-seeking and nonprofit organizations

C) Nonprofit organizations, but not for profit-seeking businesses
D) Only new companies
18. Halim operates a sole proprietorship. If Halim dies, his business _________.
A) Automatically continues under new management as a sole proprietorship
B) Automatically converts into a public corporation with stock sold to interested investors
C) Stops to exist unless sold or taken over by Halim’s family
D) Becomes the property of the most senior employee who wishes to continue operating the firm
19. _________ can be an advantage and a disadvantage at the same time for corporations.
A) Initial cost
B) Size
C) Ease of drawing talented employees
D) Ease of ownership change
20. In a partnership, Sameh is the __________ partner who acts as an owner that cannot legally help
in managing the company and enjoys limited liability for claims against the firm.
A) Unlimited
B) Associate
C) General
D) Limited
21. __________ describes a type of short-term financing available to firms that buy merchandise
from their suppliers and paying for them later or paying for them early and getting a discount.
A) Bond
B) Factoring
C) Equity financing
D) Trade credit
22. Which of the following is not a physiological need?
A) Develop yourself to the fullest potential
B) Sleep
C) Shelter
D) Food

Section Three: Answer only 3 of the following essay questions (30 marks)

1. There are different duties and responsibilities carried out by the financial manager.
Explain four of these duties.
2. Compare between the sole proprietorship and partnership as two major forms of
business ownership in terms of two advantages and two disadvantages for each form.
3. Douglas McGregor classified managers according to two theories (Theory X and Theory
Y). Differentiate between Theory X manager and Theory Y manager using two
assumptions and one consequence under each type.
4. Use a flow chart to illustrate the steps of the marketing process including the marketing
mix elements (4Ps).

5|Page