Outcomes Assessment Test Part 2
Saint Peter’s Business Programs
Note to the Student.The following is a timed exam that is not part of the grading for your course. It is designed to help Saint Peter’s make continuous improvement in its business program. Answer each question and move to the next question. Do not get bogged down. If you have time at the end, you can return to change your answers.
The exam consists of 20 questions covering the following areas:
- Quantitative.
- Accounting.
- Global Business.
- Strategic Thinking.
This exam starts with Question #21.
21. Which of the following is correct?
- The mean is always greater than the median.
- The mean is always less than the median.
C. The mean and median are always equal.
D. None of the above.
22. The probability of an event is 0.01. Which of the following statements is correct?
A. The event should occur about 10 percent of the time.
B. The event cannot occur.
C. The event is not likely to occur.
D. None of the above.
23.Which of the following true of a normal probability distribution?
A. It ranges from minus three to plus three standard deviations.
B. It describes approximately 50% of outcomes.
C. It has a limited number of identifiable values.
D. It can only apply to positive numbers.
24.An investment proposal has a likely return of 15% and a standard deviation of 5%. What is the chance that it will return at least 10%?
A. 57%
B. 66%
C. 84%
D. None of the above.
25. The correlation coefficient between variables X and Y is -.3. Which of the following is correct?
A. A rise in variable X will be accompanied by a rise in value Y.
B. A rise in variable X will be accompanied by a decline in value Y.
C. A rise In variable X will be reduced by 30 percent.
D. A rise In variable X will be increased by 30 percent.
26 Bad debts and overdue collections are factors affecting the value of which of the following?
A. Accounts receivable.
B. Accounts payable.
C. Inventory
D. Cash
27. Which of the following is NOT true of depreciation?
A. It is a noncash expense.
B. It creates a tax shield.
C. It increases the taxes paid by a firm.
D. It decreases the taxes paid by a firm.
28. What do we call the process of allocating a capital investment, expense, or loan to a specific period of time?
A. Asset or expense extrapolation.
B.Asset allocation
C.Collateralization.
D. Amortization.
29. Acompany has the following.
Current assets 40000
Fixed assets120000
Current liabilities 10000
Long-term debt 80000
Which of the following is the level of equity for the firm?
A. 30000.
B. 40000
C. 60000
D. 70,000
30. A debit entry will produce an increase in which of the following accounts?
A. Asset.
B. Liability.
C. Revenue.
D. None of the above.
31.Factories have begun to rehire, inflation is under control, and consumers are spending again. It is a foreign market. What should a company do?
A. Expand production and marketing efforts.
B. Reduce marketing efforts and lower prices.
C. Reduce marketing efforts and raise prices.
D. Wait and see if the expansion is real before increasing production.
32.Companies seek to manufacture products cheaper or better in one country and then export them to be sold in another country. What is this called?
A. Comparative advantage.
B. Economic advantage.
C. Economic differential.
D. Factor differentiation.
33. Which of the following are the top currencies of international trade?
A. U.S. dollar and Russian ruble.
B. U.S. dollar and British pound.
C. U.S. dollar and the Euro.
D. U.S. dollar and the Swiss franc.
34. Which of the following has the mission to help ensure stability in the international financial system lending to countries with balance of payments difficulties; and giving practical help to members?
A. United Nations.
B. International Monetary Fund.
C. World Trade Organization.
D. Agency fir International Development.
35. Which of the following is a large Indian manufacturing company?
A. Samsung.
B. Tata.
C. HSBC.
D. Panasonic.
36. A company is seeking a strategy to create unique products for its existing customers. The CEO schedules a strategic planning meeting. What should be the goal of the session?
A. Encourage participants to seek profitable solutions.
B. Identify product characteristics that match the company's mission.
C. Evaluate the company's products compared to competitors.
D. Encourage thought-provoking questions to identify alternatives.
37.A company has four units as shown below. Which of the following is the correct strategy for investing cash?
A. Transfer excess cash from the Cash Cow to the Star.
B. Transfer excess cash from the Dog to the Cash Cow.
C. Transfer excess cash from the Cash Cow to the Problem Child.
D. Transfer excess cash from the Problem Child to the Cash Cow.
Market Share
LowHigh
------
High|Problem|Star|
Growth Rate|Child||
of industry|------
Low|Dog|Cash Cow|
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38.Unit D has a medium business position and medium market attractiveness as shown below. Which of the following is the correct strategy for the company to follow with respect to Unit D?
A. Invest new capital as a priority.
B. Protect the investment.
C. Harvest the profits.
D. Prepare to divest the unit.
Strong Business Medium Business Weak Business
PositionPositionPosition
------
High Market| | | |
Attractiveness||||
------
Medium Market| |Unit D| |
Attractiveness||||
------
Low Market| | ||
Attractiveness||||
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39.39. A company is the low-cost producer of high-quality lamps.
•Market A is growing 3 percent a year.
•Market B is growing 20 percent.
The markets are growing by 3% a year in Western Europe but 20% in Eastern Europe. What is a correct strategy for the firm?
A. Lower the quality of lamps and sell them in both Western and Eastern Europe.
B. Increase marketing efforts in Western Europe and resist market erosion.
C, Reduce the emphasis on Western Europe and expand in Eastern Europe.
D. Preserve the market in Western Europe and expand in Eastern Europe.
40. A company has a business position as shown below. Which of the following is the correct strategy for the company to follow with respect to Unit D?
A. Market Development.
B. Product Development.
C. Market Penetration.
D. Diversification.
Existing ProductNew Product
------
New|||
Market|The Company||
------
Existing|||
Market|||
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