1. A change in quantity demanded is caused by a change in:

1. Advertising
2. Wage rates
3. Raw material cost
4. Price

2. In its first year of operations, United Universal Corporations earnings are $2.1 million. Retained earnings at the end of the year were $1 million and contributed capital totaled $5.6 million. How much did the corporation distribute in dividends?
   1. $1.0 million
   2. $1.1 million
   3. $2.5 million
   4. $6.7 million

3. A key factor in TQM is the:

a. reduction of defects.

b. increase in management inspection stations.

c. reduction of the price of supplies.

d. movement away from technology advance and a reliance on simple production

4. Liabilities increased by $20,000 during the year. All other accounts, except cash, in total remained the same. What is the net increase or decrease in cash during the year?
   1. $0
   2. $20,000 decrease
   3. $20,000 increase
   4. Cannot be determined from information given

5. What is the break-even quantity for the following situation?

FC = $1,200 per week

VC = $2 per unit

Rev = $6 per unit

a. 100

b. 200

c. 600

d. 300

6. Webster Plumbing had $24,000,000 in sales last year. The companys net income was $400,000. Its total assets turnover was 6.0. The companys ROE was 15 percent. The company is financed entirely with debt and common equity. What is the companys debt ratio?
   1. 0.20
   2. 0.30
   3. 0.33
   4. 0.60
   5. 0.66
7. A project has an up-front cost of $100,000. The projects WACC is 12 percent and its net present value is $10,000. Which of the following statements is most correct?
   1. The project should be rejected since its return is less than the WACC.
   2. The projects internal rate of return is greater than 12 percent.
   3. The projects modified internal rate of return is less than 12 percent.
   4. All of the above answers are correct.
   5. None of the above answers is correct.

8. Two key components of leadership are:

a. education and a religious background.

b. vision and education.

c. religious background and vision.

d. motivation and vision.

9. A key to motivating people in a business entity is to remember that each person:

a. tends to be very lazy.

b. tends to act in his/her own self-interest.

c. follows the rules of ethics distributed by their professional societies.

d. tends to follow orders unless a strong reason is given to otherwise.

10. In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1/unit per year will result in an EOQ of:

A) 20

B) square root of 200

C) 200

4. 400

11. A key to understanding the difference between TQM and other management innovations is TQMs emphasis on:

a. one-time reengineering of production processes.

b. a reorganization of inventory control.

c. outsourcing.

d. continuous improvement.

12. JIT stands for:

a. juried information technology systems.

b. just improved transportation systems.

c. just in time production/inventory control systems.

d. justice, integrity, and transcendence in management ethics.

13. With elastic demand, a price increase will:
    1. Lower marginal revenue.
    2. Lower total revenue.
    3. Increase total revenue.
    4. Lower marginal and total revenue.

14. The demand for a product tends to be inelastic if:

a. It is expensive.

2. A small proportion of consumers income is spent on the good.
3. Consumers are quick to respond to price changes.
4. It has many substitutes.

15. With price discrimination, lower prices are charged when:

1. The price elasticity of demand is high.
2. The price elasticity of demand is low.
3. The cross-price elasticity of demand is high.
4. The cross-price elasticity of demand is low.

16. The marketing mix __________________.

a. Consists of product, pricing, distribution, and promotion decisions

2. Deals with delegating authority

c. Is how products are perceived by consumers in the marketplace

d. Consists of homogeneous groups of consumers who have similar wants and needs

5. All of the above

17. The mature stage of the product life cycle is characterized by:
    1. Sales that start a long-term decline, as substitute products offer superior sets of benefits.
    2. A saturated market, because the vast majority have become regular product purchasers.
    3. Rapidly increasing market demand and new competitors entering the market.
    4. No market, because no one is now purchasing the product.
    5. A few early adopters trying the product, generating sales that are slowing growing.

18. Webster, a company that sells recreational vehicles (RVs), has determined that most purchasers of RVs are between the ages of 35 and 54 with an annual income over $75,000. This information about the market will help RV Village to:
    1. Increase brand loyalty.
    2. Offer fewer products.
    3. Create a customized marketing mix.
    4. Reduce opportunities available for product sales.
    5. Increase the price on most models of RVs.
19. Maslows Hierarchy is a ____________ theory.
    1. Needs
    2. Learning
    3. Self-efficacy
    4. Leadership
    5. Personality

20. According to the Life-Cycle Model, when subordinates are very low in maturity, leaders should adopt a:
    1. Telling style
    2. Selling style
    3. Participating style
    4. Delegating style