There are 100 multiple choice questions in this exam. The passing score is 80. You have 2 hours to complete. 

MBA In A Nutshell – Final Exam

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1 / 100

If the Central Bank decides to raise the discount rate, how would this impact the money supply?

2 / 100

Marketing is about getting attention.

Whose attention a marketer is trying to get?

3 / 100

What is meant by a ‘hook’ in marketing?

4 / 100

An increase in which of the following accounts will be reported in the debit column?

5 / 100

Ken bought a zero-coupon corporate bond for $500. The par value of the bond is $1,000 and it will mature in 10 years.

How much interest will Ken get from the issuing corporation after one year?

6 / 100

What is the definition of Capital Asset Pricing Model (CAPM)?

7 / 100

Company ATC Inc has total assets of $100,000 and total liabilities of $30,000.

How much is the equity?

8 / 100

Traditionally, the management hierarchy had three levels of managers. Recently, many organizations have found value in having a fourth level to this managerial hierarchy. This fourth level acts more like facilitators than managers.

Which of the following is the most recent fourth tier to the traditional three-tier management?

9 / 100

In the month of July, a photographer shoots pictures for an event and sends an invoice of $2,000 the same day.
He receives the payment for that invoice in August.
He did not make any payments in July but he did receive a bill of $600 from his supplier.
He paid the supplier $600 in August.

Assuming this photographer is on accrual basis accounting, how much of profit did he make in July?

10 / 100

Your boss, Mr. A., Vice President of Commercial Loans at your bank, enters the room where you are meeting with an important client, Ms. B. You rise and say, “Mr. A, I want to introduce Ms. B., our client from the Wick Corporation.”

Is your introduction correct?

11 / 100

Setting clear sales goals and quotas for each salesperson is associated with which area of sales management?

12 / 100

XYZ Company neither has a high market share in a specific market nor much opportunity for growth.

Where would this fit in the BCG Matrix?


13 / 100

There are two basic variable types in statistics: qualitative and quantitative variables.

Asking a respondent about his or her age in a survey is an example of ?

14 / 100

Which of the following is NOT included in the SMART goal criteria?

15 / 100

Robert Cialdini in his classic book “Influence: The Psychology of Persuasion” lists six shortcuts that can help us persuade people to say yes.

When a waiter brings a small gift like fortune cookies or mints, what shortcut principle is applied to trigger a better tip?

16 / 100

Government spending and revenue collection strategies are examples of what policy?

17 / 100

When dining out, on which side of yours should you find a glass of water?

18 / 100

Which of the following is NOT a financial statement?

19 / 100

How do you define capital budgeting?

20 / 100

_________________ is the process of convincing past customers to buy from you again.

21 / 100

An average Joe wants to invest $5,000 in stocks so he can profit from the upward trend in the stock markets in general. He does not want to invest in specific stocks. His idea is to diversify his investment to some of the widely held USA stocks in a mix of industries. Joe also wants to keep his management costs to the minimum.

Which of the following would be the best choice for Joe?

22 / 100

Which of the following is a Guerilla Marketing trait?

23 / 100

Zara owns a business that has assets valued at $50,000. She contributed $20,000 herself and borrowed   $30,000 from her bank.  Last year her business made a net income of $5,000.

Calculate Zara’s return on assets (ROA) and return on equity (ROE).

24 / 100

Jacob wants to short sell ABC Stocks trading at $50 a share. He believes that the price might go down to $30 in the next three months. However, he is not 100% sure. Instead of short selling the stocks for $50, Jacob buys an option to sell ABC stock @ $50 within the next three months. He pays $2 for his ‘right to sell each ABC stock.

What kind of option has Jacob bought?

25 / 100

Which of the following is NOT a factor of production?

26 / 100

ABC Company made a profit of $100,000. This amount has to be recorded under the equity section of the balance sheet.

Which account is used to transfer the gains to the equity?

27 / 100

Identify a positive external factor in SWOT Analysis:

28 / 100

According to Nash Equilibrium, the optimal outcome of a game is one where most players have an incentive to deviate from his or her chosen strategy after considering an opponent’s choice.

29 / 100

On which side of the chest should you display your name tag?

30 / 100

Tracy is considering investing $1,000 in investment security that offers an annual interest rate of 8%.

According to the Rule of 72, approximately how many years should it take to double her investment?

31 / 100

If the CPI (Consumer Price Index) of the base year is 100 and the CPI of the current year is 90.

What would you conclude from these numbers?

32 / 100

Parkinson’s Law states, “Work expands so as to fill the time available for its completion.”

How do you explain this?

33 / 100

Steve Jobs, in his commencement address, advises the graduates to:

34 / 100

Simon has $10,000 to invest. He is more interested in a steady income stream rather than long term growth of his money.

What would be a better choice for him, stocks, or bonds?

35 / 100

A business has an Equity of $60,000 and total assets of $90,000.

How much is the Liability?

36 / 100

Imagine being in a room with forty other people whose average net worth is 4.5 billion dollars. If Bill Gates and Warren Buffett happen to be in the same room, then it certainly will skew the average.

What would be another way to gauge the middle value in the list of numbers?

37 / 100

A complete record of financial transactions over the life of a company is called what?

Hint: It holds account information that is needed to prepare financial statements, and includes accounts for assets, liabilities, equity, revenues, and expenses.

38 / 100

The economy is in recession. The government has calculated that they need to fill the gap of 40 billion dollars to bring the economy to the point of equilibrium. The citizens’ propensity to consume is 75%.

Calculate the amount of money they need to invest in the economy to close the recessionary gap.

39 / 100

The Balance Sheet of JKL Company reports as follows:

Total Assets = $150,000
Long-Term Assets =75,000
Current Liabilities = $35,000

Calculate the Working capital of JKL Company

40 / 100

Cathy looks at the statistics generated by market activity. She tries to predict future stock value by analyzing charts, patterns, and trends.

Cathy perform what kind of stock analysis?

41 / 100

Which of the following is an example of a multi-level marketing model?

42 / 100

Anne thinks that she is paid less as compared to other employees.

How could she restore the fair balance according to the Equity Theory of Motivation?

43 / 100

Which business structure creates a distinct legal entity?

44 / 100

What is the fundamental economic problem?

45 / 100

Calculate the dollar amount of goods we have to sell to break even.

The suggested price is $10 a unit.
The associated fixed costs are $250,000
The variable cost is $5 a unit.

46 / 100

Experts believe that successful management requires the performance of four functions.

Which of the following is NOT included in those four functions?

47 / 100

When the prevailing bond interest rate goes up, the price of previously held bond should:

48 / 100

______________ is the discount rate where the Net Present Value of a given set of cash flows = 0.

49 / 100

The term “invisible hand” was coined by which famous economist?

50 / 100

Which of the following is a temporary account that will be closed at the end of the year?

51 / 100

What is the opposite of a Monopoly?

52 / 100

You want to know how much of Assets and Liabilities a business has on December 31st.

Which financial statement should you be looking at?

53 / 100

The government raised the hourly minimum wage by a dollar.

In economics, this kind of minimum rate set by law is described as?

54 / 100

Which of the following is a component of calculating GDP?

55 / 100

When socializing at a cocktail party, it is best to hold your glass in which hand?

56 / 100

Calculate the Mode of 5, 7, 9, 5, 10, and 15

57 / 100

According to the law of supply and demand, if the supply is high and the demand is low.

The price will be _________

58 / 100

According to Henry Mintzberg, there are three key roles that he thinks managers fulfill.

Which of the following is NOT a managerial role as per Mintzberg?

59 / 100

What is the current value of a stream of future earnings called?

60 / 100

Rose invested $10,500 in a business venture.

The projected cash flow from this investment is $3,000 in the first year:
$4,000 the second year, and
$5,000 in the third year.

She borrowed this $10,500 from her bank @ 5% annual interest.

Calculate the NPV of this investment.

61 / 100

What is the Basic Accounting Equation?

62 / 100

Ashok invests $50,000 in a business that is expected to generate a consistent annual cash flow of $8,000.

How many years will it take Ashok to recover his original investment?

63 / 100

Jose and David both received scholarships for a one-year intensive MBA program.

The opportunity cost for Jose is $30,000.
The opportunity cost for David is $35,000.

Who has the comparative advantage?

64 / 100

A client comes to you for some ideas on marketing her cupcake business. She makes the best cupcakes and offers the best value for the buck in her little town.

Which of the following should NOT be a part of her marketing strategy?

65 / 100

A Great Company started a project with an initial investment of $50,000. They borrowed $30,000 from a bank  @ 5% annual rate. The remaining $20,000 was provided by a local investor.  The opportunity cost of equity for the investor was 10%. The corporate tax rate is 15%.

Calculate the Weighted Average Cost of Capital (WACC) of this project using an online WACC Calculator:

WACC Calculator

66 / 100

The Central Bank decides to sell treasury bonds in the open market.

How would this impact the money supply?

67 / 100

Capital flows from countries with higher interest rates to countries with lower interest rates.

68 / 100

Let’s assume that the businesses in Ontario had planned to hire 100,000 more workers. After the government raised the minimum wage, the businesses revised their estimates downwards. They can now afford to hire only 90,000 workers; 10,000 fewer workers than their previous more optimistic estimate.

Question: How would you describe the loss of these 10,000 workers in the workforce?

69 / 100

A company has total assets of $100 million. Total liabilities are $20 million. The company has a total of 10 million outstanding shares in the open market. Company stocks are trading at $10 per share.

Calculate the difference between the market price and the book value per share.

70 / 100

Kim CO bought a truck for $50,000 on July 1st, 2019.

The useful life of this truck is five years.
The salvage value at the end of five years is $5,000.

Calculate the depreciation expense at the end of the fiscal year on December 31st, 2019.

71 / 100

Sales are about what?

72 / 100

The oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer is a definition of what?

73 / 100

Which of the following is NOT a typical Marketing Mix P?

74 / 100

What is the future value of $100 you received today?

The interest rate is 6% per annum, and
the time period is 10 years

FV Calculator

75 / 100

A Commercial Bank has deposits of $100 million. The Central Bank has just announced to lower the reserve requirement to 9% from the previously set rate of 10%.

How much of its deposits can Commercial Bank now extend to its customers in the form of loans?

76 / 100

Tanya borrows money from her stockbroker to trade in stocks.

This special type of brokerage account is called what?

77 / 100

The point at which the supply of an item exactly equals its demand, is called?

78 / 100

Karim is a new boss who thinks that employees, in general, can be trusted to perform their jobs well. What theory does Karim subscribe to, as per Douglas McGregor?

79 / 100

What is an example of the ‘important and urgent‘ quadrant of Covey’s Time Management Matrix?

80 / 100

Michael Sandel, professor at Harvard University, in his lecture explores the:

81 / 100

Where would communicating benefits of a newly launched product fit in the AIDA model?

82 / 100

Market ___________ is systematically collecting, analyzing, and interpreting information that helps us make better marketing decisions.

83 / 100

How the economic machine works by Ray Dalio prescribes three rules of thumb to successfully survive the booms and busts of economic cycles.

Which of the following is NOT an element of Dalio’s prescribed rules?

84 / 100

Your _____________ market is the section where you choose to focus your marketing effort.

85 / 100

Who is responsible for implementing the policies and objectives of a company?

86 / 100

You are in the USA entering a limousine with an important client.

You will position yourself so the client is seated on which side of the back seat?

87 / 100

According to a study conducted by behavioral scientists, people tend to be motivated more if their focus is towards bigger areas rather than smaller areas.

88 / 100

According to Bill Phillips, when the employment level is high, the inflation level is also high.

89 / 100

According to the price elasticity of supply and demand, which should be more elastic to the change in price?

90 / 100

The list of all the accounts is called what?

91 / 100

A period of negative economic growth is called:

92 / 100

Which accounting method gives a more realistic picture of a business?

93 / 100

There are seven stages involved in the sales cycle.
Question:  After making the presentation, you found out that the person responsible for purchase decisions is on holiday.

What went wrong with respect to the sales cycle?

94 / 100

Which of the following is NOT a condition for perfect competition?

95 / 100

Keisha wants to invest in bonds that offer 6% of nominal interest. The expected inflation rate is 2%.

Calculate the expected real interest rate.

96 / 100

According to John Keynes, during times of recession, governments should spend less money to stimulate savings.

97 / 100

An increase in Liability is reported on which side of the Balance Sheet?

98 / 100

Upon review of last year’s income statement for Kramer’s photography business, you found the following information:

Total Revenue: $5,000
Total Expenses: $5,500

How should this piece of information impact his balance sheet?

99 / 100

Key Performance Indicators (KPI) evaluate the success of a particular activity in which an organization engages.

On a macro level what would be an example of KPI in a country’s economy?

100 / 100

A customer wanted to buy an entry-level laptop. Salesperson convinced him to buy premium quality, more expensive laptop instead.

This is an example of what?