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BUS 475 Capstone Final Examination Part 1
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BUS 475 Capstone Final Examination Part 1 (Latest - 100% Score)
1. Article 6 of the Treaty on European Union, called the Maastricht Treaty, states the EU is
“founded” on:
specific performance
stare decisis
private markets
rule of law
2. Which of the following is the path through which contractionary monetary policy works?
Money down implies interest rate up implies investment up implies income down
Money down implies interest rate up implies investment down implies income down
Money down implies interest rate down implies investment down implies income
down
Money down implies interest rate down implies investment up implies income down
3. Marketing research refers to__________.
the use of information technology to find objective solutions to a marketing problem
the process of systematically collecting and analyzing information in order to define
a marketing problem
the process of defining a marketing problem and opportunity, systematically
collecting and analyzing information, and recommending actions
the science of using observable human behavior in order to identify and solve
marketing problems
4. _____ is the process of converting meaning into messages composed of words and
nonverbal signals.

Translating
Decoding
Encoding
Filtering
5. Sam, a marketing manager, often makes ethical decisions based on what others feel
about those decisions. He often considers opinions from other managers and
employees. Which of the following ethical systems do Sam’s decisions follow?
Consequentialism
Utilitarianism
Relativism
Egoism
6. The depreciation of currency will:
improve a country’s comparative advantage.
worsen a country’s comparative advantage.
balance a trade surplus.
have no impact on a country’s comparative advantage.
7. Which of the following is typically included in the drafting stage of writing an effective
business message?
Setting a positive and other-oriented tone
Sending the message to be proofread
Double-checking everything
Identifying the primary message and key points
8. If a population is known to be normally distributed, what can be said of the sample
distribution of the sample mean drawn from this population?
For a sample size n < 30, the sampling distribution of the sample mean is normally
distributed.
For a sample size n > 30, the sampling distribution of the sample mean is normally
distributed.
For any sample size n, the sampling distribution of the sample mean is normally
distributed.
For a sample size n < 50, the sampling distribution of the sample mean is normally
distributed.
9. Marketing refers to__________.

the activity for creating, communicating, delivering, and exchanging offerings that
benefit its customers, the organization, its stakeholders, and society at large
the process of identifying target market segments for a product or service
the activity involved in getting a product or service from the manufacturer to
ultimate consumers and organizational buyers
the production of products or services that will generate the highest return on
investment
10. Lori is using secondary research to develop a business report. How can she write her
report in a way that demonstrates originality in thought?
Cite all her research sources
Use the most current documentation guidelines
Generate her own conclusions and recommendations
Adopt a methodical approach to decision making
11. Annie, an employee who often attributes her team failures to bad luck, attributes other
teams’ failures to personal shortcomings. Which of the following cognitive biases do
Annie’s attributions exemplify?
Self-deception bias
Belief bias
In-group bias
Hindsight bias
12. When does the straw man fallacy occur?
When a person tries to disprove a claim based on its source.
When a person falsifies or overstates an adversary’s position.
When a person considers only 2 alternatives even when other options are available.
When a decision maker dismisses an alternative that fails to solve the issue
completely.
13. Which of the following types of unemployment is considered to be the most
controllable through demand-side macroeconomic policy?
Cyclical unemployment
Natural unemployment
Structural unemployment
Frictional unemployment
14. Microeconomics and macroeconomics are:

Interrelated because both are often taught by the same instructors
Interrelated because what happens in the economy as a whole is based on individual
decisions
Virtually identical, though one is much more difficult than the other
Not related because they are taught separately
15. Federal law and business leaders alike favor ____________ as a means of governing
private business ethics.
Self-regulation by companies
Establishment of federal regulators in all private companies to establish and enforce
ethical standards.
Giving the federal government exclusive jurisdiction regarding ethics and ethics
violation enforcement.
Creating uniform statutes of business ethics.
16. Which of the following statements is true of the WARN Act?
It requires employers to give notice to an “at will” employee that he/she is being
fired.
It requires employers to give notice of a scheduled mass layoff.
It requires employers to give notice to employees that they are being subjected to
polygraph tests.
It requires employers to give notice to employees that an unscheduled drug test will
be conducted for all employees.
17. Alex is playing his music at full volume in his dorm room. The other people living on his
floor found this to be a nuisance, but Alex doesn’t care. Alex’s music playing is an
example of:
positive externality
normative externality
negative externality
Pareto externality
18. According to the Ajzen model, the strongest predictor of an employee’s behavior
is/are__________.
social norms
the employee’s values
the employee’s attitudes
the employee’s intentions

19. The interdisciplinary field dedicated to understanding and managing people at work is
called:
management dynamics
management theory
organizational behavior
organizational dynamics
20. Regarding using personality testing as part of the hiring process, experts have concluded
that:
There are many valid instruments available to managers to test for personality
types.
Only the Big Five should be used as predictors of job performance.
The typical personality test is not a valid predictor of job performance.
The effects of personality on job performance are so large it cannot be ignored by
managers.
21. In the context of developing persuasive messages, which of the following is most likely
to help you demonstrate a voice of competence?
focusing only on logical appeals
using only emotional appeals in your persuasive messages
developing strong ideas in the interest of your audience
adopting the tone of mass advertising such as over-the-top appeals
22. Identify an example of spontaneous creativity.
Settling a disagreement quickly in a simple way.
Modifying the strategies and procedures of a group.
Establishing win-win relationships with other people.
Organizing annual meetings and get-togethers innovatively.
23. Which of the following is useful advice on conducting business across cultures with
those who have limited English ability?
Speak at your normal, regular pace instead of speaking slowly as this may be viewed
as disrespectful.
Determine a person's level of communication proficiency within the first few
moments of your interactions with them.
Use slang and jargon instead of literal language as much as possible.

Allow those with limited English ability enough time to process their thoughts into
English.
24. Joyce finds that the members of the project team to which she has been assignment in
her management class are all athletes on the college’s football and basketball
teams. She immediately considers dropping the class because she thinks her experience
with that team will be negative. Joyce is likely reacting to a__________.
semantic memory
negativity bias
stereotype
self-serving bias
25. According to the Classical growth model, an economy that increases its saving will grow:
Quickly since the increase in saving will permit more rapid technological progress.
Slowly because interest rates will fall, causing investment to decline.
Slowly because consumption and aggregate demand will be reduced.
Quickly since the increase in saving will permit greater investment.
26. A 911 emergency response service needs operators who are bilingual in English and
Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking
skills. They file a complaint on the grounds of discrimination based on nationality. Their
complaint is squashed. Here, the defense of the federal government is on the grounds
of:
Circumstantial evidence
Inculpatory evidence
Exclusionary rule
Bona fide occupational qualifications
27. The distinction between flexible and fixed individual differences__________.
is that managers should hire people based on their attitudes and emotions
is that managers have little or no impact on fixed differences
has no practical value for managers
is that managers have little or no impact on flexible differences
28. Advertising, personal selling, sales promotion, public relations, and direct marketing are
marketing communications alternatives that make up a firm’s __________.
promotional mix
communication source

marketing mix
media strategy
29. What is the main drawback to the Negotiation & Agreement strategy for overcoming
resistance to change?
ineffective
too expensive if others decide to also negotiation for compliance
leads to future problems if people feel manipulated
time-consuming
30. In order to focus your presentation on people, you should______.
avoid using presentation software or other technology
use a lot of "I" statements
make individuals and groups the subject of your sentences
include as many photographs as possible in your slides
31. In order to summarize qualitative data, a useful tool is a____________.
scattergram
stem-and-leaf diagram
frequency distribution
histogram
32. The product life cycle refers to __________.
a concept that describes the stages a product goes through in the marketplace —
introduction, growth, maturity, and decline
the average life span of a product
a concept that describes the stages a product goes through in the marketplace—
early growth, accelerated development, maturity, and decline
a concept that describes the stages a new product goes through from product
concept to commercialization
33. The study of similarities and differences among consumers in two or more nations or
societies is referred to as __________.
cross-cultural analysis
international sociographics
market synthesis
transnational anthropology

34. Other things held constant in a competitive labor market, if workers negotiate a
contract in which the employer agrees to pay an hourly wage of $17.85 while the
market equilibrium hour rate is $16.50, the:
Quantity of workers supplied will exceed the quantity of workers demanded.
Quantity of workers demanded will exceed the quantity of workers supplied.
Supply of labor will decrease until the equilibrium wage rate is $17.85.
Demand for labor will increase until the equilibrium wage rate is $17.85.
35. In which of the following situations is a budget surplus most likely to occur?
When fiscal policy is expansionary and the economy is contracting
When fiscal policy is contractionary and the economy is expanding
When fiscal policy is expansionary
When the economy is contracting
36. How many parameters are needed to fully describe any normal distribution?
1
3
2
4
37. Under the regulations of interstate commerce:
Activities affecting interstate commerce do not come under the power of the
deferral government.
Intrastate activities affecting interstate commerce can be regulated only by the state
governments.
Regulation on any activity is appropriate if it aids interstate commerce.
The states have the exclusive power to commerce that passes that passes across
their lines.
38. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does
not mention prices. The server takes their order, and both Betty and Fred enjoyed the
meal immensely. When the bill comes, Fred refuses to pay because the menu had no
prices and because he and the server never engaged in language indicating an offer and
acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the
server merely asked, “What may I get you tonight?”
Fred must pay based on a promissory estoppel theory.
Fred must pay based on expressed contract theory.
Fred is correct because no contract was formed.

Fred must pay based on an implied-in-fact contract theory.
39. A monopoly firm is different from a perfectly competitive firm in that:
A monopolist’s demand curve is perfectly inelastic whereas a perfectly competitive
firm’s demand curve is perfectly elastic.
A monopolist can influence market price whereas a perfectly competitive firm
cannot.
A competitive firm has a u-shaped average cost curve whereas a monopolist does
not.
There are many substitutes for a monopolist’s product whereas there are no
substitutes for a competitive firm’s product.
40. When two regression models applied on the same data set have the same response
variable but a different number of explanatory variables, the model that would
evidently provide the better fit is the one with a__________.
higher coefficient of determination and a lower adjusted coefficient of
determination
lower standard error of the estimate and a higher adjusted coefficient of
determination
higher standard of error of the estimate and a higher coefficient of determination
lower standard error of the estimate and a higher coefficient of determination
41. Suppose farmers can use their land to grown either wheat or corn. The law of supply
predicts that an increase in the market price of wheat will cause:
farmers to lower the production of corn and wheat.
farmers to substitute wheat for the production of corn.
farmers to substitute corn for the production of wheat.
farmers to raise the production of corn and wheat.
42. The DeBeers company is a profit-maximizing monopolist that exercises monopoly power
in the distribution of diamonds. If the company earns positive economic profits this
year, the price of diamonds will:
Be equal to the average total cost of diamonds.
Exceed the marginal cost of diamonds but equal to the average total cost of
diamonds.
Be equal to the marginal cost of diamonds.
Exceed both the marginal cost and the average total cost of diamonds

43. Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He
is the ultimate consumer in a pipeline from the producer through intermediaries,
including the clothing store. This pipeline is actually a__________.
marketing tunnel
consumer market
marketing channel
distribution matrix
44. Your résumé should tell a story of______.
everything you have learned and done in your previous job
the value you can provide to a company
Your educational accomplishments
how you plan to improve your areas of weakness
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