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Multiple Choice Questions Total 10 Marks (0.

5 marks each)
1.

Adidas does not manufacture its own shoes, although they design their shoes and carry out
the advertising. Adidass s shoe manufacturing is done in India and China. This is an
example of:

Resource development
Outsourcing
Insourcing
Microeconomics

2.

A study conducted on how increasing wages in a particular company had an impact on their
employee performance is a concern of:

Communism
Microeconomics
Outsourcing
Unemployment Rate

3.

Is the following statement true or false?


In oligopoly, few sellers dominate the market and the initial investment to enter the market is
often tremendous.

True
False

4.

Is the following statement true or false?


One of the limitations of Communism is that the Government does not know what to produce
as prices do not reflect supply and demand.

True
False

5.

The loss of the best and brightest peole to other countries is a concept known as:

Invisible Hand
Social Equality
Brain Drain
Socialism

6.

____________________________________ is the management of money supply and interest rates


by the government in order to regulate the economy.

Monetary Policy
Fiscal Policy
Stagflation
Empowerment

7.

An ice-cream company merging with a dairy farm is an example of:

Horizontal Merger
Conglomerate Merger
Vertical Merger
Acquisition

8.

Is the following statement true or false?

Considering the law of supply, generally; the quantitydemanded will increase as the price
decreases.

True
False

9.

Is the following statement true or false?


In capitalist countries, people have the right to own private property.

True
False

10. __________________________________ occurs when the value of a countrys exports is more than
that of its imports.

Trade Surplus
Trade Deficit
Comparative Advantage
Franchising

11. _________________________________________ means that a country has a monopoly on producing


a specific product or is able to produce it more efficiently than all other countries.

Comparative Advantage
Competitive Advantage
Balance of Payments
Absolute Advantage

12. ______________________ is the statistical study of the human population with regard to its size,
density, and other characteristics such as age, income, gender, race.

Diversity
Demography
Inflation
Communism

13. What makes rich countries rich today is a combination of _______________________ and the
effective use of _____________________

Entrepreneurship and capital


Capital and knowledge
Entrepreneurship and knowledge
Labor and capital

14.Is the following statement true or false?


Social Entrepreneurs are people who use business principles to start not-forprofits and help address social issues.

True
False

15.Is the following statement true or false?

In an organization that follows decentralized authority, only the top level


management has the major decision making authority.

True
False

16.________________________ is when a foreign company produces private-label


goods to which a domestic company then attaches its own brand name or
trademark.

Joint Venture
Contract Manufacturing
Foreign Direct Investment
Embargo

17. _______________________ refers to the governments efforts to keep the economy stable by
increasing or decreasing taxes or government spending.

Monetary Policy
Fiscal Policy
Stagflation
Empowerment

18. Is the following statement true or false?


Capitalism is an economic system in which all or most of the factors production and
distribution are privately owned and operated for a profit.
True
False

19._________________ is the study of how society chooses to employ resources to


produce goods and services and distribute them for consumption among
various competing groups and individuals.

Economics
GDP (Gross Domestic Product)
Unemployment Rate
Balance of Payments

20. Is the following statement true or false?


Communism does not inspire businesspeople to work hard because incentives are not there.

True
False

Case Study Question: 2.5 Marks (Mandatory)

Suppose Mr. Rahman and Mr. Karim is thinking about doing business. But they
are not sure, if they want to leave their secured jobs in the corporate sector and
pursue this business dream. Suggest some reasons why the risk of doing
business is a risk worth taking.

Short Questions (Any 1) Total 2.5 Marks

Discuss some advantages and disadvantages of centralization. (2.5 marks)


What are the advantages and disadvantages of sole proprietorship?(2.5 marks)
What do the terms stakeholders, outsourcing and insourcing mean? (2.5 marks)

Broad Questions (Any 2) Total 10 Marks


Discuss the three types of corporate mergers with appropriate examples of each. (5 Marks)
Provide definitions of these global market strategies: contact manufacturing, exporting, joint
venture, licensing. (5 Marks)
What is franchising? Discuss some of its advantages and disadvantages. (5 Marks)