Question 1(1 point)

You just received a one million-dollar endowment. According to the trust deed, you can make half a million dollar investments and the options are real estate, stocks of large corporations, Gold, bank deposits, and small and local businesses. Which two investments would you prefer and WHY?

Question 1 options:

Question 2(1 point)

You are the CEO of an auto-ancillary manufacturing company. Your investors want you to expand the company's operations into other regions. You have five options: Canada, Mexico, East Europe, Latin America, and the Middle-East. Which regions would you select and WHY?

Question 2 options:

Question 3(1 point)

There are five technologies that are likely to shape world in the coming decades: electric cars, alternative energy, auto-driven cars, artificial intelligence, and 3D printing. Given a five year horizon, which of these do you think is likely to have the biggest impact on you and WHY?

Question 3 options:

Question 4(0.5 points)

You work as the resource manager in a construction company and you have invited two engineers from two different construction sites in a meeting to resolve the issue of more frequent breakdown of valuable and important construction machines in one of these sites.

Rick, the engineer from Butte, complains "Our construction site has more than twenty workers working regularly and we have only a few machines. The higher frequency of breakdowns of our machines is due to more people using and handling the same machine."

Jay, the engineer from Bozeman, replies: "We have a similar number of people working for the same amount of time as in Butte. As both of you are aware of our machines work fine and we hardly had any breakdown."

Which of the following data will be required to check Rick's argument?

Question 4 options:

a)

Actual number of workers working in both the sites

b)

The cost of each machine repair

c)

Number of machine breakdowns in Butte over the last six months

d)

The workers to machine ratio from both sites

Question 5(0.5 points)

For a newly invented allergy medicine, a pharmaceutical company has randomly chosen a number of people who are suffering from allergy and administers a drug trial. All these people are given the new medicine for one day and it is found that eighty percent of these people recover from the allergy. So the company decides to advertise the new medicine with a tagline that this medicine increases the chances of recovery from allergy within a day by eighty percent. Which of the following data will weaken the company's claim?

Question 5 options:

a)

Half of the people suffering from similar allergies recover in a day without using any drug

b)

The actual number of people under the drug trial was about 300

c)

Already available drugs help to recover from allergy in two to three days.

d)

If this drug is used for another day, the recovery rate improves to ninety percent

Question 6(0.5 points)

The management of every corporation is accountable for their actions to two sets of interested parties: shareholders and bondholders, in that order. In which of the following cases will the management be answering only to the bondholders and not to shareholders.

Question 6 options:

a)

Only a small number of shareholders own the company

b)

The management owns the company

c)

There is no debt in the company's book

d)

The company owes a lots of debt

Question 7(0.5 points)

All CEOs are MBAs. All CFOs are CFAs.

Which of the following options is incorrect?

Question 7 options:

a)

Mandy is an MBA; she is definitely not a CFO.

b)

Ross is both the CEO and the CFO; therefore, he is both an MBA and a CFA.

c)

Jack is a CFA but not an MBA; he is definitely not a CEO.

d)

Paul is an MBA and a CFA, but he is neither a CEO nor a CFO.

Question 8(0.5 points)

Assume: Profit = Revenue * margin.

Which of the following options is incorrect?

Question 8 options:

a)

If the margin remains constant and the revenue decreases, the profit decrease

b)

If the margin increases and the revenue remains the same, the profit increase

c)

If the profit increases, neither revenue nor margin decreases

d)

If the profit decreases, the revenue and/or margin decreases

Question 9(0.5 points)

There are five directors (A, B, C, D, and E) in a fossil fuel company and they are looking into three candidates to recruit for the CEO's position. The three candidates are 1) the current Ivy-league educated Chief Financial Officer who has worked with this company for the past 20 years, 2) the current Head - Marketing (graduated from a local state school) who has worked in the same division of this company since the start of his professional career, and 3) another Ivy-league educated outsider who has years of experience in both marketing and finance.

Directors A and C want someone with experience in finance.

Directors B and D want someone with experience in marketing.

Director E wants an insider to become the new CEO.

Directors B and C want someone who is an outsider.

Directors A and E want someone who is Ivy-league educated.

Director D want someone who is not Ivy-league educated.

Who is more likely to be the new CEO?

Question 9 options:

a)

Candidate 2 or 3

b)

Candidate 1

c)

Candidate 3

d)

Candidate 2

Question 10(0.5 points)

Technology is no longer considered a state-of-the-art feature in banks. Today almost all banks spend a large amount of their operational funds on installing and maintaining the most hi-tech machines.

The writer assumes:

Question 10 options:

a)

Today hi-tech machines are considered a state-of-the-art feature of a bank

b)

A feature will be considered state-of-the-art only if a few banks have it

c)

Technologies have always been expensive

d)

Technology is the only state-of-the feature that a bank could have earlier

Question 11(0.5 points)

The number of people in the world who are buying electric cars has doubled in the past three years. Stock analysts following the automobile sector have, therefore, concluded that investors should buy stocks of companies manufacturing electric cars and sell stocks of companies manufacturing fossil fuel driven cars:

All of the following, if true, would weaken the conclusion made by the analyst, except:

Question 11 options:

a)

Three-fourth of the car buyers thirty and younger bought electric cars in these three years

b)

There is a positive correlation between the performance of the stocks of these two sets of companies

c)

Companies manufacturing fossil fuel cars are lobbying for regulations restricting the use of electricity

d)

Number of people in the world who are buying fossil fuel cars has also doubled in the past three years

Question 12(0.5 points)

Billings houses a number of supermarkets such as Walmart, Albertson, Costco, etc. Yet the farmers' market seems to be doing well both in terms of turnout and turnover.

All of the following, if true, would explain the above paradoxical observation, except:

Question 12 options:

a)

Farmers' market provides an open air environment without congested aisles and checkout lines

b)

Farmers' market sells more fresh foods and produces at the right price than supermarkets

c)

Billings' residents consider farmers' market as a cultural hotspot and a way to support local farming communities

d)

Supermarkets are spread all over the city whereas the farmers' market takes place only in downtown