1) Javier wants to invest, but wants to reduce his risk of loss by spreading the total investment
across more stocks. Javier would be MOST interested in which of the following?
A) spreading
B) shorting
C) margin buying
D) diversification
E) asset allocation - answer✔✔D) diversification
2) New stocks and bonds are sold in what market?
A) private placement market
B) secondary market
C) primary market
D) tertiary market
E) open market - answer✔✔C) primary market
3) Companies that price their product low enough to attract a large number of buyers are MOST
likely pursuing which of the following objectives?
A) stable market pricing
B) high profits
C) stable market activity
D) low market volatility
E) high market share - answer✔✔E) high market share
4) From the choices below, pick the BEST definition of the term fixed costs.
A) costs that are needed to acquire a fixed market share
B) costs that are needed to acquire fixed profits
C) costs that are unaffected by the number of goods sold by the firm
D) costs that remain the same from year to year
E) costs that remain the same across all products - answer✔✔C) costs that are unaffected by the
number of goods sold by the firm
5) Which of the following is considered the starting point of effective human resource
management?
A) external staffing
B) recruitment
C) planning
D) financing
E) compensation - answer✔✔C) planning
6) Fletcher is meeting with each of his subordinates to discuss their performance over the past
year. What process is he involved in?
A) job description
B) labor negotiations
C) vestibule assessment
D) performance appraisal
E) financial remuneration - answer✔✔D) performance appraisal
7) Why might businesses want to analyze data that reveal what consumers do in the
marketplace?
A) to be able to send them tailor-made advertisements
B) to be able to close the customer service department
C) to be able to reduce production costs
D) to be able to stabilize employee turnover
E) to be able to manage long-term costs - answer✔✔A) to be able to send them tailor-made
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