AU MIT MYANMAR UNIVERSITY

UNIVERSITY FOUNDATION PROGRAM

Midterm Examination 2/2023

Course Code: MGT1101 Introduction to Business

Lecturer: Daw Cecilia Ning Myu Mang
Date: June 21, 2024
Time: 10:00 a.m. - 12:00 noon (2 Hours)
PART I: Multiple-Choice Questions = 30 marks
PART II: True or False Questions = 10 marks
PART III: Short-Answer Questions = 20 marks
Total 60 marks (30% of the total course grade)

Name ____________________________________ ID. ______________________________

Assumption University
Examination Regulations
Students are required to strictly observe the following examination rules and regulations while examinations
are in progress. Violating them will subject students to the following terms of punishment: “F” in the
concerned subject; suspension from registering for classes in the following term(s) or academic year(s); or
Dismissal from the University.
1. Do not bring into the examination room/hall the following items unless permission is stated on the examination cover sheet.
 any forms of information, related or unrelated to the examination.
 communication devices i.e. mobile telephones, PCT, PDA(s) etc.
 all types of calculators.
 dictionaries.
Should students turn in the above materials to proctors before attempting their examination, the terms of punishment for cheating cases
will not be applied to the students. The materials together with their names and admission codes, however will have to be submitted to
the Office of Vice President for Student Affairs for official record purpose.
2. Do not leave the examination room during the first 30 minutes of the examination for whatever reason. Should the students need
medical attention, students must request proctors to contact “Examination Director” for further assistance.
3. Do not leave the examination room without signing their names on the examination list. Violating this regulation so as to claim absence
from the examination will subject students to the terms of punishment for cheating cases.
4 Do not communicate with other in the examination room without the proctor’s permission.
5. Do not take question papers or any information pertaining the examination in any form, including students’ answers script outside the
exam room. Proctors do not have any authority to give permission for the papers or information to be taken outside.
6. Do not remain in the hallway or in the corridor regardless of reasons while examinations are in progress.
7. Students must strictly follow the instructions of the proctors.

“No communication devices and PDA(s) in the examination rooms”

This is to remind students that the University’s examination regulation prohibits the bringing of communication devices i.e. mobile phones,
PCT, as well as PDA(s) – Personal Digital Assistant into examination rooms irrespective of students’ reasons.
Hence, to declare their intention of not using the devices during the examination, students who have brought into examination rooms these
devices are expected to turn them off and place them on the floor under students’ desks or chairs at the beginning of the examination
(within 5 minutes after the commencement of the examination) until the completion of the examination.
Keeping them in pockets, pencil boxes or pouches, or placing them on their desks or nearby desks or chairs, even though they have already
been turned off, are not acceptable and would subject students to the terms of punishment for cheating cases, ranging from “F” in the
subject to one-year suspension.
Committee for Supervising Examinations, Undergraduate Programs
MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
PART I: Multiple-Choice Questions (30 marks)
Select the letter that best completes the statement or answers the question.

1. ABC Company notices that they do not have as many customers in the industry as they would like, so
they adjust their prices in order to gain new customers.
A. Sales
B. Profits
C. Market Share
D. All of the above
2. When a nation exports more than it imports, it has a ____________________.
A. Trade deficit
B. Trade surplus
C. Balance of payment
D. Negative balance of trade

3. The United States is a mixed economy with a foundation based on ____________________.

A. Socialism.
B. Communism.
C. Capitalism.
D. Mixed.
4. Which of the following is NOT a reason for participating in unethical business practices?
A. Extreme pressure to meet deadlines
B. Adequate training, background or explanation of company policy
C. Desire to succeed or advance in career
D. Low morale or lack of care for the company

5. What is an advantage of price skimming?

A. Allows an organisation to make the largest profit possible
B. Covers costs and breaks even
C. Gains market share
D. None of these
6. Sustainable business practice means:
A. Assessing how present business practice affects the future
B. Involving employees in decision making
C. Considering the benefits of stakeholder over shareholder practices
D. All of the above
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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
7. Alltel, a phone store, decided to market its new line of video phones. Under which marketing function
does this decision fall?
A. Product
B. Price
C. Place
D. Promotion
8. If Ms. Shanai spends $20.00 to manufacture, finance, promote, and distribute a product that she
sells for $28.00, she earns a profit of _____ on each product sold.
A. $1.00
B. $2.00
C. $8.00
D. $10.00
9. The most important factors of production are
A. money, stocks, and bonds.
B. water,earth, and knowledge.
C. management, finance, and marketing.
D. labor, land, capital and enterprise.
10. If the supply decreases and the demand increases then the price will ___________________.
A. Increase.
B. Decrease.
C. Stay the same.
D. None of the above.
11. The market for hand tools (such as hammers and screwdrivers) is dominated by Mike & Michelle,
Charles, and Christopher. This market is best described as
A. Competitive.
B. A monopoly.
C. An oligopoly.
D. A duopoly.
12. The following table gives the daily supply and demand for hot dogs at a sporting event. What is the
equilibrium price of hot dogs?
Price, $ Quantity demanded Quantity supplied
A. $3.10 3.10 800 7,200
B. $2.80 2.80 1,600 4,800
C. $2.60
2.60 2,400 2,400
D. $2.40
2.40 3,200 800

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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
13. A ____________is anything offered to a market by the business to satisfy needs, could include
physical products or intangible services.
A. Product
B. Price.
C. Place
D. Promotion.
14. ______________offers assistance in organizing, training, merchandising, marketing and managing in
return for a monetary consideration.
A. Licensing
B. Franchising
C. Contract Manufacturing
D. Outsourcing
15. Market segmentation can be resorted to by means of
A. Segmenting by age.
B. Segmenting by income.
C. Segmenting geographically.
D. All of the above.
16. This economic system is based on competition, profits, and self-interest.

A. Communism
B. Socialism
C. Capitalism
D. Mixed

17. Which of the following is not a benefit of corporate social responsibility?

A. Improved financial performance

B. Enhanced brand image
C. Better customer relations
D. Increased employee turnover

18. According to the law of supply, what happens as price increases?

A. The supply curve shifts to the left

B. The supply curve shifts to the right
C. The quantity supplied decreases
D. The quantity supplied increases

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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
19. A partnership between a foreign company and a local partner is called:
A. a trading company
B. an export agency company
C. a direct investment
D. a joint venture

20. Company ABC produces cheese in Scotland and exports the cheese, which costs $100 per pound, to
the U.S. A 20% tax would require company ABC to pay the United States government $20 to
export the cheese.
This is a(n) ________.
A. Quota
B. Embargo
C. Countertrade Agreement
D. Tariff

21. A negative balance of trade occurs when

A. a country imports more than it exports
B. a company has a monopoly on the production of a specific resource
C. a country exports more than it imports
D. a country’s currency can be exchanged for another’s currency or gold
22. Outsourcing can improve a firm’s effectiveness when:
A. It creates potential future competition
B. It allows concentration on core activities
C. An operation can be performed better and/or cheaply by an outsider
D. All of the above
23. Firms such as Intel or Texas Instruments that produce products serving universal needs follow a _______
strategy.
A. Global standardization
B. Localization
C. International
D. All of the above
24. This type of pricing technique starts out with a low introductory price with a goal of building a strong
customer base.
A. Economy Pricing.
B. Penetration Pricing.
C. Price Skimming.
D. Premium pricing.
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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
25. The condition of scarcity exists because
A. Demand
B. Supply
C. Resources are too expensive
D. There aren’t enough resources to produce everyone’s wants
26. Which type of market structure has many many producers(companies) that sell identical products and
has no control over price?
A. Pure competition
B. Monopolistic competition
C. Oligopoly
D. Monopoly
27. ________ is a type of market structure where many companies are present in an industry, and they
produce similar but differentiated products.
A. Pure competition
B. Monopolistic competition
C. Oligopoly
D. Monopoly
28. A college student goes door to door selling children’s books. This is an example of ________.
A. Advertising
B. Publicity
C. Sales Promotion
D. Personal Selling
29. Which of the following statement is NOT the reason why businesses use Social Network Marketing?
A. Helps to build trust as the marketing message comes from a trusted, third-party source rather
than from a commercial marketer
B. Creating marketing content that attracts attention and encourages people to share this using
their own electronic methods, such as social networks, web sites, blogs, instant messaging and
news feeds.
C. Businesses have no control over what is written or shared about their brands, products or
services, i.e. negative publicity
D. The potential reach is much greater and faster due to internet technologies, and remains highly
cost-effective for the business.

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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
30. Which one of these products is in the growth stage of the Product Life Cycle?
A. MP3 Players
B. Cinema admissions
C. Music CDs
D. The Internet

PART II: True or False Questions (10 marks)

Indicate whether the statement is “True” or “False.”

1. The primary goal of all businesses is to minimize a profit.

True
False

2. The price skimming consists of setting high prices and reducing them over time to maximize the
long-term profit.
True
False

3. Oligopoly is the market structure that exists when there are many businesses selling a product.

True

False

4. Monopolists are price makers.

True

False

5. Communism and socialism are command economies which are controlled by government planning.
True

False

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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
6. The social responsibility is a business’s obligation to minimize its positive impact and maximize its
negative impact on society.
True

False

7. Corruption almost always requires a conflict of interest.

True

False

8. A strategic alliance is a partnership formed to create competitive advantage on a worldwide basis.

True

False

9. Offshoring is transferring manufacturing or other tasks to companies in countries where labor and
supplies are less expensive.
True

False

10. The main function of a labor union is to obtain improved working conditions for workers.
True

False

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MGT1101 INTRODUCTION TO BUSINESS Midterm Exam 2/2023
PART III: Short-Answer Questions (20 marks)

1. Compare and contrast multinational strategy and global strategy. When is each appropriate? Give
examples for each strategy. (6 marks)

2. What are the key differences between Licensing and Franchising. (4 marks)

3. Describe the role of product in the marketing mix, including how products are developed, classified, and
identified. (6 marks)

4. The price of sugar rises from 1000 MMK to 2000 MMK per kilogram in one week.
Does the demand for sugar rise or fall? Why? (4 marks)

***The End***
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