The difficulty of these questions as seen by students will depend on (1) what was discussed in class and (2) how long students have to answer the questions. If time is not an issue, then many of the questions could be classified as EASY, but under exam conditions with time pressure, many might be regarded as being CHALLENGING. So, consider the amount of time students have when selecting questions for an exam.     Note that there is some overlap between the True/False and the multiple choice questions, as some T/F statements are used in the MC questions.   One of the four most fundamental factors that affect the cost of money as discussed in the text is the current state of the weather. If the weather is dark and stormy, the cost of money will be higher than if it is bright and sunny,

other things held constant.

Answer the following statement true (T) or false (F)


False

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BigBox Stores, Inc., has just purchased 100 acres of land in Happyville. The town, fearful of a huge chain store ruining the economy and putting local retailers out of business, quickly passes an ordinance restricting the size of any new buildings to no more than 5,000 square feet. The typical BigBox store averages approximately 100,000 square feet. Does the town of Happyville have the right to enact a zoning restriction of this nature?

What will be an ideal response?

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Mini-Case Question. Coller Inc, because of a weak competitive advantage, is unable to produce desired levels of performance, and considers using a strategic market plan that allows it to exit the market slowly

The firm decides to improve its short-run performance by reducing marketing and sales expenses and systematically raising prices. In this example, Coller Inc is most likely to be using which of the following defensive core strategies? A) a decentralization strategy B) a disintermediation strategy C) a harvest for cash flow strategy D) a divest for cash flow strategy E) a reduce market focus strategy

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In cohort analysis, it is likely that many of the individuals studied at time one will also be in the sample at time two

Indicate whether the statement is true or false

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An electrical power system consists of four major components with reliabilities of 0.99, 0.94, 0.92, and 0.95. In order to improve the reliability, a backup component of reliability 0.92 is added to Component 3. Compute and indicate the composite reliability of Component 3.

A. 0.89 B. 0.99 C. 0.98 D. 0.92

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