BUSINESS EPI EXAM SAMPLE QUESTIONS

What happens to the demand of mobile phones if prices (tariffs) of mobile telecommunication services go down? a) It increases because mobile complementary products b) It increases because mobile substitute products c) It decreases because mobile complementary products d) It decreases because mobile substitute products phones and mobile telecommunication services are phones and mobile telecommunication services are phones and mobile telecommunication services are phones and mobile telecommunication services are

The firm RO-RO has 750 in assets, while the ownership equity is 250. Operating profit for the year comes to 75 and interests are 10% of liabilities. There are no taxes. Calculate the return on equity: a) b) c) d) 2.5% 5.0% 7.5% 10.0%

A public company: a) Is a private company with a board of directors and an auditor b) Is a state-owned company c) Can go public (that is, can offer its shares for sale to the general public, typically through a stock exchange) d) Is part of the third sector (social economy) If we apply Porters five forces competitive analysis model to the building industry, we can expect that: a) The greater the number of cement manufacturers, the higher the level of competition in the building industry b) The higher the entry barriers (legal, economic, technological...), the lower the level of competition in the building industry c) The more firms the building industry has, the lower the level of competition of the industry d) The higher the threat of substitutive products, the lower the level of competition in the building industry The insurance company Lnea Directa Aseguradora was established in 1995 as a joint venture of two banks: Bankinter from Spain and RBS from the UK. Therefore, Bankinter entered into the insurance business by means of: a) b) c) d) Internal growth External growth A co-operative growth mode A merger

BUSINESS EPI EXAM SAMPLE QUESTIONS

Indirect compensation does not include: a) b) c) d) Monetary incentives Company mobile phone Company car Health insurance

The firm ALFA buys some raw materials from supplier BETA but ALFA does not pay them yet. For ALFA, this transaction is a: a) b) c) d) Revenue Receipt Expense Cash inflow

Read this piece of information from a newspaper: Oviedo February 8th, 2011.- General Alquiler de Maquinaria, S. A., GAM, has agreed with 19 financial institutions a new debt repayment schedule, deferring a total amount of 118 million. This financial agreement was the result of: a) b) c) d) Having a positive working capital Being in a situation of cash flow insolvency Having negative EBITDA, but positive gross operating profit A liquidation process

Which layout can you find in a typical large factory from the chemical industry (for example, in a DuPont plants located in Asturias)? a) b) c) d) Fixed-position Functional Product U-shaped

When a newspaper publishes a report/article that describes the activities of a firm, presenting a good image of it, we call this promotion instrument: a) b) c) d) Advertising Public relations Personal selling Sales promotion