Period of Examinations

Summer Semester 2018

Study Course: Various Engineering Bachelors

Module Titles: EL_19.1 / ME_18.1 / SE_18.1
Examination Part: Business Economics and Marketing
Points: 100
Duration: 60 Minutes
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Date: ____________________
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Student No.: ____________________

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Page 1 of 10 page(s)
Student No.: ____________________

Please tick the appropriate boxes like this 

Points:
Question 1: 4

The contribution of manufacturing to German GDP for 2017 rose by about 2.5%. Which one
of the following statements on the manufacturing sector is true?

1. Manufacturing contributed around € 1,700bn to GDP 

2. Manufacturing contributed around € 1,300bn to GDP 
3. Manufacturing contributed around € 850bn to GDP 
4. Manufacturing contributed around twice as much as Financial Services 
5. Manufacturing contributed around 10 times as much as Agriculture 
6. Manufacturing contributed about the same as total Services 

Question 2: 5

“Profit maximization occurs when a business’ marginal cost equals attainable marginal
revenue”. Please tick the appropriate statement!

1. Marginal cost can never equal marginal revenue 

2. Marginal cost and marginal revenue are always the same 
3. This definition is basically true 
4. Marginal costs have no relation to profit 
5. There is no such thing as marginal revenue 
6. Marginal cost and marginal revenue run parallel and thus cannot be equal 

Question 3: 6

Which two of the following statements describe the “economic principle” most accurately?
1. Get fixed output for minimum input 
2. Minimize input and output 
3. Maximize input and output 
4. Get minimum output for fixed input 
5. Get maximum output for fixed input 
6. The economic principle does not apply to business 
7. Get maximum output for minimum input 
8. Get minimum output for minimum input 
9. The economic principle describes no input-output relationship 

Page 2 of 10 Page(s)
Student No.: ____________________

Points:
Question 4: 4

Which one of the following markets is often characterized by national monopolies?

1. Restaurants 
2. Books 
3. Cars 
4. Fashion 
5. Dairy products (milk, cheese, etc.) 
6. Electricity 
7. Legal Services 
8. OTC (over the counter) medicines 

Question 5: 3

What is a “Corporate Vision”? (one answer)

1. A chart providing an overview of all functions 

2. A tool to help businesses find a spiritual calling 
3. A list of employees currently active in projects 
4. A list of employees planning to retire soon 
5. A tool to help businesses follow spiritual rules 
6. A brief description of what a specific business does right now 
7. A brief description of what a specific business wants to do in the future 
8. A list of items required to achieve annual closing 

Question 6: 4

Please name four tasks that are usually managed by the Marketing function of a business!

Page 3 of 10 Page(s)
Student No.: ____________________

Points:
Question 7: 5

Which two of the following statements do not describe a typical difference between a
Consumer and a Business market?

1. In Consumer markets, emotions have a bigger influence on purchase decisions

than in Business markets. 
2. Prices in Consumer markets are usually not calculated on an individual basis,
in Business markets they are. 
3. Business markets are usually bigger than Consumer markets. 
4. Brand and Communication are more important to Consumers. 
5. In Business markets most selling is direct, Consumer markets of require
intermediaries (e.g. Retail). 
6. Products in Business markets are usually more expensive than in Consumer
markets. 

Question 8: 3

What is a “Span of Control”? (one answer)

1. A tool to help businesses match legal requirements 

2. The number of employees one supervisor leads 
3. The number of employees currently in full-time employment 
4. A technical term for efficiency 
5. A technical term for cost guidance 
6. Another word for cost savings 
7. None of the above 

Question 9: 4
Which two of the following tasks usually belong to the Research & Development Function?

1. Accounts controlling 
2. Liquidity management 
3. Market Research 
4. People Management 
5. Performance Evaluation 
6. Requirements Elicitiation 
7. Pricing strategy 
8. Process analysis and design 
9. Product portfolio planning 
10. Profitability management 

Page 4 of 10 Page(s)
Student No.: ____________________

Points:
Question 10: 3
Please name three typical stakeholders of a large corporation!

Question 11: 6 (+3)

Please briefly describe three ways to re-define a market following the “Blue Ocean Strategy”
approach!

Page 5 of 10 Page(s)
Student No.: ____________________

Points:
Question 12: 3

How would you calculate the unit cost of a product? (one answer)

1. Multiply the variable costs with the units. 

2. Divide fixed costs by units and multiply variable costs with units. 
3. Divide fixed by variable costs. 
4. Add fixed and variable costs multiplied by units. 
5. Add all cash inflows and subtract all cash outflows. 
6. Subtract variable from fixed costs and divide by units. 
7. Add fixed and variable costs and divide by units. 
8. Add depreciation and subtract appreciation. 

Question 13: 4 (+2)

Please briefly describe the difference between consumer “needs” and “desire”, using your
own words!

Question 14: 5
Which two statements usually apply to a “Matrix Organization”?

1. First line combines division and functional heads 

2. Structure forces decision overload on top executives 
3. Every department has upwards of three supervisors 
4. Decision time is usually quite long 
5. Decision time is usually quite short 
6. Motivation is usually quite high 
7. Employees perceive the organization as chaotic 

Page 6 of 10 Page(s)
Student No.: ____________________

Points:
Question 15: 3
Which one of these five sentences does not describe a characteristic of Venture Capital?

1. Usually directed at start-up businesses 

2. Focus on very high returns on exit 
3. High growth expectations 
4. Interested in realizing ‘hidden’ asset value 
5. Not interested in short term profit 

Question 16: 3
Which statement most accurately describes straight line depreciation?

1. Annuities rise 
2. Annuities fall 
3. Overall value rises 
4. Overall value falls 
5. None of the above 

Question 17: 3
What would be the most appropriate legal setup for a car repair shop (one answer)

1. Sole Proprietor 
2. Marginal Business 
3. Partnership 
4. Insurance Company 
5. Corporation 
6. Production Unit 
7. Foundation 
8. Service Unit 

Question 18: 3
Which one answer describes an activity that is not part of Marketing Communications?

1. Influencer selection 
2. Campaign management 
3. Media selection 
4. Market research 
5. Marketing spend controlling 

Page 7 of 10 Page(s)
Student No.: ____________________

Points:
Question 19: 6 (+2)
Please briefly describe what a “Balance Sheet” is used for, and how it is structured, if
necessary, use your own words!

Question 20: 3
Why would a startup firm rather stay private? (one answer)
1. Limited capital requirements 
2. Better control of technology 
3. More attractive to early investors 
4. Lower risk of asset depreciation 
5. A startup firm will never do this – they must prefer going public 

Question 21: 4
What is the current European Central Bank deposit interest rate?
1. 2.4% 
2. 1.2% 
3. 0.8% 
4. 0.4% 
5. 0% 
6. -0.4% 

Page 8 of 10 Page(s)
Student No.: ____________________

Points:
Question 22: 9 (+3)
Please briefly explain, in your own words, three key aspects of Apple Inc.’s business
model!

Question 23: 3

Which statement about a company’s pension reserves is true?

1. They belong to the government 

2. They belong to the employees 
3. They belong to the shareholders 
4. They belong to the pension system 
5. Half of them belongs to the government, half to the employees 
6. Half of them belongs to the shareholders, half to the government 
7. Companies cannot have pension reserves 

Page 9 of 10 Page(s)
Student No.: ____________________

Points:
Question 24: 2
What does “IPO” stand for? (one answer)

1. Internal Profit Optimization 

2. International Publicity Option 
3. International Public Option 
4. International Public Organization 
5. Initial Public Offering 
6. Initial Profit Overview 
7. Internal Public Obligation 

Question 25: 2
What does “ROI” stand for? (one answer)

1. Risk from Operations and Investments 

2. Receivable Operating Income 
3. Reclaimed Operating Income 
4. Readjusted Operating Income 
5. Return On Investment 
6. Return On Income 
7. Reserves On Income 

Good Luck!

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