MGMT 425 FINAL PAPER 2026 EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔Businesspeople who accept the risks and opportunities involved in creating and
operating new business ventures are called ________.
A) managers
B) supervisors
C) entrepreneurs
D) angel investors - ✔✔C) entrepreneurs
✔✔In ________ cultures, economic systems tend to provide incentives and rewards for
a person's private business initiatives.
A) individualist
B) high uncertainty avoidance
C) feminine
D) large power distance - ✔✔A) individualist
✔✔The ________ system of a country consists of the structure and processes it uses to
allocate its resources and to conduct its commercial activities.
A) political
B) economic
C) social
D) cultural - ✔✔B) economic
✔✔A ________ economy is a system in which the government owns a nation's land,
factories, and other economic resources, and schedules nearly all economic activities.
A) mixed
B) market
C) centrally planned
D) laissez-faire - ✔✔C) centrally planned
✔✔Central planning is rooted in the ideology that ________.
A) the welfare of a group is more important than individual well-being
B) individual concerns should be placed above group consensus
C) individual and group concerns are just as important as government concerns
D) privatization will enhance a country's economic well-being - ✔✔A) the welfare of a
group is more important than individual well-being
✔✔Which of the following statements is true of a centrally planned economy?
A) Individual concerns are as important as the government's concerns.
B) Consumers determine the prices of products and labor.
C) Factories are privately owned.
D) The government sets the production goals. - ✔✔D) The government sets the
production goals.
, ✔✔In most centrally planned economies that failed, ________.
A) market conditions had determined who would produce goods
B) prices of products were seen as a function of supply and demand
C) central planning agencies had specified the production goals
D) central planners had paid attention to efficiency improvement - ✔✔C) central
planning agencies had specified the production goals
✔✔Who among the following popularized the idea of central economic planning in the
nineteenth century?
A) Frederick Taylor
B) Karl Marx
C) Peter Drucker
D) Henry Fayol - ✔✔B) Karl Marx
✔✔North Korea practices a policy of self-reliance known as ________.
A) guanxi
B) laissez-faire
C) juche
D) kaizen - ✔✔C) juche
✔✔Which of the following disagrees with the concept of centrally planned economies?
A) At the time of their collapse, standards of living in most centrally planned economies
were at or above those of market economies.
B) Basic necessities were often not provided to citizens in centrally planned economies.
C) Underground economies for goods and services thrived in most centrally planned
economies.
D) Prices on the black market were much higher than the official prices set by
governments. - ✔✔A) At the time of their collapse, standards of living in most centrally
planned economies were at or above those of market economies.
✔✔Which of the following emerged during the failure of centrally planned economic
systems?
A) black markets
B) public markets
C) free enterprise system
D) market economies - ✔✔A) black markets
✔✔Which of the following is an important factor in forming successful business ventures
in China?
A) following the strategies of western countries for establishing business relationships
B) focusing on establishing tight formal contracts
C) giving high importance to written contracts
D) establishing a trusting relationship before proceeding with business - ✔✔D)
establishing a trusting relationship before proceeding with business
ANSWERS RATED A+
✔✔Businesspeople who accept the risks and opportunities involved in creating and
operating new business ventures are called ________.
A) managers
B) supervisors
C) entrepreneurs
D) angel investors - ✔✔C) entrepreneurs
✔✔In ________ cultures, economic systems tend to provide incentives and rewards for
a person's private business initiatives.
A) individualist
B) high uncertainty avoidance
C) feminine
D) large power distance - ✔✔A) individualist
✔✔The ________ system of a country consists of the structure and processes it uses to
allocate its resources and to conduct its commercial activities.
A) political
B) economic
C) social
D) cultural - ✔✔B) economic
✔✔A ________ economy is a system in which the government owns a nation's land,
factories, and other economic resources, and schedules nearly all economic activities.
A) mixed
B) market
C) centrally planned
D) laissez-faire - ✔✔C) centrally planned
✔✔Central planning is rooted in the ideology that ________.
A) the welfare of a group is more important than individual well-being
B) individual concerns should be placed above group consensus
C) individual and group concerns are just as important as government concerns
D) privatization will enhance a country's economic well-being - ✔✔A) the welfare of a
group is more important than individual well-being
✔✔Which of the following statements is true of a centrally planned economy?
A) Individual concerns are as important as the government's concerns.
B) Consumers determine the prices of products and labor.
C) Factories are privately owned.
D) The government sets the production goals. - ✔✔D) The government sets the
production goals.
, ✔✔In most centrally planned economies that failed, ________.
A) market conditions had determined who would produce goods
B) prices of products were seen as a function of supply and demand
C) central planning agencies had specified the production goals
D) central planners had paid attention to efficiency improvement - ✔✔C) central
planning agencies had specified the production goals
✔✔Who among the following popularized the idea of central economic planning in the
nineteenth century?
A) Frederick Taylor
B) Karl Marx
C) Peter Drucker
D) Henry Fayol - ✔✔B) Karl Marx
✔✔North Korea practices a policy of self-reliance known as ________.
A) guanxi
B) laissez-faire
C) juche
D) kaizen - ✔✔C) juche
✔✔Which of the following disagrees with the concept of centrally planned economies?
A) At the time of their collapse, standards of living in most centrally planned economies
were at or above those of market economies.
B) Basic necessities were often not provided to citizens in centrally planned economies.
C) Underground economies for goods and services thrived in most centrally planned
economies.
D) Prices on the black market were much higher than the official prices set by
governments. - ✔✔A) At the time of their collapse, standards of living in most centrally
planned economies were at or above those of market economies.
✔✔Which of the following emerged during the failure of centrally planned economic
systems?
A) black markets
B) public markets
C) free enterprise system
D) market economies - ✔✔A) black markets
✔✔Which of the following is an important factor in forming successful business ventures
in China?
A) following the strategies of western countries for establishing business relationships
B) focusing on establishing tight formal contracts
C) giving high importance to written contracts
D) establishing a trusting relationship before proceeding with business - ✔✔D)
establishing a trusting relationship before proceeding with business
