BUS 115 W07 Midterm Exam | Questions & Answers | Brigham Young University Remotely Proctored | 2026/2027
BUS 115 W07 Midterm Exam | Questions &
Answers
Brigham Young University · Undergraduate Business · Introduction to
Business
Remotely Proctored · 2026/2027 · Economics · Management · Marketing ·
Finance & Ethics
Abstract
This study guide presents a 40-item multiple-choice midterm examination for BUS 115
W07 at Brigham Young University, aligned with 2026/2027 academic standards in
undergraduate business education. Designed for a remotely proctored environment,
items test deep conceptual understanding and application rather than rote
memorization, requiring students to analyze business problems and propose viable,
ethically sound solutions. Items are organized into four thematic sections: (1) Business
Environment, Economics, and Global Trade, including supply and demand, price
elasticity, market structures (perfect competition, monopolistic competition, oligopoly,
monopoly), GDP, inflation, comparative advantage, tariffs, and globalization; (2)
Management, Organizational Behavior, and Human Resources, including the POLC
framework, leadership styles, motivation theories (Maslow's hierarchy, Herzberg's
two-factor, equity), organizational culture, HR bias-reduction, and hybrid work
management; (3) Marketing, Consumer Behavior, and Product Development, including
the 4 Ps, market segmentation, target marketing, consumer decision-making (high- vs
low-involvement), the product life cycle, and 2026/2027 digital marketing trends; and
(4) Finance, Accounting, Business Ethics, and 2026/2027 Updates, including financial
statements, the accounting equation, time value of money, corporate social
responsibility, ethical decision-making frameworks, AI governance in business, and
sustainable business practices. The cognitive distribution follows the 30% recall / 50%
application / 20% analysis blueprint, and 75% of items are scenario-based. Each item
includes four options, a single best answer, and a multi-layered rationale explaining the
business principle or economic mechanism and precisely why each distractor
represents a flawed business strategy, misapplied management theory, or unsound
economic reasoning. A grading rubric allocates 2.5 points per question (100 points
total) with partial-credit guidance for complex business scenarios and mastery
thresholds aligned to undergraduate expectations for foundational business judgment.
Keywords: business fundamentals; microeconomics; macroeconomics; market
structures; globalization; management; organizational behavior; motivation theories;
human resources; marketing mix; consumer behavior; product life cycle; financial
statements; time value of money; corporate social responsibility; business ethics; AI in
business; hybrid work; sustainable business; undergraduate business education.
Page 1
,BUS 115 W07 Midterm Exam | Questions & Answers | Brigham Young University Remotely Proctored | 2026/2027
Examination Blueprint Overview
Section Theme Items Cognitive Mix Item Style
1 Business Environment, Economics, & Global Trade Q1-Q10 Recall / Application / AnalysisScenario + Direct
2 Management, Organizational Behavior, & Human Resources Q11-Q20 Recall / Application / AnalysisScenario + Direct
3 Marketing, Consumer Behavior, & Product Development Q21-Q30 Recall / Application / AnalysisScenario + Direct
4 Finance, Accounting, Business Ethics, & 2026/2027 Updates Q31-Q40 Recall / Application / AnalysisScenario + Direct
All Total Cognitive Mix: 30% Recall, 50% Application, 20% Analysis
40 75% scenario-based 25% direct
Section 1: Business Environment, Economics, and Global
Trade
Q1: Which statement most accurately describes the law of demand?
A. Price and quantity demanded are unrelated, which is incorrect — the relationship
is inverse
B. Demand is fixed regardless of price, which contradicts the law of demand
C. The law of demand states that, ceteris paribus, as the price of a good rises, the
quantity demanded falls, and as price falls, the quantity demanded rises — an
inverse relationship along a given demand curve [CORRECT]
D. As price rises, quantity demanded rises, which describes a supply relationship,
not demand
Correct Answer: C
Rationale: Law of demand: price↑ → quantity demanded↓ (inverse, ceteris paribus).
Option A is correct. Option B describes supply. Option C denies the relationship.
Option D contradicts the law.
Page 2
, BUS 115 W07 Midterm Exam | Questions & Answers | Brigham Young University Remotely Proctored | 2026/2027
Q2: A coffee shop raises its latte price from $4 to $5, and weekly sales fall from 200
to 140 cups. The shop owner is evaluating elasticity. Which interpretation is most
accurate?
A. Demand is price-elastic: the percentage drop in quantity (30%) exceeds the
percentage rise in price (25%), so total revenue falls from $800 to $700 — indicating
that raising the price reduced revenue because consumers are responsive to price
[CORRECT]
B. Demand is inelastic because the price increased, which misreads elasticity as a
function of price direction rather than relative percentage changes
C. Demand is unit-elastic because both price and quantity changed, which is
incorrect — unit elasticity requires equal percentage changes
D. Elasticity cannot be determined without cost data, which is incorrect — elasticity
uses price and quantity only
Correct Answer: A
Rationale: Elasticity compares %ΔQ to %ΔP; here %ΔQ (30%) > %ΔP (25%), so
demand is elastic and the price increase reduced revenue ($800 → $700). Option A is
correct. Option B misreads elasticity. Option C requires equal percentages. Option D
overstates data needs.
Q3: Which set correctly distinguishes the four major market structures?
A. Perfect competition has one seller and monopoly has many, which reverses the
structures
B. Oligopoly has many sellers with identical products, which describes perfect
competition
C. All four structures are identical, which is incorrect — they differ in sellers,
differentiation, and pricing power
D. Perfect competition (many sellers, identical products, price takers); monopolistic
competition (many sellers, differentiated products); oligopoly (few sellers, mutual
interdependence); monopoly (one seller, no close substitutes, price maker)
[CORRECT]
Correct Answer: D
Rationale: Perfect competition (many, identical, price taker); monopolistic
competition (many, differentiated); oligopoly (few, interdependent); monopoly (one,
no substitutes, price maker). Option A is correct. Options B, C, D each misstate at
least one structure.
Page 3
BUS 115 W07 Midterm Exam | Questions &
Answers
Brigham Young University · Undergraduate Business · Introduction to
Business
Remotely Proctored · 2026/2027 · Economics · Management · Marketing ·
Finance & Ethics
Abstract
This study guide presents a 40-item multiple-choice midterm examination for BUS 115
W07 at Brigham Young University, aligned with 2026/2027 academic standards in
undergraduate business education. Designed for a remotely proctored environment,
items test deep conceptual understanding and application rather than rote
memorization, requiring students to analyze business problems and propose viable,
ethically sound solutions. Items are organized into four thematic sections: (1) Business
Environment, Economics, and Global Trade, including supply and demand, price
elasticity, market structures (perfect competition, monopolistic competition, oligopoly,
monopoly), GDP, inflation, comparative advantage, tariffs, and globalization; (2)
Management, Organizational Behavior, and Human Resources, including the POLC
framework, leadership styles, motivation theories (Maslow's hierarchy, Herzberg's
two-factor, equity), organizational culture, HR bias-reduction, and hybrid work
management; (3) Marketing, Consumer Behavior, and Product Development, including
the 4 Ps, market segmentation, target marketing, consumer decision-making (high- vs
low-involvement), the product life cycle, and 2026/2027 digital marketing trends; and
(4) Finance, Accounting, Business Ethics, and 2026/2027 Updates, including financial
statements, the accounting equation, time value of money, corporate social
responsibility, ethical decision-making frameworks, AI governance in business, and
sustainable business practices. The cognitive distribution follows the 30% recall / 50%
application / 20% analysis blueprint, and 75% of items are scenario-based. Each item
includes four options, a single best answer, and a multi-layered rationale explaining the
business principle or economic mechanism and precisely why each distractor
represents a flawed business strategy, misapplied management theory, or unsound
economic reasoning. A grading rubric allocates 2.5 points per question (100 points
total) with partial-credit guidance for complex business scenarios and mastery
thresholds aligned to undergraduate expectations for foundational business judgment.
Keywords: business fundamentals; microeconomics; macroeconomics; market
structures; globalization; management; organizational behavior; motivation theories;
human resources; marketing mix; consumer behavior; product life cycle; financial
statements; time value of money; corporate social responsibility; business ethics; AI in
business; hybrid work; sustainable business; undergraduate business education.
Page 1
,BUS 115 W07 Midterm Exam | Questions & Answers | Brigham Young University Remotely Proctored | 2026/2027
Examination Blueprint Overview
Section Theme Items Cognitive Mix Item Style
1 Business Environment, Economics, & Global Trade Q1-Q10 Recall / Application / AnalysisScenario + Direct
2 Management, Organizational Behavior, & Human Resources Q11-Q20 Recall / Application / AnalysisScenario + Direct
3 Marketing, Consumer Behavior, & Product Development Q21-Q30 Recall / Application / AnalysisScenario + Direct
4 Finance, Accounting, Business Ethics, & 2026/2027 Updates Q31-Q40 Recall / Application / AnalysisScenario + Direct
All Total Cognitive Mix: 30% Recall, 50% Application, 20% Analysis
40 75% scenario-based 25% direct
Section 1: Business Environment, Economics, and Global
Trade
Q1: Which statement most accurately describes the law of demand?
A. Price and quantity demanded are unrelated, which is incorrect — the relationship
is inverse
B. Demand is fixed regardless of price, which contradicts the law of demand
C. The law of demand states that, ceteris paribus, as the price of a good rises, the
quantity demanded falls, and as price falls, the quantity demanded rises — an
inverse relationship along a given demand curve [CORRECT]
D. As price rises, quantity demanded rises, which describes a supply relationship,
not demand
Correct Answer: C
Rationale: Law of demand: price↑ → quantity demanded↓ (inverse, ceteris paribus).
Option A is correct. Option B describes supply. Option C denies the relationship.
Option D contradicts the law.
Page 2
, BUS 115 W07 Midterm Exam | Questions & Answers | Brigham Young University Remotely Proctored | 2026/2027
Q2: A coffee shop raises its latte price from $4 to $5, and weekly sales fall from 200
to 140 cups. The shop owner is evaluating elasticity. Which interpretation is most
accurate?
A. Demand is price-elastic: the percentage drop in quantity (30%) exceeds the
percentage rise in price (25%), so total revenue falls from $800 to $700 — indicating
that raising the price reduced revenue because consumers are responsive to price
[CORRECT]
B. Demand is inelastic because the price increased, which misreads elasticity as a
function of price direction rather than relative percentage changes
C. Demand is unit-elastic because both price and quantity changed, which is
incorrect — unit elasticity requires equal percentage changes
D. Elasticity cannot be determined without cost data, which is incorrect — elasticity
uses price and quantity only
Correct Answer: A
Rationale: Elasticity compares %ΔQ to %ΔP; here %ΔQ (30%) > %ΔP (25%), so
demand is elastic and the price increase reduced revenue ($800 → $700). Option A is
correct. Option B misreads elasticity. Option C requires equal percentages. Option D
overstates data needs.
Q3: Which set correctly distinguishes the four major market structures?
A. Perfect competition has one seller and monopoly has many, which reverses the
structures
B. Oligopoly has many sellers with identical products, which describes perfect
competition
C. All four structures are identical, which is incorrect — they differ in sellers,
differentiation, and pricing power
D. Perfect competition (many sellers, identical products, price takers); monopolistic
competition (many sellers, differentiated products); oligopoly (few sellers, mutual
interdependence); monopoly (one seller, no close substitutes, price maker)
[CORRECT]
Correct Answer: D
Rationale: Perfect competition (many, identical, price taker); monopolistic
competition (many, differentiated); oligopoly (few, interdependent); monopoly (one,
no substitutes, price maker). Option A is correct. Options B, C, D each misstate at
least one structure.
Page 3
