REVISION 1 – ANSWERS

Choose the best answer

1. ……………… is something you plan to do or achieve.
A. Objective B. Promotion C. Strategy D. Innovation
2. ………………... is the section of the economy under government control.
A. Crisis B. Institution C. Private sector D. Public sector
3. Managers ………… the ………. of their staff to see whether they are reaching their targets.
A. perform – tasks B. measure – performance C. supervise- subordinates D. set - objectives
4. …………… is a face-to-face disagreement or argument.
A. compromise B. connection C. confrontation D. intuition
5. …………… is to do something when necessary without having already planned it.
A. interrupt B. improvise C. confront D. stereotype
6. ………….. is to be humiliated or disrespected in public.
A. associate B. undermine C. undergo D. lose face
7. The ……………..of Management are the essential, underlying factors that form the foundations of
successful management.
A. Principles B. Penetration C. Differentiation D. Segmentation
8. …………. is selling unwanted goods very cheaply, usually in other countries.
A. copyright B. trademark C. dumping D. generic
9. ……………….. are possibilities of filling unsatisfied needs in sectors in which a company can profitably
produce goods or services.
A. distribution channel B. market opportunities C. market penetration D. market
segmentation
10. The refugees live in …………… housing provided by the authorities.
A. generic B. subsidized  C. opposed D. classified
11. ……………. is someone who contacts existing and potential customers, and retries to persuade them to
buy goods or services.
A. sales representative B. wholesaler C. retailer D. consultant
12. ………………. is an intermediary that stocks manufacturers’ goods or merchandise, and sells it to
retailers and professional buyers.
A. market skimming B. distribution channel
C. wholesaler D. market opportunities
13. In ……………, sales volume peaks.
A. introduction stage B. growth stage C. maturity stage D. decline stage
14. Costs are reduced due to …………………., so profitability increases.
A. macroeconomics B. microeconomics C. scalable schemes D. economies of scale
15. The company can choose between high …………….. to recover development costs, or low ………………. to
build market share rapidly, if there are already competitors.
A. penetration pricing - skim pricing B. market skimming – price elasticity
C. skim pricing- market segmentation D. skim pricing- penetration pricing
16. …………. means a country’s ability produce particular goods more efficiently (using fewer resources and
at a lower cost) than some other countries.
A. comparative advantage B. absolute advantage C. infant industry D. strategic industry
17. In Italy, authority is important, as is ……………….
A. senior B. superior C. hierarchically D. seniority
18. Successful companies are becoming ……………., adapting their products to fit their customers’
strategies.

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A. sales driven B. market driven C. market driving D. sales driving
19. …………. are the attributes or characteristics of a product, such as size, shape, quality, price, reliability,
etc.
A. distribution channel B. price elasticity C. product differentiation D. product features
20. …………. is the amount of money that you owe to a bank when you have spent more money than is in your
bank account.
A. cashpoint B. overdraft C. checking account D. current account
21. …………… is a legal agreement by which a bank or similar organization lends you money to buy a house,
etc., and you pay the money back over a particular number of years.
A. loan B. deposit C. debit card D. mortgage
22. ……………… are private investment funds for wealthy investors that use a wider variety of (risky)
investing strategies than traditional investment funds, in order to achieve higher returns.
A. Investment banks B. Hedge funds C. Stockbrokers D. Commercial banks
23. Glass-Steagall was …………… in 1999.
A. repealed B. returned C. rated D. subprime crisis
24. …………… is money placed in a bank.
A. loan B. capital C. equity D. deposit
25. ………… are certificates representing part-ownership of a company.
A. stocks B. shares C. bonds D. Both A&B
26. ………….. are certificates of debt issued by governments or companies to raise money.
A. stocks B. portfolios C. bonds D. returns
27. …………. is when one company combines with another one.
A. takeover bid B. merger C. deregulation D. bankrupt
28. ………. is the ending or relaxing of legal restrictions.
A. merger B. takeover bid C. stockbroking D. deregulation
29. ………. is buying and selling stocks or shares for clients.
A. deregulation B. stockbroking C. conglomerate D. interest
30. ………. is a group of companies, operating in different fields, which have joined together.
A. merger B. conglomerate C. takeover bid D. stockbroking
31. ………. means beingunable to pay debts or continue to do business.
A. merger B. liquidate C. bankrupt D. takeover bid
32. ………. is when one company offers to buy or acquire another one.
A. takeover bid B. merger C. liquidate D. stockbroking
33. ………. are the profits made on investments.
A. returns B. margin C. portfolios D. stockbroking
34. ………. is all the investments owned by an individual or organization.
A. returns B. portfolio C. stockbroking D. equity
35. ………. is the price paid for borrowing money, paid to the lenders.
A. conglomerate B. returns C. interest D. deposit
36. Deregulation in the 1980s was one of the factors that led to the …………………………..
A. credit rating B. mutual funds C. subprime crisis D. mortgage payment
37. The value of …………………. fell to almost zero in 2007, and many banks lost billions of dollars.
A. collateralized debt B. mortgage-backed securities
C. credit crunch D. underlying mortgages
38. The bank makes small loans to a large number of people, which greatly …………… the risk.
A. diversifies B. diversify C. diversification D. diversity
39. This process is called ………………..: financial assets like mortgages which produce a cash flow are
pooled (grouped together) and converted into securities that are then sold to investors.

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A. default B. collateral C. cash flow D. securitization
40. When many subprime borrowers stopped paying, the value of subprime related securities fell
……………..
A. slightly B. risky C. dramatically D. initiatively
41. Costs are reduced due to economies of scale, so …………………. increases.
A. profitable B. profits C. unprofitable D. profitability
42. A ……………….. is a massive reduction in the amount of credit available for banks to other banks,
businesses and households.
A. subprime crisis B. credit crunch C. credit flow D. credit available
43. ………. is the money generated by an investment.
A. default B. cash flow C. loan D. interest rate
44. ………. is failure to repay a loan.
A. bankrupt B. debt C. default D. write off
45. ………. is cancel a bad debt or a worthless asset from an account.
A. write off B. collateralize C. default D. debit
46. ………. is estimates of people’s ability to fullfil their financial commitments.
A. collateral B. credit rating C. credit D. mortgage
47. ………. means with property or another asset used as a guarantee of payment.
A. collateralized B. write off C. cash flow D. credit rating
48. I believe that good managers basically are good ………………….. of strategies.
A. counselor B. executors C. consultancy D. executor
49. Reducing the amount of tax you pay to a legal minimum is called ……………..
A. tax evasion B. creative accounting C. money laundering D. tax avoidance
50. ………….. is the total market value of all the goods and services produced in a country during a given
period.
A. gross domestic product B. balance of payment C. balance of trade D. balance sheet

REVISION 2 – MODULE 4
Choose the best answer
1. …………. is all the money that a business spends on goods or services during a given period.
A. expenditure B. income C. debts D. liabilities
2. …………. is anything owned by a business – cash, buildings, machines, equipment, etc.
A. income B. revenue C. asset D. account
3. ………… means delayed or postponed until a later time.
A. payable B. retained C. deferred D. accrued
4. An adjective describing something without a material existence, which you can’t touch.
A. current B. intangible C. tangible D. incurred
5. ……………. is all the money received from business activities during a given period.
A. asset B. income C. transaction D. budget
6. An adjective describing a liability which has been incurred but not yet invoiced to the company.
A. accrued B. deferred C. receivable D. intangible
7. …………… is an entry in an account, recording a payment received.
A. debit B. income C. credit D. expenditure
8. ………….. is an entry in an account, recording a payment made.
A. credit B. debit C. transaction D. liabilities

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9. ………….. is a financial operating plan showing expected income and expenditure.
A. account B. budget C. financial statement D. revenue
10. ……………. are all the money that a company will have to pay to someone else in the future, including
debts, taxes and interest payments.
A. debits B. expenditure C. expenses D. liabilities
11. The distribution of part of the earnings of a company to its shareholders is ………………
A. debit B. dividend C. stock D. share
12. The employees record the ………………… in an expense account.
A. income B. goodwill C. retained earnings D. expenditure
13. Profits earned to date but not yet distributed to shareholders by way of dividends are ……………..
A. retained earnings B. share premium C. additional paid-in capital D. stock
14. ……………. calculates how much an individual or a company will have to pay to the local and national
governments.
A. cost accounting B. transactions C. tax accounting D. liabilities
15. ………………. is an intangible asset and also considered as a saleable asset when a business is sold and is
sometimes shown in the balance sheet.
A. dividend B. goodwill C. share premium D. capital
16. ………….. is inspecting and reporting on accounts and financial records.
A. balance sheet B. managerial accounting C. auditing D. bookkeeping
17. ………… is using all available accounting procedures and tricks to disguise the true financial position of a
company.
A. managerial accounting B. creative accounting C. cost accounting D. bookkeeping
18. …………… is writing down the details of transactions (debits and credits).
A. cash flow statement B. income statement C. bookkeeping D. records
19. ………….. is a statement showing the differences between the revenues and expenses of a period.
A. income statement B. cash flow statement C. balance sheet D. loss account
20. ………….. is a statement showing the value of a business’s assets, its liabilities, and its capital or
shareholders’ equity.
A. cash flow statement B. balance sheet C. income statement D. profit account
21. …………… is a statement giving details of money coming into and leaving the business, divided into day-
to-day operations, investing and financing.
A. balance sheet B. income statement C. cash flow statement D. expenses
22. …………… is money owed by customers for goods or services purchased on credit.
A. total receivables B. account payable C. accrued expenses D. retained earnings
23. …………… is money owed to suppliers for purchases made on credit.
A. prepaid expenses B. account payable C. retained earnings D. accrued expenses
24. …………… is money paid in advance for goods and services.
A. retained earnings B. accrued expenses C. prepaid expenses D. goodwill
25. …………… are profits that have not been distributed to shareholders.
A. goodwill B. additional paid-in capital C. accrued expenses D. retained earnings
26. …………… is the difference between the purchase price of acquired companies and their net tangible
assets.
A. property B. additional paid-in capital C. goodwill D. intangibles
27. …………… are the total amount of money owed that the company will have to pay out.
A. accrued expenses B. additional paid-in capital C. total liabilities D. deferred income
28. …………… are expenses such as wages, taxes and interest that have not yet been paid at the date of the
balance sheet.
A. accrued expenses B. total liabilities C. deferred income D. prepaid expenses

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29. …………… is capital that shareholders have contributed to the company above the nominal or par value
of the stock.
A. additional paid-in capital B. shares C. stocks D. equity
30. …………… are assets whose value can only be turned into cash with difficulty (e.g. reputation, patents,
trademarks, etc.)
A. total liabilities B. shareholders’ equity C. tangibles D. intangibles
31. …………… is all the money belonging to the company’s owners.
A. shareholders’ equity B. total liabilities C. current assets D. equivalent
32. …………… is the expenses specific to providing the company’s services.
A. R & D B. interest income net C. ordinary shares D. cost of revenue
33. …………… are additional expenses involved in running the company.
A. interest income net B. administrative expenses C. share premium D. net income
34. …………… is loss of value of intangible assets.
A. amortization B. depreciation C. dividends paid D. unusual expense
35. …………… is loss of value of tangible assets.
A. amortization B. depreciation C. dividends paid D. unusual expense
36. Often economists talk about notions of ………………. or the fact that markets are not working properly.
A. free markets B. restriction C. market failure D. protectionism
37. Profits made by selling assets are generally liable to a …………………….
A. capital gains tax B. value-added tax C. wealth tax D. capital transfer tax
38. The annual tax imposed on people’s fortunes is a ……………….
A. value-added tax B. wealth tax C. direct tax D. corporate tax
39. Making false declarations to the tax authorities is called ……………….
A. fiscal policy B. tax avoidance C. tax evasion D. sales duty
40. A small mistake or exception in a tax law, which allows you to avoid paying something, is called ………….
A. an escape B. an excuse C. a loophole D. tax havens
41. They disapprove of laws that prevent physicians …………. some drugs.
A. prescribed B. prescribing C. described D. describing
42. ………… are positive or negative consequences (benefits or costs) of economic activities experienced by
other people.
A. allocation B. infrastructure C. outcome D. externalities
43. A tax levied at a higher rate on higher income is called a …………….
A. flat tax B. progressive tax C. regressive tax D. direct tax
44. A tax paid on property, sales transactions, imports, and so on is a/an ……………
A. direct tax B. indirect tax C. income tax D. wealth tax
45. In introduction stage, promotion is aimed at educating potential consumers about the product, and
building product ……………….
A. production B. aware C. segmentation D. awareness

REVISION 3 – MODULE 4
Choose the best answer
1. …………. is a period in which radical innovations destroy established companies or industries.
A. creative accounting B. creative destruction

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C. consumption D. endogenous business cycle
2. …………. is a state of balance, for example when supply is the same as demand.
A. equilibrium B. surplus C. deficit D. excess
3. A downturn that lasts more than 6 months is called a …………………
A. depression B. recession C. downswing D. downside
4. A downturn that lasts for a year or two is generally called a …………………
A. depression B. slump C. Both A & B D. downswing
5. Eventually the economy will reach a ……….. or bottom out, and there will be recovery or an upturn.
A. upturn B. downturn C. trough D. save
6. When interest rates rise, people have to pay more on their …………… or rent.
A. consumption B. mortgage C. savings D. investment
7. When the ……………. occurred in 2008, financial institutions began to go bankrupt.
A. subprime crisis B. credit crunch C. Keynesianism D. monetarism
8. A raise in employee wages can ...................... production.
A. expose B. unfetter C. enable D. stimulate
9. When companies have rivals that offer a better product at the same or better price, they often
experience a ……………… in their stock market profile.
A. upturn B. downturn C. boost D. expansion
10. A stock market is in ……………… when it changes from a bear market to a bull market.
A. upturn B. downturn C. boost D. expansion
11. …………. is an amount of money that is smaller than is needed (e.g. when spending exceeds revenues).
A. equilibrium B. surplus C. deficit D. peak
12. …………. is an excess: a quantity that is larger than is needed.
A. boom B. surplus C. deficit D. contract
13. You might call something ........................ if its quality is not as good as another.
A. superior B. inferior C. high-risk D. inefficient
14. …………. is government actions concerning taxation and public expenditure.
A. fiscal policy B. monetary policy C. Keynesianism D. monetarism
15. ………….. is government or central bank actions concerning the rate of growth of the money in
circulation.
A. fiscal policy B. monetary policy C. Keynesianism D. monetarism
16. ……………. is the economic theory that government monetary and fiscal policy should stimulate
business activity and increase employment in a recession.
A. fiscal policy B. monetary policy C. Keynesianism D. monetarism
17. An alternative view to the stockholder model exemplified by Friedman’s article is the ………………….
A. cardholder model B. free trade model C. customer model D. stakeholder model
18. Business owners want their bottom line to be as profitable as possible. To …………, the owner must be
diligent in cutting costs and boost productivity among employees.
A. provide employment B. maximize profits C. conform to rules D. conduct business
19. According to ………….. model, business managers have responsibilities to all the groups of people with
a stake in or an interest in or a claim on the firm.
A. stockholder B. shareholder C. simplified D. stakeholder
20. The U.S. economic system of …………………… operates according to five main principles: the freedom to
choose our businesses, the right to private property, the profit motive, competition, and consumer
sovereignty.
A. discrimination B. free enterprise C. unbusinesslike D. customs
21. ………….are supporters, people who argue in favour of something.

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A. protestors B. proponents C. voters D. counselor
22. A …………. is one that is particularly important to a country’s economy.
A. infant industry B. strategic industry C. absolute advantage D. protectionism
23. …………… investors seek to invest in firms which make a positive contribution to the quality of
environment and quality of life.
A. Ethical B. Embodied C. Undermining D. Discriminated
24. There are companies which are probably doing very good things for the community so that they can
improve their ………….. with their external stakeholders.
A. reputation B. elimination C. supply chain D. responsibility
25. If there is something going wrong within their supply chain management, with regard to human rights,
low-cost …………….., working hours, then probably they don’t really have a good response from their own
employees.
A. labour child B. produces C. child labour D. goods
26. I think it is very important to listen to all different stakeholders, internal and external, to develop a
…………… approach to corporate social responsibility.
A. responsive B. serious C. holistic D. significant
27. …………….. are government policies or regulations that restrict international trade.
A. tariffs B. trade barriers C. quotas D. inefficiency
28. Trade .................... is how countries raise tariffs and reduce imports to protect their domestic
industries.
A. analogy B. stimulation C. protectionism D. simulation
29. A …………. is a tax charged on imports.
A. tariff B. quota C. inefficiency D. protectionism
30. A …………. is a maximum quantity of goods of a specific kind that can be imported into a country.
A. tariff B. quota C. protectionism D. restriction