Question 1

Which of the following led to the development of the financial infrastructure pre- 1910?

Accepted Answer

A)  The use of "Hollerith" or punched cards to storm information 
B)  The systemization and circulation of credit information 
C)  The telephone allowing consumers to easily apply for credit 
D)  The passage of the Federal Fair Credit practices Act 
E)  None of the above

Question 2

Relaxing of government regulation of economic activities occurred during the second half of the 20ᵗʰ century for all of the following except:

Accepted Answer

A)  Airline industry 
B)  Workplace safety 
C)  Banking industry 
D)  Trucking 
E)  Healthcare industry

Question 3

Which of the following led to overbuilding of railroads in the 1860's and 1870's?

Accepted Answer

A)  Reduction of taxes on railroads by the federal government 
B)  The success of railroads in Europe 
C)  The availability of financing due to public optimism 
D)  The low cost of labor to construct railroads 
E)  Increases in regulated freight rates by the Interstate commerce Commission

Question 4

What caused the market conditions facing the telephone to be uncertain until the 1880's?

Accepted Answer

A)  Patent conflicts 
B)  Technology problems due to unstable electricity supplies 
C)  Dissimilar technologies limiting interconnections between cities 
D)  Different state laws limiting interstate expansion 
E)  The high cost fo some components needed to manufacture telephones

Question 5

What is the gaizhi process?

Accepted Answer

A)  Valuing assets according to their earnings 
B)  A state-owned enterprise and private enterprise entering a joint venture 
C)  An increase of profitability prior to sale 
D)  Acquisition of large firms by private organizations 
E)  Restructuring whereby small firms are leased or sold

Question 6

What form of communication was integral to the growth of multistory headquarter buildings?

Accepted Answer

A)  Telegraph 
B)  Mail 
C)  Telephone 
D)  Morse code 
E)  Intercom

Question 7

What mode of long-distance communication first laid the groundwork for today's modern communication forms?

Accepted Answer

A)  U.S. Postal Service 
B)  Private mail service 
C)  Telegraph 
D)  Telephone 
E)  Railroad

Question 8

What was the most significant development to the evolution of business circa 1910?

Accepted Answer

A)  Railroad integration 
B)  Telegraph communication expansion 
C)  Banking and accounting standard practices 
D)  Mass-production technology 
E)  Advent of steam technology in railroads and shipping

Question 9

Which of the following encouraged firms to develop through internal R&D rather than through M&A in the 20ᵗʰ century?

Accepted Answer

A)  Lower wage costs for internal labor compared to merged or acquired labor 
B)  Faster results obtained with R&D 
C)  Federal antitrust policies 
D)  Lack of financial capital to engage in M&A 
E)  High transactions costs associated with M&A activity.

Question 10

By simultaneously halting air traffic and financial markets,what recent historical event highlighted the interdependence company infrastructure?

Accepted Answer

A)  2000 Presidential Election 
B)  2004 Olympics 
C)  Fall of Enron 
D)  September 11, 2001 
E)  Hurricane Katrina

Exam 1: The Power of Principles: an Historical Perspective