1. Assume there is some business equipment that you are thinking of buying. If you think that there will be deflation in the economy over the next year, other things being equal, you most likely would want to:
A)	buy the equipment immediately.
B)	postpone buying the equipment
C)	make the decision to buy or not based strictly on other grounds since neither deflation nor inflation would make a difference in this decision

2. “Benign” deflation differs from “malignant deflation” in that:
A)	benign deflation is less than 3% a year, while malignant deflation is more than 3% deflation in a year.
B)	benign deflation only leads to recessions, while malignant deflation can lead to actual depressions.
C)	in benign deflation, lower prices are due to increased productivity, while in malignant deflation lower prices are due to weak demand.
D)	None of the above. There is no such thing as benign deflation.

3. If you purchase goods that turn out to be defective, the Uniform Commercial Code (UCC):
A)	allows you to reject them under certain circumstances, and the seller is obliged either to replace them or return your money.
B)	offers you no legal recourse unless the seller has offered an explicit warranty that can be upheld in court.
C)	requires that the seller not only replace the goods, but also give additional goods or money to compensate you for the inconvenience.
D)	does none of the above.

4. Under the UCC, if a buyer has actually used goods for some time without registering any complaint about them to the seller, the buyer
A)	still has the right to reject the goods and be reimbursed by the seller if the buyer decides he or she does not like them.
B)	has the right to return them at any time for partial credit toward a later purchase.
C)	is not likely to have grounds to reject them at this point, although the actual contract or warranties might provide grounds for rejection.

5. Which of the following factors is not particularly important to consider when beginning a negotiation:
A)	Preparation.
B)	The opening offer or demand.
C)	The ability to walk away.
D)	All of the above are critical elements in a negotiation.

6. Making the first offer or demand in a negotiation:
A)	is almost always a mistake.
B)	can allow one to take the initiative in the negotiation and put the other party in a defensive or reactive mode.
C)	usually shows that you are very anxious to settle.
D)	increases the chances that you will be put at a disadvantage because you do not know what the other party is planning to do.

7. One of the common maxims in negotiation is that the expected settlement point:
A)	is halfway between the first two offers.
B)	is approximately halfway between the first two reasonable offers.
C)	is determined by the person who can bluff the best.
D)	depends on the relationship that is built in the process of negotiating.

8. Simplification of a problem will often lead to poor or even ethically deficient decisions because:
A)	it ignores complicating factors that may affect the outcome in unanticipated ways.
B)	it tends to reduce the problem to the familiar and comfortable and misses new options.
C)	it often overlooks some stakeholders.
D)	of all of the above.

9. Using comparisons as a basis for making difficult ethical decisions is risky because:
A)	it is very difficult to find a comparable situation.
B)	there is a great temptation to compare oneself with someone whose behavior is worse and thereby to justify unethical actions.
C)	of both of the above.
D)	of none of the above.

10. Although the term “hedging” now covers a variety of strategies, originally the term referred to the idea of:
A)	limiting the diversity of a portfolio and emphasizing particular categories of investments (i.e., those “within the hedge”).
B)	shielding one’s investment strategy from outsiders in order to preserve an advantage.
C)	taking short positions in stocks with the view of protecting the portfolio from market risk.
D)	none of the above.