1. The major purpose of a financial system is to

a. trade stocks and bonds.

b. regulate banks.

c. print money and checks

d. match savers with borrowers

2. An office supply store can buy a desk for $100. If the store owner sells the desk for $200, what is the markup on cost?

a. 200%

b. 20%

c. 50%

d.100%

3. TRUE or FALSE

There are three primary forms of the multidivisional structure.

4. True or False

Cemex, the Mexico-based cement maker, is very successful in emerging nations because it uses low-tech methods for coordinating its operations suitable to the conditions in these countries. This has allowed Cemex unusually strong economies of scale.

5. TRUE or FALSE

A corporate-wide emphasis on sharing leads to a reliance on financial controls.

6. TRUE or FALSE

Organizations should first change strategy and then determine a compatible structure as it is easy to change existing structure.