2024 WU BBE Entrance Exam PDF

BBE Entrance Exam 2024 2.5 Hours Business & Economics (30 Minutes) The following ten questions are to be answered based on the content of the script Fuhrmann, B. (2019): Introduction to Business and Economics (chapters 1-6). If required, you may use the i...

BBE Entrance Exam 2024 2.5 Hours Business & Economics (30 Minutes) The following ten questions are to be answered based on the content of the script Fuhrmann, B. (2019): Introduction to Business and Economics (chapters 1-6). If required, you may use the integrated scientific calculator by clicking on the calculator icon on the upper left side of the screen. 1. These are the assets of a business as of Dec. 31, 2023: Assets in 1000 EUR as of Dec. 31, 2023 Premises, building, and equipment 220.40 Inventories 163.82 Trade receivables and other 212.42 receivables Cash and cash equivalents 176.47 Total assets 773.11 Please indicate whether the following statements are true or false for this business True False a Since the amount of inventories is very high, we can say that the business is doing fine. b The figure for "premises, building and equipment" does not tell us whether the business has also rented  some equipment or no c The high amount of cash clearly indicates that the business is profitable d Current assets exceed fixed assets. e The list of assets shows how the assets were financed.  2. Equity and liabilities in 1000 EUR as of Dec. 31, 2023 Share capital 209.75 Capital reserves 70.51 Retained earnings 168.11 Bank loan 172.52 Trade payables 152.22 Total equity and liabilities 773.11 Please indicate whether the following statements are true or false for this business True False a Retained earnings is an external source of finance. b This business represents a sole proprietorship. c Share capital is a long-term internal source of finance. d The business can use retained earnings to increase its share capital. e Trade payables indicate that the business owes money to creditors like its suppliers  3. Assets in 1000 EUR as of Dec. 31, 2023 Premises, building, and equipment 220.40 Inventories 163.82 Trade receivables and other 212.42 receivables Cash and cash equivalents 176.47 Total assets 773.11 Please indicate whether the following statements are true or false for this business True False a The business is able to immediately repay Its short-term debt with its cash and cash equivalents. b The higher a company's profitability, the higher its liquidity. c The cash position shows that the company received 176,470 EUR cash from sales in 2023 d The working capital ratio is higher than one e The acid test ratio is higher than one.  4. These are the cash flow figures of a business that produces computer components: Selected positions of the statement of cash flows in million EUR Cash flow from operating activities (net cash flow) -42.40 Cash flow from investing activities 86.15 Cash flow from financing activities -17.10 Please indicate whether the statements below are true or false for this business. These cash flow figures indicate that … True False a The loss of the business equals 42,4 million EUR. b The business generates cash with its core business c The business has sold assets. d All in all, more cash was coming into the business than going out. e there was money coming in from deinvesting activities  5. This chart shows the price of BMW shares (BMW Stammaktien) in the year 2023 (source: https://www.boerse-frankfurt.de/equity/bmw-ag-st); Please indicate whether the following statements are true or false for this business True False a You would need additional information to calculate the P/E ratio of the BMW share b Since the price of the BMW share was the highest in July 2023, it would be the best time in 2023 to become a shareholder of BMW c BMW share capital has increased in 2023 due to the increasing price of its shares d The price of the shares was higher at the end of 2023 than at the beginning of 2023 e A shareholder who had bought the BMW shares at the beginning of January 2023 and sold them at the beginning of September 2023 made a profit (consider 0 transaction cost)  6. In recent years, inflation rates have been comparatively high in many countries of the world. Please indicate whether the following statements are true or false: True False a Poor people are less affected by inflation than rich people b High inflation rates usually motivate people to save their money and not spend it so quickly. c Raising interest rates is considered an effective measure to lower inflation. d The higher the inflation rate, the lower the purchasing power of money. e If the quantity of money circulating in the economy is increased, the effect of inflation can be mitigated and inflation rates will eventually decrease  7. Assume you run a small bed & breakfast close to a university campus a very simple concept with just one type of room and one type of breakfast). Your staff comprises three employees (who are employed full-time regardless of the number of guests) who deal with your guests and do the paperwork, serve them breakfast, and clean the rooms. You charge 70 EUR per night (excl. taxes and fees). At full capacity, you sell 750 overnight stays per month. Your monthly costs comprise: 6000 EUR Personnel 1200 EUR Building insurance 800 EUR Energy (fixed amount) 2200 EUR Depreciation of assets (fixed amount) 7500 EUR Food (if fully booked, proportional in the number of guests) Please indicate whether the following statements are true or false: True False a The break-even point (for a month) is calculated by dividing 11000 by 60. b Fixed costs per month amount to 18500 EUR.. c The contribution per overnight stay is 70 EUR d If you have a free capacity of 100 overnight stays and a group of 25 exchange students wants to stay 3 nights (in exactly this period of time) but can only offer to pay 25 EUR per night, it would make sense from an economic perspective to accept that offer e You need to sell at least 183 overnight stays per month to make a profit.  8. Instead of taking a job as an accountant you decide to fully concentrate on your studies of business and economics. Your opportunity cost… True False a includes the amount of money that you will earn and that exceeds your wage as an accountant. b equals zero in case your parents support you financially and pay all your expenses until you finish your studies. c includes the rent that you have to pay for your apartment during your studies. d includes the amount of money you could have earned in that job as an accountant. e includes the money value of experience that you would have made in that job.  9. Consider the consumer market for graphics processing units (GPUs), represented by a downward-sloping demand curve and an upward-sloping supply curve. Which one of the following occurrences will lead to an increase in the price of GPUs (if all other factors remain the same)? Please indicate whether the following statements are true or false: True False a Due to technological progress, more GPUs can be produced in less time b Consumers realize they need more GPUs for mining bitcoins. c More businesses that produce GPUs enter the market. d Due to troubles along the supply chain, fewer GPUs can be produced. e The income of private households increases.  10. If the market for a particular good is said to be perfectly competitive, which one/s of the following statements is/are true or false in the short run? True False a All firms in this market earn the exact same amount of profit. b There are no barriers to entry and exit of businesses in the market. c The market price of the good is always higher than in a monopolistic market. d The good is highly heterogeneous. e Competition tends to be highest if there is just a small number of businesses in the market. English language skills (30 Minutes) Can you imagine living in a dumpster or a skip - a large garbage container? Harrison Marshall does, and by choice, too. The 29-year-old British architect and artist has converted a wooden skip into a minuscule home by insulating it and adding a domed roof. With under 3m' to live and work in, his "skip house" has a place to prepare and eat his meals as well as a small sleeping area. However, it doesn't have any running water, and he uses a donated portable toilet outside his home and showers at his gym. Marshall is an artist and his "skip house" life is a project making a statement about the cost of living in London, which is becoming prohibitive. Average monthly rents hit a record of GBP 2627 a month (approx. EUR 3000), 10% higher than a year ago. At the same time, demand for rental properties has also surged, with three times as many people enquiring about an available property than there were just five years ago. In New York City, particularly Manhattan, the situation is even worse, with apartment rents averaging out at USD 3644 (EUR 3335) and USD 5470 (EUR 5000), respectively. In Tokyo, a 70m' apartment typically costs around EUR 1700/month. In Vienna, the same apartment would cost you around EUR 500 less, depending on which district you live in. The sheer cost of renting in a city is one of the main reasons why many people are turning to so-called "microapartments" or "tiny homes". While there are many different definitions of a "tiny home", it typically refers to accommodation that is less than 40m" and is designed carefully to be lived in full-time, maximizing the efficiency of the limited space available. It may be mobile, but many tiny homes, especially in cities, are not. Is the surging cost of living the only reason for choosing a tiny home? Economising certainly plays a major role. A survey conducted by the US National Association of Home Builders found that 45 percent of respondents would choose living in a smaller house as the compromise they would make to afford their own home. Despite the increase in working from home, most people are willing to sacrifice having a large study in their house, as a desk for their laptop will suffice. When it comes to renting, similar patterns can be observed, with many young people choosing to save on rental costs in order to travel or build up their businesses. Others generate money from their tiny businesses documenting their lives on social media, like Adriana Radazzo, who ratcheted up tens of thousands of followers while living in a 7.5m^2 flat in New York (costing per month). In an interview with the New York Times, Marshall suggested that "overexposure" to luxury on social media has created a fascination with minimalist or nomadic lifestyles that present the opposite. As well as saving money, though, some people choose a small home to help save the environment. Since a small space and a minimalist lifestyle inevitably means you buy and consume less, many proponents of tiny homes argue that they are a more sustainable way of living. In the US, the residential sector accounts for approximately 20% of the country's carbon emissions, and it is even higher in the UK at a staggering 40%. Reducing the amount of space that needs heating and cooling can contribute greatly to reaching carbon emissions targets. Additionally, new tiny homes are often made with ecologically friendly materials, such as timber (wood), and have solar panels and composting toilets. A study of 80 Americans who had downsized from regular homes to tiny homes found that the participants had reduced their carbon footprint by up to 45%. This was the case even if their reason for downsizing had nothing to do with wanting to live in a more environmentally friendly way, and even those who had not downsized for ecological reasons also decreased their carbon footprint significantly As well as addressing ecological factors, tiny homes can also address the social pillar of sustainability. Pioneering social enterprises in the Americas and Europe are offering tiny, energy-efficient homes as a solution for homelessness. The Devjo project in The Hague (Netherlands), for example, helps homeless people build a tiny home in an unused sports field or city garden, and in return, the beneficiaries volunteer in local projects, helping them integrate into the community. So far, such projects have seen a high success rate, with almost all the participants staying in stable housing long-term. While Devjo's founder Fabian Weergang is pessimistic that the EU will meet its target to get people off the streets by 2030, he is confident that his project makes a difference to the individuals and the communities involved. However, regardless of the reasons for living in a tiny house, there are several challenges. Private properties and social projects alike struggle with navigating zoning and building regulations, In many countries, it is illegal to simply set up a building - even a very small one - in a garden or field without obtaining planning permission first. Additionally many people find it difficult to live in a very small space, especially if it does not have amenities such as a toilet or the possibility to separate different areas. Even those who choose to live in a tiny home, like Marshall or Radazzo, often only stay for a short period of time; both left their tiny homes after a year. But for those who don't have a choice or much choice, a tiny home can offer privacy and sustainability at a tiny price.  1. English language skills: Text-related question 1 out of 3 According to the text, which of the following statements is/are correct? True False a Harrison Marshall was forced to live in a large garbage container b Manhattan is part of New York c The founder of the Dutch Devjo project is hopeful that the EU will succeed in getting homeless people off the streets within 6 years as planned. d Modern tiny homes are often built in a sustainable fashion. e Saving money is the only reason for people to move into tiny homes  2. English language skills: Text-related question 2 out of 3 According to the text, which of the following statements is/are correct? True False a Accommodations with more than 40m2 are typically not considered to be "tiny homes". b Harrison Marshall's container measures about 3 meters by 3 meters. c Harrison Marshall's skip house has no water source for drinking or washing. d At the time the article was written, one British pound (E) was worth about 2 euros (€) e The share of the residential sector in overall carbon emissions is higher in the U.S. than in Great Britain.  3. English language skills: Text-related questions 3 out of 3 According to the text, which of the following statements is/are correct? True False a Harrison Marshall's skip is not covered.. b Numerous social enterprises use tiny homes as a common solution for addressing homelessness.. c The trends for renting a property are very different from those for owning one. d Tiny homes in cities usually cannot be moved elsewhere. e The average rent is higher in Manhattan than it is for New York overall.  4. The following questions do not refer to the text. They are testing vocabulary and your understanding of how English works. They are NOT testing business content or facts. Use your own knowledge of the English language to answer the questions. "Grammatically correct" should be understood as "adhering to Standard English norms with regard to grammar, spelling and punctuation." The pie chart summarises the average weekly expenditure by a sample of families on Groceries (38%), Alcohol (17.5%), Meat and Fish (19.5%), Fruits and Vegetables (12.6%), Meals out (12.4%). The whole circle represents 100% of the expenditure: Which of the following statements about the data presented in the chart above is/are correct? True False a Together, meals out and fruit & vegetables make up exactly a quarter of a family's average weekly expenditure on b Taken together, alcohol, meat and fish, and fruit and vegetables account for more than half of a family's average weokly expenditure on food and drink c Spending on fruit alone is obviously higher than spending on meals out. d Spending on groceries without meat and fish would account for only 18.5%. e Spending on the single biggest item (Groceries) is higher than that on the second-biggest and the third-biggest item combined..  5. Which of the following statements about vocabulary is/are correct? True False a The worde "terminate" and "dismiss" can be synonyms and used interchangeably in some contexts. b It something is implicit, it is expressed very clearly so that nobody can misunderstand. c To pursue an interest or policy means that you abandon it. d The words "briefly" and "quickly" can be synonyms and are often used interchangeably. e The words "unique" and "comprehensive" can be synonyms and are often used interchangeably..  6. The questions below test your knowledge of standard English norms (rules) with regard to spelling, grammar and punctuation as well as vocabulary. Note that both UK and US varieties should be considered correct. The truth value of each statement (i.e. whether it is true or not) is not important, but they should make logical sense to be considered correct. Which of the following sentences is/are correct? True False a I am really looking forward to studying at the beautiful campus. b I am applying on a place at the Vienna University of Economics and Business. c I am convinced that I have prepared sufficient well to pass the exam. d If had not interested in business and economics, I would not have taken the exam today. e BBE is one of only a little undergraduate business programs in Austria taught entirely in English.  7. Which of the following sentences is/are correct? True False a The incident occured over a year ago but thinking about it still makes me nervous. b Suggestions for improving the neighbourhood must be submitted until Tuesday 10 August at the latest. c It must be acknowledged that men still earn considerably higher average salaries than women do, sometimes even for the same work. d We will take your recommendation into consideration as soon as we have heard back from all the participants in the study. e The goal of every business is to develop a broad and loyal costumer base  8. Indicate what the following excerpt implies (not what you think they might mean) “There are numerous factors that need to be taken into consideration before we reach our decision, but employee wellbeing is our priority in this case” True False a The speaker has made a final decision. b Although employee wellbeing is the most important aspect, it is necessary to think about other factors as well. c Prioritizing employee well-being could ignore topics like work-life balance, job satisfaction, and motivation d Although they need to think about many different things, employee wellbeing is the most important one. e Employee wellbeing will be a marginal factor this time.  Math (1 Hour 30 Minutes) 1. Logic Julia and Kelly are planning a party. After receiving the invitations, their friends told them the following:  Alice said: "I will come if and only if Bob comes." Bob said: "I will come if Frank comes. Celia said: "Me and Emily will come. David said: " will come or Emily will come." Emily said: "If Frank does not come, / will not come." Assume that the statements of Alice, Bob, Celia, David, and Emily are all true. Which of the following statements is/are correct? True False a The following statement must be true: "Frank won't be there." b The following statement must be true: "Bob is there.". c The following statement must be true: "If Emily is there, then David won't be there." d The following statement must be true: "If Bob is not there, then Frank won't be there." e The following statement must be true: "Celia is there, or Alice is there."  2. Algebra Let a,b,c,d ∈ ℝ such that the following equations hold: (a+b)/c = 6 (a+b)/(c-d) = 15 (a*b)/c=a Which of the following statements is/are correct? True False a It follows that b=c b We have c=-2d c There is a unique solution (a,b,c,d) which solves the three equations d If d=-6, then a+b+c=70 e If a=-25, b=-5, c=-5, and d=3, then all three equations are satisfied  3. Financial Math Which of the following statements is/are correct? True False a The price of a particular item of clothing was 89.40 EUR at the end of the year 2020. At this point in time, it was 23.2% more expensive than it had been at the beginning of the year 2020. Then the price increase in euros of the item of clothing over the course of the year 2020 was less than 15.30 EUR. b Sandra borrows 1200 EUR from Marie and wants to repay it in 5 equal annual payments at the end of the year. (The first payment is made at the end of the first year.) With an annual interest rate of 5%, the payment is less than 282 EUR. c If the annual interest rate is 11%, then it takes more than 9 years to triple an initial capital K by annual compounding d Alex invests a capital of value K at an interest rate of 4% with annual compounding, i.e. at the end of each year, the current capital is increased by 4%. If after one year the capital has increased by 32 EUR, then the initial capital A was less than 780 EUR. e Pauline wins a prize in a small lottery where she has to decide between two options: In Option 1 she would get immediately 1500 EUR; in Option 2 she would get three payments of 550 EUR each - one immediately, one after one year and the final payment after two years. Assume that the prize can be invested in a bank account with an annual interest rate of 5%. Then, Option 2 is preferable to Option 1, in the sense of having a higher present value.  4. Equations Let a∈ℝ. Definite function A:ℝ\{-2}→ℝ A(x)=(4x-a)/(x+2) and B:ℝ\{-1}→ℝ B(x)=(x-a)/(x+1) Which of the following statements is/are correct? True False a If a>⅓ then the equation A(x) - B(x) = 0 has no real solution.. b There is a value a ∈ ℝ for which the equation A(x) = 2a does not have any real solution. c If a = -1, then A(x) = B(x) has exactly one real solution d If a = -1, then the equation B(x) = 1 has infinitely many solutions. e If a = -8, then the equation A(x) = 3 has no real solution.  5. Linear Equations in Two Unknowns For the production of a good, two alternative machines are available. The first machine has fixed costs of 60 EUR and variable unit costs of 0.25 EUR. The second machine has fixed costs of 30 EUR and variable unit costs of 0.40 EUR. Moreover, there is a fixed budget of 150 EUR for the production. (Note: Fixed costs have to be paid only for a machine in use!) Which of the following statements is/are correct? True False a Assume that the first machine is used to produce the maximal possible number of units (under the given budget). If the product can be sold for 0.50 EUR per unit and all produced products can be sold, then the revenue completely covers the production costs and the profit is greater than 27 EUR. b Let k be the number of produced units such that the costs when using only the first machine coincide with the costs when using only the second machine. Then k > 195. c To decrease total production times, both machines shall be used to produce 180 units (under the given budget). Then 80 units have to be produced with the first machine d With the given budget, more than 310 units can be produced if only the second machine is in use. e With the given budget, using only the first machine enables a 30% larger production volume than using only the second machine.  6. Linear Functions The demand for a backpack of a certain brand is given as a linear function of price P. If the price is 50 EUR, the demand is 300 units, whereas for P = 150, the demand is only 100 units. Which of the following statements is/are correct? True False a The maximal possible revenue is reached at P= 100 b At P= 50, the revenue of the producer (that is, price times demand) is 15000 EUR. c The slope of the demand function is 2. d Assume that the production of each backpack costs the producer 40 EUR. Then the production is profitable (that is, the revenue is more than the production costs) if 40 < P < 200. e At the price P = 200 the demand is 0.  7. Inequalities Which of the following statements is/are correct? True False a The solution set for inequality (2x+3)/(x-1)≤1 is the interval [-4,1) b The solution set for inequality |2x+1|-|3x-1|≥x is (-∞,-2]∪[-1, ∞) c The solution set for inequality -2≤2x^2-x-30, q≠0, and let f be a function defined by f(x)=Ax^q for x>0. It is known that 1. f(1)=4 2. f(4)=8 Which of the following statements is/are correct? True False a The function f(x) intersects the function g(x)=x^(-3/2) at x=½ b It holds that A=2 c It holds that f ’(1)=2 d To double the value of f, one needs to divide the argument by 4 e It holds that q=-½  9. Polynomial functions 2 functions are depicted on the graph around the origin on scale x=[-3,3] and y=[-30,40]. One is a cubic function, which intersects the x-axis at -1, and the y-axis at 3, and is strictly increasing. Another one is a quadratic function represented by a dashed line that intersects the y-axis at -3 and x-axis between 0 and 1 The two functions intersect at 3 points: at x1=-2, x2=1, and x3=3 The figure shows the graph of functions f(x)=x^3–x^2+2x+3 AND g(x)=x^2+7x-3 Consider moreover the function h(x)=f(x)-g(x) Which of the following statements is/are correct? True False a The function h(x) is increasing for all x≥3 b For x∈(-2,1) it holds that f(x)>g(x) c The dashed line corresponds to function f d The function h attains its local minimum at (-∞,0) e The function g intersects with the x-axis in the intervals (-8,-7) and (0,1)  10. Exponential and Logarithmic functions Consider the function f : D→ R, f(x)=loga (x+a) for a>1, with D, R ⊆ ℝ Which of the following statements is/are correct? True False a It holds that f(x1)+f(x2)=loga (x1+x2+2a) for any x1, x2, from the domain D b It holds that f(a)=1+loga (2) c The largest possible domain D is (0,∞) d It holds that f(x)>1 for all x∈ (0,∞) e f is increasing  11. Differentiation and Single Variable Optimization Let f : ℝ→ ℝ be the function and f ‘(x)=(e^x-1)(e^x-4) Which of the following statements is/are correct? True False a f ‘(x)>-4 for all x∈ℝ b f ‘ has a local minimum at x=ln(2.5) c The function f has a local maximum at x=0 and a local minimum at x=ln(4) d If x>ln(1.5), then f’’is increasing e f can be defined as f(x)=½e^(2x)-5e^x+4x+C for any C∈ℝ  12. Probability A company produces wallets in three colors and three sizes. Table 1 shows the percentage distribution of the colors and sizes of the wallets produced. red green blue small 30% 10% 0% medium 0% 10% 35% large 0% 0% 15% Table 1: Percentage distribution of the colors and sizes of the produced wallets Which of the following statements is/are correct? True False a If in total 6000 wallets are produced, then there are 2000 red wallets. b Three wallets are randomly chosen. The probability that all three wallets are of the same size is smaller than 0.17. c If there are in total 150 red wallets of size small, then there are 175 blue wallets of size medium. d 10% of all produced wallets are green and of size medium. e A wallet of size small is randomly chosen. Then the probability that it is green is greater than 0.2.  13. Binomial Probability In a TV quiz show, the participants answer 10 single choice questions, one question for each topic. For each question, the participant may answer the question or skip it. If question is answered correctly, one gets 2 points, for a wrong answer one gets -0.5 points and for skipping a question one gets 0 points. (Example: If out of these 10 questions 7 are answered correctly. 1 answer is wrong and two questions are skipped, then the participant gets 7 * 2 + 1 - (-0.5) - 13.5 points.) Assume that a topic в participant is familiar with can be correctly answered with a chance of 90%, a topic a participant is not familiar with can be correctly answered with : chance of 20%. To move on to the next round of the show, one needs 10 points. Which of the following statements is/are correct? True False a If a participant answers 6 questions correctly, she will move on to the next round, no matter how many of the remaining 4 answers are false or skipped. b If a participant is familiar with all topics and answers all questions, then the expected value of correctly answered questions is 9.. c Assume a participant answers three questions from topics she is not familiar with. Then the chance that exactly two out of the three answers are correct is less than 10%. d Assume a participant is familiar with 7 topics and answers all of them and none of the remaining 3 (she skips the remaining 3). Then, the chance to move on to the next round of the show is greater than 90%.. e The chance to move on to the next round of the show, when the participant is familiar with 5 topics and answers the corresponding questions, and she skips all of the remaining 5 questions, is greater than 50%.