Intro to Business Exam ?'s
If a used car dealer purchases a car for $1,000 & marks the price up 60%, the price to the consumer would be how much? ($600, 1,000, 1,600, cannot be calculated without more info)
$1,600
A pair of sunglasses is purchased by a retailer for $6 & sold for $10. How much is the mark up o the sunglasses? $4, 6, 10, or 16
$4
With revenue of $750,000, operating expenses of $100,000 & payroll of $250,000 net income would be? ($400,000, $600,000, $900,000, $1100000)
$400,000
If a worker's productivity is 10 units & the worker worked 40 hrs, how many units did the worker produce? (solve10x40=400) less than 500 units/500 units/more than 500 units/cannot be calculated without more info
Less than 500 units
Productivity is the measurement of the number of items produced per worker. true/false
True
The most basic economic problem is referred to as supply & demand. true/false
True
Which of the following would properly be classified as a need (a big screen tv/ a place to live/ a sports car/ none of the above)
a place to live
The best example of an extractor business would be?? (Speedway gas stations, dentists office, horrock's, a soy bean farm)
a soy bean farm
The marketing function of Promotion would e best described by which activities? (buying & selling, gathering & interpreting info, sourcing & shipping products, advertising & communicating)
advertising & communicating
Which of the following in NOT an example of a benefit? (a retirement plan, health insurance, the employee's paycheck, all are examples of benefits)
all are examples of benefits
If you needed $3,000 to start a small business venture, where could u go to get money to stat your business? (your own savings account, a family member to ask for a loan, a and to apply for a loan, all of the above)
all of the above
Managing Human Resources required knowledge of: (equal opportunity laws, health & safety regulations, employee rights, all of the above)
all of the above
One way to develop your leadership skills is to?? (demonstrate dependability & honesty, work with someone who can serve as a mentor, study & emulate effective leaders, all of the above)
all of the above
Which of the following guidelines should a business NOT follow when developing a code of ethics?
allow managers & company officers to e exempt from the code
A(n) ?? (balance sheet, business plan, cash budget, income statement, operating budget) serves as a financial snapshot of a business.
balance sheet
The best example of a service business would be: (an oil refinery, Domino's pizza, best buy eek squad, Speedway gas station)
best buy geek squad
A company with an annual payroll of $700,000 pays 10% in retirement benefits. The annual cost of retirement benefits is? (less than $50,000, between $50,000 & $100,000, greater than $100,000, cannot be calculated without more info)
between $50,000 & $100,000
The movement of the economy from one condition to another & back again is called a(n)?? business cycle, products, supply, demand, Gross domestic product
business cycle
A(n) ?? (balance sheet, business plan, cash budget, income statement, operating budget) is a written description of a business idea & how it will be carried out.
business plan
Which of the following is NOT one of the major categories of GDP? (the imports of a country minus the exports/consumer spending for food, clothing & housing/business spending for buildings, equipment, & supplies/government spending to pay employees & to buy supplies & other goods & services)
business spending for buildings, equipment & supplies
Natural & capital resources are limited buy human resources are unlimited. true/false
false
Only manufacturing companies need to buy goods & services. true/false
false
Prices are usually low if the materials from which goods are made are naturally scarce. true/false
false
Raising capital is important for new businesses buy not for well established businesses. true/false
false
Referrals by current & former employees are no longer common sources of job applicants. true/false
false
Small businesses have a clear advantage when large numbers of a customers are willing to buy standard products & services & prefer low cost, efficient delivery. true/false
false
The US economy is so large that it can meet the needs & wants of all its citizens without trading with foreign countries. true/false
false
The illegal use of intellectual property is called hijacking. true/false
false
Wages are fixed payments to an employee regardless of the number of hours worked. true/false
false
When imports are greater than exports, a country has a positive balance of trade. true/false
false
Which marketing function sets & communicates the value of products & services? (pricing, financial analysis, distribution, selling)
financial analysis
?? are/is important to tract the financial performance of a business
financial records
A(n) ?? (franchise, intermediaries, partnership, producers, service business) is a written contract granting permission to a business to sell something else's product or service.
franchise
The first step in creating & effectively using a budget is to?? (gather financial info from business records, determine the type of revenue & expenses to be included in the budget, select the software u will use to create the budget, discuss the budget with those around u)
gather financial info business records
The most important step in the economic decision making process is to (identity the choices/define the problem/review your decision/act on your choice)
identify the choices
A(n) ?? (balance sheet, business plan, cash budget, income statement, operating budget) shows the activity of revenue & expense accounts over a specific period of time.
income statement
The financial statement shows revenues, expenses & new income or loss for a period of time. (payroll record, balance sheet, cash record, income statement)
income statement
The largest source of revenue for the federal government is?
income taxes
One characteristic of an effective leader is??
initiative
Businesses involved in selling the goods & services of p producers to consumers & other businesses are called? (franchise, intermediaries, partnership, producers, service business)
intermediaries
If a company produces 4,000 units with a total of 80 worker hours, the per hour productivity. (is less than 10 units per hr/is 50 units per hr/is greater than 100 units per hr/cannot be calculated without more info) 4,000 divided by 80 to solve
is 50 units per hour
The GDP of a small country is $1.4 trillion (U.S. dollars). If the GDP of a neighboring country is 10% higher, its GDP (is less than $1.4 trillion/ is $1.47 trillion/ is greater than $1.5 trillion)
is greater than $1.5 trillion
two or more companies sharing resources &/or employees for a common business purpose would be best described as a?? (joint venture, partnership, corporation, limited liability company).
joint venture
Last year a gallon of gas cost $3.27 per gallon. If gas prices have experienced deflation, current gas prices must be (less than $3.27 per gallon/still about $3.27 a gallon/more than $3.27 per gallon/cannot be calculated without more info)
less than $3.27 per gallon
A new smartphone cost $600 when it was 1st released, if demand has fallen & the producers have adjusted the price accordingly, the phone now costs what? less than $600/still about $600/more than $600/cannot be calculated without more info.
less than $600
A producer sells to a wholesaler who marks up the product 50%. The wholesaler sells to a retailer that marks up the product an additional 100%. what is the price compared to the original producer price? (less than 300% of the producer price, 300% of the producers price, more than 30)% of the producer price, cannot be calculated without more info)
less than 300% of the producer price
A group of individuals or businesses with similar product needs is called a(n) ?? (channel of distribution, mark up, marketing orientation, non profit, target market)
target market
This federal law prohibits employers from using age as a bias for decisions in employment, promotions or terminations?
the age discrimination in employment act
The responsibility of developing & making the major decisions for a business plan rests with?? (the small business administration, the business's best customers, the bank, the business owner)
the business owner
The single largest employer in the American economy is?
the government
The desire to work hard, to be creative & to satisfy customers in order to profit is called ?? (competition/supply & demand/capitalism/the profit motive)
the profit motive
full time employees generally work at least ?? (25, 30, 35,40) hours per week.
40
If a company has $80,000 in assets & $35,000 in liabilities, its owners equity must be?? (35000, 45000, 80000, 115000)
45000
Small business is defined as having fewer than ?? (5, 50, 500, 5000) employees.
500
Managers have little influence over how employees feel about their jobs. true/false
false
Marketing Orientation is the name of the plan businesses use to achieve their goals. true/false
false
Meijer's & Walmart are examples of intermediary businesses. true/false
false
Most businesses in the United States are partnership true/false
false
?? business cycle, products, supply, demand, Gross domestic product GDP is the total dollar value of all goods & services produced in an economy in one year.
Gross domestic product
?? management involves hiring, training & compensating employees.
Human Resources
One of the most important activities of a manager is:
Human relations
The conflict between unlimited wants & limited resources is called (services/market/competition/scarcity/capitalism)
Scarcity
The way u live as measured by the kind & quantity of goods & services u can afford is called your ?? quality of life/standard of living/consumer price index/business cycle
Standard of living
When US currency is valued lower than the currency of a country the United States is trading with?
The US will have a negative balance of trade with that country
One advantage of an S corporation is:?? (it is easy to start, the elimination of double taxation, the owner has complete responsibility for all business decisions, it does not require any marketing efforts)
The elimination of double taxation
Municipal bonds are considered one of the more risky investments. true/false
false
Which of the following is an example of nonprofit corporation? General Motors, the red cross, Microsoft, all of the above
The red cross
Tools, equipment, supplies & buildings that r used to supply goods & services are called (natural resources/material resources/capital resources/human resources)
capital resources
??services/market/competition/scarcity/capitalism) means that economic resources are privately owned by individuals rather than by the government.
capitalism
A ?? (balance sheet, business plan, cash budget, income statement, operating budget) is the financial plan for the day to day activities of a business.
cash budget
The path a product travels as it goes from producer to consumer is called the ?? (channel of distribution, mark up, marketing orientation, non profit, target market)
channel of distribution
The government owns the businesses & controls the economy in a ?? market economy/command economy/laissex-Faire economy/traditional economy
command economy
The rivalry amount businesses to sell their products & services to customers is called ?? (services/market/competition/scarcity/capitalism)
competition
The creative work of authors, composers, & artists is protected by?
copyrights
One element of a business plan is a(n)
customer analysis
?? Business cycle, products, supply, demand, Gross domestic product is the relationship between the amount of a good to service that consumers are willing & able to buy & the price of the good or service.
demand
market economies are generally found in countries that have a (??) from of government. democratic/communist/socialist/patriarchal
democratic
Completely stopping the import & export of goods & services to another country is called a?
embargo
When Jacob writes a letter to a customer in response to the customer's question, he is engaging in ?? (external communication, informal communication, horizontal communication, oral communication)
external communication
A business owner should never let anyone else see his or her business plan. true/false
false
Another term used in referring to human resources is capital. true/false
false
Embargos are the most common form of trade barrier. true/false
false
Exchange rates are very stable & rarely ever change. true/false
false
Far more products are sold directly from producer to consumer than through intermediaries. true/false
false
Individual buying decisions have only a small influence on our economy. true/false
false
Leadership characteristics cannot e learned, you are either a born leader or a follower. true/false
false
The amount that is added to the cost of producing a product or service is called a (n)? (channel of distribution, mark up, marketing orientation, non profit, target market)
mark up
In a (services/market/competition/scarcity/capitalism)?? economy, businesses & individuals are free to make their own decisions as they buy & sell in the marketplace.
market
The process of informing the general public about goods & services that are for sale is called: leading, selling, marketing, controlling
marketing
This marketing function would be the most important in the development of a totally new product. (product/service management, financial analysis, marketing info management, selling)
marketing info management
Businesses with a ??(channel of distribution, mark up, marketing orientation, non profit, target market)consider the needs of their customers when making business decisions.
marketing orientation
If payroll & expenses exceed revenue, this is called? (operating income, owner's equity, net e=income, net loss)
net loss
Corporation that are created for social, political, charitable, educational or general welfare purposes are known as ?? (channel of distribution, mark up, marketing orientation, non profit, target market) corporations.
non profit
Items that are nearly exclusively imports to the US are all except (silk, automobiles, coffee, opals/gemstones)
opals/gemstones
A ?? (balance sheet, business plan, cash budget, income statement, operating budget) is an estimate of the money received & paid out over a specific period of time.
operating budget
This type of budget is an estimate of the money a business expects to receive & pay out over a specific period of time? (case budget, start up budget, management budget, operating budget)
operating budget
which of the following is NOT a typical reason for small business failure? (not keeping adequate records, owner is an independent minded risk taker, not having enough start up money, having a poor location)
owner is an independent minded risk taker
A business owned & managed by a small group who have entered into an agreement is called a(n)?? franchise, intermediaries, partnership, producers, service business)
partnership
The most important resource for business is its?? (people, capital, ideas, recordkeeping system)
people
The process of determining what work has to be done & who will do it is called?? (leading, planning, staffing, organizing)
planning
This type of business sells the products of a manufacturer to a retailer. ??producer, extractor, service business, wholesaler
producer
Businesses that create products used by individuals & other businesses are called? (franchise, intermediaries, partnership, producers, service business)
producers
In the marketplace, goods are usually referred to as ?? (business cycle, product, supply, demand, Gross domestic product)
products
The high point of the business cycle is ?? (recovery/depression/recession/prosperity)
prosperity
A(n) ?? (franchise, intermediaries, partnership, producers, service business) perform activities that are consumed by customers.
service business
Activities consumed at the time they are produced are called?? (services, market, competition, scarcity, capitalism)
services
The earliest form of business to start is: (corporation, limited liability company, sole proprietorship, partnership)
sole proprietorship
People who own a corporation are known as?? (sole proprietors, board of directors, stockholders, partners)
stockholders
?? Business cycle, products, supply, demand, Gross domestic product is the amount of a good or service that businesses are willing & able to provide based on the price of the good or service
supply
A business starts with a new idea for a product of service. true/false
true
A code of ethics is a set of rules for building the actions of employees or members of an organization. true/false
true
A contract is not enforceable if the parties are not of legal age. true/false
true
Advertising is a form of promotion true/false
true
An individual's right to own a business, select a market to enter & produce with limited government direction is called private enterprise. true/false
true
Depression is a phase of the business cycle where demand for goods & services begins to decrease. true/false
true
Double taxation occurs when a businesses & the businesses owner(s) are taxed on the same income. true/false
true
During the recovery phase of the business cycle, unemployment begins to decrease & GDP begins to rise. true/false
true
Effective leaders treat all employees fairly. true/false
true
Employee pay raises are often tied to the results of the employee's evaluation. true/false
true
Employees are more important to business than technology or natural resources. true/false
true
Financial managers use asset records to show the actual cash a business received & has available on a daily basis. true/false
true
Governments with market economies rarely enact laws to encourage c competition. true/false
true
Higher tariffs lead to decreased demand for the imported product. true/false
true
If GDP increases each year, that is a sign of good economic health. true/false
true
If you buy municipal bonds, u r lending money to the government that issued the bond. true/false
true
In the marketing function of pricing, lower price is always better true/false
true
It can be difficult for a company to behave ethically while maintaining a competitive edge & earning a reasonable profit. true/false
true
It is possible to have fewer goods & services than others & still have a thigh quality of life. true/false
true
It takes most businesses 1 or 2 years before they begin earing a profit. true/false
true
Many small businesses begin as a hobby or activity the owner enjoys doing. true/false
true
Most needs & wants are satisfied with goods or services. true/false
true
Once it is signed, a written contract bonds both parties to what is in the agreement. true/false
true
One from of informal communication at a business could be referred to as "the grapevine". true/false
true
Purchases made using credit cards are identified in records of accounts. true/false
true
Small businesses generally serve fewer customers but have more contact with customers than larger companies. true/false
true
Socially responsible businesses that cause pollution of lakes & rivers have taken action to eliminate or correct those activities. true/false
true
The marketing function of distribution deals both with how to get the product to the customer as well as where it is sold. true/false
true
US companies should always follow American customs & standards, even when they conduct business internationally. true/false
true
Using the economic decision making process cannot prevent unexpected results. true/false
true
When company managers compare business results with what was planned, they are engaging in the business process known as control. true/false
true
Your right to private property means that u can own, use & dispose of things of value. true/false
true
Social responsibility often involves costs that can reduce a business's profits. true/ false
truee
In this role in the economy, u r part of the process that supplies goods & services. consumer role/purchaser role/citizen role/worker role
worker role
