Principles of Business Semester 1 Final Exam Multiple Choice

Which of the following is NOT a common way people finance their purchases

saving

Retail sales include

school supplies bought by students

If freezing weather damages orange crops in Florida

the price of oranges will increase

Over the next decade, which of the following groups will experience a DECLINE in employment growth rates in the United States?

White non-Hispanic workers

A major advantage of a functional structure is that

People work with others who have had the same skills

Business cycles have four phases:

Prosperity, recession, depression, and recovery

Which of the following is not a characteristic of entrepreneurship in the U.S. activity

about 3% of people age 18-64 are involved in entrpreneurship

a competitive advantage that small businesses have over larger business is

attention to unique cuspmer needs

The right to make decisions about how responsibilities should be achieved is called

authority

About what percentage of U.S. businesses employ more than 100 workers?

less than 1 percent

Every business performs all of the following activities EXCEPT

raising capital

An important principle of the U.S. economic system is

the right to private property, the freedom of choice, and competition

Employees at the Tercel Company are frequently confused about their assignment, and many employees are unclear about who exactly they report. TREXEL company does not seem to provide an adequate

unity of command

A corporation that uses a global strategy _______.

uses the same product and marketing strategy worldwide

A(n) ______ reduces trade barriers among members and promotes regional economic integrations.

common market

Country X can produce corn and sugar at a lower cost that other countries. However, the world market for corn is stronger than for sugar. Therefore, Country C chooses to specialize in producing corn and to buy sugar from other countries. This example illustrates the concept of ______.

comparative advantage

The basic economic problem is

having unlimited wants and needs but limited economic resources

In emerging markets, consumer income and buying power are

increasing

A nation's transportation, communication, and utility system are part of its ____ .

infrastructure

Which organization maintains an orderly system of world trade and exchange rates?

international monetary funds (IMF)

An organization that does business in several countries is known at a(n) _____

multinational company

Water, air, and minerals are examples of

natural resources

Which of the following is not one of the reason small business fail?

not enough employees to do the work

If you decide to purchase a DVD of your favorite movie instead of a pair of jeans, the value of the jeans is the

opportunity cost

Equity refers to

ownership in a company

Which of the following is NOT one of the many types of interest.

personal rate

Which of the following type of business is NOT a producer?

pharmacy

A precise statement of results a business expects to achieve is a

goal

If the United States set a 12 percent tariff on imported automobiles, a Toyota that costs the equivalent of $13,000 in Japan would be prices at ____ in the United States

$14,560

What percentage of the U.S. workforce is made up of contingent workers?

5 percent

The Small Business Administration considers a business small if it Employs fewer than _____ employees

500

In a recent year, the United States exported $26.5 billion in goods to France. It imported $34.0 billion in goods from France. In that year, the U.S. had a ______ with France.

7.5 billion trade deficit

Every business begins with a(n)

Idea

The phase of the business cycle in which unemployment is highest is

depression

Which of the following would not be included in GDP?

dinner preparation for your family

______ is the making, buying, and selling of goods and services within a country.

domestic business

A U.S. manufacturer of computer chips wants to produce some of its chips in Japan. The U.S. company want's to do this with as little financial investment and risk as possible. It also does not want to be actively involved with the Japanese company. Which expansion method should the U.S. company use?

licensing

Money needed for the important resources of a business (Such as land, buildings, and equipment) that will last for many years is called

long-term financing

Which of the following situations in Russia would likely cause the value of the Russian ruble to rise?

low interest rate

Which of the following would most likely cause a budget surplus for government?

lower spending

The United States government forbids U.S. companies to sell weapons to certain countries. This restriction is an example of a(n) ______.

embargo

People born between 1946 and 1964 are generally referred to as

baby boomers

A(n) ______ is the value of a currency of one country compares with the value of another.

exchange rate

Productivity would likely increase as a result of

expanded production tecnology

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as

venture capital