Chapter 1- Business

Statistics show that the amount and type of education you complete does not significantly affect the amount of money you earn.

False

The ability to prepare a spreadsheet is an example of a soft skill.

False

The decline (recession) stage of the business cycle represents the lowest point on the business cycle graph.

False

You should have a "master resume" prepared and ready to submit for any job opening for which you may apply.

False

You should not let the state of the economy (stage of the business cycle) affect your spending habits and choices.

False

​Generally, during the first year of self-employment, a small business owner can expect to work fewer hours and receive a higher salary than if he or she were employed by a large corporation.

False

Provide three examples of the types of individuals who would make good references on a resume or job application.

former teachers, coaches, or some of your former bosses or coworkers

You should ask permission before listing someone as a reference.

True

An employment agency charges fees of 30 percent for its services based on the new employee's first year of salaried income. This agency has found you a job paying a $55,000 salary in the first year. If the agency splits the fee, charging 27.5 percent to the employer and 2.5 percent to the employee, how much will you be paying the agency for its services?

1,375

The tuition per year for a local public university is $6,000, and you can commute from your parents' home. The tuition for an out-of-state private university is three times as much, and you will have to pay for room and board costing $9,300 per school year. How much additional will you pay each school year for the out-of-state private university?

21,300

If average annual income for all workers is $37,000 and a person with a bachelor's degree can expect to earn 32 percent more than average, what is the average annual income for persons holding bachelor's degrees (round to the nearest thousand)?

49,000

If you are currently paying $5,350 per year in tuition, and your school is planning to raise tuition by 6 percent for the next year, how much will you pay in tuition next year?

5,671

In February, Campus Cycle Repair had income from sales of $16,000. Expenses for the month included: rent, $1,250; utilities, $450; employee wages, $4,800; insurance, $300; parts and supplies, $2,700. The owner also incurs a monthly franchise fee equal to 5 percent of income from sales. What is the amount of profit (or loss) earned by Campus Cycle Repair for the month of February.

5,700 profit

Which of the following is good advice regarding job interviews?

Before an interview, practice answering open-ended questions requiring you to talk about yourself.

A student loan on which interest is not charged is called a grant.

False

In today's workplace, written communication is always preferable to ​face-to-face or telephone communication.

False

Provide three pieces of advice you would give to someone preparing a resume for a specific job.

Look over the resume multiple times before applying, list the important things at the top of the page, and keep it simple and professional.

A good place to start job market research is the_____________ published by the U.S. Department of Labor and available online.

Occupational Outlook Handbook

Provide five pieces of advice you would give to someone going on a job interview.

Practice before going into the interview, be on time, dress nicely, relax, and listen to what the employer has to say before speaking.

Describe the difference between hard skills and soft skills. Provide an example of each.

Soft skills are your nontechnical abilities and can be learned with practice. Some examples of soft skills are communication skills and teamwork skills. Hard skills are technical skills like operating machines and creating things.

The United States has a market economy, which is based on the laws of supply and demand.

True

Identify four characteristics associated with successful entrepreneurs.

Successful entrepreneurs are organized, they get along with others, are leaders, and work hard.

The stage of the business cycle at which the economy is as robust as it can get is called the peak.

True

When demand for a product exceeds its supply, businesses will begin charging higher prices for the product.

True

If you cannot answer a question on a job application or if it isn't applicable, it is acceptable to write "N/A" on the answer blank.

True

Lifelong learning will help you stay employed by preparing you for changes in the skills or education required for your job.

True

A cover letter should be short and direct.

True

Which of the following is not good advice regarding resumes?

Use a variety of fancy fonts and style elements to ensure the resume stands out from others.

A goal is a desired outcome based on one's__________ for which a plan of action is carried out.

Values

Which of the following degrees requires the most time to complete?

a doctoral degree

Identify two advantages and two disadvantages of self-employment.

advantage- get to make the ultimate decision and you make more money. disadvantage- work long hours and money can be lost

Scholarships are available to students based on

any of these

How can you find out about available job openings that are not advertised?

contacts or social network

A(n) ________________is a person who takes the risks of being self-employed and owning a business.

entrepreneur

A thank-you letter sent to the interviewer is a form of___________ to show appreciation and remind the employer of your interest.

follow-up

All of the following are forms of verbal communication except

hand gestures

Explain how a person's values can affect goals and job choices.

if you have goals of helping others or you want to make a difference, you could consider being a doctor or counselor

On-the-job training is an example of

informal education

Which of the following is true of a subsidized student loan?

interest is not charged until after you graduate

Job _______________ is spending time observing a worker in a type of job that interests you.

job shadowing

All of the following are examples of hard skills except

leading a team

When supply exceeds demand, businesses will ___________ prices in an effort to increase demand.

lower

Why is lifelong learning important for long-term career success?

new jobs come up and our world changes every day so we need to be able to keep up.

When people slow their buying and are unable to pay high prices, the economy slips into an economic decline, called a(n)______________ .

recession

During periods of_______________ (stage of business cycle), people are optimistic and spending money, businesses are hiring, and factories are increasing production.

recovery

List the four stages of the business cycle.

recovery, peak, recession, trough

A job description may include all except

salary range

The study of economics is also said to be the study of_____________ , which occurs because people's needs and wants are unlimited, while resources are limited.

scarcity

The group of friends and acquaintances with which you keep in contact and share information is your _______________________.

social network

Price decreases for a product are most likely to occur when

supply exceeds demand