Principles of Business Semester 1 Final Exam True/False
True
Tangible products you can purchase to meet your wants and needs are called goods.
False
The Age Discrimination in Employment Act protects people once they reach age 65.
True
One of the main reasons that businesses started by entrepreneurs fail is inadequate capital.
True
A balance-of-payment calculation includes other forms of exchange among nations in addition to trade.
True
A business plan includes a description of the strengths and weakness of competitors.
True
A business's duty to contribute to the well-being of the community is its social responsibility.
True
A country may set a quota to protect one of its industries from too much foreign competition.
True
A free-trade zone is a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing.
True
A logo is a trademark linked with a specific company or product.
False
A span of control is a diagram that shows the structure of an organization.
False
All businesses make products.
False
An economy that is largely involved in agriculture is highly developed.
True
An entrepreneur is someone who takes a risk by starting his or her own business.
True
An independent business with 200 employees is considered a small business from banks.
False
By 2014, it is expected that more than half of all jobs in the United States will be held by women.
False
Capitalism is another name for a traditional economic system.
False
China is the largest producer of goods and services in the world.
True
Competition is another name for a traditional economic system.
False
Copyrights protection lasts for the life of the person receiving the copyright, plus 20 years after the person's death.
True
Economists predict future changes in the economy.
False
Everyone who owns or manages a business is an entrepreneur.
False
From 1996 to 2006, total employment in the United States fell by nearly 14 percent.
False
Only very large businesses can become corporations.
True
Intrastate commerce involves companies doing business in only one state.
True
Many businesses fail in their first year of operation.
False
Microsoft Corporation is the single largest employer in the United States.
True
Most businesses use functional orgaizational structure.
False
Most new business owners obtain start-up money to finance their business from banks.
False
Most small business owners enjoy being part of a team.
True
Nonprofit Corporations do not have to pay corporate income taxes.
True
One goal of the World Trade Organization (WTO) is to encourage lower tariffs.
False
Small businesses employ only 10 percent of U.S. workers.
False
Start-up financing is money needed to pay current operating costs of the business.
True
Successful entrepreneurs have many personal characteristics in common.
False
The compact disc player is an example of a product that fulfills a need.
False
The government's sole source of income in taxes such as income, property, and sale taxes.
True
The largest number of U.S. businesses have no employees other than the owner.
False
The market price for a product is the point where demand exceeds supply.
False
To be valid and enforceable, contracts must be in writing and signed by both parties.
True
When a business controls the market for a product or service, it has a monopoly.
True
When a large business opens in an area, other businesses often will locate there to support the larger business.
True
When demand for a nation's products and currency increases, the value of the nation's currency usually remains constant or rises.
True
When you decide to buy a jacket instead of a concert ticket, you are making a trade-off.
True
Without foreign trade, many things you buy would cost more or not be available at all.