fbla intro to business
b
) Job orientation applies most specifically to training given A) during the employment review. B) during the first few days on the job. C) during the first two years on the job. D) after selection, but prior to reporting for work.
b
) Toyota recently sent a letter to everyone who purchased a 1999 Tacoma. The letter states that there is a problem with the suspension and provides information about getting it fixed at local dealerships for free. This is an example of A) a product recall. B) a product recoil. C) an automatic reliability D) a product reinforcement.
a
19) Compounded interest means that interest is added to your balance (usually quarterly), and then the next quarter the interest is computed on your money deposited plus the last quarter interest. A) True B) False
b
44) Eric Keay, a typical consumer, often purchases goods and services because he feels his coworkers will approve of these items. Eric's coworkers could be considered a(n) A) referral group. B) reference group. C) associate group. D) perceptual group.
a
58) A corporate charter should A) follow state guidelines. B) include an organizational chart. C) be over 100 pages in length. D) be very similar to a prospectus.
a
61) Which of the following legal forms of organization allows owners to contribute no capital but still play a part in managing the business and sharing the profits? A) Partnership B) Corporation C) S corporation D) Sole proprietorship
d
90) Mac is worried about the increase in the number of subordinates he supervises; therefore, he is concerned about his A) chain of command. B) organizational structure. C) informal organization. D) span of control.
b
98) Permission to incorporate a business comes from the A) Department of Labor. B) Secretary of Commerce. C) each state's Secretary of State. D) IRS.
Bureau of Labor Statistics
A US Department of Labor Publication that researches thousands of jobs is Bureau of Labor Statistics Barron's Quarterly Occupation Outlook Handbook National Job Links
Occupation Outlook Handbook.
A United States Department of Labor Publication that researches thousands of jobs is
b
A bank account that is used by two or more people is a. a club account. b. a joint account. c. an accuracy account. d. a partnership account.
commercial or full service bank
A bank that offers a full range of financial services; sometimes called a "financial department store."
a
A basic principle involving stockholders is that a. an ownership interest in a corporation does not confer legal right to manage the firm. b. the board of directors cannot elect the principal owner as president. c. all dividends are nontaxable. d. stockholders cannot buy new stock until it is offered for public sale.
b
A budget is an example of a a. policy. b. short-range plan. c. strategic plan. d. nonrecurring procedure.
b
A cancelled check is written notice from the drawer telling the bank not to pay a certain check.
cancelled check
A check paid by a bank, charged to your account, and returned to you is a(n)
a
A common stockholder a. casts one vote per share at stockholders' meetings. b. can not vote at stockholders' meetings. c. is a member of the board of directors. d. declares dividends at stockholders' meetings.
d
A company that makes roofing shingles claims that their shingles "will last longer than you or your money back." Because this is a clear overstatement of their product's performance, they are engaging in A) deceptive pricing. B) deceptive packaging. C) bad promotions. D) deceptive promotion.
c
A computer company developed a printer that would wear itself out within two years of purchase, forcing consumers to buy a replacement. One might criticize this computer company because A) of the poor service they offered to customers. B) of the high price they charged for the printer. C) they planned to make their printer obselete D) their product was unsafe.
venture business.
A computer company that has been in operation for less than three years and has no employees other than the owner is best described as a
b
A corporate charter should a. be detailed. b. be in accord with state law. c. include bylaws. d. indicate profit potential.
d
A corporation a. is chartered under federal laws. b. remains in existence as long as its owners are alive. c. shifts liability of its debt to its owners. d. is chartered under state laws.
b
A corporation is chartered under A) international law. B) state law. C) local law. D) federal law.
trade deficit
A country that imports more than it exports has a
b
A disadvantage of a sole proprietorship is A) the cost of starting the business. B) the lack of limits on personal liability. C) the complexity of the organizational hierarchy. D) the difficulty of dissolution.
resume
A document enclosed with a letter of application summarizing important job related information is a
d
A document enclosed with a letter of application summarizing important job related information is a a. brief. b. work log. c. summary. d. resume.
exports exceed imports
A favorable balance of trade is achieved if
fdic
A federal agency that insures all accounts in the same name at each bank is the
savings and loan association.
A financial institution that specializes in savings accounts and loans for home mortgages is a(n)
france
A group of dairy farmers who ship their milk to their own bottling plant is an example of a
d
A heavily promoted brand of aspirin sells for much more than a virtually identical nonbranded or store-branded product because promotion adds ________ value to the product. A) inspirational B) functional C) political D) psychological
a
A key characteristic of a partnership is that each partner A) is capable of legally contracting. B) must manage the business. C) shares in company assets when the business dissolves. D) must contribute capital to the business.
service provider
A lawyer is an example of a(n)
b
A legal commitment by a bank to lend up to a maximum amount is known as a. a line of credit. b. a revolving credit agreement. c. a term loan. d. a mortgage.
d
A letter of application should do all the following except a. attract the employer's attention. b. cite personal achievement. c. be courteous. d. demand an interview.
a
A local water authority that provided water for the entire community is a public utility.
processor
A lumber company that buys rough cut lumber and cures the lumber to sell to lumber yards in the local area is an example of a(n)
bank statement
A monthly report a bank sends to its customers on the status of their checking account is a(n)
a
A mortgage company requires a credit check and pay stubs before running a loan application. It does this because it wants to determine the potential borrower's A) capacity. B) collateral. C) critique. D) character.
has unlimited liability.
A partnership
prosperity
A phase of the business cycle when most people who want to work are working and businesses produce goods and services in record number is
underwriters laboratories
A product testing organization best known for testing electrical components is
cosigner.
A relative or a friend who has property or a good credit rating that signs a secured loan with you is a(n)
9.5
A share of MKL stock that opened at 8 ¼ and closed at 9 ½ will have a value of _____ at the end of the day?
closing
A situation that occurs when a business is discontinued with a loss to at least one creditor is a
a
A sole proprietorship is a business owned and operated by a board of directors. A) True B) False
false
A sole proprietorship must be registered with the state to obtain its legal charter.
a
A sole proprietorship must be registered with the state to obtain its legal charter. A) True B) False
b
A sound business plan will aid beginning entrepreneurs to obtain required capital.
deflation
A sustained decrease in the general level of prices is
d
A tension that occurs immediately following a purchase decision when consumers have second thoughts as to the wisdom of their purchase is a. post-purchase confusion. b. self-actualization. c. problem recognition. d. cognitive dissonance.
b
A window display in a local mall promoting the 2002 Winter Olympics is an example of an effective sales strategy.
a
According to the consumer information processing theory, _______ is the final stage through which consumers progress. A) post-purchase dissonance B) purchase decision C) cognitive decision D) evaluative categorization
d
All of the following are advantages of checking accounts except a. a checking account is a convenient way to handle business affairs. b. a checking account has many safety measures. c. a check is a legal proof of payment. d. checking accounts always bear interest.
a
All of the following are characteristics that companies look for in applicants except A) religious preference. B) problem-solving ability. C) ability to work in teams. D) communication ability.
b
All of the following are examples of environmental factors that can affect consumer decision-making except a. the media. b. the sex of a consumer. c. one's family. d. one's culture.
a
All of the following are examples of sociological influences on consumer decision making except a. motivations. b. culture. c. social class. d. opinion leaders.
neatly retrace your writing if a spelling error has been made.
All of the following are good rules for writing a check except
d
All of the following are part of the consumer's protective shield except A) federal regulatory agencies. B) international regulatory agencies. C) the U.S. legal system. D) state regulatory agencies.
d
All of the following are part of the five C's of credit except a. the borrower's character. b. the borrower's capacity to repay the loan. c. the collateral available to secure the loan. d. the borrower's ability to avoid a financial crisis.
a
All of the following are reasons companies conduct interviews, except A) to determine the applicant's race. B) to determine the applicant's career goals. C) to determine the applicant's personality. D) to determine the applicant's educational background.
b
All of the following are stages of consumer decision making except A) problem recognition. B) perceptual categorization. C) post-purchase evaluation. D) purchase decision.
d
All of the following are the three main types of endorsements of checks except a. blank. b. special. c. restrictive. d. open.
c
An advantage of a sole proprietorship is A) unlimited life of business. B) profits are spread evenly amongst employees. C) ease of filing taxes and reporting earned income. D) unlimited liability.
fraud
An automobile salesperson who sells a car to a customer, knowing that the odometer has been turned back 20,000 miles, has committed
blank
An endorsement that consists of only the endorser's name is a _______ endorsement?
c
An example of an informal organization is A) an engineering team. B) an accounting office. C) a car pool. D) a marketing department.
a
An independent, non-profit, publication that reports on a wide range of consumer products tested is a. Consumer Digest. b. Consumer Reports. c. Good Housekeeping. d. Parents.
b
An informal group can help or hinder the proper functioning of a business. A) True B) False
federal reserve
An organization designed to supervise and regulate member banks is
better business bureau
An organization developed to self-regulate and improve credibility of businesses throughout the country is the
b
As a rule, for certificates of deposit the rate of interest your money earns is higher if you agree to keep your money on deposit for a longer period of time. A) True B) False
true
Bait advertising is considered unethical because the business lures consumers with an attractive price only to try to convince them to purchase more expensive products or services.
b
Business interruption insurance covers A) debts to suppliers. B) lost income. C) shoplifting. D) defective products.
direct buying
Buying a product without much prior thought is
c
Carl is worried about the disadvantages of starting a sole proprietorship. Carl is probably most concerned with a. the complexity of the organization. b. the cost of starting the business. c. the lack on limits on his personal liability. d. the difficulty of distribution.
d
Carla is a common stockholder in Corporation Y. Because of this, Carla would A) be required to declare dividends at stockholders' meetings. B) be a member of the board of directors. C) not be able to vote at stockholders' meetings. D) be able to cast one vote per share at stockholders' meetings.
a
Checks issued by members of a credit union are called sharedrafts.
a
Coal is an example of both a natural resource and a non-renewable resource.
d
Commercial property insurance does not provide protection from a. damage to property. b. business interruption. c. loss of property. d. product obsolescence.
c
Companies usually explain their procedures and policies during A. Orientation. B. Job instruction training. C. Supervisory training. D. Initial training.
a
Companies usually explain their procedures and policies during A) orientation. B) job instruction training. C) supervisory training. D) initial training.
b
Competition is thought to encourage businesses to A) sell products of low quality. B) produce new products. C) keep prices extremely high. D) offer services of low quality.
lower the price of a good
Competition will
true
Compounded interest means that interest is added to your balance (usually quarterly), and then the next quarter the interest is computed on your money deposited plus the last quarter interest.
false
Consumer behavior has little impact on society.
c
Consumer behavior involves all of the following except a. the use of products. b. the disposal of product c. the way products are made. d. how the products are purchased.
false
Consumerism is an organized movement of citizens and government agencies to improve the rights and power of sellers in relation to buyers.
b
Consumerism is an organized movement of citizens and government agencies to improve the rights and power of sellers in relation to buyers. A) True B) False
b
Consumerism is built of the philosophy of "Let the Buyer Beware." A) True B) False
false
Consumerism is built on the philosophy of "let the buyer beware."
b
Consumerism is one aspect of the _____________ environment. A) technological B) political/legal C) economic D) social
false
Convenience goods are usually higher priced items and the consumer spends a lot of time considering their purchase.
c
Corporation "X" has gone into debt. Which of the following would be liable for that debt? A) Jack, the corporation's CEO B) Jose, a common stockholder C) All of the answers are correct D) Lily, a member of the board of directors
house brand
Craftsman tools, marketed by Sears, is an example of a
overbuying
Credit has many benefits and drawbacks. Which item listed below is a drawback of credit.
a
Despite labor laws, students of any age can deliver newspapers or work in movies, theatre, TV, radio; or can work in parent-owned business. A) True B) False
d
During an interview, an employer A. Can judge an applicant without any further research. B. Should do most of the talking. C. Should find out whether a young woman plans to stay home with her children when they are born. D. Can evaluate the appearance, job knowledge, and personality of the applicant.
d
During an interview, an employer A) can judge an applicant without any further research. B) should do most of the talking. C) should find out whether a young woman plans to stay home with her children when they are born. D) can evaluate the appearance, job knowledge, and personality of the applicant.
false
Each individual customer's account is insured by the FDIC up to $1,000,000 per account ownership.
b
Each individual customer's account is insured by the FDIC up to $1,000,000 per account ownership. A) True B) False
b
Electronic components manufactured in Thailand and shipped to the United States for sale are an example of an export to the United States.
b
Ellen Maslow owns a home worth $90,000 and wanted to be sure it was insured for at least 80 percent of its value. For how much should it be insured? a. $17,000 b. $72,000 c. $81,000 d. $88,000
a
Employee bonding is a commonly used protection against employee dishonesty. A) True B) False
wages
Employees who earn an hourly amount of money are paid
profit sharing
Employees who receive the regular pay plus a share of company profits participate in
d
Employers who make accommodations for physically challenged workers are complying with regulations of the a. FDA. b. FTC. c. FCC. d. ADA.
implied warranty
Fitness equipment available for use in a fitness club which should be in sound working order is an example of a(n)
b
For an insurance company to be willing to underwrite possible losses, a. the risk that the event will happen must be calculable . b. the risk must exist in small numbers. c. the insured property must have residential value. d. the policyholder must have no conflict of interest.
b
Gil has decided he wants to start a business, but he does not want to be required to file paperwork with numerous government agencies or sell stock in his business to the public. He also wants to maintain all decision-making power. Gil should probably start A) a general partnership. B) a sole proprietorship. C) a partnership. D) a corporation.
a
Grace is developing a business plan and wants to show the cost of fringe benefits as a percentage of payroll costs. She should use the following percentage A) 40% B) 50% C) 25% D) 30%
a
Henry Rodgers wishes to create greater enthusiasm among employees in his industrial distribution business. A widely used approach that he might take is a. empowerment of employees. b. formulating of policies. c. establishment of control standards. d. adoption of budgets.
a
High prices are often caused by A) excessive markups. B) lowering the promotion costs. C) inexpensive labor. D) free publicity.
d
How do individuals in a partnership pay taxes? A) They pay taxes as a partnership. B) They do not pay taxes; the business does. C) They only pay taxes if they are shareholders. D) The individuals each pay taxes on the total income.
the ripple effect
If the automobile industry enters a recession, related businesses will be affected. This is an example of
b
In a capitalist system, scarcity is not a factor because the demand is determined in a free market system.
d
In a limited partnership, which of the following remains bound by all debts of the business? a. Limited partner b. Special partner c. Stockholders d. General partner
d
In a limited partnership, which of the following remains bound by all debts of the business? A) The partner with the least capital investment B) Limited partner C) Special partner D) General partner
a
In a line organization, each employee has a. one supervisor. b. two supervisors. c. three supervisors. d. an indefinite number of supervisors.
c
In a mixed economic system most decisions are left to _______________, but some decisions are left to___________________. A) government; individuals B) government; business C) individuals; government D) monopolies; government
b
In a partnership, each partner has agency power, which means that a. upon death of one partner, the remaining partners can operate the business. b. a partner can legally bind all members to the firm. c. an executor can act as a partner. d. a partner can compete in business and remain a partner.
b
In regards to insurance, risk is also known as A) likelihood of emotional loss. B) the possibility of financial loss. C) the chance of financial gain. D) the chance of psychological damage.
True
Information liability is the responsibility for physical or economic injury arising from incorrect data or wrongful use of data.
c
Insurance is a legal contract that transfers _______ from a policyholder to an insurance company in exchange for ___________ A) premiums; liability B) premiums; risk C) risk; premiums D) risk; liability
false
Insurance is most often used to protect against loses that are unexpecte
b
Insurance is most often used to protect against loses that are unexpected. A) True B) False
compound interest
Interest that is computed on the amount saved plus the interest previously earned is
asset
Items of value that a person owns is considered a(n)
c
Joan McBride is saving money for a car. She worked 10 weeks during the summer for a house-painting company. Her take-home pay was $350 a week. If Joan deposited each paycheck in the bank, what was the total amount she deposited during the summer? a. $2,500 b. $3,000 c. $3,500 d. $4,000
c
Joan McBride is saving money for a car. She worked 10 weeks during the summer for a house-painting company. Her take-home pay was $350 a week. If she put $90 a week in her saving account, how much did she save during the summer? a. $ 90 b. $ 450 c. $ 900 d. $1,350
b
Joan McBride is saving money for a car. She worked 10 weeks during the summer for a house-painting company. Her take-home pay was $350 a week. she puts $90 a week in her saving account If she leaves her accumulated summer savings in the bank for a year at 3.5 percent interest, how much will she have available for a down payment on a car at the end of the year? a. $913.50 b. $931.50 c. $935.00 d. $975.75
b
Job orientation applies most specifically to training given A. During the employment review. B. During the first few days on the job. C. During the first two years on the job. D. After selection, but prior to reporting for work.
d
Jose wanted to make sure that his new business is a line organization; therefore, he would develop policies so each employee has A) two supervisors. B) three supervisors. C) four or more supervisors. D) one supervisor.
derived demand
Lanard Industries produces a line of hunter green kitchen supplies because it is this year's hot color. This is an example of
b
Liability law has had an impact on business by requiring them to place warning labels on products. A) True B) False
a
Life insurance purchased by a company with the company as the sole beneficiary is a. key-person insurance. b. a surety bond. c. business interruption insurance. d. credit insurance.
c
Limited liability for business debts is granted to a. sole proprietors. b. general partners. c. shareholders in S corporations. d. strategic alliances.
b
Many customer service problems are identified by A) outside consultants. B) customer complaints. C) personal evaluation. D) entries in a suggestion box.
c
Marcy Tallman, who runs a home sprinkler business, has a group of employees who work in production and in installation. If she decides to use work teams as part of her leadership approach, she must increase a. supervision. b. compensation. c. independence. d. quality.
raises the standard of living.
Mass production
a
Mass production has increased the standard of living in the United States of America.
d
Michelle LaPorte is planning to launch a new business and has been encouraged to start in a business incubator. This will give her access to a. bank loans. b. free rent. c. prepaid insurance. d. management counsel.
d
Mike Childress owns and runs an insurance firm with 15 employees. As a result of his extensive personal interaction with these employees, Childress realizes that a. a chain of command is necessary. b. personnel policies would be overly restrictive. c. marketing research is part of everyone's job. d. the employees pretty well understand where the business is going.
false
Money market deposit accounts usually pay a lower rate of interest than checking accounts and require a lower minimum balance.
b
Money market deposit accounts usually pay a lower rate of interest than checking accounts and require a lower minimum balance. A) True B) False
d
Most businesses are A) limited partnerships. B) corporations. C) general partnerships. D) sole proprietorships.
copyright.
Musical artists can protect their lyrics and music with a
b. job shadowing experience.
Observing a person at work to gain career insight is an example of a(n)
b
One of the disadvantages of the corporate form of ownership is the limited liability of its owners. A) True B) False
b
One of the most important means of sharing business risks is a. preventative maintenance. b. insurance. c. a system of internal checks. d. good management.
d
One of the most important means of sharing business risks is A) a system of checks and balances. B) good marketing. C) preventative maintenance. D) Insurance.
b
Outstanding checks are subtracted from the checkbook when you are performing bank reconciliation
b
Ownership in a corporation is shown by stock certificates. A) True B) False
work force
People 16 years of age or older who have, or are seeking a job, comprise the
shareholders
People who purchase shares of stock in a corporation are
b
People who work to produce goods and services are part of the labor force.
real property
Property permanently attached to the land such as a house or garage is a
a
Property that is permanently attached to land is known as a. real property. b. personal property. c. equipment. d. capital property.
protect a national industry.
Quotas can be used to
a
Rebecca recently decided to start a business. She is most concerned about limiting her financial liability. Rebecca would most likely start A) a corporation. B) a sole proprietorship. C) a general partnership. D) a limited partnership.
fixed
Rent is an example of a(n) __________ expense?
a
Resumes should be no longer than a. one page. b. two pages. c. three pages. d. six pages.
a
Risk management and insurance management is the same thing. A) True B) False
b
Rita Verracruse is saving money for a new truck. She worked 16 weeks during the summer for a dog-walking company. Her take-home pay was $275 a week. 80) How much money did Rita earn during the summer? A) $4,250 B) $4,400 C) $3,750 D) $4,750
d
Rita Verracruse is saving money for a new truck. She worked 16 weeks during the summer for a dog-walking company. Her take-home pay was $275 a week. If Rita put half of the money she earned in a savings account and the simple interest rate was 3.5%, how much money would she have in one year? A) $2,250 B) $2,284 C) $2,456 D) $2,277
b
Rita Verracruse is saving money for a new truck. She worked 16 weeks during the summer for a dog-walking company. Her take-home pay was $275 a week. How much money would Rita have at the end of three years, assuming she did not take any money out of the account (rounded to the nearest cent)? A) $2,645.71 B) $2,634.54 C) $2,439.18 D) $2,517.84
a
Rita placed the other half of her money in a certificate of deposit. It is most likely that her money earned _________ interest rate as the savings account. A) a higher B) the same C) a more volatile D) a lower
b
S corporations are taxed as a. proprietorships. b. partnerships. c. C corporations. d. domestic corporations.
c
Saving money to cover possible losses in the future is also known as A) a customer-oriented liability. B) legal insurance. C) self-insurance. D) Premiums.
c
Self-insurance means a. owning an insurance company. b. owning stock in an insurance company. c. saving money to cover possible future losses. d. having coverage on the owner of a business.
limited liability
Shareholders of a corporation enjoy the advantage of
b
Socialism is most closely associated with A) capitalistic economic systems. B) command economic systems. C) free enterprise economic systems. D) mixed economic systems.
a
Some companies attempt to determine a customer's worth before doing business with that person. This practice is known as A) weblining. B) price gouging. C) webbing. D) exception.
weblining
Some companies attempt to determine a customer's worth before doing business with that person. This practice is known as price gouging. weblining. webbing. exception.
a
Start up capital may come from the owner's personal funds, banks or other financial institutions, or private investors.
true
States can establish minimum wages laws, as long as the minimum wage is higher than that of the federal government.
a
States can establish minimum wages laws, as long as the minimum wage is higher than that of the federal government. A) True B) False
b
Stockholders have limited liability unless they a. are active in the management of the corporation. b. personally endorse company notes. c. own preferred stock. d. convert their shares to partnership status.
a
Subchapter "S" corporations are taxed as A) partnerships. B) subchapter "C" corporations. C) proprietorships. D) multinational corporations.
c
Tara Cannon is the CEO of a large corporation. Last week the company decided to take out a life insurance policy in case of her death. This is also known as A) risky health assurance. B) vital member policy. C) a key-person policy. D) life or death annuity.
tariff
Taxes placed on coffee imported from Brazil would be an example of a
social responsibility.
The BTC Corporation sponsors a little league team. This is an example of
inflation
The Consumer Price Index is used to: monitor the rate of inflation measure the total goods and services produced in a year is a scientific look and the DJIA forecasts economic activity 6-9 months down the road
true
The Consumer Product Safety Act of 1972 set safety standards on many consumer products.
b
The FDIC insures deposits in banks up to $100,000. The banks pay the insurance just as individuals buy insurance for their cars. Based on the amount of deposits in the financial institution, the regulating agency sets the amount charged. The data below shows the current rate charged by the FDIC in a recent year to Blacksburg National Bank and a proposed rate change. Blacksburg National Bank Deposits: $7,350,000 Current insurance rate per $100 of deposits: 22.1 cents Proposed rate per $100 of deposits: 25 cents Use the following information to answer questions 64-67. The FDIC insures deposits in banks up to $100,000. The banks pay the insurance just as individuals buy insurance for their cars. Based on the amount of deposits in the financial institution, the regulating agency sets the amount charged. The data below shows the current rate charged by the FDIC in a recent year to Blacksburg National Bank and a proposed rate change. Blacksburg National Bank Deposits: $7,350,000 Current insurance rate per $100 of deposits: 22.1 cents Proposed rate per $100 of deposits: 25 cents What is the percentage of the increase in rate? a. 10% b. 13% c. 15% d. 18%
d
The FDIC insures deposits in banks up to $100,000. The banks pay the insurance just as individuals buy insurance for their cars. Based on the amount of deposits in the financial institution, the regulating agency sets the amount charged. The data below shows the current rate charged by the FDIC in a recent year to Blacksburg National Bank and a proposed rate change. Blacksburg National Bank Deposits: $7,350,000 Current insurance rate per $100 of deposits: 22.1 cents Proposed rate per $100 of deposits: 25 cents What is the cost of Blacksburg National Bank's insurance at the current rate? a. $15,000.85 b. $15,234.00 c. $16,240.75 d. $16,243.50
b
The FDIC insures deposits in banks up to $100,000. The banks pay the insurance just as individuals buy insurance for their cars. Based on the amount of deposits in the financial institution, the regulating agency sets the amount charged. The data below shows the current rate charged by the FDIC in a recent year to Blacksburg National Bank and a proposed rate change. Blacksburg National Bank Deposits: $7,350,000 Current insurance rate per $100 of deposits: 22.1 cents Proposed rate per $100 of deposits: 25 cents What is the amount of the increase? a. $2,087.50 b. $2,131.50 c. $2,311.50 d. $3,121.50
b
The Fair Labor Standards Act does not require businesses to give its employees sick leave or paid vacations. A) True B) False
market economy
The USA is based on a custom based economy market economy directed economy planned economy
market economy
The United States of America is based on a
d
The _____________ requires that every food product covered by the law has a standard nutritional label, consisting of calories, fat, salt, and nutrients. a. Consumer Product Safety Act of 1972 b. U.S. Patent and Trademark Office c. Federal Trade Commission d. Nutritional Labeling and Education Act of 1990
principal.
The amount of debt to which the interest rate is applied when borrowing money is the
premium
The amount of money the policy holder must pay for an automobile insurance policy is the
b
The articles of partnership will state how the profits of a corporation will be divided among its stockholders.
cpi
The changes in the average price of goods and services bought by the consumer over a period of time is shown in the
scarcity
The concept of unlimited wants and limited resources is
a
The current hourly minimum wage set by the U.S. Department of Labor is A) $5.15. B) $5.00. C) $4.75. D) $5.25.
a
The death of a majority stockholder of a corporation results in the dissolution of the corporation. A) True B) False
a
The ease at which an investment can be changed into cash without losing its value is known as a. liquidity. b. gross value. c. net value. d. longevity.
true
The environment influences consumer behavior
b
The federal government attempts to prevent monopolies by using a. the Internal Revenue Service. b. antitrust laws. c. public utilities. d. Federal Fair Business Administration.
cash budget
The financial plan for the day-to-day operations of a business is an example of a(n)
create a sound business plan
The first step in establishing a successful business is to
signature card.
The form that a person completes when he/she opens a checking account containing type of account, legal signature, and personal client information is a(n)
a
The free enterprise system is a command economic system. A) True B) False
sba
The government agency set up to help small business is the
b
The greater your ___________, the more your insurance policy will cost. A) plausibility B) risk C) reluctance D) liability
c
The legal agreement that partners agree to before the business is established is known as A) the business initiative. B) the business charter. C) the partnership agreement. D) the partnership charter.
a
The legal agreement that partners agree to before the business is established is known as the partnership agreement. the partnership charter. the business initiative. the business charter.
b
The lowest level of the business cycle is the recession level.
b
The maximum interest rate a credit card company may charge is 18% APR.
b
The need for effective management decreases as the business expands. A) True B) False
a
The number of subordinates reporting to one superior constitutes that manager's a. span of control. b. informal organization. c. organizational structure. d. chain of command.
producer to consumer
The only direct channel of distribution is
a
The only direct channel of distribution is a. producer to consumer. b. producer to retailer to consumer. c. retailer to consumer. d. producer to wholesaler to retailer to consumer.
a
The owner of a small motorcycle garage uses an application form in evaluating applicants. This is useful in discovering A) general background information. B) arrest records. C) physical disabilities. D) religious orientation.
c
The owner of an electronics store wishes to allow employees to own part of the business. She can do this by using a. a profit plan. b. a Keogh Plan. c. an ESOP (employee stock ownership plan). d. a fully vested pension plan.
dividend.
The part of the profit a stockholder receives from a corporation is a
yield
The percentage of interest that will be added to your savings over a period of time is the
c
The person named in an insurance policy to receive the insurance benefits is a. the insured. b. the benefactor. c. the beneficiary. d. the premium.
drawer
The person who issues a check is the
d
The practice of businesses refusing to serve specific geographic areas is known as A) boycotting. B) pipelining. C) restrictive marketing. D) redlining.
a
The process of developing and engaging in mutually beneficial relationships with peers is called a. networking. b. politicking. c. instrumental tying. d. effective connecting.
c. entrepreneurship.
The process of starting, organizing, managing, and assuming the responsibilities for a business is
true
The purpose of a Better Business Bureau is to protect consumers by promoting ethical conduct by businesses.
a
The sector of the U.S. workforce with the largest projected growth is the a. service industry. b. manufacturing industry. c. engineering industry. d. farming industry.
variable expense
The telephone bill would be an example of a
d
The tension that occurs immediately following a purchase is referred to as A) post-purchase satisfaction. B) post-decision distress. C) cognitive assessment. D) cognitive dissonance.
gdp
The total value of all final goods and services produced in a country in one year measures a nation's
a
The typical cost of fringe benefits as a percentage of total payroll expense is a. 40 percent. b. 25 percent. c. 15 percent. d. 5 percent.
b
The use of technology has greatly expanded the need of human labor in the 21st century global economy.
c
There are _______ Federal Reserve Banks and ________ branches to those banks. A) 2; 25 B) 50; 250 C) 12; 25 D) 100; 500
12; 25
There are __federal reserve banks an ___ branches to those banks
b
There are restrictions on the owner's personal liability in a sole proprietorship. A) True B) False
B
There has been a dramatic decrease in the number of skills employers now require because of the great advancements made in technology.
a
Tim Hudson is experiencing difficulty in recruiting competent workers for his business. One way to increase the attractiveness of his business is by using a. flexible work schedules. b. job descriptions. c. performance testing. d. private employment agencies.
b
To be eligible to be an S corporation, a firm must a. have more than 100 stockholders. b. have no nonresident alien stockholders. c. have two or more classes of stock outstanding. d. be international in scope.
b
To improve control of operations, the owner of a flower shop wishes to measure performance at the process stage. The owner might a. inspect raw materials. b. use quality control. c. set sales quotas. d. improve personnel-selection methods.
a full endorsement
To make sure that no one except the party indicated will be able to cash a check, the drawer should use
d
To obtain a replacement for an employee taking a short-term leave under the provisions of the Family Leave Act, an employer would use a. public employment agencies. b. employee referrals. c. help-wanted agencies. d. temporary help agencies.
a
Today's coins and paper money (currency) are backed by the promise of the U.S. government. A) True B) False
contract
Tom agrees to buy hay from Bob for $2.00 per bale. This is an example of a
c
Tracy, who runs a carpet cleaning business, has a group of employees who work in production and in installation. If she decides to use work teams as part of her leadership approach, she must increase A) quality. B) supervision. C) independence. D) compensation.
b
Treasury bonds are short-term investments that produce high yield returns.
grade
USDA "Choice" beef, indicating the quality of the beef, is an example of a
retailer
Wal-Mart is an example of a
b
What is the central banking system of the United States? A) The Unionized Central Banking System B) The Federal Reserve C) The Federal Union D) The Bank of the U.S.
positive balance of trade
When a country imports more than it exports, it has a: positive balance of trade. positive balance of payments. negative balance of trade negative balance of payments
c. liquid.
When an investment can be turned into money quickly, the investment is said to be
d
When compared to a traditional savings account, a certificate of deposit is A) more dynamic. B) more liquid. C) equally liquid. D) less liquid.
earnings per share
When reading a stock report, the P/E ratio compares the price of the stock with the
d
When someone enters into a mortgage agreement, the house serves as which one of the five "C's" of credit? A) Critique B) Capacity C) Character D) Collateral
rises
When supply decreases and demand increases, the price of a good
a
Where is the headquarters for the Federal Reserve Bank? A) Washington D.C. B) New York City C) Los Angeles D) Chicago
c
Which of the following U.S. federal regulatory agencies handles consumer complaints? A. Office of Consumer Protection B. Environmental Protection Agency C. Office of Consumer Affairs D. Consumer Product Safety Commission
c
Which of the following U.S. federal regulatory agencies handles consumer complaints? A) Office of Consumer Protection B) Environmental Protection Agency C) Office of Consumer Affairs D) Consumer Product Safety Commission
b
Which of the following best defines a partnership? a. A business owned and operated by one person b. A voluntary association of two or more persons to carry on a business for profit c. The governing body for corporate activity d. An organization in which each owner has limited personal liability
c
Which of the following can reduce competition? A) An increased number of competitors B) Balanced marketing practices C) Acquisition of competitors D) Marketing prices eliminate barriers to entry
c
Which of the following entities is liable for a corporation's debts? a. Stockholders b. Board of Directors c. The corporation itself d. The corporation's CEO
a
Which of the following governmental agencies exists to protect consumers against unfair, deceptive, or fraudulent practices? a. The Bureau of Consumer Protection b. The Bureau of Consumer Affairs c. The Department of Truth in Advertising d. The Commission for Ethical Business Practice
d
Which of the following governmental agencies is responsible for monitoring infomercials to ensure that both the format and the content of the programs are non-deceptive? a. The Division of Marketing Practices b. The Division of Financial Practice c. The Internal Revenue Service d. The Division of Advertising Practices
b
Which of the following is a federal agency that protects depositors' money in case of the failure of the bank or financial institution? a. Federal Reserve System b. Federal Deposit Insurance Company c. Internal Revenue Service d. Savings and Loan Association
c
Which of the following is a not-for-profit financial institution formed by people who have like occupations or live in the same community? a. Savings and Loan b. Commercial Bank c. Credit Union d. Mutual Savings Bank
b
Which of the following is an aspect of the free enterprise system? A) The government decides what to produce. B) Decisions are made by individuals rather than the government. C) The government establishes fair prices. D) The government owns the means of production.
b
Which of the following is an economic system in which the method for determining what, how, and for whom goods and services are produced is decided by a central authority? a. Market economy b. Command economy c. Mixed economy d. Privatized economy
c
Which of the following is designed as a career-planning tool and is published every five years by the federal government? a. Monthly Labor Review b. Workforce Projections Quarterly c. Occupational Outlook Handbook d. Human Resource Guidelines
confidenciality
Which of the following is not a consumer right: the right to choose the right to confidentiality the right to be heard the right to be informed Previous
c
Which of the following is not a feasible way to evaluate applicants for a position? A) Conduct an interview. B) Have them fill out an application form. C) Hire a private investigator to follow the applicant. D) Check references.
c
Which of the following legal forms of organization allows the owners to contribute no capital, but still play a part in managing the business and sharing the profits? a. S corporation b. C corporation c. Partnership d. Sole Proprietorship
d
Which of the following legal forms of organizing a business is most difficult to establish? a. Proprietorship b. Partnership c. Limited partnership d. Corporation
consumer research
Which of the following magazines does not accept advertising in order to remain unbiased?
c
Which of the following statements is true? A) Partners always split profits in half. B) Partners are always equally liable. C) Partners always divide workload in half D) Partners are never equally liable.
d
Which of the following types of interviewing has the applicant perform a small sample of his or her potential duties? A) Traditional interviewing B) Differential interviewing C) Reactive interviewing D) Behavioral interviewing
a
Which of the following would assume all losses of a business? A) The owner of a sole proprietorship B) A limited partner C) A stockholder D) The CEO of a corporation
d
Which one of the following is the correct order of the consumer decision making process? a. Purchase decision; Information search and evaluation; Problem recognition; Post-purchase evaluation b. Purchase decision; Problem recognition; Information search and evaluation; Post-purchase evaluation c. Information search and evaluation; Purchase decision; Problem recognition; Post-purchase evaluation d. Problem recognition; Information search and evaluation; Purchase decision; Post-purchase evaluation
term life
Which type of life insurance has no cash value if the policy is surrendered?
d
Work behaviors are important to developing a career and include all of the following except a. punctuality. b. good attendance. c. appropriate appearance. d. manual dexterity.
d
You could insure against all of the following except A) fire. B) an accident in the company vehicle. C) your partner becoming ill. D) your product losing its market share.
b
Your personal value system should not be considered when applying for a job.
knowledge
_________ is the body of information applied directly to job performance.
c
_________ is the body of information applied directly to job performance. A) Competency B) Skill C) Knowledge D) Ability
c
___________, as President of the United States, in 1962 addressed Congress and defined the basic rights of consumers. A) Lyndon Johnson B) Richard Nixon C) John F. Kennedy D) Gerald Ford
c
____________ are profits that are distributed to stockholders on a per share basis. a. Bonuses b. Stockholder equitables c. Dividends d. Stockholder payoffs
d
____________ were started by people who shared a common bond such as working at the same factory, belonging to the same house of worship, or farming in the same community. A) Commercial banks B) Savings and loan banks C) Cooperative banks D) Credit unions
c
_____________, as President of the United States, in 1962 addressed Congress and defined the basic rights of consumers. A. Lyndon Johnson B. Richard Nixon C. John F. Kennedy D. Gerald Ford
a
______________ are a division in society with different levels of social prestige. A) Social classes B) Cultures C) Reference groups D) Cognitive categories
c
_________is the continuing process by which an employee begins to understand and accept the values, norms, and beliefs held by others in the organization. A. Socialization B. Evolution C. Motorization
d
_________is the continuing process by which an employee begins to understand and accept the values, norms, and beliefs held by others in the organization. A) Socialization B) Evolution C) Motorization D) Randomization
character
a person's honesty and willingness to pay a debt when it is due.
false
a policy is the same as a procedure
a
a sole proprietor a. assumes all losses of the business. b. assumes no profits. c. receives tax-free fringe benefits. d. assumes no losses.
false
as the number of four year college graduates increases, the economy will generate an equivalent number of high level jobs
d
business incubator= a. bank loans. b. free rent. c. prepaid insurance. d. management counsel.
false
for the manager, the control function is the same things as the planning function.
a
he FDIC insures deposits in banks up to $100,000. The banks pay the insurance just as individuals buy insurance for their cars. Based on the amount of deposits in the financial institution, the regulating agency sets the amount charged. The data below shows the current rate charged by the FDIC in a recent year to Blacksburg National Bank and a proposed rate change. Blacksburg National Bank Deposits: $7,350,000 Current insurance rate per $100 of deposits: 22.1 cents Proposed rate per $100 of deposits: 25 cents What will Blacksburg National Bank's cost of insurance be at the proposed rate? a. $ 18,375.00 b. $ 183,750.00 c. $1,837,500.00 d. $1,945,687.00
true
interest rates are usually expressed as fractions or decimals
false
limitations in knowledge do not affect consumer decisions
false
line organization uses a dual chain of command
c
one function of a Better BusinessBureau is to a. survey businesses in a community to determine which are ethical. b. take legal action against businesses that are unethical. c. provide consumers with free buying guidelines. d. advertise against unethical businesses.
true
ownership in a corporation is evidenced by stock certificates
false
partners always lose equally
true
social marketing involves getting ideas across to customers rather than selling something
licensing
states and local governments have used_____ to limit and control those who plan to enter certain types of businesses
true
the amount paid for use of money is interest
true
the are no limits on the owners personal liability in a sole proprietorship
true
the greatest time saver is the effective use of time
false
the meaning of the term "work ethics" is the same for every occupation
true
the sole proprietorship is usually the most appropriate form of business organization for a new small business
true
the term "work ethics" is drawn from Protestant beliefs that working hard was a moral responsibility
true
to transfer ownership in a corporation, it is onlyu necessay to transfer shares of stock
d
unethical business practices often decline when firms a. collude with one another. b. face challenging business situations. c. set a flexible code of ethics. d. cooperate to organize a Better Business Bureau.
true
with a single payment loan, the borrower does not have to pay anything until the end of the loan
false
work habits are only taught through formal training