Business Quiz

In June, you made a profit of $5,000 with revenue of $20,000. What were your total expenses?

$15,000

Last year, your company had a loss (negative profit) of $10,000. You expect revenue to be the same for this year as last year. By how much do you need to reduce expenses in order to make a profit of $6,000?

$16,000

You own a backpack manufacturing company. You have assets of $465,000 and liabilities of $255,000. What is your equity?

$210,000

You believe there is a 25% chance that you will experience a strike. If that strike occurs, you will lose $100,000. What is the "expected value" of your loss?

$25,000

You represent a union. You expect inflation to be 3% per year for the next five years, and you want your members wages to keep up with inflation. Today, your members earn $23/hour. What will they need to earn per hour in five years to keep up with inflation? (Round to the nearest penny.)

$26.66

Almost all union members pay dues. If a union member has $5.50 deducted from his paycheck each week for union dues, how much does he pay each year?

$286

Union employees making $30 per hour want a 4% increase in their wage. What would the new wage be?

$31.20

Union representatives are seeking a cost-of-living increase of 2% per year for their workers. Your total payroll for these union workers is $235,400 per year. What would the increase be for next year?

$4,708

Your employees, who now make $45/hour, are demanding raises of 4% per year for the next three years. How much would they be making after three years if you grant the raises?

$50.62 per hour

Your revenue is $4,523. Your expenses are $3,759. What is your profit?

$764

Your Accounts Payable balance for the last three months was $976, $700, and $850. What was your average balance for the three months?

$842

Accounting uses a "double-entry" in which the debits must equal the credits for any transaction. Debits and credits are additions or subtractions from accounts. If a transaction involves credits of $67 and $22, what must the debits sum to?

$89

There are about 127 million workers in the U.S. About 14.4 million workers belong to unions. What is the approximate percentage of workers who belong to unions?

11%

Your union of 200 employees has an average of 13 years of experience. How many years of collective work experience do they have?

2,600

In 2015, your company had revenue of $78,524. In 2014, revenue was $56,976. What is the growth rate of your company?

38%

Last month, you made a profit of $3,186. Your revenue for that month was $42,364. What was your profit as a percentage of revenue. (Round to the nearest percent.)

8%

To ratify a new contract, a union requires affirmative votes from two-thirds of its members. The union has 1,233 members. How many votes are required to ratify the contract?

822

An examination of your balance sheet reveals that your cash balance has declined by $20,000 per month for the last 4 months. The current cash balance is $180,000. How many months until your cash runs out if the rate of decline remains the same?

9 months

You negotiate a new contract that raises wages from $32/hour to $35/hour. What is the percentage increase in wages? (Round to the nearest percent.)

9%

Assets = Liabilities + Owner's Equity (Capital) is known as which equation?

Accounting Equation

What is the term used to describe a statement that highlights what a business owes and what a business owns?

Balance sheet

What is the process whereby unions negotiate with employers on behalf of the employees?

Collective bargaining

What is the term used to describe what the company needed to spend in order to generate its Net Sales?

Cost of Sales

What is another word used to describe a company's liabilities?

Debts

What has happened to union membership numbers in the past 50 years?

Declined

The balance sheet is at the heart of which type of bookkeeping?

Double-entry

How are public sector unions funded?

Dues

In order to calculate a company's profit, what must be subtracted from its revenue?

Expenses

What is a work advance brought about by unions?

Five-day workweek, increased workplace, and child labor laws1

Some economists say strong unions help strengthen which socioeconomic group?

Middle class

Which is used as an indicator of how well managed and healthy a company is, especially when it comes to reducing expenses and growing revenue?

Profit Margin

What do we call the amount of money (or income) that a company gets from its customers?

Revenue

In the later 20th century, the United States became what sort of an economy?

Service

The difference between net profit and gross profit is that net profit takes what into account?

Taxes

What is the name of the person who helps set up a union in a workplace?

Union organizer

What was created with the idea that there's strength in numbers?

Unions

What document is a summary of the money a company brought in (revenue) and what it paid out (expenses)?

income statement

What is another name for a strike?

industrial dispute

What is not a reason workers will go on strike?

none of the above

Your company has total wages of $321,000. Your revenue is $976,000. You have just read an industry journal that suggests that wages should be approximately 25% of revenue in your industry. According to the journal article, are your wages too high or low?

too high