Bidness

An effective financial plan involves all the following processes EXCEPT ____. a. identifying assets c. developing advertising b. assigning costs d. determining required capital

developing advertising

When demand for a product is affected by price, it is said to have ____. a. a price ceiling c. inelastic demand b. a price floor d. elastic demand

elastic demand

Money used to expand a business comes out of ____. a. start-up costs c. cash flow b .operating costs d. reserve funds

reserve funds

Interdependency among nations is caused by ____. a. political unions c. scarcity of resources b. free trade agreements d. inflation and deflation

scarcity of resources

The strategic part of a business plan includes ____. a. an analysis of the corporation c. a list of advertising outlets b. a statement of start-up capital d. short-term and long-term goals

short-term and long-term goals

The legal owners of a corporation are the ____. a. board of directors c. corporate officers b. stockholders d. partners

stockholders

In a market economy, prices and wages are determined by ____. a. bartering c. inflation b. supply and demand d .suppliers and taxes

supply and demand

Businesses can offer incentives to ____. a. producers and consumers c. workers and consumers b. consumers and savers d. workers and producers

workers and consumers

Cash crunch" is another term for negative cash flow.

True

China is an example of a nation with a command economy.

True

Every business, regardless of size, follows GAAP guidelines.

True

Everything we make requires the four factors of production.

True

Nations may use protectionism to restrict trade between nations.

True

Start-up costs include permit fees.

True

Supplies, office equipment, and products to sell are assets.

True

The equation Assets - Liabilities = Owner's Equity is the basis for keeping all accounting records in balance.

True

The government offers incentives to citizens to help increase consumer spending.

True

If a corporation goes out of business owing millions of dollars to its creditors, its stockholders ____. a. declare bankruptcy c .lose the money they invested b. forfeit their personal assets d. split the debt payment equally

c .lose the money they

Which source of funding expects to have a major voice in a business's decisions? a. a bank c. a venture capital firm b. a commercial finance company d. a local government

c. a venture capital firm

A commercial finance company provides private funding for small businesses that need a substantial amount of immediate cash.

False

A home equity loan is an example of private financing.

False

A sweatshop is an example of an unethical practice that is legal in the United States.

False

Different cultures, businesses, and industries have the same ethical standards for uniformity in international commerce.

False

Inflation increases the buying power of money.

False

OSHA stands for Occupational Sanctioned Headprotection Administration

False

Payroll expenses are part of start-up costs.

False

Promotion is any paid message that a business sends about its products.

False

Surplus occurs when producers lower their prices.

False

The SEC oversees depository institutions.

False

A document that shows where a business's cash has gone is a statement of cash flows.

True

A transaction is any activity that has an effect on the financial situation of a business.

True

An advantage to getting funding from a local bank is that these banks offer a wide variety of loan plans.

True

When the government spends more money than it gets in revenue, it causes ____. a. inflation c. a budget deficit b. deflation d. a budget surplus

a budget deficit

Sarbanes-Oxley Act is an example of a. a company's responsibility to its employees c. a company's work with the Church b. a company's ability to avoid tax fraud d. a company's responsibility to creditors and owners

a company's responsibility to creditors and owners

An example of an ethical business practice would be a. false advertising. b. keeping accurate financial records. c. requiring employees to work on holidays. d. not paying overtime to workers.

keeping accurate financial records.

The factors of production include ____. a. land, labor, capital, entrepreneurship c. land, nature, labor, capital b. land, labor, capital d. land, building, capital, entrepreneurship

land, labor, capital, entrepreneurship

A disadvantage of organizing a business as a sole proprietorship is ____. a. limited control c. limited capital b. shared profits d. limited liability

limited capital

Effective marketing plans help companies to ____. a. reduce expenses c. expand credit b. pay off liabilities d. maintain sales

maintain sales

Each of the following is a function of money EXCEPT ____. a. serving as medium of exchange c. offering unit of value b. maintaining stable value d. providing store of value

maintaining stable value

A conflict of interest is a conflict between self-interest and a. professional obligation. c. a personal obligation. b. unfair practices. d. another person's self-interest.

professional obligation.