Chapter 21-25 Study Questions

Small businesses tend to be innovators of products and of production processes. True False

True

Full-service stores emphasize lower prices on their products True False

False

One of the least effective sources of consumer information is information from a consumer who has already purchased the product or service you are interested in buying. True False

False

Owners usually do not manage small businesses True False

False

The FDIC determines the interest rates banks charge for loans. True False

False

The fight against unfair business practices by consumers joining together to demand fair treatment from businesses is the business movement True False

False

The largest percentage of small businesses are in retailing. True False

False

The profits of a credit union are shared among its depositors. True False

False

There is very little help available to small-business owners. True False

False

Retailers generally run three types of sales: promotional, clearance, and special-purchase True False

True

A charter is required to start a bank True False

True

________________ is probably the most popular source of consumer information. Word Bank: billboards, Advertising, labels, Word of mouth, consumer reports

Advertising

A venture business is one that begins without a marketing plan True False

False

A pawnshop charges lower fees than most other financial institutions. True False

False

In order for us to be informed consumers in our economic system, we must acquire information about products and services before we buy them. True False

True

Which is the way most people organize the work experience section of a résumé?

Jobs are listed in chronological order.

Which is true of experienced workers?

They need less training to do a new job

A small business may employ up to 500 people True False

True

A trust company manages money and property for people. True False

True

A venture business has no employees other than the owner. True False

True

An opportunity cost is the value of any alternative that you give up when you buy something else or make another choice. True False

True

Businesses usually make up losses that result from shoplifting by charging higher prices to everyone True False

True

Product testing organizations have as their main purpose the testing of products and services. True False

True

The most important responsibility you have as a consumer is to be informed True False

True

Your standard of living is probably determined more by how wisely you spend than by how much money you earn. True False

True

What might an interviewer think of you if you show up late for the interview?

You are unreliable and perhaps even disrespectful.

Which statement about beginning a job search is true?

You should have a sense of which jobs you might like and be able to do well.

Which government organization inspects and grades foods? a The U. S. Department of Agriculture b The Food and Drug Administration c The U.S. Consumer Product Safety Commission d The Federal Citizen Information Center

a. The U.S. Department of Agriculture

Which of the following is one of the reasons why small businesses fail? a The owner has a lack of sales and management experience. b The owner is an immigrant c The owner allows customers to charge purchases d All of the above

a. The owner has a lack of sales and management experience

Which is true of public utilities? a They are legal monopolies. b They rates they charge are not regulated. c Insurance companies are considered public utilities. d Rates they charge consumers must be approved by the Consumer Product Safety Commission.

a. They are legal monopolies

Stores that emphasize the sale of food items, an accessible location, and long operating hours are a convenience stores b full-service stores c discount stores d factory outlet stores

a. convenience stores

A check-cashing outlet is commonly used by a people who do not have a bank account b consumers who want to buy homes c people who have life insurance d investors who desire a high rate of return

a. people who do not have a bank account

Which is NOT one of the things found on U.S. Consumer Product Safety Commission fact sheets? a sales rating b safety rating c performance rating d value rating

a. sales rating

Which profession is likely to be regulated by a state licensing agency? a teacher b secretary c writer d store clerk

a. teacher

If a person is not allowed to make a reservation at a restaurant because of age, what consumer right has been violated? a the right to service b the right to be heard c the right to choose d the right to privacy

a. the right to service

The agency that has the authority to set safety standards is the a Food and Drug Administration b Consumer Product Safety Commission c U.S. Department of Agriculture d Federal Trade Commission

b. Consumer Product Safety Commission

Which would NOT help you resolve a problem with a defective product you have purchased? a contacting the seller's customer service department b discarding receipts and warranties c filing a claim in small claims court d contacting a consumer advocacy organization

b. discarding receipts and warranties

Which are two important reasons for U.S. laws that restrict business practices? a promote product recalls and potential lawsuits b preserve competition and protect consumers c control prices and create demand d regulate manufacturing and labeling of products

b. preserve competition and protect consumers

Which right is NOT considered a consumer right? a the right to be heard b the right to privacy c the right to choose d the right to safety

b. the right to privacy

If the store where you bought a defective product does not listen to your complaint, what might you do to resolve the problem? a Let other customers know. b Write to the manufacturer. c Get the police involved. d Buy the product somewhere else.

b. write to the manufacturer

Which is probably the least effective way you can make a good first impression during an interview

by apologizing politely for being late

Which of the following is NOT true about a small business? a The owner usually is the manager b It employs fewer than 500 people c It is dominant in its field of operation d It is local and serves a nearby community.

c. It is dominant in its field of operation

The consumer Bill of Rights was presented by a Gerald Ford b Bill Clinton c John F. Kennedy d Richard Nixon

c. John F. Kennedy

SPECIAL PROGRAMS OFFERED TO SMALL-BUSINESS OWNERS BY COLLEGES AND UNIVERSITIES ARE KNOWN AS a Why are you yelling at me? (sorry caps locks was on didn't want to retype) fyi this is not the answer b SCOREs c SBIs d SBAs e SBQs

c. SBIs

Which is aimed at prohibiting price discrimination? a The Consumer Credit Protection Act b The Uniform Commercial Code c The Clayton Act and the Robinson-Patman Act d The Fair Packaging and Labeling Act

c. The Clayton Act and the Robinson-Patman Act

Which government organization enforces federal antitrust and consumer protection laws? a The Federal Consumer Agency b The U. S. Department of Agriculture c The Federal Trade Commission d The Federal Citizen Information Center

c. The Federal Trade Commission

Which of the following is NOT true about small-business owner? a They like to take charge of things b They can get others to do things c They have short work weeks d They have good health

c. They have short work weeks

Which term refers to a legal responsibility of manufacturers? a the right to be heard b freedom of information c product liability d the right to privacy

c. product liability

A type of advertising that originates with the consumer is a labels b customer service departments c word-of-mouth d none of the above.

c. word-of-mouth

A __________ occurs when a small business is discontinued with a loss to at least one creditor. Word Bank: Venture, wobbler, hospoge, Closing, tycoon, score, organization

closing

To which agency might you apply regarding a problem with health insurance? a The Food and Drug Administration b The U.S. Consumer Product Safety Commission c The Public Utilities Commission in your state d The Insurance Commission in your state

d. The Insurance Commission in your state

Which government organization oversees the safety of toys, cribs, power tools, electronics, and furniture? a The Federal Trade Commission b The Federal Citizen Information Center c The National Highway Traffic Safety Administration d The U.S. Consumer Product Safety Commission

d. The U.S Consumer Product Safety Commission

Which is NOT a consumer advocacy group? a The Consumer Federation of America b The National Consumers League c Consumers Union d Consumer Reports

d. consumer reports

Which best explains the right to be heard? a A store must have radio advertisements. b Salespeople must always be polite. c All stores must allow orders to be placed on the phone. d If a customer is unsatisfied with a product they can let the store know about it.

d. if a customer is unsatisfied with a product they can let the store know about it

Which is NOT an example of how companies comply with a consumers' right to be informed? a clothing labels showing what fibers are used b drug labels listing the contents of medicine c food labels listing ingredients d supermarkets showing how much more other products cost

d. supermarkets showing how much more other products cost

Which usually comes at the end of a résumé?

education section

Which term refers to basic skills you need to get a job, keep it, and do well at it?

employability skills

_______________ are unbranded items that supermarkets sell at reduced prices. Word Bank: Generic products, Wallawalla Brand products, Store Brand products, Name Brand products

generic products

Which type of job might require drug and lie-detector testing?

government and law enforcement jobs

Which is a job that you would most likely find at a hospital?

operations administrator

Which is the most important purpose of a résumé?

to persuade a potential employer to interview you

Which is an important purpose of the cover letter that accompanies a résumé?

to tell the employer about yourself and why you are applying for a job

Which is probably NOT a way a potential employer might learn about your personality?

your history of work experience