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Intro to Business Midterm
Nonprofit organizations
Most businesses are committed to
Intro to Business Midterm
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1
Most businesses are committed to
being truthful about their financial situation.
providing safe products.
treating employees fairly.
all of the above
2
Nonprofit organizations
outnumber sole proprietorships in the United States.
do not register with the government.
must still pay taxes.
focus on providing services rather than making a profit.
3
During a recovery,
unemployment is nonexistent.
money is scarce.
production starts to increase.
GDP is stagnant.
4
The recovery of the Great Depression was helped by
World War I.
increased demand.
innovation.
World War II.
5
A brief account of the key points contained in a business plan is the
vision statement.
executive summary.
company description.
mission statement.
6
The contest among businesses to win customers is called
advertising.
profit.
service.
competition.
7
The unemployment rate measures the number of people who
all of the above
are willing to work.
are currently working.
are able and willing to work but cannot find work.
8
A business may stop manufacturing a product because
there is increasing demand for it.
the government is taking too much in taxes.
it cannot keep up with the deman
there is a decreasing demand for it.
9
Deciding to use a resource for one purpose and instead of another is
trade-off.
risky.
sacrifice.
opportunity cost.
10
Which statement is most true?
Different industries have different ethical standards
Whatever it takes to win is a good business practice.
All businesses have the same ethical standards.
Bribery is considered ethical in some U.S. companies
11
The process of planning, pricing, promoting, selling, and distributing ideas,
procurement.
marketing.
financing.
accounting.
12
What is the current emphasis in the U.S. economy?
information.
service.
agriculture,
industry,
13
The reward for satisfying the needs and wants of consumers and businesses is
wealth.
revenue.
profit.
dividends.
14
Cooperatives were formed to
promote each other.
save money on the purchase of certain goods and services.
help people cooperate.
sell more products.
15
Businesses provide goods and services to satisfy wants and
purchases.
resources.
needs.
desires.
16
The main source of income for a government is
exports.
imports.
taxes.
revenue.
17
A general increase in the price of goods and services is called
upsurge.
recession.
inflation.
deflation.
18
Unlimited liability means
the owner is responsible for only accidents.
the owner shares the liability with stockholders.
the owner is responsible for the company’s debts.
the owner must have insurance.
19
Figures used to measure economic performance are called
performance indicators.
economic performance.
economic indicators.
economic measurements.
20
The Federal Reserve is a government agency that guides the economy by
all of the above
controlling the amount of money loane
regulating the amount of money in circulation.
controlling interest rates.
21
In a market economy, the higher the price,
the less consumers will buy.
the higher the demand for the product.
the better the quality of the product offered.
the more profit the business will make.
22
A conflict of interest is a conflict between self-interest and
a personal obligation.
another person’s self-interest.
unfair practices.
professional obligation.
23
Entrepreneurship is the process of
all of the above.
gathering the resources needed to go into business.
using market research to see if theres a market for product
recognizing a business opportunity.
24
The business plan section that presents research about the company’s customer base is the
industry overview,
market analysis,
competitive analysis,
marketing plan.
25
What does a mission statement do?
tells your business concept.,
tells the major goals of a business.
describes the company,
reflects the purpose of the company,
26
Consumers usually deal directly with
retailers.
wholesalers.
distributors.
manufacturers.
27
Market research provides information that can help a business
all of the above
evaluate demand.
identify opportunities.
respond to market goods and services.
28
A business can be classified as a “small business” if it has fewer than _____
500 employees.
10 employees,
50 employees,
100 employees,
29
Competition forces businesses to
file for bankruptcy.
lower their prices.
decide how to best use and conserve their resources.
drive their competitors out of business.
30
Businesses supply goods and services
to compete with each other.
to make a profit.
to satisfy their customers’ wants.
to benefit the community.
31
How are consumers affected when companies restrict competition?
they have fewer choices in products and pricing,
they can determine the price,
they can buy out the company.
they pay less,
32
In a market economy, producers set a price that
consumers can afford.
consumers are willing to pay.
the government will allow.
will cover their costs and result in a profit.
33
Why was the EPA formed?
to protect the environment,
to enforce laws in a society,
so that big business would be more truthful about finances
to help corporations with their accounting.
34
The following are examples of conflicts of interest except
a principal hiring her husband to teach at her school.
a business hiring an accounting firm for record-keeping.
a Governor giving a contract to his business partner.
a judge on a case defended by his former law-firm partner.
35
In a market economy, resources are
scarce.
share
privately owned.
plentiful.
36
A major advantage of forming a corporation is _____ liability.
limited,
restricted,
unlimited,
unrestricted.
37
The buying and reselling of goods that have already been produced is called a
production.
distribution,
procurement,
marketing,
38
Which is a characteristic of socialism?
major industries are government owned,
individuals own all major resources,
there is great incentive to create better products.
consumers have many choices,
39
When the supply of goods is greater than demand, it can result in
a surplus.
a deficit.
inflation.
deflation.
40
In a command economy,
highly skilled and low-skilled workers earn the same
highly skilled workers are not needed.
highly skilled workers earn more than low-skilled workers.
highly skilled workers earn less than low-skilled workers.
41
Competition is possible because companies have the freedom to produce
products they think the public wants.
poor quality products at low cost.
products they think will be most profitable.
without concern for the environment.
42
Keeping inaccurate accounting records is
unethical and illegal.
a good business practice.
unethical and legal.
deceptive but not illegal.
43
A business that turns raw materials into finished goods is called a _____.
wholesaler.
producer,
manufacturer,
processor,
44
All of the following are recommended traits for a career in entrepreneurship
a risk-taker.
goal-oriented.
enthusiastic.
cost-conscious.
45
In a business plan, research about the business’s customers is included in the
competitive analysis.
operational plan.
market analysis.
marketing plan.
46
Companies benefit when all functional areas
work together.
monitor each other.
operate independently.
belong to a union.
47
A business plan is used by
all of the above
the entrepreneur to keep focused on the goals
top management involved in the start-up of a new business.
potential investors to see if they want to invest
48
Which is a characteristic of capitalism?
resources are privately owned.,
there is an even distribution of income,
prices are determined by government planners.
resources are shared equally,
49
Economic indicators measure
how the country compares to others.
whether its economy is growing.
how much a country is producing.
all of the above
50
The rise and fall of economic activity over time is called
a recession.
the business cycle.
inflation.
prosperity.
51
Unethical treatment of employees includes all of the following except
inadequately compensating employees.
establishing no maternity leave policy.
treating employees unfairly.
rewarding good employees with salary incentives.
52
Most nations have a
mixed economy.
pure command economy.
pure market economy.
moderate command economy.
53
Companies thrive on
monopoly power.
service,
competition,
limits,
54
A written description of a business venture that describes all aspects of the
a company policy.
a company charter.
an executive summary.
a business plan.
55
The most common type of business in the United States are
sole proprietorships.
partnerships.
“mom and pop” stores.
corporations.
56
The basic needs of people include food, water, shelter and
transportation.
money.
employment.
clothing.
57
All of the following are resources except
transportation.
money.
labor.
fuel.
58
Maintaining and checking records, handling bills, and preparing financial reports is
finance,
management.
auditing,
accounting,
59
Items that people can use to make or obtain what they need or want are called
resources.
materials,
services,
limits,
60
One of the biggest obstacles in starting a business is
obtaining financing.
having a good idea.
accepting responsibility.
being good at something.
61
In order to start a corporation, the first thing one must do is
hire an accountant and an attorney.
obtain a corporate charter from the state government.
start bank accounts.
hire employees.
62
A new business undertaking that involves risk is called a
venture.
dot-com company.
virtual business.
small business.
63
Retailers get their goods from
dealers.
wholesalers.
partnerships.
consumers.
64
In a business plan, the description of the business’s media plan is included
vision statement.
marketing plan.
product and service plan.
competitive analysis.
65
Scarcity occurs when
conservation is at an all-time high.
consumers’ needs exceed wants.
distribution breaks down.
demand exceeds supply.
66
The factor of production that must adapt to meet society's changing wants and needs is
natural.
entrepreneurial.
labor.
capital.
67
The stock market crash on October 29, 1929, is known as
Black Friday.
Blue Friday.
Black Tuesday.
Black Monday.
68
To determine the pros and cons of a decision you should consider_____.
your values,
your choices,
all of these.
your goals,
69
One disadvantage that corporations face is
competition.
environmental laws.
double taxation.
the cost of raw materials.
70
OSHA stands for
Occupational Safety and Health Agency.
Occupational Safety Agency.
Occupational Site and Health Administration.
Occupational Safety and Health Administration.
71
An advantage of a partnership is
that banks are often more willing to lend money
all of the above.
that the partners make decisions together.
that the partners often bring different skills and talents
72
An example of an ethical business practice would be
not paying overtime to workers.
requiring employees to work on holidays.
false advertising.
keeping accurate financial records.
73
What group of workers are not necessarily protected by American law?
children
women
workers who volunteer
those with disabilities
74
What is not another word for ethics?
integrity.
principles,
recycling,
honor,
75
The federal agency that protect consumers from dangerous or falsely advertised products is
CPSC
FDA.
FTC
OSHA.
76
The company description section of a business plan helps investors understand
the size of the business.
the type of business.
all of the above
the scope of the business.
77
In a command economy, resources and businesses are owned and controlled
privately.
by the government.
by groups of people in a co-op.
by other countries.
78
The total amount of money a government owes is its
national deficit.
federal deficit.
federal debt.
national debt.
79
To avoid failure, a business can modify
its services.
all of the above
its business practices.
its products.
80
The process of achieving company goals by planning, organizing, directing, controlling
marketing.
production.
procurement.
management.
81
A virtual business is a business that
is almost a business.
operates on the Internet.
does not use money in any transactions.
operates on street corners only.
82
Some firms limit the damage they do to the environment by
using recycled or recyclable paper.
any of the above
using renewable energy sources.
installing filtration systems to reduce air pollutants.
83
For businesses to stay successful, they must offer
competitive prices.
all of the above.
quality products.
outstanding service.
84
All of the following are factors of production except
educational resources.
labor resources.
natural resources.
capital resources.
85
A shortage of resources is called
limitation.
threat.
reduction.
scarcity.
86
Cooperatives were formed to
promote each other.
save money on the purchase of certain goods and services.
help people cooperate.
sell more products.
87
Bribery occurs when gifts, money, or favors are offered
in lieu of wages.
as bonuses to managers.
to encourage business deals.
instead of payment of taxes.
88
The Triangle Shirtwaist Factory fire resulted in
longer working hours.
increased immigrant labor.
improved working conditions.
better product design.
89
Which is true for a market economy, people who have labor skills that are in demand
Earn more than others who skills are not in demand,
earn the same as other workers their age.,
their earnings are not related to deman
earn less than those whose skills aren't in demand
90
A vision statement
establishes the scope and purpose of the company.
explains why the venture will succeed.
includes the major goals of the company
expresses the specific aspirations of the company.
91
When developing a product or service, a business must do all of the following
obtain start-up and operating capital.
keep records to satisfy government requirements.
create a need for the product or service.
evaluate the demand for the product or service.
92
Before starting a particular business, an entrepreneur needs to determine if
there is a large enough customer base
need
demand,
supply
93
A dividend is
a tax paid by stockholders.
the cost of a share of stock.
the money lost on a share of stock.
the money made as a result of owning a share of stock.
94
Buildings, delivery trucks, and equipment are all examples of
permanent assets.
capital resources.
capital.
short-term investments.
95
SBA is an acronym that stands for the
Small Businesses of America.
Small Businesses Agency.
Small Business Administration.
Start-Up Business Administration.
96
During a depression, there is
high unemployment and high production.
high unemployment and low production of goods and services.
low unemployment and high production
low unemployment and low production of goods and services.
97
Which statement is most true?
Women deserve more pay than men.
Men deserve higher pay than women.
Men and women receive equal pay for equal work.
Some men and women receive equal pay , but most do not.
98
Which is NOT a cause of inflation?
increased production costs.
increased taxation,
increased supply of goods in excess of demand,
increased defense spending for a war,
99
Recovery is marked by
people going back to work.
increases in production.
all of the above
more money to purchase goods and services.
100
Some natural resources, such as wheat and cattle, are
renewable.
artificially produce
imported.
irreplaceable.
