Final exam review

Question 1

Which of the following does not represent an area that a business will invest in to improve the productivity of workers?

Accepted Answer

Reduce expenses

Question 2

Something that encourages specific behavior is incentive

Accepted Answer

True

Question 3

What is the first step in writing a strategic plan?

Accepted Answer

Setting goals

Question 4

What is not a type of required capital?

Accepted Answer

End capital

Question 5

Variable expenses are expenses that might change

Accepted Answer

True

Question 6

Your financial goals should be all of the following EXCEPT

Accepted Answer

Unclear

Question 7

Scarcity will always exist in an economy.

Accepted Answer

True

Question 8

What is the formula to calculate the projected profit a business will have?

Accepted Answer

Projected earnings - projected expenses

Question 9

What is a budget deficit?

Accepted Answer

the government sends more money then they have in revenue

Question 10

The 5 C's are Character, Capacity, Capital, Collateral and Conditions

Accepted Answer

True

Question 11

What are the factors of production?

Accepted Answer

land, labor, capital, entreprenurship

Question 12

What is the largest expense to a business?

Accepted Answer

Payroll

Question 13

A person who purchases and uses goods and services is what?

Accepted Answer

consumer

Question 14

A business that operates and pays taxes as a partnership but has limited liability for the owners is a LLC.

Accepted Answer

True

Question 15

Cash flow is when a business spends more money than receives

Accepted Answer

False

Question 16

Financial Forecasting is the process of estimating a business’ operating capital

Accepted Answer

True

Question 17

The means for purchasing and selling stocks, bonds, and commodities

Accepted Answer

financial market

Question 18

A chart of accounts is a structure for recording or reporting business transactions

Accepted Answer

False

Question 19

What is the order in which the business cycle runs?

Accepted Answer

expansion, recession, trough, recovery

Question 20

How might a business provide incentives to consumers

Accepted Answer

Children eat free day

Question 21

Price competition assumes customers will choose the highest-priced products available.

Accepted Answer

False

Question 22

A business plan is a written proposal that describes a new business and it's strategies.

Accepted Answer

True

Question 23

Partnership falls into the business ownership category

Accepted Answer

True

Question 24

A lender does not require collateral from the borrower for an unsecured loan

Accepted Answer

True

Question 25

What are the forms of protectionism?

Accepted Answer

Tariffs, quotas, embargos

Question 26

The exclusive right granted to an author

Accepted Answer

trademark

Question 27

Gross profit on sales is:

Accepted Answer

Profit made from selling merchandise before operating expenses are deducted

Question 28

What is Framework?

Accepted Answer

A structure for recording or reporting business transactions

Question 29

In which economy does the marketplace, not the government, control economic decisions?

Accepted Answer

Market economy

Question 30

What is the largest asset to a business?

Accepted Answer

Merchandise

Question 31

What are the 3 goals of an economy?

Accepted Answer

Stable prices,low unemployment, high productivity

Question 32

What is not considered a start up cost?

Accepted Answer

rent

Question 33

What are the forms of protectionism?

Accepted Answer

Tariffs, quotas, embargos

Question 34

Which is not an advantage of a partnership?

Accepted Answer

Profits taxed more than once

Question 35

Getting a good education or starting your own business is an example of what

Accepted Answer

goals

Question 36

Which option matches the definition: Looking to see if you have enough personal assets invested into the business.

Accepted Answer

Capital

Question 37

Office supplies and utilities are not examples of routine expenses

Accepted Answer

False

Question 38

A line of credit is an arrangement in which bank customers can borrow certain amounts of money from the bank immediately

Accepted Answer

True

Final exam review

Questions 38

Final exam review

Questions 38