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