Competition forces businesses to

Decide how to best use and conserve their resources

The following are examples of conflicts of interest except

a business hiring an accounting firm to oversee record-keeping.

Question 9. In a command economy,

highly skilled workers earn the same as low-skilled workers.

When developing a product or service, a business must do all of the following except

create a need for the product or service.

establishes the scope and purpose of the company.

Nonprofit organizations

focus on providing services rather than making a profit.

During a depression, there is

high unemployment and low production of goods and services.

the money made as a result of owning a share of stock.

An example of initiative would be

figuring out a new and efficient way to handle a problem on your own.

providing direction and vision.

The best example of a sustainable development would be

using recycled materials to build housing.

An example of an ethical business practice would be

keeping accurate financial records.

An example of democratic leadership would be

C. a company president who works with and answers to a board of directors.

Unethical treatment of employees includes all of the following except

rewarding good employees with salary incentives.

Which statement is most true?

Different businesses and industries have different ethical standards.

Cooperatives were formed to

Save money on the purchase of certain goods and services

In a market economy, producers set a price that

will cover their costs and result in a profit.

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Business Admin Midterm Review

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Questions 60

Answers

1
Competition forces businesses to
Decide how to best use and conserve their resources
Lower their prices
File for bankruptcy
Drive their competitors out of business
2
Consumers usually deal directly with
distributors.
wholesalers.
retailers.
manufacturers.
3
One of the biggest obstacles in starting a business is
obtaining financing.
accepting responsibility.
having a good idea.
being good at something.
4
The following are examples of conflicts of interest except
a business hiring an accounting firm to oversee record-keeping.
a principal hiring her husband to teach at her school.
a judge hearing a case defended by his former law firm partner.
an elected official awarding a contract to his business partner.
5
Question 9. In a command economy,
highly skilled workers earn less than low-skilled workers.
highly skilled workers earn the same as low-skilled workers.
highly skilled workers are not needed.
highly skilled workers earn more than low-skilled workers.
6
For businesses to stay successful, they must offer
quality products.
competitive prices.
outstanding service.
all of the above.
7
Keeping inaccurate accounting records is
unethical and legal.
unethical and illegal.
a good business practice.
deceptive but not illegal.
8
When developing a product or service, a business must do all of the following except
obtain start-up and operating capital.
evaluate the demand for the product or service.
keep records to satisfy government requirements.
create a need for the product or service.
9
During a recovery,
unemployment is nonexistent.
money is scarce.
GDP is stagnant.
production starts to increase.
10
All of the following are resources except
labor.
transportation.
money.
fuel.
11
A vision statement
includes the major goals that the company will try to reach.
explains why the venture will succeed.
expresses the specific aspirations of the company.
establishes the scope and purpose of the company.
12
Nonprofit organizations
must still pay taxes.
focus on providing services rather than making a profit.
do not register with the government.
outnumber sole proprietorships in the United States.
13
A good communicator is one who
makes sure everyone listens.
listens as well as speaks.
speaks intelligently.
makes sure that his or her directives are understood.
14
The line and staff authority structure can lead to
more efficient production.
more sales.
overstaffing.
lower costs.
15
During a depression, there is
high unemployment and high production of goods and services.
high unemployment and low production of goods and services.
low unemployment and high production of goods and services.
low unemployment and low production of goods and services.
16
A dividend is
the money made as a result of owning a share of stock.
the money lost on a share of stock.
the cost of a share of stock.
a tax paid by stockholders.
17
Most people enter the job market as a(n)
entry-level employee.
operational manager.
middle manager.
top-level manager.
18
An example of initiative would be
working as part of a team.
figuring out a new and efficient way to handle a problem on your own.
using a "how to" manual.
completing a task on time.
19
Bribery occurs when gifts, money, or favors are offered
to encourage business deals.
instead of payment of taxes.
as bonuses to managers.
in lieu of wages.
20
Market research provides information that can help a business
evaluate demand.
respond to market goods and services.
identify opportunities.
all of the above
21
A written description of a business venture that describes all aspects of the business is called
an executive summary
a company policy.
a business plan.
a company charter.
22
Processed goods include all of the following except
organic vegetables.
gasoline.
white sugar.
steel.
23
Leading means
being the first in line.
providing direction and vision.
making sure everyone is following you.
telling subordinates what to do.
24
The company description section of a business plan helps investors understand
all of the above
the type of business.
the size of the business.
the scope of the business.
25
The best example of a sustainable development would be
using recycled materials to build housing.
developing a new way to burn coal.
drilling for oil in the ocean.
manufacturing a new type of SUV.
26
A police officer directing people in an emergency situation uses
consensus leadership.
democratic leadership.
autocratic leadership.
free-rein leadership.
27
A self-managed team works best when members
delegate authority.
understand each other's opinions.
cooperate.
work independently.
28
Question 10.Most nations have a
pure command economy.
moderate command economy.
mixed economy.
pure market economy.
29
All of the following involve offering services except
tourism.
banking.
sports and entertainment.
DVDs.
30
An example of an ethical business practice would be
requiring employees to work on holidays.
false advertising.
keeping accurate financial records.
not paying overtime to workers.
31
All of the following are examples of an industry except
auto mechanics.
food service businesses.
financial service firms.
medical supply companies.
32
An effective leader has
confidence.
integrity.
communication skills.
all of the above
33
An example of democratic leadership would be
B. a police officer directing traffic.
A. a general commanding troops.
C. a company president who works with and answers to a board of directors.
D. a fire captain directing activities at a fire.
34
An advantage of a partnership is
all of the above.
that banks are often more willing to lend money to a partnership than to a
that the partners make decisions together.
that the partners often bring different skills and talents to the business.
35
Unethical treatment of employees includes all of the following except
treating employees unfairly.
inadequately compensating employees.
rewarding good employees with salary incentives.
establishing no maternity leave policy.
36
All of the following are factors of production except
educational resources.
labor resources.
capital resources.
natural resources.
37
A business plan is used by
potential investors to see if they want to invest in the business.
all of the above
the entrepreneur to keep focused on the goals of the business.
top management involved in the start-up of a new business.
38
The recovery of the Great Depression was helped by
World War ll.
increased demand.
World War l.
innovation.
39
Recovery is marked by
People going back to work
More money to purchase goods and services
Increases in production
All the above
40
Which statement is most true?
Different businesses and industries have different ethical standards.
Bribery is considered an ethical practice in some U.S.companies but not in
Whatever it takes to win is a good business practice.
All businesses have the same ethical standards.
41
During the early 1 600s, the U.S. economy was
information-based.
service-based.
agriculture-based.
industry-based.
42
The Federal Reserve is a government agency that guides the economy by
controlling interest rates.
all of the above
regulating the amount of money in circulation.
controlling the amount of money loaned.
43
In a self-managed team, the leader can be described as
an autocratic leader.
a manager.
a democratic leader.
a team player.
44
Today's leadership trend is toward
free-rein leadership.
self-managed teams.
autocratic leadership.
democratic leadership.
45
An example of a franchise is
a McDonald's restaurant.
a Wal-Mart superstore.
a "mom and pop" grocery store.
a Sears department store.
46
A most important skill needed by managers is the ability to
give orders.
be creative.
multi-task.
predict the future.
47
All of the following are recommended traits for a career in entrepreneurship except being
enthusiastic.
a risk-taker.
cost-conscious.
goal-oriented.
48
To avoid failure, a business can modify
its business practices.
its products.
its services.
all of the above
49
Cooperatives were formed to
Sell more products
Help people cooperate
Promote each other
Save money on the purchase of certain goods and services
50
Some firms limit the damage they do to the environment by
using recycled or recyclable paper.
using renewable energy sources.
installing filtration systems to reduce air pollutants.
any of the above
51
In a market economy, producers set a price that
the government will allow.
consumers are willing to pay.
will cover their costs and result in a profit.
consumers can afford.
52
Economic indicators measure
how the country compares to others.
how much a country is producing.
whether its economy is growing.
all of the above
53
Day-to-day supervision of employees is handled by
union managers.
top-level managers.
operational managers.
middle managers.
54
Most of a manager's day is spent
training entry-level employees.
writing business correspondence.
interacting with people.
working on a computer.
55
An effective manager is one who
has the ability to lead.
understands employment law.
started as an entry-level employee.
is a team player.
56
Which statement is most true?
Women deserve more pay than men.
Men and women receive equal pay for equal work.
Men deserve higher pay than women.
Some men and women receive equal pay for equal work, but most do not.
57
Most businesses are committed to
treating employees fairly.
being truthful about their financial situation.
all of the above
providing safe products.
58
One disadvantage that corporations face is
competition.
the cost of raw materials.
environmental laws.
double taxation.
59
An autocratic leader is one who
listens to other people.
runs a company alone.
makes all of the business's decisions.
lets middle-level managers make most of the business's decisions.
60
Which statement is most true about leaders?
Leaders are born.
Leadership qualities can be learned.
Leaders must be charismatic.
Everyone can be a leader.

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