Business Mgmt - Characteristics of Business

General Mills, which makes cereal like Cheerios, Trix, Wheaties, and Chex, is an example of a(n) ...

• service business

• goods-producing business

• start-up business

• industry

Which of the following would be considered an improvement vs. an innovation

• invention of the telephone

• launch of Tide pods (laundry soap)

• first personal computers

• Apple watch

What is the major risk when you are starting your own business?

• Too many customers

• The business may fail and you will lose money

• Needing a good bank to deposit your profits

• Franchising your business idea

All of the following are included in GDP except __________.

• fixed investments (new buildings or office parks)

• consumer spending

• government spending

• underground economy

Of the different forms of business ownership, which form has the most businesses?

• proprietorship

• partnership

• corporation

• limited liability corporation

This form of business ownership has unlimited liability and has a legal agreement that has to be amended everytime a new owner is added or removed

• proprietorship

• partnership

• corporation

• limited liability corporation

Who are the owners of a corporation?

• directors

• employees

• stockholders

• officers

A product's equilibrium is the price at which

• The producer can no longer meet costs

• consumer demand begins to drop

• the producer sells at a manageable loss

• supply and demand are equal

What typically occurs during a period of high inflation?

• Total supply exceeds demand

• The purchasing power of money rises

• Prices rise rapidly

• Prices slowly decline

The number of products that will be bought at a given time at a given price

• demand

• price

• supply

• equilibrium