CCUK - Introduction to Business Test

1. Which of the following is an example of a business?

• A. Jack & Jill, a specialty clothing store for young children

• B. Wal-Mart

• C. Ford Motor Company

• D. Lawson & Tyler law offices

• E. all of the above

What´s the correct definition to the following word? shareholders

• contratar

• stockholder

• alianza de 2 interesados

Which one is TRUE about management?

• Transforms resources into products

• Plans, organizes, controls, leads

• Plans, obtains and manages company funds

• Provides knowledge and ideas that help a company keep up and ahead of the competition

___________ is the amount of revenue or income that a business owner retains after paying all the expenses associated with the operation of the business.

• Sale

• Profit

• Cost

• Debt

How do you define profit?

• when revenue exceeds cost

• when costs exceed revenue

• when revenue achieves planned target

• when the bottom line is in the red

Which of the following is not an economic activity?

• Production

• Social service

• Professional

• Trading in good

In business, why it is essential to make a profit?

• It provides a return to investors.

• It provides funds for future extension

• It increases the reputation of a company

• All the above

Which option is not a business activity?

• Production of goods

• Transportation

• Exchange of goods

• Work in a factory for wages

Which one is NOT TRUE about profit business?

• Incurs expenses for operations

• Generates revenues from contributions

• Profit is used to pay owners, partners, and shareholders

• Pays salaries to employees and managers

Which one is NOT TRUE about non-profit business?

• Generates revenues from sales and/or contributions

• Operated by board of directors, trustees, or managers

• Profits are not subject to taxation by local, state, and federal authorities

• Owned by individuals, partners, or shareholders