Business Quiz

A hurricane that destroys a business is an example of a(n) __________ risk.

The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as __________ risk. A. retaining B. transferring C. avoiding

One way that competition benefits business is by encouraging the creation of A. new companies. B. more regulations. C. unrelated firms.

• new companies

• more regulations

• unrelated firms

Burger King and McDonald’s are examples of A. regulated monopolies. B. unrelated businesses. C. dissimilar firms. D. direct competitors.

• regulated monopolies

• unrelated businesses

• dissimilar firms

• direct competitors

To use resources wisely, business owners must reduce A. risk B. reward C. waste D. wages

• risk

• reward

• waste

• wages

When a business keeps a risk because management is unaware of it, the business is __________ the risk. A. avoiding B. preventing or controlling C. retaining D. transferring

• avoiding

• preventing or controlling

• retaining

• transferring

Which activities are likely to increase a firm’s profit? A. Increasing sales and decreasing expenses B. Increasing supplies and decreasing production C. Decreasing sales and increasing expenses D. Decreasing supplies and increasing production

• Increasing sales and decreasing expenses

• Increasing supplies and decreasing production

• Decreasing sales and increasing expenses

• Decreasing supplies and increasing production

Which of the following is a situation in which people are out of work and can’t afford “extra” purchases: A. Unexpected event B. Bad investment C. Negative circumstance D. Bad economy

• Unexpected event

• Bad investment

• Negative circumstance

• Bad economy

Careful screening of credit customers is an example of handling business risks through A. prevention B. management C. training D. retention

• prevention

• management

• training

• retention

One way that competition helps build a prosperous society is by A. replacing small businesses with large ones. B. creating government legislation. C. creating new jobs. D. increasing the money supply.

• replacing small businesses with large ones

• creating government legislation

• creating new jobs

• increasing the money supply