Principles of Business 1st Semester Final Review

What is a key advantage of a sole proprietorship?

• Limited liability

• Easy to establish and dissolve

• Ability to raise capital easily

• Shared decision-making

Which of the following is a social benefit of businesses?

• Increasing pollution

• Creating job opportunities

• Reducing competition

• Limiting consumer choices

Which type of business is owned and operated by a single individual?

• Partnership

• Corporation

• Sole proprietorship

• Franchise

What is the primary objective of supply chain management?

• To reduce product quality

• To increase production costs

• To enhance customer satisfaction

• To limit supplier options

What is the primary goal of a business?

• To provide employment

• To maximize profits

• To support community development

• To create innovative products

Which of the following is a crucial step in managing your own business?

• Ignoring customer feedback

• Avoiding financial planning

• Setting clear goals and objectives

• Relying solely on intuition

Which of the following is a key component of a supply chain?

• Customer service policies

• Employee training programs

• Supplier relationships

• Marketing strategies

Which economic system is characterized by the free exchange of goods and services?

• Command economy

• Traditional economy

• Mixed economy

• Market economy

What happens to the price of a product when demand increases and supply remains constant?

• The price becomes unpredictable

• The price decreases

• The price remains the same

• The price increases

Which of the following is a factor that can cause a shift in the supply curve?

• Change in production technology

• Change in the number of consumers

• Change in consumer preferences

• Change in consumer income