ITB Assessment #1 Review

The PURPOSE of a business is...

• to supply goods and services to meet the needs and wants of customers

• to make a lot of money

• to entertain people and give them a lot of choices

• to hire employees so they can make a living

Which of the following are CURRENT assets?

• employees, buildings, land, and machinery

• inventory, stocks, and cash

a resource with economic value is...

• a liability

• working capital

• an asset

• demand

mortgage/rent, electricity, payroll, insurance, and maintenance costs are examples of...

• supply

• assets

• working capital

• liabilities

the cash needed to pay for the day-to-day running of a business is called...

• capital

• working capital

• demand

• surplus

Flash Pass owes $3,499 in current liabilities. The company's current assets total $12,383. Calculate the company's WORKING CAPITAL.

• $8,884

• $15,882

• -$5,249

• $9,344

funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, technology, or equipment are called...

• capital

• assets

• capital expenditures

• liabilities

Which of the following is NOT a role of business in society?

• providing products

• meeting supply and demand

• creating markets

• increasing economic benefits

Which of the following improves your day-to-day life?

• primary need

• secondary need

• want

What is an example of a WANT?

• food

• car

• shelter

• Starbucks coffee