CFM Final Exam Review - Unit 1: Business

What is the difference between a Manufacturer and an Extractor in business?

• A Manufacturer makes products from raw materials, while an Extractor takes raw materials from nature.

• A Manufacturer sells finished goods directly to consumers, while an Extractor only provides services.

• A Manufacturer imports goods, while an Extractor exports goods.

• A Manufacturer manages retail stores, while an Extractor manages transportation.

Which of the following is an example of a Tangible item?

• A patent

• A car

• A trademark

• A brand name

Revenue vs Expense: Which one refers to the money a business earns from its activities?

• Revenue

• Expense

• Liability

• Asset

Which of the following is NOT a type of business?

• Sole Proprietorship

• Corporation

• Partnership

• Stakeholder

What is the main purpose of profit in a business?

• To provide financial gain and sustainability for the business.

• To increase the number of employees.

• To reduce competition in the market.

• To comply with government regulations.

Name the four resources businesses need according to the CFM review.

• Material, Human, Financial, Informational

• Physical, Digital, Emotional, Legal

• Natural, Technological, Social, Political

• Intellectual, Mechanical, Environmental, Artistic

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Stakeholder

Match the following types of economies with their descriptions:

• Free economy, supply/demand, self-interest

• Combo, generally mixed/market

• Each member has a role

• Free economy, supply/demand, self-interest

• Controlled by government

• Each member has a role

• Combo, generally mixed/market

• Controlled by government

In a Market economy, people and firms act in self-interest.

• True

• False

List the three economic roles mentioned in the CFM review.

• Consumer Roles, Worker Roles, Citizen Role

• Producer Roles, Investor Roles, Manager Role

• Supplier Roles, Distributor Roles, Regulator Role

• Buyer Roles, Seller Roles, Observer Role