BM Unit 1 Business Functions and Types Review

Business is defined as:

• An activity of producing and selling goods or services for profit.

• A form of entertainment.

• A type of government organization.

• A hobby with no intention of earning money.

Businesses are built around these four functions. Which of the following is NOT one of the four main functions of business?

• Production

• Marketing

• Profit Orientation

• Accounting

Production is the process of ________, growing, manufacturing or improving products or services.

• creating

• destroying

• delaying

• ignoring

Which of the following is an example of a production activity?

• Selling products in a store

• AOL Time Warner, Inc. creates movies and music

• Exchanging money for goods

• Advertising on TV

Types of businesses are most commonly categorized by which of the following?

• Location

• Profit orientation, size, product, market

• Number of employees

• Year established

Small Businesses: Usually have less than how many employees?

• 100

• 250

• 500

• 1000

Big Businesses: Usually have more than how many employees?

• 100

• 10

• 25

• 50

Small Businesses: Are sometimes referred to as what kind of businesses?

• mom and pop

• corporate giants

• multinational firms

• franchise chains

• global enterprises

Small Businesses: Employ what percent of all private (nongovernment) workforce?

• 53 percent

• 25 percent

• 70 percent

• 40 percent

Small Businesses: Are responsible for what percent of sales in the U.S.?

• 47 percent

• 25 percent

• 60 percent

• 80 percent