Module 1: Strictly Business Quiz (SUM)

A business can be described as a(n)

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  disorganized method of manufacturing products.

  
  

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  organized effort to produce goods and services.

  
  

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  reasonable way to make a profit.

  
  

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  unreasonable means for increasing revenues.

  
  

Answer explanation

Organized effort to produce goods and services. A business, whether for profit or nonprofit, is an organized effort to produce goods and services. It is not a disorganized method of doing anything—least of all, manufacturing products. Although a business can be a reasonable means for making a profit, that is not the description of a business. Unreasonable business behavior typically decreases revenues.

A business that exists to fulfill a specific mission or undertaking is called a __________ business.

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  mission-central

  
  

• focused

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  for-profit

  
  

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  nonprofit

  
  

Answer explanation

Nonprofit. A business that exists to fulfill a specific mission or undertaking is called a nonprofit business. A for-profit business exists to fulfill financial goals. Mission-central and focused are not terms used for types of businesses. These terms may be used to describe a particular business, however.

Every business must accomplish which of the following:

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  Produce or provide goods/services

  
  

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  Obtain venture capital

  
  

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  Issue corporate bonds

  
  

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  Trade or sell business assets/property

  
  

Answer explanation

Produce or provide goods/services. Every business must produce or provide goods/services. While some businesses do obtain venture capital, issue corporate bonds, or trade/sell business assets/property, not all businesses are required (or encouraged) to do so.

Which of the following represents a primary business activity:

• Scheduling

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  Designing

  
  

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  Marketing

  
  

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  Supervising

  
  

Answer explanation

Marketing. Marketing is one of the primary business activities—as are financial analysis, human resources management, information management, operations, and strategic management. Scheduling, designing, and supervising can be tasks or processes within one or more of the primary business activities.

Financial analysis occurs when a business

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  communicates with potential customers.

  
  

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  keeps accurate expense records.

  
  

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  plans for long-term success.

  
  

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  effectively retrieves data.

  
  

Answer explanation

Keeps accurate expense records. Financial analysis involves obtaining funds for the business and keeping accurate records for analysis and interpretation. Marketing involves communicating with potential customers. Strategic management involves planning for long-term success. And, information management involves effectively retrieving data.

Within a local pizza shop, financial analysis is most likely used to

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  attract customers.

  
  

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  oversee the baking process.

  
  

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  obtain funding for supplies.

  
  

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  develop the best recipe.

  
  

Answer explanation

Obtain funding for supplies. For a small business such as a pizzeria, financial analysis is probably used to obtain funding for supplies. Attracting customers is part of marketing. Overseeing a process is likely to take place within operations, not financial analysis. And, developing recipes is part of operations.

Which of the following activities demonstrates human resources management:

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  The business gives its preferred customers a special discount.

  
  

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  The business takes care of the responsibilities associated with having employees.

  
  

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  The business includes top-level managers in long-term planning.

  
  

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  The business acts on new information about a competitor.

  
  

Answer explanation

The business takes care of the responsibilities associated with having employees. Human resources management involves taking care of the responsibilities associated with having employees. Giving preferred customers a special discount is part of marketing. Including top-level managers in long-term planning is part of strategic management. And, acting on new information about a competitor can be marketing and/or operations.

Janelle’s Creative Supplies is opening an additional location on the other side of town. To successfully operate the new location, Janelle primarily needs

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  new carpet and paint.

  
  

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  extra free time.

  
  

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  more advertising spots.

  
  

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  additional employees.

  
  

Answer explanation

Additional employees. To operate her new location, Janelle needs additional employees. Janelle does not need new carpet and paint to operate her new location—although these items would be helpful. She does not need extra free time to operate her business. She simply needs more available work time! More advertising spots might help, but they are not necessary for operating the business at the new location.

Which of the following activities demonstrates information management:

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  Storing and retrieving information

  
  

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  Researching customers’ needs

  
  

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  Hiring appropriate employees

  
  

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  Conducting employee evaluations

  
  

Answer explanation

Storing and retrieving information. Information management includes/requires an effective system for storing and retrieving information. A system for researching customers’ needs would be used in marketing. Systems for hiring appropriate employees and for conducting employee evaluations would be used in human resources management.

TeJuan’s Fishing Shack demonstrates effective information management by

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  accessing a list of fishing equipment appropriate for a particular customer.

  
  

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  removing wasted materials from the process of providing goods to customers.

  
  

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  promoting new fishing equipment in a popular trade magazine.

  
  

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  hiring fishing experts to explain how to use the goods offered.

  
  

Answer explanation

Accessing a list of fishing equipment appropriate for a particular customer. When TeJuan’s Fishing Shack accesses a list of fishing equipment appropriate for a particular customer, the business is demonstrating effective information management. Removing wasted materials from a process is part of operations. Promoting new fishing equipment is part of marketing. Hiring fishing experts to explain how to use the goods offered is part of marketing and/or human resources management.