Business Basics Unit Test

Businesses exist to

• Solve problems and provide solutions

• Make a profit

• Meet the needs of customers

• All of the above

Which of the following best describes a business

• A government entity that enforces laws

• An organization that provides goods and services in exchange for money

• A charity that helps people in need

• A group of people who work for free

Which of the following is not a reason why businesses exist?

• Provide products and services to people

• Create jobs and provide income

• Help the government with new regulations

• Impact the community and the economy

The United States economy is currently dominated by businesses in the __________ sector.

• Retail

• Automobile

• Service

• Government

Individuals or groups who have an interest in a business and are affected by its decisions are called

• Stakeholders

• Customers

• Employees

• Investors

Why are customers important to a business?

• They create business policies

• They provide feedback and revenue

• They manage employees

• They monitor a company’s finances

Which type of stakeholder provides financial support needed to start or grow a business?

• Customers

• Employees

• Investors

• Managers

Goods are tangible products a business sells like

• Haircuts

• Clothes

• Car insurance

• Health care

When expenses are higher than the revenue the business brings in, the business experiences a ____________.

• Profit

• Good

• Loss

• Service

The struggle between two or more businesses to attract scarce customer dollars

• Competition

• Intellectual property

• Nonprofit organizations

• Customer satisfaction