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WorksheetsIntro to Business: Semester Exam Review
Total questions: 54
Worksheet time: 27mins
Name
Class
Date
1.
Which of the following is an economic need?
a)
a new TV
b)
water
c)
concert tickets
d)
a laoded SUV
2.
People producing goods & services are called
a)
human resources
b)
natural resources
c)
capital resources
d)
limited resources
3.
If everybody had an unlimited supply of economic resources, which would not exist?
a)
wants
b)
capitalism
c)
scarcity
d)
needs
4.
Every nation must decide
a)
what combination of resources will best suit its circumstances
b)
which wants & needs are most critical
c)
which goods & services to produce
d)
all of these
5.
Another name for the economic system in the United States is
a)
private enterprise
b)
capitalism
c)
free enterprise
d)
all of the these
6.
The rivalry among businesses to sell their goods & services is known as
a)
competition
b)
entrepreneurship
c)
capitalism
d)
cornering the market
7.
GDP does NOT include
a)
consumer spending for food
b)
the value of the work you do for yourself
c)
gov't spending to pay employees
d)
business spending for equipment
8.
Dividing GDP by the total population of a country results in that country's
a)
GDP per capita
b)
gross GDP rate
c)
unemployment rate
d)
personal income per capita
9.
Retail sales
a)
usually remain stable in times of economic growth
b)
indicate general consumer spending patterns in the economy
c)
include the sales of services bought by consumers
d)
all of these
10.
___ occurs at the peak of the business cycle.
a)
recovery
b)
depression
c)
recession
d)
prosperity
11.
Which of the following is NOT a characteristic of a depression?
a)
high demand for goods & Services
b)
a prolonged period of high unemployment
c)
business failures
d)
GDP falls rapidly
12.
Inflation
a)
increases the buying power of the dollar
b)
always discourages economic growth
c)
tends to decrease wages
d)
is most harmful to people living on fixed incomes
13.
Which of the following type of business is NOT a producer?
a)
pharmacy
b)
appliance factory
c)
coal mine
d)
chicken farm
14.
Of the major forms of business ownership in the US, the most difficult to form is a
a)
partnership
b)
franchise
c)
corporation
d)
proprietorship
15.
Which of the following would typically NOT be specified in a partnership agreement?
a)
the business name
b)
the number of hours per week the business will operate
c)
the amount of investment of each partner
d)
the level of authority each partner has
16.
A written legal document defining ownership and operating procedures and conditions for a corporation is called the
a)
corporate code of ethics
b)
partnership agreement
c)
articles of confederation
d)
articles of incorporation
17.
The people who make the major policy & financial decisions for a corporation are called the
a)
stockholders
b)
owners
c)
board of directors
d)
partners
18.
The right to make decisions about how responsibilities should be achieved is called
a)
liability
b)
span of control
c)
accountability
d)
authority
19.
Entrepreneurs
a)
must have a very low tolerance for ambiguity
b)
almost never own their first business while in their teens
c)
come from all age categories & educational backgrounds
d)
must have a business degree to be successful
20.
Scrubbles laundry detergent has been on the market for years. The manufacturer recently added a new ingredient to give the detergent extra cleaning power. This is an example of an
a)
improvement
b)
invention
c)
innovation
d)
opportunity cost
21.
According to the Small Business Administration, a small business is an independent business with fewer than __ employees.
a)
10
b)
50
c)
100
d)
500
22.
Small businesses have an advantage over big businesses when customers
a)
are willing to buy standard products
b)
want more individual attention
c)
prefer low cost & efficient delivery
d)
all of these
23.
Location is important to small retail businesses because
a)
most retailers need good customer traffic to survive
b)
many potential customers will stay away if the business is not easy to find
c)
customers generally do not want to travel long distances to find what they need
d)
all of these
24.
If you start a new business, you need information about
a)
competitors
b)
government regulations
c)
customers
d)
all of these
25.
Which management function involves analyzing information, setting goals, and making decisions about what needs to be done?
a)
organizing
b)
planning
c)
implementing
d)
controlling
26.
Executives spend most of their time on
a)
planning & controlling
b)
planning & organizing
c)
implementing, staffing, & controlling
d)
organizing & implementing
27.
The way a manager treats & involves employees is called
a)
entrepreneurship
b)
influence
c)
management style
d)
leadership
28.
In which of the following situations should a manager use tactical management?
a)
when the work is routine with new challenges
b)
when working with part-time or temporary employees
c)
when employees are doing work they enjoy
d)
when the manager wants to improve group relations
29.
Managers typically spend much of their time dealing with
a)
customers
b)
people from other organizations
c)
other managers in their own organizations
d)
all of these
30.
John, a customer service manager, has sent a memo to Brianne, one of his employees. This is an example of
a)
horizontal communication
b)
external communication
c)
vertical communication
d)
verbal communication
31.
The members of Kimberly's work unit support her because they like her & believe she has the best interest of her employees in mind. This is an example of
a)
identity influence
b)
expert influence
c)
reward influence
d)
position infuence
32.
Mission statements
a)
are the guidelines that direct employees' behavior
b)
describe the reason businesses exist & what they want to accomplish
c)
are written explanations of how specific business ideas will be carried out
d)
are the principles of conduct governing an individual or group
33.
Removing work from one company & sending it to another company that can complete it at a lower cost is called
a)
rightsizing
b)
downsizng
c)
freelancing
d)
outsourcing
34.
This type of compensation method pays the employee a specific amount of money for each hour worked.
a)
straight salary
b)
commission
c)
time wage
d)
piece rate
35.
In a __ plan, employees receive their regular compensation plus a portion of the company's earnings.
a)
profit-sharing
b)
cafeteria
c)
straight salary
d)
stock options
36.
The assignment of an employee to another job in the company with a similar level of responsibility is called a
a)
promotion
b)
demotion
c)
termination
d)
transfer
37.
A few hours each month that employees can schedule for non-job activities is called
a)
personal time
b)
family leave
c)
flextime
d)
absenteeism
38.
This federal law prohibits job discrimination based on race, color, religion, gender, and national origin.
a)
Civil Rights Act of 1964
b)
Age Discrimination Act of 1967
c)
Fair Hiring Act of 1967
d)
Americans with Disabilities Act of 1992
39.
Which marketing function involves communicating directly with potential customers to determine their needs?
a)
financial analysis
b)
pricing
c)
product & service management
d)
selling
40.
What are the four elements of a marketing mix?
a)
cost, location, time & advertising
b)
demographics, income, supply & demand
c)
product, distribution, price & promotion
d)
consumers, manufacturers, retailers, & distributors
41.
This type of marketing research study gathers information from people using a carefully planned set of questions.
a)
secondary research
b)
experiment
c)
observation
d)
survey
42.
Additions & improvements to a basic product is called
a)
brand names
b)
product features
c)
guarantees
d)
warranties
43.
Services are intangible. This means that
a)
they have no physical form
b)
their availability must match their demand at a specific time
c)
they cost more than products
d)
there will be differences in the type & quality of service provided
44.
Product cost + operating expenses + profit =
a)
markup
b)
selling price
c)
gross cost
d)
markdown
45.
Which type of budget is an estimate of the actual money received & paid out for a specific period?
a)
an accounting budget
b)
a final budget
c)
a cash budget
d)
a balanced budget
46.
An operating budget is usually planned for
a)
3 months
b)
6 months
c)
1 year
d)
all of these time frames
47.
Which type of financial records identify the amount assets have decreased in value due to their age & use?
a)
asset records
b)
depreciation records
c)
cash records
d)
accounts payable records
48.
In simple terms, __ are what a company owns.
a)
assets
b)
profits
c)
owner's equity
d)
revenues
49.
A risk that involves a possible injury to your health would be classified as a
a)
property risk
b)
liability risk
c)
personal risk
d)
non-economic risk
50.
A pure risk
a)
offers no opportunity for gain
b)
is uncontrollable
c)
is uninsurable
d)
all of the above are true
51.
Which of the following is a controllable risk?
a)
a sudden hailstorm
b)
loss from theft
c)
a lightning strike
d)
a flash flood
52.
If you choose not to complete a risky activity, you are said to be __ the risk.
a)
avoiding
b)
transferring
c)
assuming
d)
exiting
53.
The amount a policyholder must pay for insurance coverage is a
a)
claim
b)
premium
c)
deductible
d)
ransom
54.
The exclusive right of an inventor to make, sell, and use a product or process is called a
a)
patent
b)
trademark
c)
copyright
d)
claim
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