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WorksheetsPOBF Final Review
Total questions: 100
Worksheet time: 50mins
Name
Class
Date
1.
Duke Energy Power Company uses water to power the area. Which resource is Duke Energy Power using?
a)
Capital
b)
Human
c)
Natural
d)
Service
2.
Goya Food Company survey results revealed that their customer base consists mostly of large families instead of individuals living alone. Which economic question does this address?
a)
For whom to produce?
b)
How to produce?
c)
What to produce?
d)
When to produce?
3.
Jewel Manufacturing Company changed its production line to include more workers and decrease production time. Which economic question does this address?
a)
For whom to produce?
b)
How to produce?
c)
What to produce?
d)
When to produce?
4.
Which is an example of a company establishing supply?
a)
Ann Jones Clothing Store upgrades its equipment regularly
b)
Reebok footwear company is trying to attract more middle-aged customers
c)
Sears Department Store displays fewer lawn mowers
d)
Walmart sends only five touch screen computers to each store
5.
Which is an example of consumers establishing demand?
a)
The department store changing its staff
b)
The footwear company moving in its new building
c)
The purchase of iPhone applications increasing daily
d)
The wait to return recalled equipment decreasing daily
6.
The U.S. Bureau of Economic Analysis reports total wage and salary compensations for local areas. This information would be useful for which measurement of economic activities?
a)
Borrowing
b)
Consumer Spending
c)
GDP
d)
Investment Activities
7.
A report covering four quarters about the economy includes that more companies are experiencing less production and reducing the number of employees. Which phase of the business cycle does this report describe?
a)
Depression
b)
Prosperity
c)
Recession
d)
Recovery
8.
Department stores report monthly to the state commerce office its total sales of goods and services. This information would be useful for which measurement of economic activities?
a)
Borrowing
b)
Consumer Spending
c)
Investment Activities
d)
Labor Activities
9.
A cosmetic company purchased an automatic wrapping machine that wraps a pallet of boxes in 30 seconds. To complete the same task manually, it would take an employee almost 3 minutes. This information would be useful for which measurement of economic activities?
a)
Consumer Spending
b)
GDP
c)
GDP per Capita
d)
Labor Activities
10.
Due to decreasing enrollment in a local school system, fewer teachers as employees are needed. As a result, over 100 teachers were released from their commitments. This information would be useful for which measurement of economic activities?
a)
Consumer Spending
b)
GDP
c)
GDP per Capita
d)
Labor Activities
11.
While conducting business in Japan, Shari adjusted her gift-giving practices to accommodate her Japanese business partners. Which main factor of the international business environment did Shari consider?
a)
Cultural influences
b)
Economic development
c)
Geography
d)
Political and legal concerns
12.
An organization assisted two countries on settling a trade disagreement on tariffs. This action is an example of assistance provided by which international trade organization?
a)
International Monetary Fund
International Monetary Fund
b)
Joint Venture
Joint Venture
c)
World Bank
d)
World Trade Organization
13.
Which statement is true about balance of payment?
a)
Balance of payments is favorable when a company pays more money out of it than it receives in it.
b)
Balance of payments is favorable when a company receives more money into it than it pays out.
c)
Balance of payments is favorable when a country pays more money out of it than it receives in it.
d)
Balance of payments is favorable when a country receives more money into it than it pays out.
14.
Aruba has become globally known for its white sandy beaches. It is relied upon by many travelers from other countries to enjoy its beaches at a reasonable cost. This is an example of what type of advantage?
a)
Absolute
b)
Comparative
c)
Competitive
d)
Dual
15.
The United States has become globally known for its more resourceful production of wheat, and can produce the product with fewer human resources. This is an example of what type of advantage?
a)
Absolute
b)
Comparative
c)
Competitive
d)
Dual advantage
16.
Several Prime Ministers of East African countries are negotiating the trade of products and services throughout the Eastern region. This is an example of which encouragement of international trade?
a)
Common markets
b)
Embargo
c)
Free-trade zone
d)
Tariff
17.
Hank has ownership, even without liability over his initial investment, along with George, for a local business. This is an example of what type of business ownership?
a)
Cooperative
b)
Corporation
c)
Partnership
d)
Sole proprietorship
18.
Tami wants to invest money in shares of stock. She would have to pay taxes on her earnings twice. Which is an advantage of a sole proprietorship over a corporation?
a)
Limited capital
b)
Limited life
Limited life
c)
Single taxation
d)
Unlimited liability
19.
Chun purchased 150 shares of stock in the Panasonic Company. How many votes will she have at the next stockholder’s meeting?
a)
3
b)
30
c)
150
d)
300
20.
Several small businesses that sell organic foods have joined together to increase their chances to pay lower prices for inventory. This is an example of what type of business?
a)
Cooperative
b)
Corporation
c)
Franchise
Franchise
d)
Sole proprietorship
21.
Even though a company may sell shares of stock, it relies on a central body of people for financial directions. This is an example of what type of business?
a)
Cooperative
b)
Corporation
c)
Partnership
d)
Sole proprietorship
22.
Keisha allowed her employees to plan the expansion project. This is an example of which style of management?
a)
Mixed
Mixed
b)
Strategic
c)
Tactical
Tactical
d)
Varied
23.
Harry checks his electronic calendar for tasks assigned by his boss regularly. He very seldom sees his boss. This is an example of which style of leadership?
a)
Autocratic
b)
Democratic
c)
Laissez-fare
Laissez-fare
d)
Objective
24.
Jim solicited feedback from Jack, who is one of his employees, about a new display case. This is an example of which style of management?
a)
Mixed
b)
Strategic
c)
Tactical
d)
Varied
25.
Jack and Henry are responsible for 20 people, who report to them directly. They collaborate frequently to make sure they will meet the production goal of the company established by another employee. This is an example of which level of management?
a)
Management by others
b)
Mid-management
c)
Supervisors
d)
Top management
26.
Michelle reviewed survey results of a completed project and set goals for the new project. This is an example of which function of management?
a)
Controlling
b)
Organizing
c)
Planning
d)
Staffing
27.
Sony produces thousands of electronics to serve international consumers. Which type of manufacturing procedure is performed?
a)
Custom manufacturing
b)
Extraction
c)
Mass production
d)
Materials processing
28.
Goodyear uses rubber to produce tires for cars, SUV’s, and trucks. Which type of manufacturing procedure is performed?
a)
Custom manufacturing
b)
Extraction
c)
Mass production
d)
Materials processing
29.
Jay sells basil plants grown in his garden to several local restaurants. What type of production is performed?
a)
Extraction and cultivation
b)
Manufacturing
c)
Mass production
d)
Processing
30.
Employees of Bella Coola Fisheries catch fresh salmon and prepare it to be sold to domestic and international buyers. What type of production is performed?
a)
xtraction and cultivation
b)
Manufacturing
c)
Mass production
d)
Processing
31.
Draperies, Inc. finished organic cotton drapes for the local theater on Walnut Street. Which type of manufacturing procedure was performed?
a)
Custom manufacturing
b)
Extraction
c)
Mass production
d)
Materials processing
32.
Lena trained several employees on how to process financial statements using the new software. These employees used to process reports manually for almost seven years. This is an example of what type of concern for using technology?
a)
Employment trends
b)
Computer crime
c)
Health
d)
Privacy
33.
Using the Internet and online communication, Shari presented a new product to potential customers in Peru, Costa Rica, and New York. This is an example of what type of technology application?
a)
Artificial intelligence
b)
Computer-aided design
c)
E-commerce
d)
Robotics
34.
Taz prefers buying products from Sears using his computer, since the nearest brick and mortar store is over 100 miles from his home. This is an example of what type of technology application?
a)
Artificial intelligence
b)
Computer-aided design
c)
E-commerce
E-commerce
d)
Telecommuting
35.
Bob decided to host a website that will allow his club members to purchase goods from one another. This is an example of what type of technology application?
a)
Artificial intelligence
b)
Computer-aided design
c)
E-commerce
d)
Telecommuting
36.
Stacy signed a document agreeing to pay $3,000 to have a stereo system installed. The manager of the company disputed the agreed amount. Stacy may need which type of protection?
a)
Contract enforcement
b)
Environmental protection
c)
Intellectual property protection
d)
Safe work environment
37.
Java’s trademark of letters and design receives which government service?
a)
Contract enforcement
b)
Environmental protection
Environmental protection
c)
Intellectual property protection
Intellectual property protection
d)
Safe work environment
38.
A manufacturing company partnered with Rex Hospital to provide workshops about moving more at work. Which social responsibility did the company address?
a)
Employee wellness
b)
Environmental protection
c)
Job safety
Job safety
d)
Workplace diversity
39.
3M prohibits another company from producing the natural-fitting mouse exactly the same way they do. This company is protected by which government service?
a)
Contract enforcement
b)
Environmental protection
c)
Intellectual property protection
d)
Safe work environment
40.
John made sure all counter surfaces in the bathrooms were only 34 inches above the floor to accommodate employees. Which protection is he addressing?
a)
Contract enforcement
b)
Environmental protection
c)
Intellectual property protection
d)
Safe work environment
Safe work environment
41.
A travel agency usually offers vacation packages starting at $399. The manager has determined that its operating expenses have increased; therefore, it will increase its markup by 45%. What will the new starting price for a vacation packages?
a)
$45.00
b)
$179.55
$179.55
c)
$358.55
d)
$578.55
42.
Which is an example of direct channel of distribution?
a)
Mary hired her mother to assist with her cupcake business.
Mary hired her mother to assist with her cupcake business.
b)
Mary pays an advertising agency to promote her cupcake company.
c)
Mary pays Tim to deliver cupcakes to customers.
d)
Mary takes care of all the marketing functions for her cupcake company.
43.
Lowes Home Improvement provides credit lines to other businesses in order to meet its organizational goals. This is an example of which marketing function?
a)
Distribution
b)
Financing
Financing
c)
Pricing
d)
Selling
Selling
44.
New York Fashions Clothing Company surveys customers to find out in which zip codes most of its customers reside. The results will help with the company’s relocation plans. This is an example of which marketing function?
a)
Distribution
b)
Financing
Financing
c)
Marketing-information management
d)
Selling
Selling
45.
Carnival Cruise Lines now offers 20 ounce bottles of water instead of the 12 ounce bottles it previously sold. This is an example of which marketing function?
a)
Distribution
Distribution
b)
Financing
c)
Product management
d)
Selling
46.
Mary checks the label on all products she buys for warnings. This is an example of which type of consumer information source?
a)
Business sources
b)
Government agencies
c)
Media
d)
Product testing organization
47.
Soho sells its shoes directly to the consumer through its own stores at discounted prices. This is an example of which type of store?
a)
Convenience
b)
Department
Department
c)
Factory outlet
d)
Mail order
48.
Mary decided to order more Casio, Epson, Nikon, and Sony cameras for her store. These cameras have received the best reviews from her customers. Where is she in the consumer decision-making process?
a)
Determine the effectiveness of the decision
Determine the effectiveness of the decision
b)
Gather information
c)
Recognize a need or want
d)
Select and evaluate alternatives
49.
Mary has reviewed several camera dealers’ websites, talked with other camera store operators, and surveyed potential customers about cameras. Where is she in the consumer decision-making process?
a)
Gather information
Gather information
b)
Make a purchase
c)
Recognize a need or want
d)
Select and evaluate alternatives
50.
Brad refuses to eat a new product because of a warning from the United States Department of Agriculture. This is an example of which type of
consumer information source?
consumer information source?
a)
Business sources
b)
Government Agencies
c)
Media
d)
Product Testing Organization
51.
Using the attached figure, what is the net income ratio for total sales to net income?
a)
2.71
b)
3.71
c)
4.71
d)
5.71
52.
Which statement is true regarding the attached figure?
a)
Company A has a more favorable net income ratio than Company B.
b)
Company A has a less favorable return on equity ratio than Company B.
c)
Company B has a less favorable debt to equity ratio than Company A.
d)
Company B has a less favorable current ratio than Company A.
53.
Alicia should use which type of budget to analyze the business performance of her floral company?
a)
Cash
b)
Expense
c)
Operating
d)
Start-Up
54.
Paul reviewed his company’s budget for six months and determined that it is spending less on utilities. Which type of budget was used?
a)
Cash
b)
Expansion
c)
Operating
d)
Start-up
55.
Kate projected that her business revenue for the next quarter should be around $7,000. This is an example of what kind of financial planning?
a)
Expansion
b)
Personal
c)
Operation
d)
Start-up
56.
Using the attached image, what is the net income ratio for total sales to net income?
a)
0.16
b)
0.33
c)
3.07
d)
6.25
57.
Last month’s revenue for Tisha’s Tire Company was $700 and it paid $650 for expenses. Which is the net income/net loss amount for the business?
a)
$50 net income
b)
$50 net loss
c)
$500 net income
d)
$500 net loss
$500 net loss
58.
Tonya compared revenue of $30,000 to expenses of $22,000 to determine whether her business experienced a net income or loss. Which type of financial statement was used?
a)
Balance Sheet
b)
Budge
c)
Income Statement
d)
Statement of Owner's Equity
59.
Carl estimated that his business could invest an additional $40,000. Which type of budget was used?
a)
Cash
b)
Expansion
c)
Operating
d)
Start-up
60.
Ford Motor Company determined it can afford to start selling vehicles that imitate a family room on wheels. This is an example of what kind of financial planning?
a)
Expansion
b)
Personal
c)
Operation
d)
Start-up
61.
Direct Finance Company’s primary function is to use its own money instead of customers’ savings to provide loans to other businesses. This is an example of which type of financial institution?
a)
Depository
b)
Check-Cashing Outlet
c)
Non-Depository
d)
Pawnshop
62.
Which number in the figure refers to the check number?
a)
1
b)
6
c)
8
d)
9
63.
Phil is writing a company check and just completed writing the amount of the check in words. What should Phil do next?
a)
Write the payee’s name
b)
Sign the check
c)
Write in the numerical amount of the checkDWrite in the purpose of the check
d)
Write in the purpose of the check
64.
Southern Life Insurance Company makes money on selling specific services such as policies instead of retaining their customers money. This is an example of which type of financial institution?
a)
Depository
b)
Check-cashing outlet
c)
Non-depository
Non-depository
d)
Pawn shop
65.
An investor prefers a financial institution that offers safe deposit boxes, trusts, and loans. Which characteristic(s) of financial institutions does the investor prefer?
a)
Fees and charges
Fees and charges
b)
Restrictions
c)
Services
d)
Safety
66.
The Federal Reserve System aids in transferring funds between banks in North Carolina and New Jersey. This is an example of which service of the Federal Reserve System?
a)
Clearinghouse
Clearinghouse
b)
Participation in open market operations
Participation in open market operations
c)
Supervision of banks
Supervision of banks
d)
Managing the discount rate
67.
Jennifer prefers a financial institution that will meet her business needs such as access to checking options, credit cards, and loans. Which characteristic(s) of financial institutions does she prefer?
a)
Fees and charges
Fees and charges
b)
Restrictions
Restrictions
c)
Services
d)
Safety
68.
Todd gave Intrek Computer Services a personal check for which his bank guaranteed payment. This is an example of which type of payment service?
a)
Certified check
b)
Electronic
c)
Money order
d)
Traveler’s check
69.
An investor prefers a financial institution that offers access to local branches and ATM machines near her home and job. Which characteristic(s) of financial institutions does the investor prefer?
a)
Convenience
b)
Fees and charges
c)
Restrictions
d)
Safety
70.
Mary needs a savings plan that will allow her to access her money as cash for potential emergency needs. Which type of evaluation factor of saving is she considering?
a)
Liquidity
Liquidity
b)
Potential return
c)
Safety and risk
d)
Taxes
71.
Jack is reviewing his investment portfolio to make sure it includes options that will allow him to access money immediately. Which type of evaluation factor of saving is he considering?
a)
Liquidity
b)
Potential return
c)
Safety and risk
d)
Taxes
72.
Mary prefers a relatively safe investment that will allow her to withdraw money after a few days without losing any of her principal. Which is the best investment choice for Mary?
a)
Bond investment
b)
Certificate of deposit
c)
Money market account
d)
Stock investment
73.
Ted deposits money in a savings plan regularly. The interest he earns on this plan is indicative of how the money markets are doing. Which savings plan is he using?
a)
Bond investment
b)
Certificate of deposit
c)
Money market account
d)
Savings account
74.
RadioShack offers shares of stock to investors at a consistent rate of 6% without any voting rights. What type of stock is it offering?
a)
Bond
b)
Common stock
c)
Mutual fund
d)
Preferred stock
75.
How much interest is earned on a balance of $1,000 for a certificate of deposit that is compounded at an 8% interest rate for an account maintained for three years?
a)
$135.00
b)
$241.30
c)
$259.71
d)
$301.89
76.
Some customers recently learned that they can exchange quilts purchased from Tyson’s Antique Store over 25 years ago for higher prices than they were originally purchased. Which type of investment are the quilts?
a)
Collectibles
b)
Commodities exchanges
c)
Currency
d)
Gold, silver, and precious metals
77.
How are common and preferred stocks similar?
a)
Both pay limited dividend payments.
Both pay limited dividend payments.
b)
Both have a risk of loss of a investment.
c)
Both have the same amount of risk.
d)
Both stockholders have voting rights.
78.
The city government needs 1.2 million dollars to build a new medical facility. Which type of bond investment opportunity would help the city government obtain funding for the facility?
a)
Corporate bond
b)
Municipal bond
c)
Treasury bills
Treasury bills
d)
Treasury notes
79.
Mary’s business has $5,000 to start a savings plan at a local bank. She is comparing the interest rates between a mutual fund and a regular savings account. Which evaluation factor of saving is Mary considering?
a)
Liquidity
Liquidity
b)
Potential return
c)
Safety and risk
d)
Taxes
Taxes
80.
Bob sells specialty guitars and hopes to exchange the guitars for a much higher value than the purchase price. Which type of investment could the guitars become?
a)
Collectibles
b)
Commodities and futures
c)
Commodity exchanges
d)
Gold, silver, and precious metals
81.
Jenny charged $300 worth of gifts while shopping at several stores. Which type of credit did Jenny use?
a)
Charge account
b)
Consumer loan
c)
Credit card
d)
Installment credit
82.
After talking with a Sears customer representative about her overdue balance, Tina implemented a strategy that will minimize her debt. Tina used which type of credit assistance?
a)
Bankruptcy
Bankruptcy
b)
Credit counseling
c)
Credit repair
d)
Debt repayment plan
83.
Using the attached figure, what is the maturity date for a loan made on February 1 and due in 15 days?
a)
February 1st
b)
February 14th
c)
February 16th
d)
February 28th
84.
Ted issued credit cards to all his employees so they could charge necessary products and services that are work related. Which advantage is Ted most likely to accomplish by viewing the monthly statement of account for the credit cards?
a)
Earn rewards
b)
Establish favorable credit rating
c)
Keep track of spending
d)
Monitor theft of customer records/database
85.
Han sued a furniture store that verified it provided inaccurate information about his credit history. Which regulation would protect him in having the information corrected?
a)
Consumer Credit Reporting Reform Act
b)
Equal Credit Opportunity Act
c)
Fair Credit Reporting Act
Fair Credit Reporting Act
d)
Fair Debt Collections Act
Fair Debt Collections Act
86.
What is the interest amount for the following loan: $10,000 car loan for 5 years at 8% interest rate?
a)
$400
b)
$3,000
c)
$4,000
d)
$5,000
$5,000
87.
Walden Book Store obtained information about Ann’s reputation for paying her bills. Which factor examined by creditors did the store receive?
a)
Credit application
b)
Credit report
c)
Receipts
d)
Statement of account
Statement of account
88.
Justin paid $20 at the end of a doctor’s visit and agreed to pay the balance in 30 days. He will avoid any cost for this credit. Which type of credit did Justin use?
a)
Charge account
b)
Consumer loan
c)
Credit Card
Credit Card
d)
Installment credit
Installment credit
89.
Mary paid only $50 for unauthorized charges made to her Capital One MasterCard. Which regulation protected her?
a)
Equal Credit Opportunity Act
b)
Fair Credit Billing Act
c)
Fair Credit Reporting Act
d)
Truth-in-Lending Law
90.
JCPenney makes sure all applicants are creditworthy before issuing any of them credit cards. JCPenney is adhering to which regulation?
a)
Consumer Credit Reporting Reform Act
b)
Equal Credit Opportunity Act
c)
Fair Credit Billing Act
d)
Fair Credit Reporting Act
91.
Capital Bank reported that John has both savings and checking accounts with its financial institution. Which factor for granting credit related to documentation is this institution’s action?
a)
Credit application
b)
Credit bureau credit report
c)
Credit data
d)
Three C’s of credit
92.
Both hospital and surgical types of insurance have:
a)
A comprehensive policy
b)
Major medical insurance
c)
Regular medical insurance
d)
State government assistance
93.
ABC Investment Company invested over $300,000 obtained from their clients. The company gained 5% as a return on its investment. This is an example of which type of insurance risk?
a)
Controllable
b)
Economic
c)
Insurable
Insurable
d)
Speculative
94.
It would cost a cosmetic company at least $1.49 for each bottle in order to produce a new line of shampoo. The company decided to continue with its original production instead of adding the new product. How did the company handle the potential risks?
a)
Assume
Assume
b)
Avoid
c)
Insure
Insure
d)
Transfer
Transfer
95.
Barry’s Pawn Shop accepts jewelry and electronics from customers all the time. The pawn shop waits the designated time for customers to return and retrieve their items. How does the shop handle risks?
a)
Assume
b)
Avoid
c)
Insure
d)
Transfer
96.
GEICO Insurance Company opened several new offices to accommodate requests of policy holders for face-to-face contacts. This is an example of which type uninsurable risk?
a)
Consumer demand
b)
Economic conditions
c)
Local factors
d)
Technology change
97.
Many newspapers are experiencing fewer subscribers since more subscribers are now obtaining news from the Internet. This is an example of which type uninsurable risk?
a)
Business operations
b)
Economic conditions
c)
Local factors
Local factors
d)
Technology change
98.
Which is an example of uninsurable risks?
a)
Ford Motor Company claims damages of cars as necessary.
Ford Motor Company claims damages of cars as necessary.
b)
Josh overhauls machine motors.
c)
Tammy travels to Texas to negotiate contracts for steel beams.
Tammy travels to Texas to negotiate contracts for steel beams.
d)
A competitor of The Red Box is concerned about it renting movies for only $1.
99.
Using the attached picture, which number represents where you would sign a check?
a)
1
b)
3
c)
6
d)
7
100.
Entry-level positions provide employees with:
a)
basic job experience.
b)
few advancement opportunities.
c)
high salaries.
d)
limited training.
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