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POB 5.02 Review

Total questions: 15

Worksheet time: 29mins

Name
Class
Date
1.

What is a business's net profit if it has $762,750 in income, $291,400 in operating expenses, and $238,930 in cost of goods?

a)

$368,730

b)

$232,420

c)

$471,350

d)

$523,820

2.

Which is a problem associated with communist command economies?

a)

There is no competition.

b)

There are high taxes.

c)

Supply and demand control what will be produced.

d)

Individuals run the risk of losing their businesses.

3.

Which would customers need to present at the time of purchase to get money taken off the purchase price of the item?

a)

discount coupons

b)

rebate certificates

c)

refund checks

d)

sales receipts

4.

A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?

a)

Celler-Kefauver Act

b)

Clayton Act

c)

Sherman Act

d)

Robinson-Patman Act

5.

For a business, income remaining after payment of expenses is:

a)

loss

b)

capital

c)

profit

d)

debt

6.

Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?

a)

military

b)

capitalist

c)

consumer

d)

welfare

7.

In business terms, what is profit?

a)

a risky venture

b)

a good investment

c)

a holiday bonus

d)

a monetary reward

8.

When manufacturers give back part of the purchase price of an item to the customer, the manufacturers are engaged in:

a)

price fixing.

b)

non-price competition.

c)

clearance sales.

d)

offering rebates.

9.

Which is an example of a speculative business risk?

a)

A special promotion fails to increase sales.

b)

A supplier's shipment is lost in transit.

c)

A cashier gives unauthorized discounts to friends.

d)

A customer is injured at a business and sues the company.

10.

Who decides how goods and services will be marketed in a private enterprise economic system?

a)

legislators

b)

business people

c)

competitors

d)

consumers

11.

A business selects goods or services to sell. Which type of risk is this business using?

a)

transferring risk

b)

controlling risk

c)

bypassing risk

d)

avoiding risk

12.

In a private enterprise economic system, the interaction of supply and demand primarily determines:

a)

government regulation.

b)

economic choices.

c)

the extent of pollution.

d)

product prices.

13.

A major characteristic of a market economy is which type of ownership of property?

a)

monopolistic

b)

limited

c)

government

d)

private

14.

The basic role of the United States government is to:

a)

limit business startups.

b)

maintain control of prices.

c)

increase production.

d)

protect U.S. citizens.

15.

Which represents a natural risk for the owner of a delivery service?

a)

snowstorm

b)

accident

c)

rising prices

d)

government intervention