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WorksheetsUnit 5 Review
Total questions: 60
Worksheet time: 30mins
Farming is most like which type of business?
service
manufacturing
wholesaling
extraction
Manufacturers of industrial goods typically sell to
consumers
service businesses
wholesalers
other manufacturers
Small manufacturers of consumer goods sell
directly to consumers
to retailers
to wholesalers
all of the above
Auto repair is an example of which type of business?
service
retailing
trade
manufacturing
Which of the following professional service providers require licensing?
engineers
doctors
daycare providers
all of the above
Wholesalers are also known as
go-betweens
distributors
middlemen
all of the above
McDonald's is an example of a
all of the above
franchise company
service business
wholesaling business
A business that sells goods directly to consumers on the Internet is a
retailing business
manufacturing business
wholesaling business
service business
Which of the following manufactured products is considered consumer goods?
heavy machinery
plastic parts
lumber
none of the above
Which of the following products is typically sold to manufacturing businesses?
groceries
jewelry
plastic parts
clothing
In a distribution channel, an "intermediary" is a bridge between a
manufacturer and consumer
broker and agent
producer and retailer
none of the above
The management of materials and processes associated with incoming and outgoing products is called
production management
distribution management
strategic management
operations management
An advantage of hiring employees is
having a second-in-command
obtaining skills you lack
having others to share the work
all of the above
A disadvantage of hiring employees is
added paperwork
added cost
added rules
all of the above
A résumé is
a statement of intention
an application form provided by a company
a detailed outline of job requirements
a written summary of work experience
Artistic or industrial creations of the mind are
intellectual property
derivatives
intangibles
all of the above
The three general types of patents are
vehicles, artwork, buildings
plant, design, utility
technology, medical, chemical
none of the above
A word, phrase, or symbol used to identify a provider's service is known as a
service mark
patent
copyright
trademark
Starting with the date it is filed, a patent lasts for
30 years
10 years
20 years
40 years
To establish a public record of ownership of a creation you would register the work with the
Library of Congress's Copyright Office
Department of Treasury
U.S. Patent and Trademark Office
State Government
One reason to hire an employee is so that you can take time off
T
F
Hiring an employee with qualifications similar to your own is a good idea.
T
F
Hiring an employee with skills that you don't possess is a good idea.
T
F
Patent protection can only be obtained for the invention or discovery of any new product or process.
T
F
The three C's refer to
return and rework policie
conditions under which credit will be extended
customer service policies
general business policie
A customer's current cash inflow is referred to as the customer's
capacity
capital
character
credit
A customer's financial trustworthiness is referred to as the customer's
character
capacity
capital
credit
The management of the everyday activities that keep a business running is
production management
operations management
distribution management
financial management
A policy that specifies the amount of time between order placement and order shipment is is a(n)
customer service policy
return policy
delivery policy
distribution policy
Repeat customers are those who
buy the same item several times
come back again and again
return items often
keep asking for credit
An inventory system where virtually no inventory is stored is known as the
periodic inventory system
just-in-time inventory system
perpetual inventory system
partial inventory system
Obsolescence may occur when
inventory is no longer desirable
excess inventory is kept
inventory is no longer useful
all of the above
Money paid for inventory is called the
inventory value
inventory investment
inventory level
inventory turns
To avoid a stock-out of certain items, a business will
keep their inventory low
put those items on sale
keep a safety stock of those items
none of the above
Rework is a manufacturing term that refers to correcting defects in a product
T
F
Word of mouth can help or hurt a business.
T
F
Pure risk is
risk that holds the possibility of either gain or loss
the chance of loss without the chance of gain
shifting risk to another party
none of the above
An ice cream manufacturer offering a new flavor is an example of a(n)
risk transfer
replacement risk
pure risk
speculative risk
The actual worth that property can be insured for is the
replacement cost
deductible
cash value
premium
Insurance that protects a business in the event someone is injured on its premises or by its product or service is
workers' compensation insurance
catastrophic insurance
liability insurance
property insurance
An amendment to an insurance policy that changes the benefits or conditions of coverage is a(n)
interruption
rider
premium
deductible
Shifting risk to another party, as is done when a business owner buys insurance, is called
flexibility
risk transfer
speculative risk
pure risk
Designing equipment and working environments to fit workers well in order to help prevent injury is called
ergonomics
workers' compensation
health insurance
risk reduction
Sourcing is the process of
choosing appropriate sales networks
choosing appropriate vendors
choosing appropriate buyers
choosing appropriate distribution networks
Three factors to consider in choosing a vendor are
location, delivery, credit
price, quality, reliability
service, price, reputation
credit, service, discounts
Procurement is the act of
reselling
purchasing
selling
none of the above
External partners are companies with which you can form strategic partnerships to help grow your business
T
F
A disaster such as a hurricane or wildfire would be classified as a catastrophic risk.
T
F
In a sole proprietorship, how many people are responsible for the business?
one
one or more
at least two
any number
Which of the following is not an advantage of a sole proprietorship?
no partners to split profits with
unlimited liability
inexpensive to set up
business income and costs are reported on the owner's personal tax return
Which type of business legal structure has "double taxation?
nonprofit corporation
sole proprietorship
limited liability company
C corporation
Which type of business legal structure exposes its owner(s) to unlimited liability for its owners?
sole proprietorship
C corporation
nonprofit corporation
all of the above
Which advantage(s) does a general partnership have over a sole proprietorship?
more than one person for financial backing
it has a lower tax rate
limited liability
all of the above
What disadvantage(s) does a general partnership have over a sole proprietorship?
partners may have trouble agreeing on policies
each partner is responsible for the business actions of the others
profit is split between the partners
all of the above
A nonprofit corporation
uses its profits to help society
is also called a cooperative
does not protect its owners from liability
all of the above
Sole proprietorships with employees are required to have
tax I.D. number
tax I.D. number and EIN
EIN
none of the above
Even if you are best friends with your business partner, you should always
register a sole proprietorship
incorporate
use a partnership agreement
none of the above
The owners of a cooperative business are its members who
are employed by the business
use the services of the business
buy the goods of the business
all of the above
Unlimited liability means that a business owner cannot be legally forced to use personal money or sell personal possessions to pay the business’s debts
T
F
In most states a cooperative is not a legal business structure, but rather a way of organizing and operating a business.
T
F
