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AKS 4 Unit Test Review

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

It comprises businesses owned and controlled by individuals or groups of individuals.

a)

Private sector

b)

Public sector

2.

A person who chooses to and is free to open a grocery store is participating in a

a)

traditional economy

b)

command economy

c)

centrally-planned economy

d)

free enterprise economy

3.

When businesses choose to compete on the basis of factors that are not related to price including the quality of the products, service, financing, business location and reputation

a)

nonprice competition

b)

selling

c)

price competition

d)

pricing

4.

Patents, Trademarks and Copyrights are not intellectual property rights.

a)

True

b)

False

5.

According to the free enterprise system concept who decides whether or not a business will survive?

a)

the government

b)

the owners

c)

the consumers

d)

the competitors

6.

An economic system in which businesses compete against one another free of government control

a)

free enterprise

b)

socialism

c)

product

d)

marketing

7.

The money earned from conducting business after all costs and expenses have been paid is called

a)

profit

b)

free rider

c)

scarcity

d)

subsidy

8.

You can classify a business by its size and scope, its purpose and its industry

a)

True

b)

False

9.

Most people are inspired to start a business by the

a)

free contract clause

b)

profit motive

c)

open opportunity clause

d)

marginal benefits

10.

Consumers "vote" by choosing

a)

a resource over other resources

b)

to keep away from fad products

c)

a product over competing products

d)

to become entrepreneurs

11.

Business risk is the potential for loss or failure

a)

True

b)

False

12.

Which is an example of competition changing the marketplace?

a)

a chain hot dog restaurant failing to make a large profit

b)

a chain restaurant expanding its menu to included desserts

c)

a chain bookseller forcing many individual booksellers to go out of business

d)

a chain coffee shop having no effect on individual coffee shops

13.

It comprises organisations accountable to and controlled by central or local government

a)

Public sector

b)

Private sector

14.

What is the difference between private-sector & public-sector organization?

a)

All is correct

b)

Private-sectors organizations are owned and controlled by individuals, while public-sector organization are owned & controlled by the government.

c)

They have different aim: private-sector organizations usually work towards profits, and public-sector organization would want to provide essential service to the community and meet break-even point at the least.

15.

In a market economy, supply and demand determine the prices and quantities of goods and service produced.

a)

True

b)

False

16.

What is the role of producers?

a)

to increase the profit of other established retail stores

b)

to carry out a government economic program

c)

buy the product

d)

make the product

17.

The struggle for customers is called ...

a)

private enterprise

b)

free enterprise

c)

monopoly

d)

competition

18.

The concept of management includes which 4 main functions for a business to operate successfully?

a)

production and procurement, marketing, management and finance

b)

product, place, price and promotion

c)

sales, profit, cash flow and assets

19.

What is procurement?

a)

involves buying materials, products, and supplies needed to run a business.

b)

a marketing plan

c)

hiring employees

20.

What is management exactly?

a)

the process of achieving company goals by effective use of resources through planning, organizing, and controlling.

b)

The process of creating, growing, manufacturing, or improving on goods and services.

21.

What is production?

a)

The process of creating, growing, manufacturing, or improving on goods and services.

b)

involves buying materials, products, and supplies needed to run a business.

22.

If you want to analyze a company’s finances, you would study its

a)

balance sheet, profit and loss statement, and cash-flow statement

b)

business profile and marketing plan

23.

A few examples of management tasks for Organizing a business includes...

a)

scheduling employees, delegating responsibilities and maintaining records.

b)

establishing company objectives & strategies to meet those objectives.

c)

overseeing and analyzing operational budgets to suggest cost-effective measures.

24.

A few examples of management tasks for Planning a business includes...

a)

scheduling employees, delegating responsibilities and maintaining records.

b)

establishing company objectives & strategies to meet those objectives.

c)

overseeing and analyzing operational budgets to suggest cost-effective measures.

25.

What is corporate responsibility?

a)

to see the role of business in society not only as provider of goods and services, but also as a participant in the society at large.

b)

include actions affecting its employees in the workplace, its consumers in the marketplace, its communities, and the environment.

c)

Both are correct

26.

Employee benefits offered by socially responsible companies include

a)

flextime and telecommuting

b)

no health insurance

27.

Green marketing is when

a)

companies engage in the production and promotion of environmentally safe products.

b)

use the color green in their brand image

28.

To be a BBB, Better Business Bureau member, businesses must

a)

follow the highest principles of business ethics and voluntary self-regulation

b)

have a proven record of marketplace honesty and integrity

c)

Both are necessary.

29.

When products in high demand, such as hotel rooms, bottled water, flashlights, food, and fuel, are often priced higher due to the unusual demand created by the catastrophe of a hurricane or tornado is called

a)

Price gouging

b)

whistle-blowing

c)

management

30.

Reporting an illegal action of one’s employer is called

a)

whistle-blowing

b)

price gouging

c)

snitching

31.

The result of the desire to gain power, gather information or hurt someone is called

a)

gossip

b)

green marketing

c)

code of conduct

32.

The principles of right and wrong that guide an individual in making decisions.

a)

personal ethics

b)

business ethics

c)

business culture

33.

These are the most popular forms of business ownership...

a)

sole proprietorship, corporation and partnership

b)

limited liability partnership & s-corporation

34.

A group that functions like a business but uses the money it makes to fund the cause identified in its charter is called a

a)

non-profit organization

b)

for-profit business

35.

A business that sells its products only in its own country is considered a

a)

domestic business

b)

global business