WorksheetsBUSSHART - PRINCIPLES OF BUSINESS 5.00C - 30 QUESTIONS
Total questions: 30
Worksheet time: 16mins
Which is an example of a speculative business risk?
Speculative risk is a category of risk that, when undertaken, results in an uncertain degree of gain or loss.
A special promotion fails to increase sales.
A supplier's shipment is lost in transit.
A cashier gives unauthorized discounts to friends.
A customer is injured at a business and sues the company.
Which is a factor that affects the business environment?
Industry competition
Staff organization
Information management
Conflict negotiation
One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually:
Provides experience that increases the business's credibility.
Assumes all legal responsibility for the business's actions.
Helps with the day-to-day operations of the business.
Evaluates the performance of the business's employees
The government can borrow money from the private sector in order to pay the costs of regulation by:
Setting prices.
Raising taxes.
Issuing bonds.
Selling licenses
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?
Celler-Kefauver Act
Clayton Act
Sherman Act
Robinson-Patman Act
Which change provides the most time utility for a consumer?
Staying open for business on the weekend
Arriving at a product trade show early
Shopping for a product in the morning
Asking for early delivery of a product
A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?
Buyer’s
Discount
Seller’s
Automotive
When prices increase, producers usually:
Increase demand.
Decrease supply.
Increase supply.
Decrease profits.
Which situations would cause prices to rise?
The corn crop is unusually large one summer.
Insects destroy a large cotton crop.
Animal rights activists march in front of a fur store.
A newspaper article describes poor service provided by a hotel.
For a business, income remaining after payment of expenses is
Loss.
Capital.
Profit.
Debt.
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?
762,750 - (291,400+238,930)
$368,730 B.
$232,420
$471,350
$523,820
Which represents a natural risk for the owner of a delivery service?
Snowstorm
Accident
Rising prices
Government intervention
A small-business owner whose business is a sole proprietorship is planning to “go global.” What method for going global would be best to recommend to the small-business owner?
Start by hiring an export management company.
Start by building facilities in the countries of interest.
Start by merging with a foreign business that can sell your products.
Start by renting facilities in the countries of interest and hiring foreign employees.
Business ethics involve considering issues about what is:
Positive and negative.
Legal and illegal.
Safe and unsafe.
Right and wrong
A business selects goods or services to sell. Which type of risk is this business using?
Transferring risk
Controlling risk
Bypassing risk
Avoiding risk
Equilibrium price of a good or service is determined by trial and error and exists when:
Research shows what the market will tolerate.
The amount supplied is equal to the amount demanded.
Businesses total their costs and markup.
Businesses compute the average selling price in the area.
Which occurs when the supply of individuals who are able and willing to work diminishes?
Capital goods become unlimited.
Capital goods become limited.
Human resources become limited.
Human resources become unlimited
Who decides how goods and services will be marketed in a private enterprise economic system?
Legislators
Business people
Competitors
Consumers
Which is a problem associated with communist command economies?
There is no competition.
There are high taxes.
Supply and demand control what will be produced.
Individuals run the risk of losing their businesses.
Which is an example of an economic factor that affects the business environment?
Business cycle
Employee morale
Management style
Long-term goals
The two main divisions of the trade industry are:
Manufacturers and wholesalers.
Wholesalers and retailers.
Producers and retailers.
Wholesalers and producers.
Which affects the business environment because it provides the most options for consumers?
Command economy
International sanctions
Monopoly
Global competition
The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product?
Finance
Marketing
Management
Production
Which is a natural resource that can be renewed through people's efforts?
Water
Crude oil
Trees
Mineral deposits
The desire for which item(s) would be considered a noneconomic want?
A car
Nutritious food
A walk
New clothing
Which group of words best describes wants?
Limited, changing, and compensating
Unlimited, changing, and competing
Limited, unchanging, and competing
Unlimited, unchanging, and compensating
A business that begins selling winter holiday decorations in late autumn is creating what type of utility?
Time
Place
Form
Possession
The usefulness of a product to consumers is referred to as product:
Scarcity.
Utility.
Allocation.
Consumption.
Kim invests heavily in a marketing campaign to stimulate sales for her company. What type of management process is this an example of?
Competitive aggression
Innovative management
Organizational learning
Proactive management
At PME Company, four employees worked 25 hours a week and produced 4,200 products. What is the total hourly production output? 100 HOURS/4200 =
(a)
