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Worksheets8th Grade Unit 1 Assessment: Businesses and Investing
Total questions: 21
Worksheet time: 2hrs 45mins
A(n) ___________ offers goods or services in exchange for money.
entrepreneur
business
venture capitalist
consumer
A(n) __________________ is a person who takes the risk of owning and managing their own business.
entrepreneur
business
venture capitalist
consumer
Income - expenses
Gross pay
Tax
Profit
Consumer
The cost of ingredients for your cake is $7.50. It takes you 1 hour to make. If minimum wage is $10 an hour, what is the suggested wholesale price of your cake?
(a)
When starting your own business, it is important to:
Have a business plan
Have available capital for start up costs
Advertise and promote your goods or services
All of the above
A(n) ____________________ is when a person runs a business by themselves; assumes all debts and profits, and does not have separate legal distinction from their business.
sole proprietorship
partnership
corporation
franchise
Which type of business structure elects officers like a CEO, CFO and President to run the day-to-day operations, and viewed as a separate legal entity from its individual employees?
sole proprietorship
partnership
corporation
franchise
What determines the prices of goods and services?
Supply
Demand
Supply and demand
Goods
What exists when quantity supplied is greater than quantity demanded?
Surplus
Shortage
Overflow
Mass outrage
A market is said to be in equilibrium when
when demand is higher than the supply
when demand is lower than the supply
when the demand and supply quantities are equal
when the supply is doubled the demand
What happens to price when the market has a surplus
price drops
price stays the same
price increases
price triples
Kanye West's new shoe the Yeezy Boost sold out in stores. This is an example of _______________
shortage
surplus
equilibrium
supply
How can you gain capital to expand your business?
take out a loan from the bank
sell stock of your company
issue bonds to investors
all of the above
What is a stock?
A loan an investor makes to a company or government that pays interest over time.
A share of ownership in a company
A collection of investments sold as a package.
An option to purchase something in the future at todays price.
What is a bond?
a piece of ownership of a company
a promise that the borrower will pay the lender the money back plus interest
a bank account
a type of tax
What is an IPO?
When a company goes bankrupt
When a company takes out a loan
When a company's stocks are open to the public
When a company has a surplus
What is the primary reason for a company to issue stock?
The stocks help investors earn a higher rate of return
To raise money to grow the company
To distribute the risk of bankruptcy across more investors
To increase greater awareness of the company
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
The relationship between risk and return can be stated as
Higher risk indicates higher return
Higher risk indicates lower return
Lower risk indicates higher return
No relationship exists between risk and return
Your money remains tax-deferred in this account until you withdraw (taxed as income)
Roth IRA
Traditional IRA
Who is the most successful investor of all time?
Leonardo DiCaprio
Jimmy Buffett
Jeff Bezos
Warren Buffett
