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Business essentials unit 2

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

When employees are working faster they are increasing their

a)

Wages

b)

Benefits

c)

Value

d)

Efficiency

2.

A hurricane that destroys a business is an example of a (n) ____ risk

a)

Operational

b)

Financial

c)

Strategic

d)

Hazard

3.

The automobile industry, the pharmaceutical industry, and the oil industry are all examples of

a)

Market structures

b)

Perfect competition

c)

Oligopolies

d)

Monopolistic competition

4.

What motivates business to produce efficiently and sell effectively?

a)

The desire to spend money

b)

The hole of making profit

c)

The need of recognition

d)

The chance to start a trend

5.

A gap between unlimited wants and limited resources creates

a)

Economics

b)

Resources

c)

Wants

d)

Scarcity

6.

Seeing a movie at a theater a theater would be considered a (n) _____ want.

a)

Economic

b)

Unlimited

c)

Limited

d)

Non-economic

7.

Which of the following represents a primary business activity

a)

Scheduling

b)

Designing

c)

Marketing

d)

Supervising

8.

Which of the following statements about perfect competition is correct:

a)

There are limited supply of goods and services.

b)

Businesses have a good deal of control over the market.

c)

Products vary from seller to seller.

d)

It is used as benchmark to compare real market structures against.

9.

Offering high quality, large assortments, and free shipping are examples of

a)

Rebates

b)

No price competition

c)

Price fixing

d)

Price competition

10.

When a business keeps a risk because management is unaware of it, the business is _____ the risk

a)

Avoiding

b)

Prevent or controlling

c)

Retaining

d)

Transferring

11.

Having well-planned building and providing effective employee training are ways that a business can _______ business risks

a)

Transfer

b)

Insure against

c)

Retain

d)

Prevent or control

12.

The heart of economics is

a)

Trade-offs

b)

Wants

c)

Resources

d)

Decision making

13.

What are three basic economic questions

a)

When will products be produced, how products be produced, and how will produced products be allocated.

b)

When will products be produced, what products will be produced, and how will products be allocated.

c)

What products will be produced, how will products be produced, and how will products be allocated.

d)

Where will products be produced, when will products be produced, and what products will be produced.

14.

To use resources wisely, business owners must reduce

a)

Risk

b)

Reward

c)

Waste

d)

Wages

15.

In business terms what is profit?

a)

A good investment

b)

A holiday bonus

c)

A monetary reward

d)

A risky venture

16.

Who answers the basic economic questions in a private enterprise economic system

a)

Government agencies

b)

Influential citizens

c)

Businesses and individuals

d)

Entrepreneurs and producer

17.

Which one of the following groups of words best describes wants

a)

Limited, unchanging, and compensating

b)

Unlimited, changing, and competing

c)

Limited, unchanging, and competing

d)

Unlimited, unchanging, and compensating

18.

Every business must accomplish which of the following

a)

Produce or provide goods/services

b)

Obtain venture capital

c)

Issue corporate bonds

d)

Trade or sell business assets/ property

19.

A large retailer feels that it has a duty to continue to the well being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating

a)

Social responsibility

b)

Wholesaling

c)

Voluntary chains

d)

E-tailing

20.

What type of market structure is most commonly found in a private enterprise economy?

a)

Perfect competition

b)

Regulated monopoly

c)

Oligopoly

d)

Monopolistic competition

21.

The general classifications of business risk are

a)

Competitive, strategic, financial, and operational

b)

Production, hazard, operational, and strategic

c)

Hazard, operational, strategic, and financial

d)

Strategic, production, competitive, and hazard

22.

Which factors that affect profit are usually able to be controlled

a)

Income and expenses

b)

Expenses and pricing

c)

Pricing and billing

d)

Expenses and billing

23.

The amount of money paid for raw materials and products sold is called

a)

Operating expense

b)

Cost of goods

c)

Net profit

d)

Gross profit

24.

Malinda owns a home, and instead of living in it, she decides to rent it out to make more money.

Which economic freedom does this illustrate?

a)

Freedom to own, use, buy, and sell private property

b)

Freedom to complete for jobs

c)

Freedom to choose which laws obey

d)

Freedom to control all the money you earn

25.

The basic role of the unites states government is to

a)

Protect U.S. citizens

b)

Maintain control of prices

c)

Increase production

d)

Limit business startups