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Exploring Business and Entrepreneurship Unit 1

Total questions: 42

Worksheet time: 21mins

Name
Class
Date
1.

What is a difference between consumers and customers?

a)

Consumers make goods and services.

b)

Consumers purchase goods and services.

c)

Customers make goods and services.

d)

Customers purchase goods and services.

2.

What do wants and needs have in common?

a)

Both needs and wants are goods.

b)

Both needs and wants are services.

c)

Both needs and wants are things people must have.

d)

Both needs and wants are things people use.

3.

What is a difference between wants and needs?

a)

Needs are goods and wants are services.

b)

Needs are necessary for survival, wants are nice to have.

c)

Needs are nice to have, wants are necessary for survival.

d)

Needs are services and wants are goods.

4.

Plumbing, heating/air conditioning repair, accounting services, and lawn care are all considered what type of businesses?

a)

Combination product and service

b)

Product type

c)

Service provider

d)

Sole proprietorship

5.

Most car dealerships, beauty salons, and home improvement stores are classified as which type of business?

a)

Combination product and service

b)

Non-profit

c)

Product type

d)

Service provider

6.

Clothing stores, CD stores, and electronics stores are all classified as which type of business?

a)

Combination product and service

b)

Non-profit

c)

Product type

d)

Service provider

7.

Barber shops, dry cleaners, and car repair shops are all classified as which type of business?

a)

Combination product and service

b)

Non-profit

c)

Product type

d)

Service provider

8.

Norman and Jones Septic Tank Cleaners are the best septic tank cleaners in Mount Airy. How is Norman and Jones Septic Tank Cleaners classified?

a)

Combination product and service

b)

Non-profit

c)

Product type

d)

Service provider

9.

Feather Duster Maids Company employs seven maids to clean people's houses. How is this business classified?

a)

Combination product and service

b)

Non-profit

c)

Product type

d)

Service provider

10.

The Starving Artists Society uses its gallery to sell paintings of local artists. The funds raised by The Starving Artists Society are used to help local artists continue in their chosen profession. The Starving Artists Society is classified as a:

a)

combination product and service.

b)

for-profit.

c)

non-profit.

d)

service business.

11.

The Gap, Dell, and IBM are all classified as which type of business?

a)

Combination product and service

b)

For-profit

c)

Non-profit

d)

Service provider

12.

Homeless shelters, the March of Dimes, and the Salvation Army are all classified as which type of business?

a)

Combination product and service

b)

For-profit

c)

Non-profit

d)

Product type

13.

Tom and Clare met in college and started a website maintenance business to earn money for their college expenses. How is their website maintenance business classified?

a)

Combination product and service

b)

For-profit

c)

Non-profit

d)

Product

14.

Goodwill Industries helps poor and homeless people with the money raised by selling donated products in their stores. Goodwill is classified as what kind of business?

a)

Combination product and service

b)

For-profit

c)

Non-profit

d)

Service provider

15.

What is an advantage of a franchise over a sole proprietorship?

a)

Franchisees can sell stock to start up the business.

b)

Franchisees do not have to work in the business.

c)

Parent company provides training and support to franchisee.

d)

Parent company will pay all of the franchisee's start up costs.

16.

How are a franchise and a sole proprietorship alike?

a)

Can sell stock to raise money

b)

Easy to start the business

c)

Owner keeps all profits

d)

Require a contract to start

17.

How is a corporation different from a sole proprietorship and a partnership?

a)

Corporations are easier to start.

b)

Corporations do not require a charter.

c)

Corporations provide limited owner liability.

d)

Corporations provide lower owner taxes.

18.

When comparing the four main business types, which has the most risk and rewards for an individual?

a)

Corporation

b)

Franchise

c)

Partnership

d)

Sole proprietorship

19.

When comparing the four main business types, which allows the owner to start selling products most quickly?

a)

Corporation

b)

Franchise

c)

Partnership

d)

Sole proprietorship

20.

When comparing the four main types of businesses, which has the BIGGEST DISADVANTAGE when it comes to paying taxes?

a)

Corporation

b)

Franchises

c)

Partnership

d)

Sole proprietorship

21.

When comparing the four main types of business organization, which type protects owners the MOST from personal financial liability due to being sued by a customer?

a)

Corporation

b)

Franchise

c)

Partnership

d)

Sole proprietorship

22.

Steven and his brothers want to start a plumbing business together. What is an advantage of organizing the business as a partnership rather than a corporation?

a)

Partnerships can be started up quickly.

b)

Partnerships can issue stock to raise money.

c)

Partnerships have limited legal liability.

d)

Partnerships need a legal charter to begin.

23.

How is a corporation different from a sole proprietorship?

a)

Corporations are owned by only one person.

b)

Corporations can sell stock to raise money for the business.

c)

Sole proprietorships have limited liability for the owners.

d)

Sole proprietorships require a legal charter to start the business.

24.

How is a corporation different from a sole proprietorship or partnership?

a)

Corporation has only one or two owners.

b)

Corporation is usually owned by one person.

c)

Corporation requires a legal charter to start.

d)

The owners of the corporation control the business.

25.

What is an advantage of a partnership over a sole proprietorship?

a)

Equal owner control

b)

Limited owner profit

c)

No contracts are necessary to start

d)

Unlimited legal liability shared

26.

How are sole proprietorships and partnerships alike?

a)

Contracts are needed to start the businesses.

b)

Owners have complete control of the business.

c)

Owners have limited legal liability.

d)

The businesses are owned by one person.

27.

Collecting money from customers, paying taxes, and processing payroll checks are all classified as which type of function?

a)

Accounting

b)

Human Resources

c)

Information Technology

d)

Operations

28.

Promoting, distributing, and pricing products are all classified as which type of function?

a)

Accounting

b)

Human Resources

c)

Management

d)

Marketing

29.

Ensuring that the organization meets goals, and working with employees to accomplish organizational goals are both classified as which type of function?

a)

Accounting

b)

Human Resources

c)

Management

d)

Marketing

30.

Hiring, firing, and managing the company benefits and educational opportunities for employees are all classified as which type of function?

a)

Accounting

b)

Human Resources

c)

Information Technology

d)

Operations

31.

Maintaining email accounts, installing software applications, and maintaining hardware are all classified as which type of function?

a)

Accounting

b)

Human resources

c)

Information technology

d)

Operations

32.

Which is an example of an information technology function for a business?

a)

Emailing customers to ensure satisfaction

b)

Processing paperwork for new employees

c)

Producing income statements

d)

Testing new computer software

33.

Which is an example of an information technology function for a business?

a)

Determining product pricing

b)

Hiring new employees

c)

Monitoring computer networks

d)

Paying employees

34.

Which is an example of a human resources function for a business?

a)

Calling customers to ensure satisfaction

b)

Obtaining new products to replace sold stock

c)

Processing new employees' payroll paperwork

d)

Producing the annual company balance sheet

35.

Which is an example of a marketing function for a business?

a)

Creating a banner ad for the company website

b)

Interviewing potential sales employees

c)

Obtaining new products to replace sold stock

d)

Preparing income statements for the business

36.

Which is an example of an accounting function for a business?

a)

Handling the payments made by customers

b)

Obtaining new products to replace sold stock

c)

Re-stocking items in the warehouse

d)

Scheduling delivery of purchased stock

37.

Which is an example of a marketing function for a business?

a)

Interviewing potential employees

b)

Preparing a new TV advertising campaign

c)

Preparing income statements for the business

d)

Processing the employee payroll a business?

38.

Which is an example of a marketing function for a business?

a)

Hiring new employees to fill vacancies in the business

b)

Placing products in strategic locations in the stores

c)

Producing financial statements for the company

d)

Producing payroll checks for all employees

39.

Which is an example of an accounting function for a business?

a)

Calling customers about new products

b)

Creating a new advertising campaign

c)

Maintaining computer equipment

d)

Preparing a cash flow statement

40.

Which is an example of an accounting function for a business?

a)

Designing print advertisements

b)

Hiring employees

c)

Preparing a balance sheet

d)

Testing computer software

41.

Which is an example of an information technology function for a business?

a)

Determining pricing

b)

Hiring new employees

c)

Maintaining computers

d)

Paying employees

42.

Which is an example of a marketing function for a business?

a)

Preparing a loading dock schedule

b)

Preparing an advertisement for TV

c)

Preparing an income statement

d)

Preparing an organizational chart