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WorksheetsBusiness Management 1 Review
Total questions: 105
Worksheet time: 1hrs 19mins
Name
Class
Date
1.
Which of the following is a way that entrepreneurship helps our society?
a)
Eliminates financial concerns
b)
Reduces taxes
c)
Creates new jobs
d)
Decreases economic growth
2.
One difference between entrepreneurs and small-business owners is that
a)
small-business owners generally are not interested in expanding their businesses.
b)
entrepreneurs rarely manage the day-to-day aspects of their businesses.
c)
small-business owners usually employ between 500 and 1,000 workers.
d)
entrepreneurs usually purchase existing businesses or franchise rights.
3.
While managers help make entrepreneurs’ visions a reality, they aren’t required to
a)
set business objectives.
b)
assume the risk involved.
c)
implement procedures.
d)
formulate company policy.
4.
The most likely reason an individual might turn a woodworking hobby into a business is because of
a)
personal satisfaction.
b)
higher taxes.
c)
guaranteed financial security.
d)
sales quotas.
5.
Michelle’s primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the __________ she hopes to have as a business owner.
a)
flexibility and independence
b)
personal commitment
c)
tax breaks and deductions
d)
advanced technology
6.
Many businesses fail due to insufficient capital. Insufficient capital is also known as a lack of
a)
money.
b)
commitment.
c)
employees.
d)
advertising.
7.
In the early stages of a startup business, entrepreneurs assume sole responsibility for
a)
the daily activities of competitors.
b)
the demand of their products.
c)
global economic growth rates.
d)
all aspects of their businesses.
8.
What is a disadvantage of entrepreneurship?
a)
Personal satisfaction
b)
Lower taxes
c)
Fewer resources
d)
Uncertain income
9.
How are entrepreneurs similar?
a)
Startup business owners rarely fail at their entrepreneurial ventures.
b)
They have strong personal traits, such as determination and confidence.
c)
Most entrepreneurs go on to start other businesses.
d)
They are born with excellent leadership and communication skills.
10.
Even though there is a significant chance that his business will fail, Sidney intends to open a sports memorabilia shop. What entrepreneurial trait is Sidney exhibiting?
a)
Creativity
b)
Open-mindedness
c)
Willingness to take risks
d)
Organization
11.
What is another term for environmental scanning?
a)
Environmental protection
b)
Environmental planning
c)
Environmental analysis
d)
Environmental management
12.
Why is environmental scanning important for businesses?
a)
To be aware of competitors' internal environments
b)
To be aware of potential threats
c)
To be aware of new products
d)
To be aware of foreign markets
13.
Which of the following can a business not control?
a)
Production
b)
External environment
c)
Research and development
d)
Personnel
14.
Which of the following is a true statement about a business's environment?
a)
It may not affect the business, depending on the industry.
b)
It is always changing.
c)
It can be avoided.
d)
It consists of the economy and technology.
15.
Which of the following is an example of a demographic trend?
a)
Rising interest rates
b)
A concern for fitness and health
c)
The aging of the population
d)
Shifting political climates
16.
Inflation is a factor involved in which category of an environmental scan?
a)
Competition
b)
Demographics
c)
Economy
d)
Technology
17.
Which of the following is an example of brand competition?
a)
Beauty salons v. veterinarians
b)
Microsoft v. Walmart
c)
Grocery stores v. fitness centers
d)
Coke v. Pepsi
18.
Which of the following is a factor that relates to the government category of an environmental scan?
a)
Import/Export regulations
b)
Advances in technology
c)
Religious affiliation
d)
Stage of the business cycle
19.
Which of the following is the most rapidly changing category of information included in an environmental scan?
a)
Demographics
b)
Competition
c)
Government
d)
Technology
20.
Which of the following examples illustrates how environmental factors are dynamic?
a)
Demographics influence social and cultural attitudes.
b)
The economy impacts government policies.
c)
The government provides subsidies to agricultural businesses.
d)
High interest rates will eventually get lower.
21.
Which of the following examples illustrates how environmental factors are interrelated?
a)
Low investor confidence heavily impacts financial planners.
b)
The economy affects banking institutions.
c)
New legislation will be written in the future.
d)
The economy affects what competitors are doing.
22.
Which of the following is an example of how a business or industry has a unique relationship with its environment?
a)
Social and cultural attitudes change over time.
b)
New technology causes new laws to be enacted.
c)
An economy in prosperity will eventually experience recession.
d)
Demand for skilled nursing care rises as the population ages.
23.
What is one way in which government protects private property?
a)
Local governmental programs
b)
Fire insurance policies
c)
Patents or copyrights
d)
Federal Reserve Banks
24.
Through what means is the government involved in settling business disagreements?
a)
Courts
b)
Fines
c)
Force
d)
Negotiation
25.
Why does government set and collect taxes?
a)
To increase the use of technology
b)
To help businesses grow and prosper
c)
To provide economic security
d)
To help pay the expenses of government
26.
What is one reason that has caused government's role in business to expand?
a)
People's attitudes have changed
b)
Competition in the marketplace has increased
c)
Costs of production have continued to increase
d)
Products have become very technical
27.
What is the purpose of government regulation of business activities that might cause air or water pollution?
a)
To conserve the environment
b)
To protect competition
c)
To provide public goods
d)
To stabilize the economy
28.
Is the following statement true or false? Government has become an active participant in the world of business.
a)
True; government helps start monopolies
b)
False; government works with businesses only
c)
False; government doesn't produce any products
d)
True; government produces goods and services
29.
What is the main goal of business?
a)
Provide the best products
b)
Make a profit
c)
Provide a safe working environment
d)
Save the environment
30.
What is a public good that is provided by the government?
a)
New automobiles
b)
Interstate highways
c)
Private schools
d)
Marketing research
31.
What is the benefit of welfare programs to businesses in a private enterprise economy?
a)
Businesses must budget more money for taxes
b)
Government has control of how the recipients spend their money
c)
Funds received by recipients are spent in businesses
d)
Recipients don't have to work
32.
Which government action is most likely to stimulate the economy?
a)
Lowering tax rates
b)
Raising the prime interest rate
c)
Printing less money
d)
Borrowing more money
33.
What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?
a)
Industrializing the economy
b)
Encouraging the production of wheat
c)
Using price supports
d)
Encouraging energy conservation
34.
How does the government protect competition?
a)
Controlling the prices of products
b)
Restricting the production of certain products
c)
Regulating monopolies
d)
Preventing all monopolies
35.
Which regulatory agency would be concerned with price fixing and unfair competitive practices?
a)
Federal Communications Commission
b)
Consumer Product Safety Commission
c)
Federal Trade Commission
d)
National Labor Relations Board
36.
How can the government prevent unqualified persons from operating a business?
a)
Raising their taxes
b)
Refusing to grant them a license
c)
Helping their competitors
d)
Closing their bank accounts
37.
Which of the following is affected by the legal structure that a business owner chooses?
a)
Government regulation and the nature of the business.
b)
International tariffs and the ability to control business activities.
c)
The amount of stock issued and capability to expand internationally.
d)
Taxation rates and government regulation.
38.
What is an advantage of sole proprietorships?
a)
Quick decision making
b)
Unlimited financial power
c)
Limited liability
d)
Dual taxation
39.
What is a disadvantage of sole proprietorships?
a)
Tax liability
b)
Control
c)
Limited capital
d)
Privacy
40.
What is an advantage of general partnerships?
a)
Unlimited liability
b)
Combined capabilities
c)
Easy to end
d)
Limited capital
41.
What is a disadvantage of general partnerships?
a)
Difficult to end
b)
Reduced expenses
c)
Decreased competition
d)
Increased capital
42.
What is the best way to reduce disagreements that often occur when two people go into business together?
a)
State charter
b)
Operating permit
c)
DBA document
d)
Partnership agreement
43.
What is an advantage of the corporation as a form of business ownership?
a)
Tax advantages
b)
Less complex requirements
c)
Limited liability
d)
Separate owners and managers
44.
What is a disadvantage of corporations?
a)
Unlimited liability
b)
Reduced financial power
c)
Unlimited life
d)
High taxes
45.
What is an advantage of forming a business as a hybrid (e.g., LLC, LLP)?
a)
Structure has an unlimited life span
b)
Owners and managers operate separately
c)
Members experience unlimited liability
d)
Structure offers members a great deal of flexibility
46.
Why would a law firm establish business ownership as a limited liability partnership?
a)
So that disagreements that often occur in general partnerships can be eliminated
b)
To protect innocent partners from the malpractice of another partner
c)
To take advantage of the benefits of an unlimited life span
d)
So each partner can practice a specialized area of law
47.
What is the primary disadvantage in using the hybrid (e.g., LLC, LLP) business ownership option?
a)
The lack of resources available to members
b)
The lack of universal guidelines among states
c)
The level of difficulty to form and operate
d)
The ability to transfer ownership to another person
48.
Which of the following forms of business ownership has the most potential for financial power?
a)
Sole proprietorship
b)
Limited liability partnership
c)
Corporation
d)
General partnership
49.
What is the first step business owners must take when selecting business ownership options?
a)
Nature of the business
b)
Lender’s interest rates
c)
Demographics of the target market
d)
Need for local permits
50.
What do two local business owners want to reduce when they decide to become partners?
a)
Liability
b)
Capital
c)
Expenses
d)
Competition
51.
What is the purpose of marketers planning?
a)
To measure their success
b)
To lay out their strategies
c)
To achieve satisfying connections
d)
To agree upon a goal
52.
What is the goal of conducting customer surveys?
a)
Improving this year’s telemarketing skills by 7% over last year’s skills
b)
Improving this year’s proposal writing by 7% over last year’s writing
c)
Improving this year’s customer satisfaction by 7% over last year’s ratings
d)
Improving this year’s sales training results by 7% over last year’s results
53.
Which of the following is a strategy for increasing website sales?
a)
Putting the web address on company vehicles
b)
Printing the web address on company business cards
c)
Letting people know the web address
d)
Including the web address in advertising
54.
What is a tactic for training customer service staff?
a)
Increasing customer benefits
b)
Scheduling customer service training dates
c)
Improving the customer waiting area
d)
Offering customers a payment plan
55.
What can be evaluated to determine a goal's success?
a)
Advantage
b)
Benefit
c)
Success
d)
Progress
56.
What does a marketer want to choose when planning a strategy?
a)
Easy route
b)
Reasonable route
c)
Efficient route
d)
Straight route
57.
What is an important characteristic of marketing tactics?
a)
The tactics should bring in enough money
b)
The tactics should support the marketing mix
c)
The tactics should line up with marketing strategies
d)
The tactics should focus on customers
58.
Why is a firm's strategy important?
a)
To show how its tactics will be organized
b)
To show how its prices will be lowered
c)
To show how its marketing mix will be blended
d)
To show how its goal will be reached
59.
What should marketers consider when selecting the best strategy?
a)
Resources needed to research and develop their product
b)
How to get their product into more customers’ hands
c)
How the marketing concept applies to their situation
d)
When they want promotional messages delivered to customers
60.
What should a marketer do after selecting the best strategy?
a)
List the available resources
b)
Determine the final deadline
c)
Set aside the needed funds
d)
Apply the marketing concept
61.
What is the most likely obstacle for a marketer to encounter?
a)
Government regulations might change
b)
A social media campaign might succeed
c)
A competitor might create an inferior product
d)
Profits might increase
62.
What is the marketing mix?
a)
A method of determining what a marketer wants to achieve
b)
A strategy that serves as a guide
c)
An element of marketing that puts a product in the right place at the right time
d)
A combination of the four elements of marketing
63.
What question might marketers ask when working on the product element of marketing?
a)
How much should the product cost?
b)
What level of quality should be produced?
c)
What media should be used to promote the product?
d)
Where should the product be sold?
64.
What might a marketer do to achieve the company’s pricing objective of raising the product’s value in the customer’s eyes?
a)
Decide how to package the product
b)
Ask a higher price for the product
c)
Order more of the product
d)
Lower the product’s price
65.
What is part of balancing value and satisfaction for the customer in marketing?
a)
Product
b)
Place
c)
Promotion
d)
Price
66.
What must customers do first to buy a product?
a)
make sure the product is on sale
b)
locate the product in a store
c)
learn the product’s features
d)
be willing to buy the product
67.
How can a target market be described?
a)
way a business draws its customers
b)
direction the market is headed
c)
sample of the market
d)
group of customers the business seeks to attract
68.
What do marketers primarily notice when examining a market?
a)
records
b)
merchants
c)
leaders
d)
categories
69.
What type of marketing is Marzetti's Musical Instruments engaged in when it focuses its marketing efforts on senior high-school students?
a)
risky
b)
industrial
c)
mass
d)
target
70.
What is the goal of marketers when using mass marketing?
a)
entire market
b)
loyal market
c)
local market
d)
teen market
71.
What is it called when sellers offer one-size-fits-all products that will appeal to most buyers?
a)
market segmentation
b)
demographic segmentation
c)
mass production
d)
mass marketing
72.
What is a group called when the total market is divided?
a)
slice
b)
segment
c)
share
d)
subdivision
73.
What is mass marketing not as precise as?
a)
segment marketing
b)
promotional marketing
c)
direct marketing
d)
event marketing
74.
What do marketers divide their markets by grouping customers according to?
a)
differences
b)
occupations
c)
similarities
d)
hobbies
75.
What is sorting customers by their physical and social characteristics called?
a)
demographic segmentation
b)
statistical segmentation
c)
behavioral segmentation
d)
psychographic segmentation
76.
What type of segmentation is the community college using when it markets its evening classes to women between the ages of 18 and 30 who are high-school graduates?
a)
demographic
b)
geographic
c)
behavioral
d)
psychographic
77.
What is the customer characteristic that reflects where customers fit in the day-to-day buying routine known as?
a)
life stage
b)
origin or heritage
c)
personal belief
d)
socioeconomic status
78.
What is geographic segmentation dividing a market by?
a)
working
b)
born
c)
educated
d)
living
79.
What do marketers divide customers by when they sort them psychographically?
a)
likable traits
b)
loyalty to a brand
c)
lifestyle habits
d)
level of education
80.
Are marketing plans important only for new businesses?
a)
It depends on the business size
b)
No
c)
It depends on the business industry
d)
Yes
81.
Why do marketing plans help marketers understand target markets better?
a)
Because they require personal interviews with people in the target market(s)
b)
Because most of the marketing plan is about the target market(s)
c)
Because they require a great deal of research into the target market(s)
d)
Because without a marketing plan, a company has no target market(s)
82.
How does a marketing plan affect the planning of marketing strategies?
a)
The team can plan strategies more quickly
b)
The team can plan strategies up to 10 years in advance
c)
The team has more difficulty planning strategies
d)
The team can plan strategies with more precision
83.
What is an important benefit of marketing plans?
a)
They develop exciting products
b)
They help recruit quality employees
c)
They can help obtain funding
d)
They ensure a yearly profit
84.
Do marketing-plan formats vary from business to business?
a)
No
b)
It depends on the business size
c)
Yes
d)
It depends on the business industry
85.
What is the purpose of the executive summary in a marketing plan?
a)
To serve as an introduction
b)
To list marketing objectives
c)
To assess the company’s current marketing situation
d)
To describe the desired target market
86.
What should be included in a marketing plan’s executive summary?
a)
The organization’s mission statement
b)
A description of the target market(s)
c)
A SWOT analysis chart
d)
The names and numbers of marketing team members
87.
Which component serves as a snapshot of the business’s current marketing situation?
a)
Marketing strategies and programs
b)
Marketing objectives
c)
Desired target market
d)
Situation analysis
88.
What is often included in a marketing plan’s situation analysis?
a)
Performance standards for implementing the plan
b)
A list of the proposed strategies and programs
c)
A SWOT analysis chart
d)
A list of the company’s marketing objectives
89.
Is the desired target market section included in every marketing plan?
a)
It depends on the business size
b)
Yes
c)
No
d)
It depends on the business industry
90.
What word describes an ideal marketing objective?
a)
Broad
b)
Comprehensive
c)
Measurable
d)
Open-ended
91.
What information is included in the marketing objectives section of a marketing plan?
a)
Marketing strategies and programs
b)
The company’s finances
c)
The desired target market(s)
d)
Potential issues the marketing team must overcome
92.
What purpose does the longest section of the marketing plan serve?
a)
To describe the desired target market
b)
To assess the company’s current marketing situation
c)
To list marketing objectives
d)
To detail marketing strategies and programs
93.
Conducting a SWOT analysis is the first step in which process?
a)
Risk management
b)
Business organization
c)
Fundraising
d)
Strategic planning
94.
A good reputation among current clients is a(n)
a)
Strength
b)
Opportunity
c)
Threat
d)
Weakness
95.
New competition moving into your area is a(n)
a)
Strength
b)
Threat
c)
Opportunity
d)
Weakness
96.
A new customer moving into your area is a(n)
a)
Threat
b)
Strength
c)
Weakness
d)
Opportunity
97.
A lack of equipment or technology is primarily a(n)
a)
Weakness
b)
Threat
c)
Strength
d)
Opportunity
98.
Which of the following is a benefit of conducting SWOT analysis:
a)
It provides a filter for a great deal of information.
b)
Your business will make more money.
c)
It completes the task of strategic planning.
d)
Weaknesses will diminish for your business.
99.
The most crucial part of the SWOT analysis method involves
a)
Your goal for the analysis.
b)
The number of strengths you identify.
c)
What time of year you conduct the analysis.
d)
Where you get your information.
100.
SWOT analysis is especially helpful when
a)
You have a limited amount of time.
b)
Your business is old.
c)
Your business is young.
d)
You have an unlimited amount of time.
101.
What is the first step in the SWOT analysis process?
a)
Investigating weaknesses
b)
Conducting interviews
c)
Filling in the SWOT matrix
d)
Determining goals and objectives
102.
When conducting SWOT analysis, consider strengths and weaknesses in relation to
a)
Your business’s past.
b)
Your business’s future.
c)
The competition.
d)
Opportunities.
103.
Which of the following questions is appropriate for determining weaknesses:
a)
What are our advantages?
b)
What obstacles do we face?
c)
What can we improve?
d)
What economic trends are beneficial to us?
104.
It’s important not to confuse weaknesses with
a)
Mistakes.
b)
Strengths.
c)
Resources.
d)
Opportunities.
105.
Which of the following questions is appropriate for determining threats:
a)
What niches have our competitors missed?
b)
What new needs of customers can we meet?
c)
What obstacles do we face?
d)
What are our assets?
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