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WorksheetsQ2 Business Study Guide
Total questions: 59
Worksheet time: 30mins
Name
Class
Date
1.
1. Tasmeen owns a retail business along with four other people. Like the other owners, Tasmeen is not personally responsible for the debts of the company. Her personal assets are thus protected in case the company incurs losses. Given this information, it can be assumed that Tasmeen _____.
a)
a. owns a corporation
b)
b. has a general partnership
c)
c. has a limited partnership
d)
d. owns a proprietorship
2.
2. A sole proprietorship is a form of business ownership in which:
a)
a. the company is considered a legal entity that is separate from its owners.
b)
b. a single owner actively manages the company.
c)
c. two or more people act as co-owners of the company.
d)
d. the owners of the business are offered limited liability and flexible tax treatment.
3.
3. A _____ refers to a partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm.
a)
a. limited partnership
b)
b. general partnership
c)
c. limited liability partnership
d)
d. publicly traded partnership
4.
4. A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.
a)
a. sole proprietorship
b)
b. partnership
c)
c. cooperative
d)
d. corporation
5.
5. Which of the following types of business ownership offers limited personal liability to the owners?
a)
a. Sole Proprietorship
b)
b. LLC
c)
c. General Partnership
d)
d. Partnership
6.
6. Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is:
a)
a. subjected to double taxation.
b)
b. treated as Albert's personal income.
c)
c. not subjected to any form of taxation.
d)
d. taxable only when he acquires shareholders.
7.
7. When people use the term "corporation" without specifying which type, they are generally referring to a(n) _____.
a)
a. statutory close corporation
b)
b. nonprofit corporation
c)
c. S corporation
d)
d. C corporation
8.
8. An owner of a C corporation is called a _____.
a)
a. director
b)
b. sole proprietor
c)
c. stockholder
d)
d. chief executive officer
9.
9. A textile corporation has two hundred odd stockholders. As it is inconvenient for so many stockholders to manage the company, the stockholders elect a group of individuals to oversee the company's operation and to represent their interests. In this scenario, the stockholders elect a _____.
a)
a. board of valuers
b)
b. board of directors
c)
c. board of corporators
d)
d. board of regents
10.
10. Which of the following is a difference between a C corporation and an S corporation?
a)
a. The members of a C corporation have unlimited liability, whereas the members of an S corporation enjoy limited liability.
b)
b. The members of a C corporation have limited liability, whereas the members of an S corporation have unlimited liability.
c)
c. A C corporation is double taxed, whereas an S corporation is taxed once.
d)
d. A C corporation is taxed as a partnership, whereas an S corporation is double taxed.
11.
1. Just like the resume should get you an interview, the elevator pitch should get you ________.
a)
a S. A. F. E.
b)
an offer to invest
c)
the next meeting
d)
a broad and diverse network
12.
2. Customer discovery is the process of ________ -- or relying on facts to start a business--not what you think that customers want, but what customers actually will buy (not necessarily what they say the will buy).
a)
conducting solution interviews
b)
validating your assumptions
c)
disintermediation
d)
factual reallocation
13.
3. See the "bug report" below. Why might an entrepreneur use the "bug report" system?
a)
to identify early adopters
b)
to validate assumptions
c)
to identify potential opportunities
d)
to validate pest control
14.
4. What is the term for when a company has a unique solution which it can defend from competition?
a)
Innovative defensible construct
b)
Sustainable competitive advantage
c)
Unique dedicated advantage
d)
Innovative defended solution
15.
5. True or False. Entrepreneurs should use social media platforms to advertise their startups online.
a)
True
b)
False
16.
6. The process of ideation includes all of the following except:
a)
a process for coming up with new ideas.
b)
methods of convincing clients to buy products and services.
c)
systems for validating assumptions.
d)
methods for evaluating both new ideas and existing businesses.
17.
7. The average age at which an Entrepreneur starts their first business is 40 years old.
a)
True
b)
False
18.
8. The U.S. Small Business Administration (SBA) gives interest-free loans to start-up businesses and fully guarantees loans from local commercial lenders.
a)
True
b)
False
19.
9. A _____ is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives.
a)
business warrant
b)
business resource
c)
business directory
d)
business plan
20.
10. The primary reason people choose to become entrepreneurs is to:
a)
avoid difficult challenges.
b)
avoid uncertainty.
c)
earn more money.
d)
develop evolutionary business models.
21.
11. Who among the following people is most likely to become a necessity entrepreneur?
a)
A person who has recently graduated from college and has no work experience.
b)
A person who has recently been promoted to a managerial position
c)
A person who experiences discrimination in the standard workplace
d)
A person who avoids challenges and financial risks
22.
12. In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?
a)
An internal locus of control is an entrepreneurial trait, whereas an external locus of control is not.
b)
An internal locus of control does not involve self-reliance, whereas an external locus of control does.
c)
An internal locus of control involves personal responsibility, whereas an external locus of control does not.
d)
An internal locus of control is not applicable in market niches, whereas an external locus of control is.
23.
13. Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business.
a)
venture capital
b)
crowdfunding
c)
commercial loans
d)
personal resources
24.
14. Small business start-ups are likely to find that getting commercial loans are:
a)
difficult because lenders are reluctant to give loans to firms that do not have a track record.
b)
one of the most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies.
c)
the most difficult because start-ups require higher financing than what banks can offer.
d)
the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies.
25.
15. _____ is the process of funding ventures by raising money from a large number of investors via the Internet.
a)
Microloan programming
b)
Crowdfunding
c)
Activity-based costing
d)
Backscratching
26.
16. True or False. External locus of control is a deep-seated sense that the individual is personally responsible for what happens in his or her life.
a)
True
b)
False
27.
1. True or false. Planning refers to determining organizational goals.
a)
True
b)
False
28.
2. True or false. According to Maslow's hierarchy of needs theory, healthcare plans and life insurance serve to satisfy the esteem needs of employees.
a)
True
b)
False
29.
3. True or false. Theory Y mangers assume that fear is a motivating factor for workings.
a)
True
b)
False
30.
4. The _____ of a firm includes managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources.
a)
top management
b)
middle management
c)
first-line management
d)
supervisory management
31.
5. In the context of management, which of the following statements is true of controlling?
a)
It refers to monitoring performance and making adjustments as needed.
b)
It refers to determining a structure for both individual jobs and the overall organization.
c)
It refers to determining organizational goals and action plans for how to achieve those goals.
d)
It refers to directing and motivating people to achieve organizational goals.
32.
6. Barry is the branch manager of a large toy store. He has been given the responsibility to communicate with, coach, and motivate supervising managers. In this scenario, Barry most likely requires _____ to perform his role efficiently.
a)
human skills
b)
conceptual skills
c)
technical skills
d)
cognitive skills
33.
7. In the context of management skills, _____ refer to the ability of managers to grasp a big-picture view of the overall organization and the relationship between its various parts.
a)
human skills
b)
technical skills
c)
conceptual skills
d)
Option 4
34.
8. Maslow's hierarchy of needs theory states that people:
a)
mostly fulfill their unmet needs through unfair means.
b)
view their unmet needs as unachievable.
c)
are only motivated to fulfill the needs that are achievable.
d)
are motivated to satisfy only unmet needs.
35.
9. An assumption of Theory X is that:
a)
people can exercise self-direction and self-control to meet company goals.
b)
the intellectual capacity of the average worker is underutilized in the workplace.
c)
coercion and threats are vital to get people to work toward company goals.
d)
people can accept and even seek responsibility.
36.
10. In the context of Maslow's hierarchy of needs theory, the scenario that reflects the fulfillment of the self-actualization needs of an employee is him or her:
a)
participating in a fun team activity.
b)
participating in a campaign to feed the poor.
c)
availing the gym facility at his or her workplace.
d)
experiencing a positive work culture.
37.
11. An assumption of Theory Y is that:
a)
coercion and threats are vital to get people to work toward company goals.
b)
workers dislike work and will do everything they can to avoid it.
c)
people can accept and even seek responsibility.
d)
people prefer to be directed.
38.
12. A company is known to have a reward policy for its employees. The manager gives its employees a chance to improve if a mistake is made by them. What can you infer about the management culture?
a)
Traditional Managment
b)
Total Quality Management
c)
Supply Chain Management
d)
Sales Mangement
39.
13. Which of the following is not a principle of Six Sigma?
a)
Always focus on the customer.
b)
Make your processes flow smoothly.
c)
Reduce waste and concentrate on number of products made.
d)
Get buy-in from the team through collaboration.
40.
What are the five factors of production?
a)
Food, clothing, shelter, education, and healthcare
b)
Love, happiness, success, friendship, and peace
c)
Land, labor, capital, entrepreneurship, and knowledge
41.
What is the role of an entrepreneur in society?
a)
The role of an entrepreneur in society is to create new businesses, generate employment opportunities, and drive innovation and economic growth.
b)
The role of an entrepreneur in society is to limit business growth and hinder economic development
c)
The role of an entrepreneur in society is to create monopolies and reduce employment opportunities
d)
The role of an entrepreneur in society is to discourage innovation and economic growth
42.
Which of the following is part of the external business environment?
a)
cultural factors
b)
company policies
c)
Employee benefits
d)
Customer satisfaction
43.
Which of the following is part of the internal business environment?
a)
Customer demographics
b)
Competitor analysis
c)
Company policies
d)
External market trends
44.
What is more difficult to control, the internal or external business environment?
a)
Internal business environment
b)
External business environment
c)
Neither is difficult to control
d)
Both are equally difficult to control
45.
What is the difference between capitalism and communism?
a)
Capitalism is based on private ownership and free market competition, while communism is based on collective ownership and centralized planning.
b)
Capitalism and communism both prioritize government control over the economy
c)
Capitalism is based on collective ownership and centralized planning, while communism is based on private ownership and free market competition
d)
Capitalism and communism are the same thing
46.
What is the difference between macroeconomics and microeconomics?
a)
Macroeconomics focuses on the economy as a whole, while microeconomics focuses on individual markets and businesses.
b)
Macroeconomics focuses on short-term economic fluctuations, while microeconomics focuses on long-term economic growth
c)
Macroeconomics focuses on government policies, while microeconomics focuses on consumer behavior
d)
Macroeconomics focuses on agriculture, while microeconomics focuses on technology
47.
What are the three major indicators or the health of an economy?
a)
Stock market performance, consumer spending, and government debt
b)
Exchange rate, poverty rate, and interest rates
c)
Housing market prices, trade balance, and social security benefits
d)
GDP growth, unemployment rate, and inflation rate
48.
What is the difference between demand-pull and cost-push inflation?
a)
Stable demand for goods and services vs. stable production costs
b)
Increase in demand for goods and services vs. increase in production costs
c)
Decrease in demand for goods and services vs. decrease in production costs
d)
Increase in supply of goods and services vs. decrease in production costs
49.
Why do economists use an index of goods (such as CPI) to measure inflation rather than a single product?
a)
To make the data more confusing and difficult to interpret
b)
To provide a more comprehensive and representative view of price changes across a wide range of products and services.
c)
Because economists are lazy and don't want to do the work of measuring individual products
d)
To hide the true rate of inflation and deceive the public
50.
What is monetary policy?
a)
Ways to increase government spending
b)
Actions taken by a central bank to control the money supply and interest rates
c)
Methods for regulating international trade
d)
Strategies for reducing inflation
51.
increasing the interest rates ________ inflation.
a)
has no effect on
b)
can help to reduce
c)
leads to an increase in
52.
What is fiscal policy?
a)
Government spending and taxation to influence the economy
b)
International trade agreements
c)
Environmental conservation efforts
d)
Personal budgeting and saving
53.
What is the difference between perfect competition and monopolistic competition?
a)
Product differentiation
b)
Consumer demand and advertising
c)
Government regulation and barriers to entry
d)
Price setting and market power
54.
What is the difference between an oligopoly and a monopoly?
a)
Oligopoly has only one firm dominating the market
b)
Oligopoly has a few large firms controlling the market, while a monopoly has only one firm dominating the market.
c)
Monopoly has a few large firms controlling the market
d)
Oligopoly has many small firms controlling the market
55.
Which of the following is most likely to function within a market structure of perfect competition?
a)
A large multinational corporation
b)
A small agricultural producer
c)
A government monopoly
d)
An exclusive luxury brand
56.
Which market structure creates the highest barrier to entry?
a)
Monopoly
b)
Perfect Competition
c)
Monopolistic Competition
d)
Oligopoly
57.
What is Deontology?
a)
A theory that prioritizes the consequences of actions over following moral rules
b)
A moral theory that emphasizes the importance of following moral rules and duties.
c)
A belief system that focuses on the individual's happiness as the ultimate moral goal
d)
A philosophy that advocates for making decisions based on personal desires and preferences
58.
What is Utilitarianism?
a)
A philosophical theory that suggests the best action is the one that maximizes utility, or happiness, for the greatest number of people.
b)
A form of government based on individual rights
c)
A philosophical theory that suggests the best action is to follow duties and responsibilities.
59.
What role does ethics play in business?
a)
Ethics in business has no impact on the success of the company
b)
Ethics in business only benefits the stakeholders and not the company itself
c)
Ethics in business is only important for small businesses, not large corporations
d)
Ethics in business ensures fair and responsible practices, builds trust with stakeholders, and contributes to long-term success.
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