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WorksheetsIntro to Biz Final Review
Total questions: 45
Worksheet time: 25mins
A person who recognizes a business opportunity and organizes, manages, and assumes the risk of starting and operating a business.
Risk taker
Employee
Manager
Entrepreneur
Which of the following is NOT likely a characteristic of a successful entrepreneur?
Hard working
Goal oriented
Enjoys being told what to do
Independent
Which of the following is a reward of entrepreneurship?
Being your own boss
Guaranteed success
Being responsible for all the decisions
Unlimited resources
Which of the following is a challenge of entrepreneurship?
Doing what you enjoy
Securing funds for the business
Getting along with your partner
Following franchisor requirements
This type of business takes raw materials and turns them into a finished good. For example, a company that takes wood and produces furniture.
Retailing
Wholesaling
Manufacturing
Service
This type of business provides an intangible product, such as legal advice.
Retailing
Wholesaling
Manufacturing
Service
This type of business sells directly to the final consumer, such as a grocery store.
Retailing
Wholesaling
Manufacturing
Service
A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.
Sole proprietorship
Partnership
Franchise
Corporation
A business owned and operated by a single individual.
Sole proprietorship
Partnership
Franchise
Corporation
An entity with the legal authority to act as a single person. Owned by shareholders.
Sole proprietorship
Partnership
Franchise
Corporation
This arrangement grants permission to sell products and services to another business. It offers brand/product recognition and a proven format of business that is successful.
Sole proprietorship
Partnership
Franchise
Corporation
A disadvantage to this type of ownership is unlimited personal liability, as well as limited resources.
Sole proprietorship
Partnership
Franchise
Corporation
Although there are the advantages of a recognized name brand and marketing support, there is little freedom with this form of business ownership.
Sole proprietorship
Partnership
Franchise
Corporation
An advantage to this type of business ownership is additional resources, as well as additional ideas and expertise. However, a clear contract outlining responsibilities, how profits will be divided, etc. should be drawn before beginning this type of business ownership to prevent any disputes.
Sole proprietorship
Partnership
Franchise
Corporation
A/An ____________________ is an individual who undertakes the creation, organization, and ownership of a business.
Consumer
Business Owner
Entrepreneur
Capitalist
The resources businesses use to produce the goods and services people want are called __________.
factors of production
economic system
market structure
all of the above
Money, tools, equipment, machines, buildings are an example of a ____________________ Factor of Production.
land
Entrepreneur
capital
labor
If the quantity supplied exceeds the quantity demanded there is a __________ in the market.
surplus
shortage
equilibrium
other
If the quantity demanded exceeds the quantity supplied there is a __________ in the market.
surplus
shortage
equilibrium
other
Unlimited wants and needs and limited resources is the problem of __________.
Demand
Supply
Economics
equilibrium
A new study finds that fidget spinners significantly improve learning and attention in the classroom. Which shifts?
Supply
Demand
Both
Neither
What happens? (in the above example)
Decrease
Increase
Stays the same
What happens to price? (in fidget spinner example)
Decrease
Increase
Stays the same
What happens to quantity? (in fidget spinner example)
Decrease
Increase
Stays the same
Accounts receivable
The account created when money is owed to a business from providing a good/service
The account created when a business owes money to a vendor
The owner’s investment in the business
Money the business has already received from providing a good/service
Owner’s equity
Items of value a company owns
The owner’s salary
The owner’s profits
The owner’s investment in the business
Income statement
Shows the company's revenues and expenses over a period of time
A report of balances in all assets, liabilities, and owner’s equity accounts at the end of an accounting period
A statement that shows all the money the company has made
A report of all employees income
Accounts payable
The account created when money is owed to a business from providing a good/service
The account created when a business owes money to a vendor
The owner’s investment in the business
Money the business has already received from providing a good/service
Liabilities
Amounts owed by a business
Amounts owed to a business
Items of value a company owns
Things that are a legal risk
Double entry system
If you add something, you must subtract something
You must record each transaction twice
A transaction always affects at least two of a company’s accounts
There are two doors to get into the company
Assets
Amounts owed by a business
Amounts owed to a business
Items of value a company owns
Things that are a legal risk
Balance Sheet
Also called the profit and loss statement
A report of balances in all assets, liabilities, and owner’s equity accounts at the end of an accounting period
A statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents
A report of all employees income
Generally Accepted Accounting Principles (GAAP)
common set of accounting principles, standards and procedures that companies must follow when they compile their financial statements.
aims to improve the clarity, consistency, and comparability of the communication of financial information.
Must be used by all accountants and professionals keeping business records
All of the above
Harris is concerned about the effects of inflation on his investment returns. Which statement best describes inflation?
The rise in the general level of prices
The uncertainty about the return on an investment
The number of times something happens to money
The projected value of an investment at the end of a specified time frame
The most common relationship between risk and return in investing can be stated as:
higher risk indicates lower potential return
higher risk indicates higher potential return
lower risk indicates higher potential return
No relationship exists between risk and return
Elliot's stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:
increases the risk/return ratio
limits investors choices to only one or two investment tools
indicates an investor is a good predictor of the return an investment will have
decreases risk by investing money in a variety of investment tools
Which of the following is not true in regards to investing in stock?
A stockholder owns a part of a company.
Depending upon the current market price, stockholders may pay different prices for the same stock.
A stockholder may or may not receive a dividend.
A stockholder will always receive a profit when the stock is sold.
A unique series of letters assigned to a stock for trading purposes - for example Apple, Inc. is AAPL
Tik tok symbol
Ticket symbol
Ticker symbol
Stock abbreviation
Which investment would be at the top of the investment pyramid?
Stocks
Bonds
Collectibles
Savings account
Rate of return equation
The four P’s of marketing are
Product, place, price, profit
Product, place, price, promotion
Production, place, price, profit
Product, people, price, promotion
A target market is defined as
An area in which goods are bought and sold
A sales goal you wish to achieve
A discount store similar to Walmart
A particular group of consumers at which a product is aimed.
Marketing is
The process of advertising and promoting products
The process of selling goods
The process of creating relationships with and satisfying customers
The process of recording financial transactions
The process of dividing a total market into several relatively similar groups to reach desirable target markets.
Target marketing
Market segmentation
Advertising
Distribution
Which is an example of a demographic?
I live in Trumbull.
I like to swim.
I am 17 years old.
I like to eat healthy.
