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Business Essentials Practice

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

A business that buys goods or services and sells them to the ultimate consumer is known as?

a)

manufacturer

b)

producer

c)

retailer

d)

wholesaler

2.

The Candy Store is selling more and more chocolate each quarter. Applying the law of supply and demand, what is most likely to happen over the next few quarters?

a)

The price will increase, and the supply will increase.

b)

The price will decrease, and the supply will increase.

c)

The price will increase, and the supply will decrease.

d)

The price will decrease, and the supply will decrease.

3.

What is the primary reason customers give for not returning to a business?

a)

lack of available parking

b)

lack of advertised merchandise

c)

lack of courtesy from salespeople

d)

lack of customer-service personnel

4.

What do service businesses sell?

a)

raw goods and services

b)

retail goods and services

c)

intangible goods and services

d)

wholesale goods and services

5.

Which behavior best describes the primary business activity of operations?

a)

hiring qualified employees

b)

planning for future success

c)

producing goods and services

d)

keeping accurate financial records

6.

The accounting document that shows a business’s revenue and expenses is known as a/an?

a)

balance sheet

b)

income statement

c)

cash flow statement

d)

statement of owner’s equity

7.

Which document, provided either in paper format or in electronic format from a prospective employer’s website, does a company use to collect employment information about a candidate?

a)

license

b)

résumé

c)

job application

d)

letter of application

8.

Kathy wants to know whether her boutique made or lost money this month. What financial document should she view?

a)

balance sheet

b)

income statement

c)

cash flow statement

d)

statement of owner’s equity

9.

Jordan owns a successful landscaping business. Landscaping is an example of a/an?

a)

input

b)

inventory

c)

output

d)

service

10.

What are the two main divisions of the trade industry?

a)

producers and retailers

b)

wholesalers and retailers

c)

wholesalers and producers

d)

manufacturers and wholesalers

11.

To prepare for effective decision-making that ensures the efficient delivery of products to the marketplace, one should study:

a)

marketing.

b)

economics.

c)

job outlooks.

d)

supply chains.

12.

A characteristic of a seller’s market is:

a)

lower profits.

b)

higher prices.

c)

larger supply.

d)

smaller demand.

13.

What is the economic basis for the private enterprise economic system?

a)

competition

b)

the marketplace

c)

the motive of profit

d)

manufacturer supply chain

14.

Economic resources that help people be more productive are:

a)

human resources.

b)

natural resources.

c)

capital goods resources.

d)

nonrenewable resources.

15.

Hugo is creating a book report for his English class. He can create an outline, the report, and a list of works cited all in the same application. Which application software is Hugo using?

a)

database

b)

presentation

c)

spreadsheet

d)

word processing

16.

Which is a true statement about making promises to customers?

a)

It is better to over-deliver.

b)

It is better to over-promise.

c)

Customers do not remember broken promises.

d)

Businesses should not make promises to customers.

17.

Which word processing document lists one’s detailed work history, educational history, skills, and references?

a)

license

b)

résumé

c)

job application

d)

letter of application

18.

A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this?

a)

avoidance

b)

reduction

c)

retention

d)

transfer

19.

Piper looks up to her new boss and tries to learn from her behavior as much as possible. However, Piper knows that some of her boss’s actions are unethical. Piper is uncertain whether she should follow her boss’s example. Which ethical dilemma is Piper facing?

a)

greed

b)

a bad role model

c)

pressure from others

d)

the desire to prove herself

20.

A form of demand for products in which changes in price correspond to changes in demand is:

a)

consumer.

b)

elastic.

c)

equilibrium

d)

inelastic

21.

In the human resource management process, what is the first task to be completed for staffing?

a)

recruiting

b)

determining need

c)

determining job descriptions

d)

screening and selecting applicants

22.

Tina is an architect who works with engineers to create precision drawings and technical illustrations. What type of computer technology does Tina use?

a)

expert systems

b)

networking technology

c)

computer-aided design (CAD)

d)

Voice over Internet Protocol (VoIP)

23.

Why is information management necessary for strategic information in a business?

a)

to write an annual report

b)

to make long-term decisions

c)

to create sales presentations

d)

to develop a short-term advertising campaign

24.

What are the programs that instruct computers to perform specific operations?

a)

cookies

b)

software

c)

hardware

d)

information systems

25.

Bryan would like to send the same email message to multiple people at once. He wants to save their email contact information for future e-mail messages too. Which email service should he use?

a)

virus

b)

attachments

c)

address book

d)

distribution lists

26.

What is the set of computer programs that manage the hardware and software of a computer?

a)

electronic resource

b)

digital connection

c)

operating system

d)

transfer protocol

27.

What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil?

a)

oligopolies

b)

monopolies

c)

perfect competition

d)

monopolistic competition

28.

A large retailer wants to contribute to the well-being of society. It donates 10% of its proceeds to a charity that helps the environment. The retailer is demonstrating:

a)

e-tailing.

b)

wholesaling.

c)

social responsibility.

d)

voluntary merchandise.

29.

Which application software is designed to create, store, manage, search, and extract information?

a)

database application

b)

presentation application

c)

spreadsheet application

d)

word processing application

30.

The economic resource where people work to produce goods or services are:

a)

capital goods.

b)

human resources.

c)

natural resources

d)

non-economic goods

31.

Mrs. Taylor is helping her students create accounting forms in class. They are entering numbers and text to create the forms, which calculate the ending financial information. Which application software are they using?

a)

database

b)

presentation

c)

spreadsheet

d)

word processing

32.

Competition helps create a healthy society by:

a)

creating new jobs.

b)

increasing the money supply.

c)

making new government regulations.

d)

replacing small businesses with large businesses.

33.

New Gear studied trends in the marketplace to price their jerseys. There was an abundance of jerseys remaining after meeting the demand creating which market condition?

a)

equilibrium

b)

rationing

c)

shortage

d)

surplus

34.

ABC Corporation bought a new conveyor belt. What type of good is the conveyor belt?

a)

capital good

b)

natural good

c)

public good

d)

consumer good

35.

Connor is working on a billboard to showcase his new service. What part of the marketing mix is he working on?

a)

place

b)

price

c)

product

d)

promotion

36.

The finance activity regarding how to source income is called:

a)

accounting.

b)

acquiring funds.

c)

administering assets.

d)

making capital investment decisions.

37.

Outer Banks Transmission Company specializes in automotive repair. Which computer technology helps the mechanic to diagnose car engine trouble?

a)

expert systems

b)

networking technology

c)

computer-aided design (CAD)

d)

Voice over Internet Protocol (VoIP)

38.

Deciding to stay home and study, instead of going to a basketball game, is an example of a/an:

a)

trade-off.

b)

capital good.

c)

economic want.

d)

economic service.

39.

In 1890, Congress passed a law that prevents monopolies from forming and hinders price fixing. What law is this?

a)

Clayton Act

b)

Sherman Anti-trust Act

c)

Robinson Patman Act

d)

Celler-Kefauver Antimerger Act

40.

Shannon is the manager and he ensures proper work effort by setting:

a)

job standards.

b)

hiring objectives.

c)

diversity quotas.

d)

expense budgets.

41.

Ian works in the marketing department. What is the primary business objective of his department?

a)

to help its corporation merge with another company

b)

to hire qualified employees to perform complex job duties

c)

to meet customers’ needs by offering appropriate products

d)

to prepare for long-term success by planning and organizing

42.

The Brooks Company produces sneakers and studies trends in the marketplace to price their sneakers. The Brooks Company supplied as many sneakers as consumers demanded to create which market condition?

a)

equilibrium

b)

shortage

c)

rationing

d)

surplus

43.

Isabelle owns a home cleaning business. She invoices her customer and records the transaction as soon as she finishes each home cleaning. Which type of accounting method is Isabelle using?

a)

accrual

b)

cost

c)

cash

d)

managerial

44.

Which is a way to show transparency?

a)

XYZ Company makes sure its employees are taken care of.

b)

XYZ Company ensures that all its products are biodegradable.

c)

XYZ Company listens to multiple opinions before making a decision.

d)

XYZ Company is always upfront about the financial situation of the company.

45.

Why do many businesses store information in a computerized database?

a)

to maintain client lists

b)

to transcribe word documents

c)

to calculate and chart economic trends

d)

to communicate company policies to employees

46.

Which question should one ask himself/herself to determine whether one is facing a true ethical dilemma?

a)

Is there money at stake?

b)

Could someone be hurt by these actions?

c)

Does the action make me look good to others?

d)

Is my choice based on the most popular option?

47.

When Caring Companions and Smiling Pets merged two years ago, what was the most likely effect on the primary business activities of both companies?

a)

All of the primary business activities were unaffected.

b)

Each primary business activity became two smaller business activities.

c)

All of the primary business activities combined into two distinct activities.

d)

Each primary business activity combined with the matching activity of the other firm.

48.

Which statement is true about a management information system (MIS)?

a)

It includes people, processes, and practices.

b)

It is the same thing as an information management program.

c)

It does not assist with a business’s information management program.

d)

It may be one part of a business’s overall information management program.

49.

When someone says that a business has good internal relations, this means the business has which?

a)

strong managers

b)

happy employees

c)

business partners

d)

satisfied customers

50.

A characteristic of an economic service is that it is:

a)

useful.

b)

tangible.

c)

nontransferable.

d)

free to everyone.

51.

What do businesses often develop to be able to store and analyze data for the purpose of making business decisions?

a)

advertisements

b)

employee policies

c)

information systems

d)

machinery operating guides

52.

When should customer relations skills, such as courtesy and friendliness, be emphasized during a business’s activities?

a)

during facilities design

b)

during the hiring process

c)

during marketing research

d)

during technology planning

53.

Which is a trend in proper information management?

a)

decreased competition

b)

increased number of workers in an office

c)

decreased number of electronic documents

d)

increased compliance of laws and regulations

54.

Elastic demand is more likely when the good is:

a)

a luxury.

b)

imported.

c)

lower price.

d)

inexpensive.

55.

Kaylyn is a department manager for a local retail store. She likes her job and wants to advance within the store. Kaylyn’s current work experience is a:

a)

hobby.

b)

step in her career.

c)

part-time position.

d)

momentary liking or a whim.

56.

Gasoline prices increased 30 cents per gallon. Raylee continued to purchase gasoline because her demand and need to commute to work had not changed. This is an example of what type of demand?

a)

complementary

b)

discretionary

c)

elastic

d)

inelastic

57.

Molly plans out each part of the operations process to ensure the right item is in the right place at the right time. What part of the operations function is this?

a)

marketing

b)

logistics

c)

purchasing

d)

quality control

58.

What is the computerized storage of information and facts called?

a)

database application

b)

telecommuting software

c)

Global Positioning System (GPS)

d)

Personal Identification Number (PIN)

59.

Corbin browses for workout gear online. He needs to type in the website address of the company to access the website. This website address is called:

a)

a virus.

b)

a browser.

c)

the World Wide Web (WWW).

d)

the uniform resource locator (URL).

60.

Miriam is very polite, kind to her friends, and positive in her outlook. These characteristics are called:

a)

aptitudes.

b)

attitudes.

c)

flaws.

d)

standards.

61.

Which factor is a barrier to small-business and entrepreneurial success?

a)

poor management

b)

no vision for expansion

c)

having a clear strategic vision

d)

having a surplus of employees

62.

The Equal Employment Opportunity Commission is responsible for:

a)

improving worker health and safety protection.

b)

requiring employers to treat all workers with fairness.

c)

showing prejudicial treatment, especially as an indication of bias.

d)

creating bargaining power and expressing job concerns with employers.

63.

Which is a reason that the role of human resources management is changing?

a)

Business costs are going down.

b)

The workforce is younger than ever.

c)

There is greater diversity in the workforce.

d)

Employees place a greater emphasis on personal lives.

64.

In some places, a company can have exclusive control of the supply of a good or service such as the trash service. This is an example of:

a)

price competition.

b)

price discrimination.

c)

nonprice competition.

d)

a regulated monopoly.

65.

R & R Real Estate company buys errors and omissions liability insurance. What form of risk management is this?

a)

avoidance

b)

reduction

c)

retention

d)

transfer

66.

What is a want that can be satisfied by spending money to consume a good, service, or leisure activity?

a)

economic

b)

limited

c)

noneconomic

d)

unlimited

67.

Shayla is not breaking any laws, but her behavior still is unethical. How is this possible?

a)

Because ethical means doing what is easiest.

b)

Because doing what is legal can also be considered unethical.

c)

Because doing what is easiest is sometimes what is considered unethical.

d)

Because the ethical thing to do is always what a group or majority is doing.

68.

Retailing occurs wherever goods are:

a)

researched and designed.

b)

created or manufactured.

c)

traded or exchanged for other goods.

d)

sold to consumers or the ultimate customer.

69.

The Happy Toys Company Board of Directors has decided to give some of its profits from the year to its shareholders. It has decided to pay a:

a)

bribe.

b)

dividend.

c)

liability.

d)

tax.

70.

Applications and programs that instruct computers to perform specific operations are called:

a)

hardware.

b)

networks.

c)

satellites.

d)

software.

71.

Prices are used in our economy to:

a)

offer excessive demand.

b)

cause no change demand.

c)

encourage excessive supply of products.

d)

determine what goods are to be produced and in what quantities.

72.

How can positive customer relations boost productivity?

a)

by ensuring proper bookkeeping

b)

by cutting down on equipment costs

c)

by avoiding wasted time and resources

d)

by creating new manufacturing processes

73.

In a socialist economy, what determines how basic economic questions are answered?

a)

government

b)

products

c)

resources

d)

retailers

74.

Which software enables users to enter and store their written work as various types of documents?

a)

database

b)

presentation

c)

spreadsheet

d)

word processing

75.

Arc Electric Company holds regular safety training meetings for its employees. What form of risk management is this?

a)

capital

b)

reduction

c)

retention

d)

transfer

76.

What should employees understand about each customer in order to develop positive customer/client relations?

a)

The customer is in a hurry.

b)

The customer is like most others.

c)

The customer is a possible problem.

d)

The customer is a unique individual.

77.

Cliff wants to know how much money his business made this year. He wants to know his business’s:

a)

margin

b)

cash flow

c)

end result

d)

bottom line

78.

Monte works for a grocery store that buys food from producers and then sells it to customers. The grocery store is an example of a:

a)

builder

b)

trade industry

c)

service business

d)

raw-goods producer

79.

William plans to graduate high school in six months. Which type of goal is his plan?

a)

ultimate goal

b)

long-term goal

c)

short-term goal

d)

stepping-stone goal

80.

Which document provides a brief introduction of the employment candidate and includes paragraphs about that person’s qualifications and work experiences?

a)

license

b)

references

c)

job application

d)

letter of application

81.

What is one reason human resources management is important to the success of a business?

a)

Human resources is responsible for customer complaints.

b)

Human resources is responsible for staffing the business.

c)

Human resources is responsible for reducing wasted inventory.

d)

Human resources is responsible for eliminating jobs for the company.

82.

Customers cast economic votes every time they:

a)

buy a product.

b)

visit a business.

c)

give their opinion.

d)

participate in a survey.

83.

The economic system that adopts the fewest new ideas or improvements is:

a)

A. communist.

b)

B. market.

c)

C. socialist.

d)

D. traditional.

84.

Jerome makes laptop computers. The laptops are part of his:

a)

A. input.

b)

B. output.

c)

C. parts.

d)

D. resources.

85.

Jasmine thinks it is OK to steal a few things from work. Which ethical principle would help her realize that the long-term repercussions of her actions could create an ethical dilemma?

a)

A. fairness

b)

B. growth

c)

C. trustworthiness

d)

D. viability

86.

André keeps track of all orders, customer names and addresses, and inventory in an application software. Which application software is André using?

a)

A. database

b)

B. presentation

c)

C. spreadsheet

d)

D. word processing

87.

Beth wants to hire a disc jockey for her son’s graduation party. Deanna offers her a promotional package that includes three hours of music, special effect lighting, and a video. Deanna is marketing:

a)

A. goods.

b)

B. places.

c)

C. ideas.

d)

D. services.

88.

When the prices of iPhones increase, the quantity of iPhones offered for sale will increase. This is an example of the law of:

a)

A. equilibrium.

b)

B. production.

c)

C. shortage.

d)

D. supply.

89.

A change in products will have the most direct impact on a business’s:

a)

A. distribution.

b)

B. finances.

c)

C. marketing.

d)

D. operations.

90.

An office supply company provides discounts to teachers to make them feel important. The company is modeling which activity?

a)

A. positive customer service

b)

B. business planning

c)

C. technology upgrade

d)

D. communication skills

91.

Which is an example of a noneconomic want?

a)

A. a haircut

b)

B. sport ticket

c)

C. a concert ticket

d)

D. rain for the crops

92.

Beverly has noticed that during the holiday season, her business needs more inventory, which also increases her:

a)

A. debits.

b)

B. holding cost.

c)

C. profit and revenue.

d)

D. opportunity for shortages.

93.

Tayshaun acts with honesty in all situations. He is demonstrating:

a)

A. integrity.

b)

B. empathy.

c)

C. flexibility.

d)

D. creativity.

94.

Which computer technology uses databases of highly skilled knowledge to offer advice or make decisions in such areas as medical diagnosis and stock exchange trading?

a)

expert systems

b)

networking technology

c)

computer-aided design (CAD)

d)

Voice over Internet Protocol (VoIP)

95.

Which represents the inflow of funds into a business?

a)

cash

b)

debt

c)

expenses

d)

liabilities

96.

Cash is an example of:

a)

assets

b)

expenses

c)

equity

d)

liabilities

97.

José likes to travel across the country in his recreational vehicle. When he arrives in a new town, he stays at a local campground. He looks for part-time employment while he is in town. The type of work José is looking for is best called a:

a)

career

b)

hobby

c)

job

d)

routine

98.

Jordan is using software to create a letter of application that he will send to a potential employer. Which application software is he using?

a)

database

b)

spreadsheet

c)

presentation

d)

word processing

99.

Which U.S. law relates to information management?

a)

The Taft-Hartley Act

b)

The Sarbanes-Oxley Act

c)

The Landrum-Griffin Act

d)

The Sherman Antitrust Act

100.

A manager who helps an employee count the money in a cash drawer and prepare a bank deposit is demonstrating which workplace ability?

a)

creativity

b)

natural talent

c)

technical skill

d)

aggressive behavior