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Intro to Business Final Exam Review

Total questions: 63

Worksheet time: 30mins

Name
Class
Date
1.

an organization that produces and distributes goods and services.

a)

Market

b)

Consumer

c)

Business

2.

Items sold by a business that you can see or touch

a)

Goods

b)

Services

c)

Consumers

3.

 Activities provided by a business that cannot be touched. 

a)

Goods

b)

Services

c)

Consumers

4.

Things that are necessary for survival are

a)

Goods

b)

Wants

c)

Needs

5.

Things that we would like to have, but are not necessary for survival are

a)

Goods

b)

Wants

c)

Needs

6.

Businesses call people that use goods and services every _____

a)

Consumers

b)

Profits

c)

Wants

7.

A type of business that makes money from donations by people.

a)

Online business

b)

Non-profit Organization

c)

Market

8.

A construction worker is an example of which factor of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

9.

A tree is an example of which factor of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

10.

A tractor is an example of which factor of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

11.

A business owner is an example of which factor of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

12.

Which of the items listed here is not a typical function needed to operate a business?

a)

human resources

b)

food service

c)

finance

d)

marketing

13.

Which part of a business plan provides an overview of what the business is about?

a)

sales

b)

market analysis

c)

management and organization

d)

executive summary

14.

If you instantly recognize the name of a business, like Facebook or Amazon, you know the company has strong marketing.

a)

True

b)

False

15.

You are marketing a cheap tablet that is especially geared toward the needs of high school students. What demographic variable would you most likely consider in your marketing campaign?

a)

marital status

b)

gender

c)

religion

d)

age

16.

The actions of your marketing department most directly affect which part of your business?

a)

production

b)

sales

c)

finance

d)

management

17.

Which of the following indicates a period of time in which economic growth is happening?

a)

Contraction

b)

Expansion

c)

Trough

d)

Recession

18.

As a company, I am going through a phase in which orders are coming in at a faster rate and we are hiring new employees to keep up with demand. Which phase is this company in?

a)

Contraction

b)

Peak

c)

Trough

d)

Expansion

19.

As a company, I am going through a phase in which there are too many employees and not enough work. A lot of newer businesses have had to close down due to not being able to keep up with their expenses. I have had to lay off employees and am struggling to create enough business to pay my debts. Hopefully the economy will expand soon...

a)

Contraction

b)

Peak

c)

Trough

d)

Expansion

20.

During an expansion, unemployment rates:

a)

Increase due to businesses having to lay off workers because of lower demand

b)

Decrease due to businesses hiring new employees due to growing demand

21.

Factories are an example of human capital

a)

True

b)

False

22.

A person who starts a new business is called an entrepreneur.

a)

True

b)

False

23.

Entrepreneurs are good for the USA because they provide and create jobs for workers

a)

True

b)

False

24.

Modern factories and computers are important natural resources to the USA's economy

a)

True

b)

False

25.

Dave starts a lawn care company. He is the only owner. His business is a:

a)

General Partnership

b)

Limited Liability Corporation

c)

Sole Proprietorship

d)

Corporation

26.

When developing a product or service, a business must do all of the following except

a)

create a need for the product or service

b)

evaluate the demand for the product or service.

c)

obtain start-up and operating capital.

d)

keep records to satisfy government requirements.

27.

One of the biggest obstacles in starting a business is

a)

having a good idea.

b)

being good at something.

c)

accepting responsibility.

d)

obtaining financing.

28.

A written description of a business venture that describes all aspects of the business is called

a)

a company charter.

b)

a company policy.

c)

a business plan.

d)

an executive summary.

29.

SBA stands for

a)

Start-Up business

b)

Small Business Agency

c)

Small Business Administration

d)

Small Business of America

30.

Challenges an entrepreneur might face include all of the following except

a)

risk of losing their investment.

b)

profit.

c)

getting start-up funds.

d)

being fully responsible for the business

31.

There are three (3) main types of business organizations: sole proprietorships, partnerships, and corporations.

a)

True

b)

False

32.

All of the following are disadvantages of forming a corporation except

a)

increased government regulation.

b)

limited liability.

c)

double taxation.

d)

difficult to start.

33.

A business may stop manufacturing because

a)

of government taxes.

b)

it can't keep up with demand.

c)

there's a decrease in demand.

34.

The main reason people become entrepreneurs is so they can be creative.

a)

True

b)

False

35.

All of the following are disadvantages of forming a corporation except

a)

double taxation

b)

limited liability

c)

government regulation

d)

difficult to start

36.

Five main functions involved in the operations of a business include all of these except

a)

marketing.

b)

advertising.

c)

management.

d)

finance/accounting.

37.

Creating goals and objectives as well as strategies to meet them

a)

organizing

b)

planning.

c)

leading.

d)

controlling.

38.

Most important skill needed by managers

a)

give orders.

b)

be creative.

c)

predict the future.

d)

multi-task

39.

The debts of a company are called

a)

assets.

b)

liabilities.

c)

credits.

d)

capital.

40.

Money that remains after a business has paid for the expenses of running the business.

a)

Competition

b)

Marketing

c)

Franchise

d)

Profit

41.

Contest between businesses to win customers' business and loyalty

a)

Needs

b)

Competition

c)

Marketing

d)

Partnership

42.

Items necessary for existence, such as clothing, food, and shelter.

a)

Needs

b)

Wants

43.

Items that would be nice to have, but are not necessary.

a)

Needs

b)

Wants

44.

A person who uses goods or services. Many times they are also the customer (AKA: purchaser).

a)

Competition

b)

Accounting

c)

Consumer

d)

Sole Proprietorship

45.

Items businesses sell that can be physically weighed or measured, such as clothing and candy.

a)

Goods

b)

Services

46.

Tasks that businesses perform or provide for customers, such as haircuts and car washes.

a)

Goods

b)

Services

47.

The process of recording and reporting the financial data for a business.

a)

Human Resources

b)

Non-profit organization

c)

Operations

d)

Accounting

48.

Management is...

a)

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

b)

The process of leading and directing all or part of an organization.

c)

The process of creating, promoting, and presenting a product to the consumers.

49.

The process of creating, promoting, and presenting a product to the consumers.

a)

Competition

b)

Partnership

c)

Information Technology

d)

Marketing

50.

The process of developing, installing, and implementing computer information systems and applications. IT includes the support and maintenance of computer hardware and software.

a)

Information Technology

b)

Computers

c)

Internet

d)

Human Resources

51.

The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

a)

Management

b)

Consumer

c)

Operations

d)

Multinational Corporation

52.

The activities that deal with the hiring, firing, training and other personnel (employee) issues.

a)

Management

b)

Marketing

c)

Franchise

d)

Human Resources

53.

A Sole Proprietorship is...

a)

A business owned by two or more people

b)

A business owned by only one person.

c)

A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.

d)

A company that does business and has business facilities in many countries, such as Coca Cola.

54.

A Partnership is...

a)

A business considered separate from the owners of the business by law. The owners are the stockholders.

b)

A contract between a parent company and a franchisee to use the name and sell the goods or services of the parent company, such as KFC.

c)

A business owned by only one person.

d)

A business owned by two or more people.

55.

A contract between a parent company and a franchisee to use the name and sell the goods or services of the parent company, such as KFC.

a)

Franchise

b)

Corporation

c)

Multinational Corporation

d)

Non-profit organization

56.

A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.

a)

Franchise

b)

Sole Proprietorship

c)

Non-profit organization

d)

Multinational Corporation

57.

A business considered separate from the owners of the business by law. The owners are the stockholders.

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Non-profit organization

58.

A Multinational Corporation is...

a)

A company that does business and has business facilities in many countries, such as Coca Cola.

b)

A business owned by only one person.

c)

A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.

d)

A contract between a parent company and a franchisee to use the name and sell the goods or services of the parent company, such as KFC.

59.

someone who takes a risk in starting a business to earn a profit.

a)

entrepreneur

b)

engineer

c)

innovator

d)

entrepreneurship

60.

an independent business with fewer than 500 employees.

a)

innovation

b)

small business

c)

venture capital

d)

small business association

61.

money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.

a)

business plan

b)

start up financing

c)

long term financing

d)

short term financing

62.

True or False...everyone who owns or manages a business is an entrepreneur.

a)

true

b)

false

63.

The Small Business Administration considers a business small if it employs fewer than _____ employees.

a. 5

b. 20

c. 100

d. 500

a)

500

b)

100

c)

20

d)

5