WorksheetsINTRO TO BUSINESS UNIT 1 REVIEW
Total questions: 43
Worksheet time: 23mins
_____ Is the activity of making profit by producing and selling consumers goods and services in exchange for money.
Business
Charity
Hobby
Donation
What are the three reasons why a business exists? 1. ______ 2. ______3______
1. Help People 2. Make Profit, 3. Solve problems & Create value
1. Reduce competition, 2. Avoid taxes, 3. Increase unemployment
1. Destroy resources, 2. Cause pollution, 3. Limit growth
1. Increase government control, 2. Reduce innovation, 3. Limit trade
What are the two things that a business can offer?
Goods and Services
Money and Time
Land and Labor
Ideas and Technology
What are 5 examples of a good?
Examples: Car, Book, Phone, Chair, Bread
Examples: Water, Air, Sunlight, Wind, Heat
Examples: Honesty, Kindness, Bravery, Wisdom, Patience
Examples: Running, Jumping, Swimming, Dancing, Singing
What are 5 examples of a service?
Examples: Haircut, Teaching, Car repair, Banking, Cleaning
Examples: Apple, Banana, Carrot, Orange, Grape
Examples: Table, Chair, Bed, Sofa, Desk
Examples: Mountain, River, Lake, Ocean, Desert
What is a consumer?
A person who purchases goods and services for personal use.
A person who only produces goods.
A person who sells goods to retailers.
A person who manages a factory.
What is the profit equation for a business?
Profit = Revenue - Expenses
Profit = Expenses - Revenue
Profit = Revenue + Expenses
Profit = Revenue x Expenses
What are the three main types of business ownership?
Sole Proprietorship, Partnership, Corporation
Franchise, Cooperative, Nonprofit
Limited Liability Company, Trust, Joint Venture
Holding Company, Subsidiary, Affiliate
What is the money required upfront to start a business called?
Launch Money
Capital
Investment
Start up Fund
Which type of business ownership has the least amount of start up costs?
Sole proprietorship
Partnership
Corporation
Franchise
Which type of business ownership has the highest start up costs?
Corporation
Sole Proprietorship
Partnership
Limited Liability Company (LLC)
Which type of business ownership requires that both of the owners share the profits?
Partnership
Sole Proprietorship
Corporation
Franchise
What is the difference between a want and a need from a business perspective?
A need is essential for business operations, while a want is desirable but not essential.
A want is always more expensive than a need in business.
A need is optional for business success, while a want is mandatory.
A want is required for survival, while a need is for luxury.
Tech Solutions Inc. is a small software development company with 8 employees. The owner, Maria, is reviewing the company's budget and considering various purchases for the upcoming year. Help her categorize each item as either a NEED (essential for business operations) or a WANT (desirable but not essential). Instructions: Write "NEED" or "WANT" next to each item and briefly explain your reasoning. New computers to replace 4-year-old laptops that are running slowly __________ Explanation: ___________________________________________
NEED. Explanation: New computers are essential for employees to work efficiently and maintain productivity.
WANT. Explanation: The current laptops are still usable, so new computers are not necessary.
WANT. Explanation: Upgrading computers is a luxury, not a requirement for business operations.
NEED. Explanation: New computers are only needed if the company wants to expand, not for current operations.
Tech Solutions Inc. is a small software development company with 8 employees. The owner, Maria, is reviewing the company's budget and considering various purchases for the upcoming year. Help her categorize each item as either a NEED (essential for business operations) or a WANT (desirable but not essential). Instructions: Write "NEED" or "WANT" next to each item and briefly explain your reasoning. A fancy espresso machine for the office break room __________ Explanation: ___________________________________________
WANT. Explanation: A fancy espresso machine is desirable for comfort but not essential for business operations.
NEED. Explanation: A fancy espresso machine is essential for employee productivity and business operations.
NEED. Explanation: The espresso machine is required for client meetings and business success.
WANT. Explanation: The espresso machine is a luxury item that is not necessary for daily business tasks.
Which type of organizational structure requires the organization to reinvest any and all profits back into the mission?
Profit Organization
Non-Profit Organization
Which type of organizational structure generates funding from donations?
Profit Organization
Non-Profit Organization
Which type of organizational structure is owned by individuals, partners, or investors?
Profit Organization
Non-Profit Organization
Apple is an example of which type of organization?
Profit Organization
Non-Profit Organization
The American Red Cross is an example of which type of organization?
Profit Organization
Non-Profit Organization
(a) is a business ownership type that has one solo business owner.
Maria wants to start a small bakery by herself. She wants to keep things simple and doesn't want to deal with lots of paperwork or regulations. What type of business ownership would you recommend?
Partnership
Corporation
Sole Proprietorship
Non-Profit
Two friends, Alex and Sam, want to open a law firm together. They plan to share the work, expenses, and profits equally. What type of business ownership makes the most sense for them?
Partnership
Corporation
Sole Proprietorship
Non-Profit
(a) is a business ownership type that has two owners.
A group of investors wants to start a large technology company. They plan to each invest financial capital to start the business. What type of business ownership should they choose?
Partnership
Corporation
Sole Proprietorship
Non-Profit
(a) is a business ownership type where the business has many owners that each invest capital to start the business.
What are the four ways that a business can grow?
1. Increasing Sales
2. Expanding product lines
3. Hiring more employees
4. Mergers and Acquisitions
1. Decreasing Sales
2. Decreasing product lines
3. Hiring less employees 4. Not buying out smaller businesses
1. Increasing Sales
2. Expanding product lines
3. Hiring less employees 4. Not merging with competitors
1. Decreasing Sales
2. Expanding product lines
3. Hiring more employees
4. Acquiring only sole proprietorships
Coca Cola seeing profits increasing for 36 consecutive months is an example of which business growth strategy?
1. Increasing Sales
2. Expanding product lines
3. Hiring more employees
4. Mergers and Acquisitions
Apple choosing to start selling smart phones and tablets and not just music devices is an example of which business growth strategy?
1. Increasing Sales
2. Expanding product lines
3. Hiring more employees
4. Mergers and Acquisitions
McDonalds growing into other countries and having to hire more workers is an example of which type of business growth strategy?
1. Increasing Sales
2. Expanding product lines
3. Hiring more employees
4. Mergers and Acquisitions
In 2006, Google purchased YouTube for $1.65 billion. This is an example of which business growth strategy?
1. Increasing Sales
2. Expanding product lines
3. Hiring more employees
4. Mergers and Acquisitions
In 2014, Apple purchased Beats Electronics for $3 billion. This is an example of which business growth strategy, and what was Apple's strategic goal?
a) Hiring more employees - Apple needed Beats' workforce to expand their manufacturing capabilities
b) External growth through acquisition - Apple wanted to quickly enter the premium headphone market and gain music streaming expertise along with Beats' strong brand presence
c) Increasing sales - Apple bought Beats primarily to boost their quarterly revenue numbers
d) Expanding product lines - Apple planned to discontinue Beats products and replace them with Apple-branded alternatives
Jennifer wants to open her own restaurant but is worried about the risks of starting from scratch. She decides to open a Subway sandwich shop in her hometown. She pays Subway a fee of $15,000 and agrees to pay ongoing royalty fees of 8% of her monthly sales. In return, Subway provides her with their established recipes, training, marketing materials, and the right to use the Subway name and logo. This business arrangement is an example of:
Sole Proprietorship
Corporations
Franchising
Acquisitions
Which of the following is an example of a consumer?
a) Walmart selling groceries to families
b) A factory producing car parts for Ford
c) Maria buying a pizza for dinner
d) A farmer selling wheat to a bread company
_____ Is a legal agreement in which an individual or small group of investors purchases the right to sell a company's product or service under the company's name & Trademark.
Merger
Acquisition
Franchise
Corporation
McDonald's has grown from a single restaurant to over 40,000 locations worldwide primarily through franchising. This is an example of which business growth strategy, and what is the primary benefit for McDonald's?
a) Increasing sales - McDonald's uses franchising to boost revenue from their existing company-owned restaurants
b) Hiring more employees - McDonald's franchises locations so they can hire more workers without paying their salaries
c) External growth through franchising - McDonald's allows franchisees to open new locations using McDonald's brand and systems, enabling rapid expansion with reduced financial risk and capital investment
d) Expanding product lines - McDonald's uses franchising to test new menu items in different markets
Two organizations both earned $100,000 more than their expenses this year:
GreenTech Solutions (a for-profit technology company)
Community Food Bank (a non-profit organization that fights hunger)
Questions:
What must the community food bank do with the surplus amount of money?
Your local animal shelter is an example of what type of business?
What happens to a business if they continue not to make profit?
The business may go bankrupt or end operations.
_____ is the act of generating more revenue by selling more goods or services.
Increasing Sales
Expanding product lines
Hiring more employees
Acquisitions / franchising (External growth strategies)
_____ is a company's strategy of introducing new variations or versions of existing products within the same product category.
Increasing Sales
Expanding product lines
Hiring more employees
Acquisitions / franchising (External growth strategies)
_____ can significantly contribute to business growth by increasing employee productivity and leading to specialization and collaboration.
Increasing Sales
Expanding product lines
Hiring more employees
Acquisitions / franchising (External growth strategies)
_____ is when one company purchases another company, gaining control of its assets, liabilities, and operations.
Increasing Sales
Expanding product lines
Hiring more employees
Acquisition
