WorksheetsPrinciples Unit 2 Types of Businesses Review
Total questions: 79
Worksheet time: 40mins
Which of the following is NOT classified as a type of business according to the work activities performed?
Producers
Processors
Manufacturers
Consumers
Producers develop products for distribution from raw goods. Which of the following is an example of a producer?
A) Farming
B) Juice factories
C) Retailers
D) Oil refineries
Processors change raw goods into a more finished form. Examples of processors include cotton mills, oil refineries, textile mills, and _________.
food processors
bookstores
car dealerships
movie theaters
Manufacturers change raw or processed goods into finished goods. Which of the following is NOT an example of a manufacturer?
Juice factories
Clothing factories
Automobile factories
Forestry
Intermediaries are referred to as the middleman.
True
False
Wholesalers buy finished goods from manufacturers in large quantities and sell them to businesses in smaller quantities.
True
False
Retailers buy finished goods from ________ or wholesalers.
manufacturers
customers
retailers
distributors
Which of the following is an example of a service firm?
Beauty salons
Salvation Army
American Red Cross
YMCA
Non-profit organizations operate on donations, volunteers, and philanthropists rather than _________
income/profit
government grants
membership fees
public votes
Which of the following is NOT an example of a non-profit organization?
Salvation Army
United Way of America
Beauty salons
American Red Cross
What are the responsibilities of Human Resources?
Maintaining the employment process
Training and developing staff
Both A and B
None of the above
The goal of the employment process is to obtain qualified employees who are well-matched to the _________
open position
company culture
training program
salary structure
Which of the following is the first step in the employment process?
Select employee who fulfills goals
Assess employment needs
Help employee get oriented
Recruit potential employees
What should a job description include?
Qualifications
Duties
Responsibilities
All of the above
Step two of the Employment Process involves recruiting potential employees. Name two sources where a company can look for potential employees.
newspaper and/or Internet advertising, colleges, universities and technical or vocational schools
company cafeteria and gymnasium
local parks and shopping malls
family reunions and birthday parties
Which of the following is NOT a method for recruiting potential employees?
A) Looking within the company
B) Newspaper advertising
C) Ignoring applications on file
D) Contacting employment agencies
What is one of the actions taken during this step?
Review applications, résumés and cover letters of applicants
Schedule employee training sessions
Conduct exit interviews with departing staff
Prepare annual financial statements
If there is not an appropriate applicant during the selection process, what should a company do?
Start again at recruiting potential employees
Hire the least qualified applicant
Cancel the position permanently
Promote an existing employee without evaluation
Step four of the Employment Process is to help the employee get oriented. Name one activity that occurs during this step.
Introduce to co-workers
Assign a new project immediately
Skip the orientation session
Terminate employment
Who is typically responsible for training and developing employees in a company?
Human resources
Finance department
Sales team
IT support
Which of the following is a goal of training and developing employees?
Reducing employee numbers
Maintaining well-trained, qualified employees
Increasing paperwork
Ignoring performance
On-the-job training involves which of the following?
Employees learning without supervision
Employees having hands-on practice with supervision
Employees only reading manuals
Employees working alone
Group training is a technique where companies teach new skills to several employees at once.
True
False
Evaluating Performance: Which of the following is NOT a decision that managers help make when evaluating employee performance?
A) Transfers
B) Layoffs
C) Promotions
D) Hiring new employees
Focusing on Motivation: Motivation can be divided into two types. Fill in the blanks: ______ motivation comes from outside sources, while ______ motivation occurs internally.
Extrinsic; intrinsic
Intrinsic; extrinsic
External; external
Internal; external
Which of the following is an example of intrinsic motivation?
Money
Benefits
Recognition
Enjoyment
Motivators for doing well in school or hobbies can be classified as:
Extrinsic or intrinsic motivators
Only extrinsic motivators
Only intrinsic motivators
Neither extrinsic nor intrinsic motivators
Motivation can be ensured by meeting employees’ needs, including the hierarchy of needs proposed by which psychologist?
Sigmund Freud
Abraham Maslow
B.F. Skinner
Carl Rogers
Effective communication in groups is needed to:
Enhance group dynamics
Ensure employees know and understand their roles
Encourage employees to contribute ideas
Increase competition among employees
Management: Fill in the blank. Management is the process of reaching a company’s goals and objectives by utilizing its _______.
resources
employees
customers
products
Which of the following is NOT one of the four main functions of management?
A) Planning
B) Organizing
C) Marketing
D) Controlling
What is management's first main function?
Organizing
Planning
Directing
Controlling
Fill in the blank: Planning means determining a ________ for the company.
direction
employee
budget
location
What is management's second main function?
Planning
Directing
Organizing
Controlling
Fill in the blank: Organizing means obtaining and coordinating ________ to meet company goals and objectives.
resources
customers
products
locations
What is management's third main function?
Directing
Planning
Controlling
Organizing
Fill in the blank: Directing is leading employees to carry out their ________ tasks.
assigned
random
optional
temporary
What is management's fourth main function?
Planning
Organizing
Directing
Controlling
Fill in the blank: Finance & Accounting are vital because a business cannot exist without ________ flow.
cash
paper
employee
product
What are the main focuses of accounting?
Creating up-to-date, accurate financial statements
Making a plan to create profits
Managing and utilizing company resources
All of the above
Accounting is a system used to record, classify, summarize and report the ________ of a business.
financial position
employee attendance
marketing strategy
production schedule
Which of the following is NOT a responsibility of accounting?
Recording financial transactions
Creating financial statements
Marketing products
Summarizing financial data
Financial transactions are financial entries affecting the ________ of a business.
financial position
employee count
brand logo
office location
Which of the following is an example of an asset?
Credit
Mortgage payments
Cash
Owner's equity
Liabilities are debts or obligations of a business.
True
False
Owner's equity is the amount of capital invested by owners.
True
False
The accounting equation is: assets = ________ + owner's equity.
liabilities
revenues
expenses
drawings
Which of the following statements is true about the accounting equation?
Only one side of the equation must balance
Both sides of the equation must balance
The equation is not used in accounting
None of the above
Financial statements are used to make financial decisions.
True
False
Which of the following is NOT a main type of financial statement?
Balance sheet
Income statement
Marketing report
None of the above
Net income occurs when ________ is greater than expenses.
revenue
assets
liabilities
equity
Net loss occurs when expenses are greater than ________.
revenue
assets
liabilities
capital
What is the goal of finance in a business?
To determine use of company resources and funds.
To increase the number of employees.
To design marketing campaigns.
To develop new products.
Which of the following is NOT a responsibility of finance in a business?
Managing use of company funds
Obtaining needed funds
Creating a financial plan
Designing marketing campaigns
Funds are used to do the following: buy resources used to create goods and services, and ________ for operation.
pay expenses required
increase liabilities
reduce assets
delay payments
When available, excess funds can be used in many ways. Which of the following is NOT one of those ways?
Purchasing assets to help the company grow
Paying unexpected or high expenses
Investing to obtain profit
Reducing employee salaries
Sources of funding for a business include: borrowing funds, selling stock, looking for new investors, and ________.
increasing owner contributions
reducing employee salaries
cutting marketing expenses
lowering product prices
The financial plan is crucial to the success of a business because it specifies what funds are needed, documents period funds are needed, and ________.
is crucial to the success of a business
increases the company's liabilities
reduces the need for planning
eliminates all risks
Marketing is the action of promoting and selling products or services.
True
False
What is the goal of marketing?
To create products meeting consumer wants and needs based on the marketing mix and to guide products through the product life cycle.
To increase production costs and reduce product quality.
To ignore consumer feedback and focus only on sales.
To limit product availability and restrict market access.
Which of the following is NOT a characteristic of successful marketing?
A) Directing marketing strategies to a target audience
B) Using customer-centric examples
C) Ignoring consumer needs
D) Expanding and extending a product’s reach
Fill in the blank: The marketing mix consists of four interrelated marketing strategies used to meet consumer needs: Product, Price, Promotion, and _____?
Place
Plan
Profit
Policy
Which of the following best describes 'Product' in the marketing mix?
The cost consumers pay
A good and/or service designed to meet consumer wants and needs
The location where products are sold
Activities to persuade consumers
Which element of the marketing mix involves activities to persuade consumers they need the product, including packaging, commercials, and trials?
Product
Price
Promotion
Place
Fill in the blank: 'Place' in the marketing mix refers to the _____ where products and/or services are sold, including stores and locations within a store.
location
price
promotion
product
Understanding consumers means understanding the needs they attempt to meet when making purchases. Which of the following is NOT one of these needs?
Physical
Social
Financial speculation
Safety, security, and health
Which of the following is included in physical needs according to the notes?
A) Entertainment
B) Food
C) Luxury cars
D) Jewelry
What is the goal of Production & Distribution?
To increase profits only
To produce and distribute goods and services in the most efficient and cost-effective manner
To advertise products
To reduce the workforce
Which of the following is NOT one of the three roles in Production & Distribution?
Facilities
People
Marketing
Processing
Fill in the blank: In Production & Distribution, ______ are the physical elements needed for production and require a good layout and location.
facilities
employees
products
services
Which of the following is a responsibility in effective production?
Forecasting demand
Ignoring inventory
Reducing quality
Avoiding scheduling
The Production Concept refers to the philosophy that buyers prefer goods and services which are ______ and ______.
widely available; inexpensive
unique; expensive
customized; rare
luxurious; exclusive
Which of the following is NOT a factor of production?
Land
Labor
Capital
Advertising
List the three roles in Production & Distribution.
Facilities, Processing, People
Marketing, Sales, Finance
Design, Testing, Support
Logistics, Advertising, Research
Fill in the blank: Entrepreneurship is the drive to develop an idea into a ________.
business
hobby
problem
routine
Fill in the blank: Distribution is getting produced goods and services to consumers in a ________ manner.
timely
random
expensive
careless
Which of the following is NOT one of the four modes of transportation used in distribution?
Waterways
Railroads
Trucks
Pipelines
Airlines
Fill in the blank: Man-made objects, such as machinery and equipment, which are used in ________.
production
transportation
decoration
communication
Which of the following is an example of entrepreneurship?
Buying groceries
The drive to develop an idea into a business
Driving a truck
Using waterways for transport
