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Business Basics Unit Test

Total questions: 58

Worksheet time: 29mins

Name
Class
Date
1.

Businesses exist to

a)

Solve problems and provide solutions

b)

Make a profit

c)

Meet the needs of customers

d)

All of the above

2.

Which of the following best describes a business

a)

A government entity that enforces laws

b)

An organization that provides goods and services in exchange for money

c)

A charity that helps people in need

d)

A group of people who work for free

3.

Which of the following is not a reason why businesses exist?

a)

Provide products and services to people

b)

Create jobs and provide income

c)

Help the government with new regulations

d)

Impact the community and the economy

4.

The United States economy is currently dominated by businesses in the __________ sector.

a)

Retail

b)

Automobile

c)

Service

d)

Government

5.

Individuals or groups who have an interest in a business and are affected by its decisions are called

a)

Stakeholders

b)

Customers

c)

Employees

d)

Investors

6.

Why are customers important to a business?

a)

They create business policies

b)

They provide feedback and revenue

c)

They manage employees

d)

They monitor a company’s finances

7.

Which type of stakeholder provides financial support needed to start or grow a business?

a)

Customers

b)

Employees

c)

Investors

d)

Managers

8.

Goods are tangible products a business sells like

a)

Haircuts

b)

Clothes

c)

Car insurance

d)

Health care

9.

When expenses are higher than the revenue the business brings in, the business experiences a ____________.

a)

Profit

b)

Good

c)

Loss

d)

Service

10.

The struggle between two or more businesses to attract scarce customer dollars

a)

Competition

b)

Intellectual property

c)

Nonprofit organizations

d)

Customer satisfaction

11.

Which of the following would be an example of a national business?

a)

The bakery and coffee shop only in our town

b)

WalMart in the United States

c)

McDonalds worldwide

d)

A grocery store only in the Southeastern part of the country

12.

What defines a regional business?

a)

A business that serves the global marketplace

b)

A business that operates in one town or city

c)

A business that serves a specific geographic area

d)

A business that operates only online

13.

Which of the following is NOT one of the four main functions of business?

a)

Marketing

b)

Production

c)

Sustainability

d)

Finance

14.

What is the main role of the production function in business?

a)

The creation of products and services

b)

The advertising and promotion of products and services

c)

Managing company employees

d)

Securing funding for projects

15.

The marketing function in business is responsible for

a)

Developing products and services

b)

Promoting and selling products and services

c)

Creating balanced budgets for the business

d)

Scheduling employee work shifts

16.

What function sets goals and oversees the entire organization?

a)

Marketing

b)

Finance

c)

Management

d)

Production

17.

The four factors of production are

a)

Labor, money, natural resources, and technology

b)

Land, labor, capital, and entrepreneurship

c)

Employees, customers, resources, and products

d)

Land, money, employees, and ideas

18.

Which factor of production includes tools and machinery?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

19.

Entrepreneurship involves

a)

Managing employees

b)

Using creativity and resources to start and run a business

c)

Selling products

d)

Operating machinery

20.

How would a tractor be classified in the factors of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

21.

Natural resources are an example of which factor of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

22.

What factor of production includes any form of human effort exerted?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

23.

Why is adapting to the social environment important for a business?

a)

To provides goods and services that meet customer values and preferences

b)

To operate globally

c)

To increase competition

d)

To avoid technology upgrades

24.

How can businesses respond to rapid technological changes?

a)

Stop investing in current technology

b)

Focus only on local customers

c)

Continuously innovate and upgrade

d)

Avoid global competition

25.

Businesses are entities that offer goods and services to earn a profit.

a)

True

b)

False

26.

Globalization provides opportunities by allowing businesses to expand into new markets, which can lead to an increase in new customers and profits.

a)

True

b)

False

27.

Humans should work to fulfill their wants before they fulfill their needs.

a)

True

b)

False

28.

Businesses provide employment opportunities for members of the community, which generates income and increases spending in the economy.

a)

True

b)

False

29.

Dissatisfied customers are very likely to return to a business and recommend a business to others.

a)

True

b)

False

30.

Businesses benefit local communities by:

a)

Creating jobs and supporting local economy

b)

Increasing pollution and reducing green spaces

c)

Discouraging community events and gatherings

d)

Limiting access to essential services

31.

A want is different from a need because:

a)

A want is something you would like to have, while a need is something you must have to survive.

b)

A want is something you must have to survive, while a need is just something you would like to have.

c)

A want and a need are exactly the same thing.

d)

A want is always more important than a need.

32.

The difference between a good and a service is:

a)

A good is a physical item, while a service is an activity performed for someone.

b)

A good is always more expensive than a service.

c)

A service can be touched, but a good cannot.

d)

Goods and services are exactly the same.

33.

Technology has provided which of the following benefits that have helped change business operations in the United States?

a)

Increased efficiency and productivity

b)

Decreased communication speed

c)

Reduced access to global markets

d)

Limited automation of tasks

34.

Write out the profit formula.

a)

Revenue - expenses = profit

b)

Expenses - revenue = profit

c)

Profit - revenue = expenses

d)

Revenue + expenses = profit

35.

Name one example of a land or natural resource used in a restaurant.

a)

Water

b)

Plastic utensils

c)

Tablecloth

d)

Menu card

36.

Name one example of a land or natural resource used in a restaurant.

a)

Wood

b)

Plastic

c)

Steel

d)

Glass

37.

Name one example of a land or natural resource used in a restaurant.

a)

Salt

b)

Chef

c)

Menu

d)

Table

38.

Name one example of a land or natural resource used in a restaurant.

a)

Animals=Meat

b)

Plastic utensils

c)

LED lights

d)

Tablecloths

39.

Name one example of a land or natural resource used in a restaurant.

a)

Plants (vegetables/fruits)

b)

Plastic utensils

c)

LED lights

d)

Wi-Fi routers

e)

Metal chairs

40.

Name one example of a land or natural resource used in a restaurant.

a)

oil

b)

plastic fork

c)

menu card

d)

tablecloth

41.

Name one example of a labor resource used in a restaurant.

a)

waiter/waitress

b)

oven

c)

menu

d)

table

42.

Name one example of a labor resource used in a restaurant.

a)

hostess

b)

oven

c)

menu

d)

table

43.

Name one example of a labor resource used in a restaurant.

a)

cook

b)

oven

c)

table

d)

menu

44.

Name one example of a labor resource used in a restaurant.

a)

manager

b)

oven

c)

lettuce

d)

table

45.

Name one example of a labor resource used in a restaurant.

a)

dishwasher (person)

b)

oven

c)

table

d)

menu

46.

Name one example of a labor resource used in a restaurant.

a)

janitor

b)

oven

c)

table

d)

menu

47.

Name one example of a capital resource used in a restaurant.

a)

oven

b)

lettuce

c)

waiter

d)

menu

48.

Name one example of a capital resource used in a restaurant.

a)

plate

b)

lettuce

c)

waiter

d)

menu

49.

Name one example of a capital resource used in a restaurant.

a)

cup

b)

waiter

c)

lettuce

d)

customer

50.

Name one example of a capital resource used in a restaurant.

a)

silverware

b)

lettuce

c)

waiter

d)

menu

51.

Name one example of a capital resource used in a restaurant.

a)

mixer

b)

waiter

c)

lettuce

d)

menu

52.

Name one example of a capital resource used in a restaurant.

a)

drink dispenser

b)

waiter

c)

lettuce

d)

customer

53.

Name one example of a capital resource used in a restaurant.

a)

dishwasher (machine)

b)

lettuce (vegetable)

c)

waiter (person)

d)

menu (paper)

54.

Name one example of a capital resource used in a restaurant.

a)

paper

b)

lettuce

c)

salt

d)

waiter

55.

Name one example of a capital resource used in a restaurant.

a)

computer

b)

lettuce

c)

waiter

d)

menu

56.

Directions: Fill in the Factors of Production chart with the amount of items required for each factor. (5 points) Capital Resources (list 10 things): Name one example of a capital resource used in a restaurant.

a)

pen/pencil

b)

lettuce

c)

waiter

d)

menu

57.

Name one example of a capital resource used in a restaurant.

a)

tables and chairs

b)

waiters and chefs

c)

menus and recipes

d)

food ingredients

58.

Name one example of entrepreneurship in a restaurant.

a)

owner’s ideas and vision for the business

b)

the chef cooking food

c)

the waiter serving tables

d)

the dishwasher cleaning plates