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WorksheetsBUSINESS ESSENTIALS FALL 2025 FINAL REVIEW
Total questions: 91
Worksheet time: 46mins
Which of the following best defines the term "business"?
Entities that offer products to customers and do not earn a profit
Entities that offer only services to earn a profit
Stores and office buildings
Entities that offer products or services to earn a profit
Which of the following is an example of a business?
Charities
Soup kitchen
Casey's Lemonade Stand
Volunteers
Which formula best represents the concept of profit?
Profit = Revenue = Expenses
Profit = Revenue < Expenses
Profit = Revenue – Expenses
Profit = Assets – Liabilities
What is the definition of revenue?
Money the business pays out
The value of all assets
Money the business brings in
The difference between income and expenses
Profit is achieved when:
Expenses are greater than revenue
Revenue equals expenses
Revenue is greater than expenses
Net worth equals assets minus expenses
Which of the following statements is true?
A product is only a service
A product is only a good
A product is just goods
A product can be goods or services
Which of the following is a service?
Shampoo
Cell phone
Haircut
Sweaters
Who is responsible for creating the products a business offers?
Intermediaries
Consumers
Producers
Distributors
Which of the following best defines a service?
Physical item sold to a customer
Activity performed for a customer
Product placed on a shelf
Item held in inventory
What is the primary role of intermediaries in business?
Consuming goods and services
Creating raw materials
Selling goods and services
Providing financial backing
Revenue = 5,000andExpenses= 2,527, did the business make a profit?
Yes, profit of $2,473
No, loss of $2,473
Yes, profit of $7,527
No, profit equals zero
Given Revenue = 125andExpenses= 150, did the business make a profit?
Yes, profit of $25
No, loss of $25
Yes, profit of $275
No, profit equals zero
Which of the following is considered a need rather than a want?
Name-brand jeans
Chipotle every day
Clean air
A new sweater from Target
Needs and wants are:
Limited
Unlimited
Just enough
Not essential
You satisfy your needs and wants by purchasing and consuming:
Stuff
Goods & services
Only services
Only goods
Goods are best described as:
Activities provided for satisfaction
Tangible items
Ideas
Business profits
Services are defined as:
Raw materials
Tangible goods
Activities consumed as they are provided
Products stored in inventory
Businesses produce goods and services by using:
Natural energy
Economic decisions
Limited wants
Economic resources
Human resources refer to:
People who produce goods and services
Raw materials from nature
Equipment and buildings
The money businesses earn
Natural resources include:
Tools and machinery
Products made by people
Raw materials from nature
Services sold by businesses
Capital resources include:
Employees
Nature-based materials
Products and money used in production
Consumers and producers
Resources are:
Unlimited
Too many
Limited
Just enough
Which of the following statements is true?
Needs and wants are limited
Resources are unlimited
Needs and wants are unlimited, but resources are limited
Resources and wants are both unlimited
When you give up something to gain something else, this is called a:
Scarcity
Opportunity cost
Trade-off
Basic economic problem
Scarcity is best defined as:
Unlimited wants and needs
Having more than enough resources
Not having enough resources to satisfy every need
Making risky business choices
Opportunity cost is:
The item you receive in a trade
The first option you choose
The next best alternative not chosen
The money made after expenses
The process of choosing which needs and wants to satisfy is known as:
Supply and demand
Economic decision making
Scarcity
Resource planning
According to the Law of Demand, when price increases, quantity demanded:
Increases
Stays the same
Decreases
Doubles
According to the Law of Supply, when price increases, quantity supplied:
Increases
Decreases
Stays the same
Becomes limited
Who is a consumer?
Someone who manufactures goods
Someone who sells goods
Someone who buys and uses goods and services
Someone who transports goods
Who are producers?
Individuals who consume goods
People who study economics
Those who determine which goods/services will be sold
Stores that display products
What is demand?
How much businesses can provide
What producers will sell
Quantity of goods/services consumers are willing to buy
What businesses need
What is supply?
The price of all products
Quantity of goods/services businesses are willing to offer
Government limits on production
Resources used in decision making
A graph showing an inverse relationship between price and quantity most likely illustrates the:
Law of Supply
Law of Demand
Opportunity Cost
Scarcity curve
A graph showing a direct relationship between price and quantity most likely illustrates the:
Law of Demand
Basic Economic Problem
Law of Supply
Capital Resources
What is a key advantage of a sole proprietorship?
It provides limited liability for the owner
It requires corporate tax filings
It is easy to form due to low cost and fewer regulations
It is the simplest structure for two or more people
Which of the following is a disadvantage of a partnership?
Pass-through taxation
Divided authority among partners
Total control by one person
Limited personal liability
What is a major benefit of a Limited Liability Company (LLC)?
Personal assets are at risk
Avoids all taxes
Personal assets are protected in case of bankruptcy
It is the most complex business type
What is the main advantage of a corporation regarding liability?
Requires minimal paperwork
Provides strongest protection from personal liability
Divides profits among owners
Easier for a single owner to operate
What is a key feature of a cooperative?
Profits go entirely to a single owner
Members become user-owners by purchasing shares
It pays double taxes on all income
It is the simplest business to start
Which of the following is a disadvantage of a corporation?
Profits are passed through personal taxes
Easy to raise capital through stock
It is the most expensive form to organize
Members control the entire business
A business owned by one person is a:
Corporation
Partnership
Sole Proprietorship
Cooperative
A legal entity that offers stock and is separate from its owners is a:
Sole Proprietorship
Cooperative
Corporation
Franchise
What type of business ownership fits this scenario: Emma wants full control of her home-based cake business, avoids shared profits, and wants minimal paperwork?
Cooperative
Sole Proprietorship
Franchise
Corporation
Jake mows lawns, sets his prices, and keeps the profit—but takes full responsibility for damages. What type of business does he operate?
Cooperative
Sole Proprietorship
Partnership
Corporation
Olivia and Tyler open a coffee shop together and share responsibilities and profits. What business structure is this?
Sole Proprietorship
Corporation
Franchise
Partnership
Jason and Mia pool money to open a gym, offering different specialties and splitting profits. What type of ownership is this?
Franchise
Corporation
Cooperative
Partnership
A group of engineers raises capital by selling stock for a smartphone accessory business. They want to protect their personal assets. What form of ownership fits?
Sole Proprietorship
Cooperative
Corporation
Partnership
A group of doctors starts urgent care clinics, incorporates, and sells shares to attract investors and limit personal liability. What type of ownership is this?
Cooperative
Franchise
Corporation
Sole Proprietorship
Maria buys into a fast-food chain, receives training and support, but must follow rules and pay fees. What model is this?
Cooperative
Corporation
Franchise
Sole Proprietorship
Residents create a member-owned credit union with better rates and shared benefits. What form of ownership is this?
Cooperative
Corporation
Sole Proprietorship
Partnership
What is the best definition of entrepreneurship?
The process of earning a wage from a large company
The act of managing a nonprofit organization
The process of starting and running your own business to earn a profit
The practice of investing in other people's businesses
What is the process of accomplishing the goals of an organization through the effective use of people and other resources?
Working
Management
Leadership
Management Styles
Which management function involves analyzing information, setting goals, and making decisions about what needs to be done?
Implementing
Organizing
Staffing
Planning
Which management function involves identifying and arranging the work and resources needed to achieve the goals that have been set?
Organizing
Staffing
Controlling
Planning
Which management function includes all activities involved in obtaining, preparing, and compensating the people who work for a business?
Implementing
Planning
Organizing
Staffing
Which management function is the effort to direct and lead people to accomplish the planned work of the organization?
Implementing
Organizing
Planning
Controlling
Which function determines to what extent the business is accomplishing the goals it set in the planning stage?
Controlling
Implementing
Planning
Staffing
Which level of management is responsible for the day-to-day work of a small group of employees?
Top Management
Middle Management
Supervisors
Executives
Which level of management sets the long-term direction and success of the entire business?
Middle Management
Supervisors
Top Management
Department Leaders
Which of the following best describes the way a manager works with and involves employees?
Being a manager
Management
Management Style
Leadership
What management style is characterized by a manager who is directing and controlling?
Strategic Management
Tactical Management
Participative Management
Authoritative Management
What management style is characterized by a manager who is less directive and involves employees in decision-making?
Tactical Management
Strategic Management
Passive Management
Supervisory Management
Marketing only includes advertising.
True
False
Anika is starting a new business and wants to ensure its success. What is the marketing concept she should follow?
A business should produce products first and then find people to sell them to
A strategy for designing company logos
A business should understand and meet customer needs while also meeting business goals
A company should focus on making as much profit as possible
What is the definition of marketing according to the American Marketing Association?
The set of activities, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value
The practice of managing communication between an organization and its public to build a favorable image
The activity or profession of producing advertisements for commercial products or services
The process of creating a new product or improving an existing one to meet customer needs
What is the main idea behind the marketing concept?
To advertise as much as possible
To focus solely on company profits
To create the most expensive product
To satisfy customers' needs and wants while generating a profit
Which of the following best defines marketing?
Managing people and resources to increase efficiency
The process of creating, communicating, delivering, and exchanging offerings of value
A paid form of communication used to promote products
Setting goals for employee performance
Which of these activities is an example of marketing in action?
Hiring new employees
Completing payroll
Storing products in a warehouse
Filing business taxes
What is the core idea of the marketing concept?
Maximize profit at all costs
Sell products to as many people as possible
Invest heavily in advertisements
Satisfy customer needs while earning a profit
Which of the following best demonstrates a business using the marketing concept?
A store reduces its staff to cut costs
A restaurant surveys customers and updates the menu based on feedback
A business expands into a new market without research
A company raises prices without improving the product
How does marketing help a business achieve its goals?
By handling payroll and benefits
By eliminating competitors
By reducing operating costs
By satisfying customers' needs and increasing sales
A company notices sales are decreasing. How could marketing help the business address this problem?
By buying out a competitor
By launching a campaign to better understand and meet customer needs
By cutting employee salaries
By outsourcing manufacturing
What is the primary purpose of Marketing Information Management?
To set prices for products
To develop new products
To transport goods to consumers
To use data and research to make marketing decisions
Which function of marketing involves the development, design, and improvement of a good or service?
Distribution
Pricing
Promotion
Product / Service Management
What does the Pricing function in marketing primarily focus on?
Setting a price based on perceived value and costs
Transporting goods to consumers
Building relationships with customers
Raising brand awareness
Which marketing function is responsible for transporting goods or services to the consumer?
Distribution
Selling
Financing
Promotion
What is the main goal of the Promotion function in marketing?
To improve product design
To raise brand awareness and encourage purchases
To manage sales leads
To set competitive prices
How many functions are marketing activities organized into?
Six
Seven
Eight
Five
Which of the following is NOT one of the marketing functions?
Pricing
Customer Service
Product & Service Management
Promotion
When does each marketing function occur?
Every time a product or service is developed and sold
Only when a service is sold
Only when a product is developed
Before a product is developed
What is a company's plan that identifies how it will use marketing to achieve its goals called?
Marketing Plan
Marketing Mix
Target Market
Marketing Strategy
Which of the following correctly lists the steps of creating a Marketing Strategy?
Identify a Target Market; Create a Marketing Mix
Create the product; Set the price; Select location; Promote it
Develop a plan; Execute the plan
Create a Marketing Mix; Identify a Target Market
A specific group of consumers who have similar wants and needs is known as a:
Marketing Strategy
Target Market
Market
Marketing Mix
What is the process of classifying customers by specific characteristics to define a target market?
Market Segmentation
Targeting
Marketing Strategy
Marketing Plan
Segmenting a market based on customers’ personal statistics such as age or gender is known as:
Demographic Segmentation
Geographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Which of the following is an example of Psychographic Segmentation?
Lives in Kansas
Loves Mexican food
Male
High school graduate
Which term refers to the blending of four marketing elements: Product, Price, Place, and Promotion?
Marketing Strategy
Marketing Mix
Market Segmentation
Target Market
Which of the following is NOT a component of the Marketing Mix?
Product
Price
Place
Position
Which "P" of the Marketing Mix involves the path a product takes from producer to consumer?
Promotion
Price
Product
Place
Which of the following is an example of the Promotion element of the Marketing Mix?
Double Cheeseburger
TV Ads
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