The Ultimate Business MCQ Quiz!

Emma bought an MP3 player and a portable DVD player. These products are called goods because:

• A.

  They do a good job for satisfying a customer’s needs

• B.

  They are physical or tangible products

• C.

  They are produced in an economical offshore factory

• D.

  They can be sold either in a store or online

Chris orders a salad at a restaurant. What is the BEST definition of what he is buying? 

• A.

  Chris is buying a good.

• B.

  Chris is buying a service.

• C.

  Chris is buying both a good and a service.

• D.

  Chris is buying neither a good nor a service.

Which of the following is NOT a benefit of business competition? 

• A.

  It may lead to a wider variety of goods and services.

• B.

  It may lead to higher quality goods and services.

• C.

  It may lead to a limited variety of goods and services.

• D.

  It may lead to cheaper goods and services.

Which of these characteristics is NOT applicable to multinational company? 

• A.

  It provides goods or services to international consumers.

• B.

  It may serve only one country, but have suppliers or facilities in other countries

• C.

  Its employees must speak multiple languages

• D.

  It may adapt its operations to fit the cultures of the countries in which it operates.

Competition affects companies in all of the following ways EXCEPT …

• A.

  Forcing them to increase their production levels

• B.

  Forcing them to improve their products

• C.

  Forcing them to aggressively promote their brands

• D.

  Forcing them to lower their prices

List the four types of ownership and explain one of them. Type 1………………………………………………………………………………… Type 2………………………………………………………………………………… Type 3………………………………………………………………………………… Type 4………………………………………………………………………………… Explanation……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………  

How does technology challenge and provide opportunities to business owners. Opportunity………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. Challenge…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

What is the difference between a National and a Multinational business? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….  

When a company’s revenue is greater than its expenses, it means that ______.

• A.

  The company earns a profit

• B.

  The company spends more than it earns

• C.

  The company’s income is decreasing

• D.

  The company needs to increase its spending

 Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician’s repairs? 

• A.

  A service

• B.

  B) a good

• C.

  A Benefit

• D.

  An appointment

3)Profits allow a company to_____.

• A.

  A)increase productivity

• B.

  B)lower employee wages

• C.

  C)reduce its span of operations

• D.

  D)disregard concern about expenses

4)The various resources used to create a company’s goods and services are collectively referred to as ______.

• A.

  A)raw material

• B.

  B)factors of production

• C.

  C)supplies

• D.

  D)inventory

5)Which of the following BEST describes competition ? 

• A.

  A)Two or more companies compete with one another for greater federal, state, and local subsidies.

• B.

  B)Two or more companies compete with one another to attracts customers and gain an advanatage

• C.

  C)Two or more companies compete with one another to maintain a monopoly.

• D.

  D)Two or more companies compete with one another to influence trade police.

Which of the following would MOST likely happen to companies that are less efficient than their competitors?

• A.

  They would continue to do business as usual.

• B.

  They would close down.

• C.

  They would be taken over by the government.

• D.

  They would receive additional money from investors.

_____is a type of entrepreneur who prefers to keep his or her business small.

• A.

  Intrapreneur

• B.

  Minipreneur

• C.

  Nanopreneur

• D.

  Micropreneur

____ is someone who takes the risk of creating, organizing and operating a business, usually to satisfy an unmet need in the marketplace.

• A.

  Business owner

• B.

  Entrepreneur

• C.

  Venture capitalist

• D.

  Innovator

_____is the movement toward a more interconnected and interdependent world economy.

• A.

  Globalization

• B.

  G-20

• C.

  NAFTA

• D.

  Multiculturalism

Which of these qualities BEST explains why a specialty shop is classified as a local business?

• A.

  It is not able to borrow funds for expansion.

• B.

  It accepts cash, checks, and credit cards as forms of payment.

• C.

  It is a one-of-a-kind operation and relies on local consumers to generate business.

• D.

  It sells only products that are made locally.

1-______Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barabara’s, are able to expand as they earn more profits.

• A.

  True

• B.

  False

2-_____Real capital refers to the money used to facilitate a business enterprise.

• A.

  True

• B.

  False

3-_____When businesses compete, products usually become more expensive

• A.

  True

• B.

  False

4-_____Corporations blend characteristics of both sole proprietorship and partnerships.  

• A.

  True

• B.

  False

1-a) What is meant by a small business ?  ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

B) State three reasons why small businesses are considered important to the economy. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

2) There are a number of different categories of entrepreneurs operating today. Identify and describe three type of entrepreneurs. Type 1…………………………………………………………………………………………………….. Explanation……………………………………………………………………………………………… Type 2……………………………………………………………………………………………………… Explanation………………………………………………………………………………………………. Type 3……………………………………………………………………………………………………… Explanation……………………………………………………………………………………………….  

3) Explain the difference between a “general partnership” and “limited partnership”. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

  4)Differentiate between “regional” and “national businesses”. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

  1)Explain the advantage and the disadvantage of obtaining funding from outside investors. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

  2) Explain why it is risky to use credit cards for initial business financing. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

  3) What is meant by Advisory Boards? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

  4) What does Small Business Administration offer ? ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

5)State three items that should be present in a business plan. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

6)What is the benefit of using cash borrowed from friends and family members? ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………............................

All of the following are advantages of sole proprietorship EXCEPT_________.

• A.

  A)single ownership

• B.

  B)no special forms

• C.

  C)ease of formation

• D.

  D)limited liability

2)All of the following EXCEPT____ would be an advantage to partnership

• A.

  A)pooled skills

• B.

  B)increased financial resources

• C.

  C)increased available time

• D.

  D)unlimited liability

3)One disadvantage of sole proprietorship is the ______.

• A.

  A)possibility of disagreements between different owners

• B.

  B)unlimited liability the owner has for the debts of the company

• C.

  C)fact that any income earned by this type of business is taxed twice

• D.

  D)cost of starting or ending the company is higher than other businesses

4)which of the following is a reason for creating a new business as a C corporation ? 

• A.

  A) The owner's personal assets would be protected

• B.

  B) The owner could raise greater sources of funds by selling shares of ownership

• C.

  C) The corporation would continue to exit even if the owner left the business

• D.

  D) All of the above

5) Which of the following statements about S corporation is MOST accurate ? 

• A.

  A) S corporations enable owners to avoid the problem of double taxation

• B.

  B) S corporations can have an unlimited number of owners

• C.

  C) S corporations must have fewer than 5 employees

• D.

  D) S corporations are easier to set up than sole proprietorship and partnerships

In a partnership, all profits and losses flow through each partner's _____.

• A.

  A) tax returns

• B.

  B)savings

• C.

  C)liabilities

• D.

  D) investments

The most significant difference between a partnership and a sole proprieot is the ____.

• A.

  A)amount of liability of owners

• B.

  B)taxation process used by owners

• C.

  C)number of government forms required for establishment

• D.

  D)number of people contributing resources

A cooperative is a type of business that is owned by ______ who use its products or services.

• A.

  A)members

• B.

  B)shareholders

• C.

  C)directors

• D.

  D)partners

The profits of a sole proprietorship are taxed as the personal income of the owner 

• A.

  True

• B.

  False

To protect partnerships and minimize misunderstandings among partners, all terms of a partnership should be spelled out in writing

• A.

  True

• B.

  False

One disadvantage of a sole proprietorship is they usually have limited access to additional financial resources

• A.

  True

• B.

  False

Explain what is meant by a sole proprietorship. ...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Identify two advantages or establishing a business as a sole proprietorship. Advantage 1 ........................................................................................................................................................................................................................................................................ Advantage2 ................................................................................................................................................................................................................................................

Explain two reasons that would encourage a sole proprietorship to start a partnership Reason 1 ................................................................................................................................................................................................................................................................................... Reason 2 ...................................................................................................................................................................................................................................................................................

What is meant by a corporation?  .......................................................................................................................................................................................................................................................................................................................................................

List three disadvantages of corporations compared to sole proprietorship. Disadvantage 1 ............................................................................................................................................................................................................................................................ Disadvantage 2 ........................................................................................................................................................................................................................................................... Disadvantage 3 ............................................................................................................................................................................................................................................................

Differentiate between a horzontal merger and a vertical merger and give an example of each. Horizontal..................................................................................................................................................................................................................................................... Example........................................................................................................................................................................................ Vertical.............................................................................................................................................................................................................................................. Example..................................................................................................................................................................................