Introduction To Business: The Ultimate Practice Exam

200 Questions | Total Attempts: 283

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Introduction To Business: The Ultimate Practice Exam - Quiz

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Questions and Answers
  • 1. 
    ____________ is the amount a business earns over and above what it spends for salaries and other expenses.
    • A. 

      Profit

    • B. 

      Revenue

    • C. 

      Interest

    • D. 

      Dividends

  • 2. 
    __________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.
    • A. 

      Depreciation

    • B. 

      Risk

    • C. 

      Fallibility

    • D. 

      Redundancy

  • 3. 
    A(n) ____________ is a person who assumes the risk of starting a business.
    • A. 

      Manager

    • B. 

      Entrepreneur

    • C. 

      Private investor

    • D. 

      Stakeholder

  • 4. 
    Starting a business always involves a ________.
    • A. 

      Profit

    • B. 

      Loss

    • C. 

      Revenue

    • D. 

      Risk

  • 5. 
    Often in business the greater the risk, the:
    • A. 

      Greater the potential reward.

    • B. 

      Lower the expected revenues.

    • C. 

      Lower the value provided to society.

    • D. 

      Greater the number of stakeholders.

  • 6. 
    Last year, MacTeck Enterprises had total revenues of $34 million while its total expenses were $22 million. Based on this information, MacTeck:
    • A. 

      Earned a profit of $12 million.

    • B. 

      Earned a profit of $56 million.

    • C. 

      Suffered a loss of $12 million.

    • D. 

      Suffered a loss of $22 million.

  • 7. 
    Shelley recently opened a new restaurant specializing in fast foods prepared with less fat and calories for health-conscious diners who are in a hurry. Shelley knows that there are some risks associated with opening and managing a restaurant, but she is confident that she can earn a profit. Shelley is an example of a(n):
    • A. 

      Arbitrageur

    • B. 

      Entrepreneur

    • C. 

      Speculator

    • D. 

      Account manager

  • 8. 
    A key characteristic of entrepreneurs is that they:
    • A. 

      Are willing to accept the risks involved in starting and managing a business

    • B. 

      Have a high level of scientific and technical expertise

    • C. 

      Possess a great deal of personal wealth

    • D. 

      Have experience in running large, complex organizations

  • 9. 
    The standard of living for a nation's people depends mainly on:
    • A. 

      The quality of the natural environment

    • B. 

      How much political freedom they have

    • C. 

      Their incomes and the prices of the goods and services they buy

    • D. 

      The amount of labor and capital available employed in the manufacturing sector

  • 10. 
    In the past twenty years, the number of U.S. women business owners:
    • A. 

      Remained relatively constant.

    • B. 

      Slowly increased.

    • C. 

      Increased dramatically.

    • D. 

      Decreased slightly.

  • 11. 
    Which of the following statements about factors of production is the most accurate?
    • A. 

      The five factors of production are energy, capital, labor, leadership and money.

    • B. 

      Wealth creation in poor nations is slowed by chronic shortages of labor.

    • C. 

      Each of the factors of production is equally important in creating wealth.

    • D. 

      Entrepreneurship and knowledge are the most important in creating wealth.

  • 12. 
    Nadine has started up a new printing business. The printers, computers, and copying machines she has leased are examples of:
    • A. 

      Natural resources.

    • B. 

      Intangible resources

    • C. 

      Current assets.

    • D. 

      Capital.

  • 13. 
    The knowledge and skills students acquire in business courses will be useful to them:
    • A. 

      Only if they work for a major corporation.

    • B. 

      Only if they work for a nonprofit organization.

    • C. 

      Only if they start their own businesses.

    • D. 

      If they work for any organization that produces goods and services, including nonprofit and volunteer organizations as well as businesses.

  • 14. 
    Which of the following is a factor of production?
    • A. 

      Bonds

    • B. 

      Money

    • C. 

      Knowledge

    • D. 

      Service

  • 15. 
    According to the Spotlight on Small Business box for Chapter 1, which of the following statements about starting small businesses in the United States is most accurate?
    • A. 

      Compared to other industrialized nations, a much smaller percentage of U.S. citizens attempt to start their own business than citizens in other countries.

    • B. 

      Rapid technological change has actually discouraged the formation of new businesses in the United States.

    • C. 

      Compared to other countries, the United States has more public and private groups that teach entrepreneurs how to build businesses.

    • D. 

      Starting a business is more risky and almost always offers a lower financial reward than opening an outlet of a successful franchise.

  • 16. 
    The most important difference between businesses and nonprofit organizations is that:
    • A. 

      Businesses do not benefit society

    • B. 

      Nonprofit organizations do not strive for financial gains

    • C. 

      Nonprofit organizations focus on social and educational goals

    • D. 

      Nonprofit organizations do not benefit society

  • 17. 
    The number of businesses owned by Hispanics and Asians has:
    • A. 

      Has decreased after the 9-11 terrorist attack

    • B. 

      Slowly increased

    • C. 

      Increased dramatically

    • D. 

      Remained relatively constant

  • 18. 
    In countries where businesses are government owned:
    • A. 

      There is less incentive to work hard.

    • B. 

      The right amount of each good is produced.

    • C. 

      Profits tend to be higher.

    • D. 

      The quality of goods is high but profits are low.

  • 19. 
    A review of the decision making process as to where to locate a new business venture suggests that:
    • A. 

      Entrepreneurs seem to like professional sports.

    • B. 

      Entrepreneurs respond to differences in tax rates and government regulations.

    • C. 

      Risk has no bearing on where businesses locate their operations.

    • D. 

      Entrepreneurs almost always start their businesses within 25 miles of their hometown.

  • 20. 
    According to Bloomberg Personal Finance magazine, one of the greatest threats to the U.S. economy is:
    • A. 

      The risk of additional terrorist attacks by anti-American forcesincreased strength of the Euro currency and the European market

    • B. 

      Increased strength of the Euro currency and the European market

    • C. 

      The continued weakness of our Asian trading partners.

    • D. 

      The impact of corporate scandals on investor confidence.

  • 21. 
    ___________ means producing items with the least amount of resources.
    • A. 

      Efficiency

    • B. 

      Technology

    • C. 

      Production

    • D. 

      Productivity

  • 22. 
    All of the following policies would tend to foster entrepreneurship except:
    • A. 

      Establishing a currency that is tradable on world markets.

    • B. 

      Establishing more regulations to protect the environment.

    • C. 

      Developing policies to reduce corruption in business and government

    • D. 

      Allowing private ownership of businesses.

  • 23. 
    The Internet and the emergence of an information based economy are important parts of the ___________ environment in which businesses operate
    • A. 

      Economic and legal

    • B. 

      Technological

    • C. 

      Competitive

    • D. 

      Global

  • 24. 
    Employers provide tools and technology for their employees in order to:
    • A. 

      Increase the cost of production and profitability

    • B. 

      Improve their efficiency and productivity

    • C. 

      To reduce corruption in business and eliminate scandals

    • D. 

      Encourage the private ownership of businesses

  • 25. 
    All around the world, countries are trying to create more wealth by:
    • A. 

      Raising taxes

    • B. 

      Selling government-owned businesses to private individuals

    • C. 

      Restricting trade with other countries in order to protect local businesses

    • D. 

      Attempting to attain more gold through foreign trade

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