Mid Term Exam
BMA Mid Term Exam
- 1.
Now that we have set up the business for a semester. I want you to reflect on these questions below in paragraph form. What is our business and how would you explain it to an investor?What do we sell and why did we choose to sell that product?What is our mission in selling our product?What is one thing that you enjoy about this business?What is something you feel needs changing in the business?If this was a real business in the real world do you think it would be successful in the way that it is ran now, why or why not?
- 2.
True or FalseDiscretionary income is income that people spend on things they don't really need.
- A.
True
- B.
False
Correct Answer
A. True -
- 3.
True or FalseConsumers have responsibility to act ethically toward sellers.
- A.
Tue
- B.
False
Correct Answer
A. Tue -
- 4.
True or FalseEntrepreneurs are people who start their own business.
- A.
True
- B.
False
Correct Answer
A. True -
- 5.
True or FalseA document printed in landscape orientation will be wider than it is tall.
- A.
True
- B.
False
Correct Answer
A. True -
- 6.
Select the form(s) of business organization that is a separate legal entity- can own property, enter into contracts, sue and be sued and pay income taxes.
- A.
Sole proprietorship
- B.
Corporation
- C.
Partnership
- D.
B and C
Correct Answer
B. Corporation -
- 7.
Which of the following comparative statements about corporarations and individuals is correct?
- A.
Individuals must pay federal income tax; corporations are not required to pay income federal income tax.
- B.
Individual are required to pay sales tax on taxable items; corporations are exempt from paying sales tax on taxable items.
- C.
Individuals may own property such as real estate; corporations are legally able to own property such as real estate
- D.
Individuals and corporations may both sue and be sued.
Correct Answer
D. Individuals and corporations may both sue and be sued. -
- 8.
The W-2 Form shows ___________________________________.
- A.
Federal income tax withheld
- B.
Social Security tax withheld
- C.
State income tax withheld (if any)
- D.
All of the Above
Correct Answer
D. All of the Above -
- 9.
Select the item that is not a typical employee payroll deduction
- A.
Social Security
- B.
Federal Income Tax
- C.
Medicare
- D.
Worker's compensation
Correct Answer
D. Worker's compensation -
- 10.
The following are example of different forms of employee compensation.
- A.
Salary
- B.
Hourly wages
- C.
Bonuses
- D.
All of the above
Correct Answer
D. All of the above -
- 11.
Employers in the USA
- A.
May pay employees overtime when an employee works more than 40 hours in one week
- B.
May provide employees with a paid vacation
- C.
May withhold payroll and income taxes directly from employees' paychecks
- D.
All of the above
Correct Answer
D. All of the above -
- 12.
Which of the following is considered to be an employee benefit?
- A.
Social Security
- B.
401k plan
- C.
Worker compensations
- D.
Medicare
Correct Answer
B. 401k plan -
- 13.
A company organization chart ____________________________.
- A.
Is a diagram that shows how employees and tasks are grouped
- B.
Identifies the main suppliers for a company
- C.
Shows where the lines of communication and authority flow
- D.
A and c
Correct Answer
D. A and c -
- 14.
Which department collects information about employees' attendance, lateness, and benefit issues?
- A.
Accounting
- B.
Human Resources
- C.
Marketing
- D.
Sales
Correct Answer
B. Human Resources -
- 15.
May firms use employee evaluations to assess an employee's performance during the year. Which of the followings statements about employee evaluations is not true?
- A.
The original job description should be used to mark how well and employee has performed.
- B.
An employee's potential should be taken into consideration when that employee is being evaluated.
- C.
A ranking method is often used to mark how well and employee has performed.
- D.
Employee evaluations are, by nature, often subjective.
Correct Answer
B. An employee's potential should be taken into consideration when that employee is being evaluated. -
- 16.
One way that businesses often use current employees during the process of orienting new employees is as ____________________________.
- A.
Interviewers
- B.
Evaluators
- C.
Trainers
- D.
Managers
Correct Answer
C. Trainers -
- 17.
Managers who delegate responsibilities to employees often are able to increase their ____________________________________.
- A.
Compensation
- B.
Productivity
- C.
Authority
- D.
Workload
Correct Answer
B. Productivity -
- 18.
An invoice is a business form that lists specific information about a business transaction that includes ______________________________________.
- A.
The name of the customer
- B.
The name, address and contact information of the vendor
- C.
The quantity and price of the items sold
- D.
All of the above
Correct Answer
D. All of the above -
- 19.
A purchase order is used to _________________________
- A.
Verify that a customer has received an order
- B.
Notify a company that a customer would like to place an order
- C.
Verify that an order has been shipped
- D.
All of the above
Correct Answer
B. Notify a company that a customer would like to place an order -
- 20.
A promise to repair or replace a faulty product within a certain time is ______________________.
- A.
Product liability
- B.
Required by law
- C.
A warranty
- D.
An example of bait and switch
Correct Answer
C. A warranty -
- 21.
Which of the following is a reason why a business might eliminate a product?
- A.
It does not have a high cost per unit
- B.
The item has many customer benefits
- C.
The item takes up too much floor space
- D.
The item is not making a big enough profit
Correct Answer
D. The item is not making a big enough profit -
- 22.
Select the statement about checking accounts that is not true.
- A.
Checking accounts facilitate trade by providing a means for businesses and individuals to pay for goods and services
- B.
Electronic funds transfer is a service in which money is transferred from one account to another by electronic means
- C.
Interest checking accounts require that the account holder pay interest on the funds that are available for payments
- D.
The Federal Reserve System provides a check collection network that allows checks to be paid by banks not the in the same city as the bank that deposited them.
Correct Answer
C. Interest checking accounts require that the account holder pay interest on the funds that are available for payments -
- 23.
The document that explains a company's goals and how it intends to achieve those goals is an example of a(n)
- A.
Annual report
- B.
Business plan
- C.
Corporate reports
- D.
Goals sheets
Correct Answer
B. Business plan -
- 24.
The following information is present in most business plans
- A.
Marketing plan
- B.
Mission statement
- C.
Executive summary
- D.
All of above
Correct Answer
D. All of above -
- 25.
Mr. Wilson wants to start a business. Before he can secure money from a bank, he has to prepare and present a business plan. He has the following information available.1. a Blue print of how the company proposes to achieve its business objectives.2. A marketing plan3. Information on the company's products and services.4. Biographical profiles of all company stakeholders5. Historical and projected financial informationWhat information must he include in his business plan?
- A.
1,2,3, and 5
- B.
All of the information above
- C.
1,2, and 4
- D.
2, 3, and 5
Correct Answer
A. 1,2,3, and 5 -
- 26.
Which of the following is a factor that a business would consider when determining start- up costs?
- A.
Demand of the target market
- B.
Credit available to customers
- C.
Experience of the entrepreneur
- D.
Amount and type of inventory needed
Correct Answer
D. Amount and type of inventory needed -
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Mar 21, 2022Quiz Edited by
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Jan 28, 2015Quiz Created by
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