Fundamentals Of Business Quiz For First Year Students
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What is Profit?
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When prices increase, consumers buy less
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The expenses after are paid costs
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The income that is left after all costs and expenses are paid
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Borrowing money to run a business.
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This quiz assesses first-year students on basic business concepts, including the definition of profit, types of organizations, and ethical decision-making. It's designed to test understanding of essential economic principles and ethical considerations in business.
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- 2.
What is a Non-profit organization?
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An organization that does not seek profit, but instead raises money for a charity,
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An organization where you buy from
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Not-for-profit organization: Is an organization such as housing or child-care Co-operative that also does not seek a profit.
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An organization that borrows money to run a business.
Correct Answer
A. An organization that does not seek profit, but instead raises money for a charity,Explanation
A non-profit organization is an organization that operates with the primary goal of serving a specific cause or mission rather than seeking financial profit. Instead of generating profits for its own benefit, a non-profit organization raises funds to support charitable activities, social causes, or community development. The focus is on making a positive impact rather than maximizing financial gains.Rate this question:
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- 3.
What are Needs?
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Things you like to have
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Things you do not need to survive but have them as entertainment such as IPods and PS4
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Things you need in life to survive such as water, food and shelter
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Stuff you need for fun
Correct Answer
A. Things you need in life to survive such as water, food and shelterExplanation
Needs are the essential things that are necessary for an individual's survival and well-being. These include basic requirements such as water, food, and shelter, which are essential for sustaining life. While things like IPods and PS4 may provide entertainment and enjoyment, they are not essential for survival and are considered wants or desires rather than needs.Rate this question:
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- 4.
What is a Not-for-profit organization?
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An organization that does not seek profit, but instead raises money for a charity,
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A group of like-mind people
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A type of business
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An organization such as housing or child-care Co-operative that also does not seek a profit
Correct Answer
A. An organization such as housing or child-care Co-operative that also does not seek a profitExplanation
A not-for-profit organization refers to an organization, like a housing or child-care co-operative, that operates without the primary goal of making a profit. Instead, it focuses on providing services or benefits to its members or the community. These organizations typically reinvest any surplus funds back into their operations or use them to further their mission or cause. Unlike a for-profit business, the main objective of a not-for-profit organization is to serve a social or public interest rather than generating financial gains.Rate this question:
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- 5.
What are Wants?
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Thins that you want in life
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Things you need in life to survive such as water, food and shelter
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The relationship of increasing the quantity supplied as prices increase
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Things you do not need to survive but have them as entertainment such as IPods and PS4
Correct Answer
A. Things you do not need to survive but have them as entertainment such as IPods and PS4Explanation
The correct answer is "things you do not need to survive but have them as entertainment such as IPods and PS4." This answer accurately describes wants as non-essential items that provide entertainment or pleasure, but are not necessary for survival.Rate this question:
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- 6.
Ethics are the rules that help us tell the difference between right and wrong and encourage us to do the right thing.
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True
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False
Correct Answer
A. TrueExplanation
Ethics are principles or guidelines that guide individuals in distinguishing between right and wrong actions and motivate them to choose the morally right option. These rules provide a framework for individuals to make decisions and behave in a morally responsible manner. By adhering to ethical principles, individuals are encouraged to act in a way that benefits others and society as a whole. Therefore, the statement that ethics help us tell the difference between right and wrong and encourage us to do the right thing is true.Rate this question:
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- 7.
What is Law of Demand?
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When prices increase, consumers buy less
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The income that is left after all costs and expenses are paid
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The relationship of increasing the quantity supplied as prices increase
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Borrowing money to run a business
Correct Answer
A. When prices increase, consumers buy lessExplanation
The correct answer is when prices increase, consumers buy less. This is because as prices rise, the cost of purchasing a product or service becomes higher, leading consumers to reduce their demand in order to save money. This is a fundamental principle in economics known as the law of demand, which states that there is an inverse relationship between price and quantity demanded.Rate this question:
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- 8.
What are Types of Businesses?
Correct Answer
Service business,not-for-profit organization, retail business and manufacturing businessExplanation
The types of businesses can be categorized into service businesses, not-for-profit organizations, retail businesses, and manufacturing businesses. A service business offers intangible services to customers, such as consulting or healthcare. Not-for-profit organizations are focused on a specific cause or mission and operate without the goal of making a profit. Retail businesses involve selling products directly to consumers, often through physical stores or online platforms. Manufacturing businesses are involved in the production and assembly of goods, which are then sold to wholesalers or retailers.Rate this question:
- 9.
What is Debt financing?
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Taking money
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Borrowing money to run a business
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Makeing money
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Using yours savings or investor’s savings to run your business.
Correct Answer
A. Borrowing money to run a businessExplanation
Debt financing refers to the practice of borrowing money to fund and operate a business. This involves obtaining loans or issuing bonds, where the borrowed funds need to be repaid over a specified period of time, usually with interest. It is a common method used by businesses to acquire capital for various purposes such as expansion, purchasing assets, or managing cash flow. By leveraging debt, businesses can access additional funds without diluting ownership or control. However, it also comes with the responsibility of making regular payments and fulfilling the terms and conditions of the loan agreement.Rate this question:
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- 10.
What is Equity financing?
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Borrowing money to run a business
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Useing someones money and not giveing it back
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Using yours savings or investor’s savings to run your business
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: is the relocation of a company’s operations to another country
Correct Answer
A. Using yours savings or investor’s savings to run your businessExplanation
Equity financing refers to using your own savings or investor's savings to fund and operate your business. Unlike borrowing money, equity financing does not involve repayment of the funds. Instead, investors become partial owners of the business and share in its profits and losses. This method allows entrepreneurs to raise capital without incurring debt and provides investors with the potential for higher returns on their investment.Rate this question:
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- 11.
What is Offshoring?
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The rules that help us tell the difference between right and wrong and encourage us to do the right thing
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Borrowing money to run a business
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Is the relocation of a company’s operations to another country
Correct Answer
A. Is the relocation of a company’s operations to another countryExplanation
Offshoring refers to the relocation of a company's operations to another country. This means that a company decides to move its production, services, or other business processes to a different nation, typically with the goal of reducing costs or accessing new markets. Offshoring allows companies to take advantage of lower labor costs, favorable regulations, or other benefits offered by the foreign country. By moving operations overseas, companies can potentially increase their competitiveness and profitability.Rate this question:
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- 12.
What are Ethics?
Correct Answer
The rules that help us tell the difference between right and wrong and encourage us to do the right thing.Explanation
The given answer accurately defines ethics as rules that guide individuals in distinguishing between right and wrong, and motivate them to make morally correct decisions. Ethics provide a framework for individuals to evaluate their actions and behaviors, promoting moral responsibility and encouraging them to act in an ethical manner.Rate this question:
- 13.
Code of Ethics Explains specifically how employees should respond in different situations.
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True
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False
Correct Answer
A. TrueExplanation
The statement is true because a code of ethics provides guidelines and principles that outline the expected behavior and conduct of employees in various situations. It helps employees understand their responsibilities and how to make ethical decisions. By following the code of ethics, employees can respond appropriately and consistently to different situations, ensuring ethical behavior and maintaining the organization's values and reputation.Rate this question:
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- 14.
Harassment are behaviors that are found to be good and nice.
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True
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False
Correct Answer
A. FalseExplanation
The statement contradicts the definition of harassment. Harassment refers to unwanted and offensive behaviors that cause distress or harm to others. These behaviors are not considered good or nice, but rather negative and harmful. Therefore, the correct answer is False.Rate this question:
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- 15.
Natural resources are materials that come from the earth, water, and air?
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True
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False
Correct Answer
A. TrueExplanation
Natural resources are materials that come from the earth, water, and air. This statement is true because natural resources are substances or materials that occur naturally in the environment and are used by humans for various purposes. Examples of natural resources include minerals, water, air, forests, and fossil fuels. These resources are essential for sustaining life and supporting various human activities such as agriculture, industry, and energy production.Rate this question:
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- 16.
Human resources are the people who work to create the goods and services?
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True
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False
Correct Answer
A. TrueExplanation
Human resources are indeed the people who work to create goods and services. They are a vital component of any organization as they contribute their skills, knowledge, and abilities to produce and deliver the desired products or services. Human resources are responsible for various tasks such as designing, producing, marketing, and distributing goods, as well as providing services to customers. Without the efforts and contributions of human resources, it would be impossible for organizations to produce and deliver the goods and services that are essential for meeting customer needs and achieving business goals.Rate this question:
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- 17.
Capital Resources are buildings, equipment, tools, trucks and factories.
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True
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False
Correct Answer
A. TrueExplanation
Capital resources refer to the physical assets that are used in the production of goods and services. These assets include buildings, equipment, tools, trucks, and factories. They are essential for businesses to operate and produce goods and services efficiently. Therefore, the statement that capital resources include buildings, equipment, tools, trucks, and factories is true.Rate this question:
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- 18.
What is balance of trade?
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The relationship between a country's total imports and exports
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The rules that help us tell the difference between right and wrong and encourage us to do the right thing
Correct Answer
A. The relationship between a country's total imports and exportsExplanation
The balance of trade refers to the relationship between a country's total imports and exports. It measures the difference in value between the goods and services a country exports and those it imports. A positive balance of trade occurs when a country exports more than it imports, resulting in a trade surplus. Conversely, a negative balance of trade, or trade deficit, occurs when a country imports more than it exports. The balance of trade is an important economic indicator as it reflects the competitiveness of a country's industries and its overall trade position in the global market.Rate this question:
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Current Version
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Apr 29, 2024Quiz Edited by
ProProfs Editorial Team -
Jan 22, 2012Quiz Created by
EdgeRocks
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