Test Your Knowledge About Business Terms
(243).jpg "Test Your Knowledge About Business Terms - Quiz")
This quiz will help you know if you are a business minded person and how much you know about business. Find out and gauge your understanding of business terms and most business concepts below. Good luck!
Questions and Answers
- 1.
A periodic review of a company's financial transactions is done through what?
- A.
Dividends
- B.
Portfolio
- C.
Interoffice Mail
- D.
Audit
Correct Answer
D. AuditExplanation
A periodic review of a company's financial transactions is done through an audit. An audit is a systematic examination of a company's financial records, statements, and transactions to ensure accuracy, compliance with laws and regulations, and proper financial reporting. It involves analyzing financial data, conducting interviews, and verifying documents to assess the company's financial health and identify any discrepancies or fraudulent activities. Audits are typically performed by external or internal auditors to provide an independent and unbiased evaluation of the company's financial practices and help maintain transparency and accountability.Rate this question:
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- 2.
If you have recourse against a company, it means you have a general what?
- A.
Tax Bill Owed
- B.
Claim Against Them
- C.
Right To Work
- D.
Debt To Pay
Correct Answer
B. Claim Against ThemExplanation
If you have recourse against a company, it means you have a claim against them. Recourse refers to the legal right or option to seek compensation or remedy for a wrongdoing or harm caused by a company. This could include seeking damages, filing a lawsuit, or taking other legal actions to hold the company accountable for their actions or negligence.Rate this question:
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- 3.
Business standards of conduct are also known as what?
- A.
Ethics
- B.
Fixed Rate
- C.
Lines Of Credit
- D.
Human Resources
Correct Answer
A. EthicsExplanation
Business standards of conduct refer to the principles and values that guide ethical behavior in a business setting. Ethics involves making decisions and taking actions that are morally right and socially responsible. It includes respecting the rights and dignity of individuals, being honest and transparent, and adhering to legal and regulatory requirements. By following ethical standards, businesses can build trust and credibility with their stakeholders, maintain a positive reputation, and contribute to the overall well-being of society.Rate this question:
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- 4.
What department is usually involved in hiring employees?
- A.
Human Resources
- B.
Customer Service
- C.
Marketing
- D.
Finance And Accounting
Correct Answer
A. Human ResourcesExplanation
The department that is usually involved in hiring employees is Human Resources. Human Resources is responsible for the recruitment, selection, and onboarding of new employees. They handle the entire hiring process, including advertising job vacancies, screening resumes, conducting interviews, and making job offers. Human Resources also ensures that the hiring process is fair, compliant with laws and regulations, and aligned with the company's goals and values. They play a crucial role in finding and selecting the right candidates to join the organization.Rate this question:
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- 5.
Real exchange rates have been adjusted for what between countries?
- A.
Inflation
- B.
Time Zones
- C.
Profit
- D.
Language Differences
Correct Answer
A. InflationExplanation
Real exchange rates have been adjusted for inflation between countries. Inflation affects the purchasing power of a currency, causing it to depreciate or appreciate in value. Adjusting real exchange rates for inflation allows for a more accurate comparison of the cost of goods and services between countries. This adjustment is necessary to ensure fair trade and to understand the true value of a currency in international transactions.Rate this question:
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- 6.
What is meant by a range of prices?
- A.
High And Lows Recorded
- B.
Market Value Of Beef
- C.
Open Range For Ranchers
- D.
Profit And Loss
Correct Answer
A. High And Lows RecordedExplanation
A range of prices refers to the highest and lowest recorded prices within a certain period of time. It represents the fluctuation in prices over that period, providing information on the highest price point and the lowest price point reached. This range is important for investors and traders as it helps them understand the volatility and potential profitability or loss in a particular market or asset.Rate this question:
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- 7.
A contract that prohibits an employee from switching to a competing company, is called what?
- A.
Business Conduct Manual
- B.
Non-competitive Agreement
- C.
Exception Opinion
- D.
Paralegal Clause
Correct Answer
B. Non-competitive AgreementExplanation
A contract that prohibits an employee from switching to a competing company is called a non-competitive agreement. This type of agreement is commonly used by employers to protect their business interests and prevent employees from taking their knowledge, skills, and contacts to a rival company. By signing a non-competitive agreement, the employee agrees not to work for a competitor for a specified period of time after leaving their current employment. This helps to ensure that the employee does not pose a threat to the company's trade secrets, customer base, or competitive advantage.Rate this question:
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- 8.
The price of one country's currency for another country's currency depends on what?
- A.
Bear Market
- B.
Money Market Account
- C.
Exchange Rate
- D.
Dow Jones Industrial Average
Correct Answer
C. Exchange RateExplanation
The price of one country's currency for another country's currency depends on the exchange rate. The exchange rate is the value at which one currency can be exchanged for another currency. It is determined by various factors such as supply and demand, interest rates, inflation, and economic stability of the countries involved. A higher exchange rate means that one country's currency is stronger compared to another country's currency, while a lower exchange rate indicates a weaker currency.Rate this question:
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- 9.
A rate lock in mortgages guarantees a specified what for a period of time?
- A.
Mortgage Vendor
- B.
Interest Rate
- C.
Flexibility
- D.
Profit
Correct Answer
B. Interest RateExplanation
A rate lock in mortgages guarantees a specified interest rate for a period of time. This means that the borrower is protected from any fluctuations in the market interest rates during that period. It provides stability and allows the borrower to plan their finances accordingly, knowing that their mortgage payments will remain the same.Rate this question:
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- 10.
Allocating the purchase cost of an asset over its lifetime, takes what into consideration?
- A.
General Drift
- B.
Depreciation
- C.
Tax Shield
- D.
Detachable Warrant
Correct Answer
B. DepreciationExplanation
Depreciation is the process of allocating the purchase cost of an asset over its lifetime. It recognizes that assets lose value over time due to wear and tear, obsolescence, or other factors. By spreading the cost of the asset over its useful life, depreciation helps to accurately reflect the asset's value on the company's financial statements. This allows for more accurate reporting of income and expenses, and helps in determining the asset's true economic value.Rate this question:
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- 11.
A building and equipment would be considered what type of asset?
- A.
Obligatory
- B.
Inflated
- C.
Virtual
- D.
Real
Correct Answer
D. RealExplanation
A building and equipment would be considered real assets because they are physical and tangible assets that have a monetary value. Real assets are typically long-term investments that provide value and can be used to generate income or contribute to the overall value of a business or organization.Rate this question:
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- 12.
What type of contract is used between a landlord and a renter?
- A.
Lease
- B.
Escrow Account
- C.
Land Equity
- D.
Renters Insurance
Correct Answer
A. LeaseExplanation
A lease is a type of contract used between a landlord and a renter. It outlines the terms and conditions of the rental agreement, including the duration of the lease, the amount of rent to be paid, and any other specific provisions agreed upon by both parties. This legally binding document protects the rights and responsibilities of both the landlord and the renter, ensuring a fair and mutually beneficial rental arrangement.Rate this question:
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- 13.
The fine print at the bottom of a statement that removes liability, is called what?
- A.
Auditor's Statement
- B.
Par Value Premium
- C.
Disclaimer
- D.
Fraudulent
Correct Answer
C. DisclaimerExplanation
A disclaimer is a statement that is included at the bottom of a document or statement to remove liability. It is a way for the author or issuer of the document to protect themselves from any legal consequences that may arise from the information or actions mentioned in the document. By including a disclaimer, the author is essentially stating that they cannot be held responsible for any negative outcomes that may occur as a result of the information provided.Rate this question:
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- 14.
Dividing investment funds among a variety of securities with different risks means that you've done what?
- A.
Stabilized
- B.
Earned Capital
- C.
Dividend Planning
- D.
Diversified
Correct Answer
D. DiversifiedExplanation
By dividing investment funds among a variety of securities with different risks, you have diversified your portfolio. Diversification is a risk management strategy that involves spreading investments across different assets to reduce the impact of any single investment's performance on the overall portfolio. This helps to stabilize the portfolio by minimizing the potential losses from any one investment and potentially earning capital from a mix of securities with varying levels of risk. Dividend planning, on the other hand, refers to a strategy of investing in securities that provide regular dividend payments.Rate this question:
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- 15.
A nation's internal market is what type of market?
- A.
Domestic
- B.
Immigration
- C.
International
- D.
Global
Correct Answer
A. DomesticExplanation
A nation's internal market refers to the economic activities and transactions that occur within the borders of that nation. It involves the buying and selling of goods and services among individuals, businesses, and organizations within the country. Therefore, the correct answer is "Domestic" as it accurately describes the type of market that is being referred to in this context.Rate this question:
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- 16.
Investors usually sell short when they think the price of a stock is going to do what?
- A.
Go Down
- B.
Stay The Same
- C.
Be Fixed
- D.
Go Up
Correct Answer
A. Go DownExplanation
Investors usually sell short when they think the price of a stock is going to go down. Selling short involves borrowing shares from a broker and selling them in the market with the expectation of buying them back at a lower price in the future. This strategy is used by investors who believe that the stock's price will decrease, allowing them to profit from the price difference.Rate this question:
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- 17.
The Foreign Credit Insurance Association can be abbreviated as what?
- A.
FDIC
- B.
SEC
- C.
FCIA
- D.
ASFAB
Correct Answer
C. FCIAExplanation
The correct answer is FCIA. The Foreign Credit Insurance Association is commonly abbreviated as FCIA.Rate this question:
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- 18.
The settlement day of a trade is when what happens?
- A.
Stock Goes On Sale
- B.
Offer To Sell Is Published
- C.
Payment Is Made
- D.
Offer To Buy Is Made
Correct Answer
C. Payment Is MadeExplanation
The settlement day of a trade is when payment is made. This is the day when the buyer transfers the funds to the seller in exchange for the purchased securities or assets. It is the final step in completing the transaction and ensures that both parties fulfill their obligations. The settlement day is crucial for ensuring the smooth and timely transfer of ownership and funds between the buyer and seller.Rate this question:
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- 19.
A person who is limited by a consistant single source of income is often said to live on what?
- A.
Interest
- B.
Dividends
- C.
Fixed Income
- D.
Welfare
Correct Answer
C. Fixed IncomeExplanation
A person who is limited by a consistent single source of income is often said to live on a fixed income. This means that their income remains the same or does not vary significantly over time. This could include income from a job with a fixed salary or a pension that provides a set amount of money each month. Living on a fixed income can make it challenging to meet all financial needs and may require careful budgeting and planning.Rate this question:
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- 20.
If an interest rate is established at one rate for the life of a loan, it is what type?
- A.
Adjustable Rate
- B.
Preferred Stock
- C.
Fixed Rate
- D.
Fluctuating Rate
Correct Answer
C. Fixed RateExplanation
A fixed rate is established at one rate for the entire duration of a loan. This means that the interest rate remains constant and does not change over time. Unlike adjustable rate loans, which have fluctuating interest rates that can change periodically, a fixed rate loan provides stability and predictability for borrowers. This type of loan is popular for mortgages and other long-term loans, as it allows borrowers to plan their budget and payments without the risk of unexpected rate increases.Rate this question:
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