Quiz
Principles of Business Midterm Review
Questions in this quiz (60)
1Which is a formatting characteristic of a full-block business letter?
- Adouble-spacing within the paragraph
- Bno paragraph indents
- Cindented first paragraph
- Dusing a right justification for all paragraphs
2Which is available to all people around the world who have access to a computer that has connectivity?
- AExtranet
- BIntranet
- CInternet
- DBroadband
3What type of software program would a business use to analyze its operating expenses and level of sales?
- AWord Processor
- BSpreadsheet
- CDatabase
- DCommunication
4Which is usually the quickest way that businesses can obtain information about unknown potential new vendors that are located in other parts of the country?
- Aby searching the web
- Bby sending an e-mail
- Cby faxing a request
- Dby phoning an agent
5When e-mailing large files or documents to coworkers or customers, a businessperson sends them:
- Ain codes.
- Bas attachments.
- Cin text boxes.
- Das reply messages.
6Which type of software program would an employee use to prepare a form letter informing the company's clients of a change in product pricing?
- Aspreadsheet
- Bword processing
- Cpresentation
- Ddatabase
7Which allows a computer to search and access information on the Internet?
- Acookie
- Bfolder
- Cbrowser
- Dserver
8Monitors, keyboards, and hard drives are examples of computer:
- ASoftware
- BLanguage
- CHardware
- DNetwork
9Businesses often use word-processing computer software to produce:
- Adetailed reports, memos, and contracts.
- Bcomplex graphics, letters, and reports.
- Cresearch reports, spreadsheets, and tables.
- Dbusiness plans, contracts, and spreadsheets.
10After an employee collects the necessary facts, what is the next step that an employee should take to solve a problem?
- Aanalyze the information
- Bdefine the problem
- Cact on assumptions
- Dmake a decision
11Which is an internal factor that might influence a business owner's decision making?
- Aopinions of others
- Bcompetitors' activities
- Ccomfort with risk
- Dmarket share
12Mark, who owns a small home-appliance store, is in the process of placing an order for 12 refrigerators, 8 stoves, and 4 portable dishwashers. Mark is purchasing the refrigerators for $674.98 each, the stoves for $493.22 each, and the portable dishwashers for $284.83 each. What is the total cost of the stoves that Mark is purchasing?
- A$493.22
- B$3,945.76
- C$2,278.64
- D$5,399.84
13What is one of the most important components of the production process?
- Anew technology
- Bgoods and services
- Chuman resources
- Dinputs and outputs
14Which is a example of a short-term objective?
- Abecoming president of a large corporation
- Bpaying off a twenty-five-year mortgage
- Cfinishing a six-week computer software course
- Dbecoming fluent in a foreign language
15A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?
- Abuyer's
- Bdiscount
- Cseller's
- Dautomotive
16Which group of words best describes wants?
- Alimited, changing, and compensating
- Bunlimited, changing, and competing
- Climited, unchanging, and competing
- Dunlimited, unchanging, and compensating
17A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:
- Adistribution.
- Bopportunity cost.
- Cefficiency.
- Dutility.
18The desire for which item(s) would be considered a non-economic want?
- Aa car
- Bnutritious food
- Ca walk
- Dnew clothing
19Which is an external factor that affects market price?
- Alocation of items in store
- Bconsumer buying power
- Cnumber of items in stock
- Davailable credit terms
20Which is an example of an economic service?
- Acar stereo
- Btennis shoes
- Cbaseball glove
- Dconcert ticket
21A killing frost destroys 80% of Florida's citrus crop. This will most likely create:
- Apure competition.
- Ba buyer's market.
- Ca seller's market.
- Dinelastic demand.
22Which is a natural resource that can be renewed through people's efforts?
- AWater
- BCrude
- CTrees
- DMineral deposits
23When prices increase, producers usually:
- Aincrease demand.
- Bdecrease supply.
- Cincrease supply.
- Ddecrease profits.
24Equilibrium price of a good or service is determined by trial and error and exists when:
- Aresearch shows what the market will tolerate.
- Bthe amount supplied is equal to the amount demanded.
- Cbusinesses total their costs and markup.
- Dbusinesses compute the average selling price in the area.
25Which situations would cause prices to rise?
- AThe corn crop is unusually large one summer.
- BInsects destroy a large cotton crop.
- CAnimal rights activists march in front of a fur store.
- DA newspaper article describes poor service provided by a hotel.
26Which is a reason that natural resources are considered limited?
- APeople lack training or skills needed to do a job.
- BTechnology has advanced faster than training.
- CSome countries are unable to manufacture them.
- DThe earth has certain boundaries.
27Which occurs when the supply of individuals who are able and willing to work diminishes?
- ACapital goods become unlimited.
- BCapital goods become limited.
- CHuman resources become limited.
- DHuman resources become unlimited.
28A local dry cleaner that also launders and presses shirts is selling:
- Aindustrial supplies.
- Bspecialty goods.
- Ctangible items.
- Dconsumer services.
29Who decides how goods and services will be marketed in a private enterprise economic system?
- Alegislators
- Bbusiness people
- Ccompetitors
- Dconsumers
30What is a business's net profit if it has $762,750 in income, $291,400 in operating expenses, and $238,930 in cost of goods?
- A$368,730
- B$232,420
- C$471,350
- D$523,820
31For a business, income remaining after payment of expenses is:
- Aloss.
- Bcapital.
- Cprofit.
- Ddebt.
32A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?
- ACeller-Kefauver Act
- BClayton Act
- CSherman Act
- DRobinson-Patman Act
33Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?
- Amilitary
- Bcapitalist
- Cconsumer
- Dwelfare
34The basic role of the United States government is to:
- Alimit business startups.
- Bmaintain control of prices.
- Cincrease production.
- Dprotect U.S. citizens.
35In a private enterprise economic system, the interaction of supply and demand primarily determines:
- Agovernment regulation.
- Beconomic choices.
- Cthe extent of pollution.
- Dproduct prices.
36Which is a problem associated with communist command economies?
- AThere is no competition.
- BThere are high taxes.
- CSupply and demand control what will be produced.
- DIndividuals run the risk of losing their businesses.
37In business terms, what is profit?
- Aa risky venture
- Ba good investment
- Ca holiday bonus
- Da monetary reward
38A major characteristic of a market economy is which type of ownership of property
- Amonopolistic
- Blimited
- Cgovernment
- Dprivate
39Which is a factor that affects the business environment?
- Aindustry competition
- Bstaff organization
- Cinformation management
- Dconflict negotiation
40A U.S. company would decide to offer its products in other countries as a reason to:
- Asubsidize developing countries.
- Bsell obsolete, outdated products.
- Cexpand to new, untapped markets.
- Dprovide jobs to people in other countries.
41A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business?
- ANo, the museum will not be considered a business.
- BNo, the museum will be a charitable institution.
- CYes, the museum will be a not-for-profit business.
- DYes, the museum will be a for-profit business.
42The two main divisions of the trade industry are:
- Amanufacturers and wholesalers.
- Bwholesalers and retailers.
- Cproducers and retailers.
- Dwholesalers and producers.
43Which is an example of ethical business behavior?
- Atesting products to ensure they are safe to use
- Baccepting a bribe from a prominent customer
- Cusing advertisements to confuse customers
- Ddisclosing partial information about products
44Which affects the business environment because it provides the most options for consumers?
- Acommand economy
- Binternational sanctions
- Cmonopoly
- Dglobal competition
45Business ethics involve considering issues about what is:
- Apositive and negative.
- Blegal and illegal.
- Csafe and unsafe.
- Dright and wrong.
46Which situation would most likely indicate the need to adapt to changes in the business environment?
- AThe supply of materials used in manufacturing a product has decreased.
- BThe number of the business's competitors has decreased.
- CThe demand for the product is stable.
- DThe business has experienced little employee turnover during the past year.
47Which is an example of an economic factor that affects the business environment?
- Abusiness cycle
- Bemployee morale
- Cmanagement style
- Dlong-term goals
48Which factor has aided the most in creating a global business environment?
- Atechnology
- Bgovernment
- Ccultural change
- Dexchange rate
49Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:
- Ainjunction.
- Bauthority.
- Cinitiative.
- Dattrition.
50One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually:
- Aprovides experience that increases the business's credibility.
- Bassumes all legal responsibility for the business's actions.
- Chelps with the day-to-day operations of the business.
- Devaluates the performance of the business's employees.
51A small-business owner whose business is a sole proprietorship is planning to “go global.” What method for going global would be best to recommend to the small-business owner?
- AStart by hiring an export management company.
- BStart by building facilities in the countries of interest.
- CStart by merging with a foreign business that can sell your products.
- DStart by renting facilities in the countries of interest and hiring foreign employees.
52Businesses that successfully adapt to current market situations often realize that:
- Acutting costs is important.
- Bmore financing is necessary.
- Cdiversification is the key.
- Dchange is an opportunity.
53The government can borrow money from the private sector in order to pay the costs of regulation by:
- Asetting prices.
- Braising taxes.
- Cissuing bonds.
- Dselling licenses.
54One reason that has caused the government's role in business to expand is that:
- Acompetition in the marketplace has increased.
- Bproducts have become very technical.
- Ccosts of production have continued to increase.
- Dpeople's attitudes have changed.
55The productivity of an individual worker can be measured by:
- Adividing the dollar totals of sales by the number of salespeople who made the sales.
- Bdividing the total number of products produced by the number of production steps.
- Cdividing the dollar totals of sales by the costs of making all of those sales.
- Ddividing the number of customers served by the number of hours an employee worked.
56If three employees each work 35 hours a week and produce a total of 9,765 items, what is their total hourly productivity level?
- A67
- B31
- C93
- D105
57The formula that is generally used to measure productivity is:
- Aoutputs divided by inputs.
- Blabor divided by resources.
- Cgoods divided by time.
- Dinputs divided by labor.
58A characteristic of a sole proprietorship is that the owner:
- Ahas access to unlimited funds.
- Breceives all the profit.
- Ctransfers all the risk.
- Ddelegates all functions.
59The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
- Apartnership
- Bcooperative
- Ccorporation
- Dproprietorship
60A type of business ownership in which one or more of the owners does not have full liability is called a:
- Ageneral partnership.
- Blimited partnership.
- Csole proprietorship.
- Dservice organization.
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- High School Principles of Business Quiz on Principles of Business Midterm Review, created by Tara McDonald on 20/03/2017.
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- Tara McDonald
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