POB 2.01 Review

Tara McDonald
Quiz by Tara McDonald, updated more than 1 year ago
Tara McDonald
Created by Tara McDonald almost 4 years ago
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Description

High School Principles of Business Quiz on POB 2.01 Review, created by Tara McDonald on 01/30/2017.

Resource summary

Question 1

Question
The process of starting a business is called:
Answer
  • Productivity
  • Getting a loan
  • Entrepreneurship
  • Capital

Question 2

Question
ABC Corporation wants to open their first facility. They need capital to rent and building, hire employees, and purchase inventory. Sam Walton is a rich investor, and ABC Corporation has asked Sam if he'd invest $50,000 to help start-up the business. They have agreed that Sam will receive a high return on his investment. Sam's investment will be what type of financial resource for ABC Corporation?
Answer
  • Venture capital-"angel"
  • Bank loan
  • Equity
  • Grandfather loan

Question 3

Question
Mary works alone in her catering business and enjoys scheduling her daily routine. She is experiencing which advantage of a sole proprietorship over a corporation?
Answer
  • Owner control of decisions
  • Owner limited life
  • Owner recipient of 100% of the profit
  • Owner unlimited liability

Question 4

Question
Which organization assists small business owners get up and running with their sole proprietorships?
Answer
  • ASPCA
  • SBA-Small Business Administration
  • FDA-Food and Drug Administration
  • FTC-Federal Trade Commission

Question 5

Question
An advantage of a sole proprietorship is:
Answer
  • Double taxation
  • Capital is easy to obtain
  • Share the workload
  • Ease of formation

Question 6

Question
When a business needs human resources outside the company, it can hire an outside firm to perform the activity without hiring in-house employees for that purpose. This process is called:
Answer
  • Outsourcing
  • Firing an employee
  • Expanding your company
  • Downsizing

Question 7

Question
A type of business ownership in which one or more of the owners does not have full liability is called a:
Answer
  • Sole Proprietorship
  • Limited Liability Partnership
  • General Partnership
  • Service Organization

Question 8

Question
A company sold 500 shares of stock and still relies on a central body of people for financial directions. This is an example of what type of business?
Answer
  • Sole proprietorship
  • Partnership
  • Corporation
  • LLC

Question 9

Question
Wendy is free of obligation of a role in her business and is an unknown partner, but she collects some of the profits each month. This is an example of what type of partner?
Answer
  • Limited
  • General
  • Dormant
  • Secret

Question 10

Question
An entity (something that exists by itself) with the legal authority to act as a single person is what type of business?
Answer
  • Partnership
  • Sole Proprietorship
  • LLC
  • Corporation

Question 11

Question
Who owns public corporations?
Answer
  • The board of directors only
  • Shareholders/Stockholders
  • The original entrepreneur only
  • Angels only

Question 12

Question
A 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?
Answer
  • No, the museum will not be considered a business.
  • No, the museum will be a charitable institution.
  • Yes, the museum will be a not-for-profit business.
  • Yes, the museum will be a for-profit business.

Question 13

Question
Sally has decided she wants to own and operate her own McDonald's franchise. She has gone through the application process with McDonald's Corporation and has invested $1,000,000 to open her location. She has learned that she has to run her location by using the corporations colors, menu items, recipes, and forms of production. What type of franchise is Sally's restaurant?
Answer
  • Business format franchise
  • Brand name franchise
  • Basic franchise
  • Private franchise

Question 14

Question
What states that only a certain number of a specific franchise can operate in a certain geographical area?
Answer
  • Sole purpose territory
  • Dependent territory
  • Exclusive territory
  • Open territory

Question 15

Question
Subway charges a franchise fee to entrepreneurs that want to open their own location. The franchise fee that Subway charges covers all of the following except:
Answer
  • Initial training
  • Access to suppliers
  • Startup marketing kits
  • Hiring all employees

Question 16

Question
An ongoing royalty fee is:
Answer
  • a monthly or quarterly fee that the franchisee pays to the franchisor typically calculated as a percentage of gross sales.
  • a fee paid when the business starts up
  • a set amount of money paid to the franchise every year
  • an attorney fee

Question 17

Question
The two main divisions of the trade industry are:
Answer
  • manufacturers and wholesalers.
  • wholesalers and retailers.
  • producers and retailers.
  • wholesalers and producers.

Question 18

Question
AT&T and Time Warner announced on October 22, 2016, reached a deal in which AT&T will buy the media company for a reported $86 billion, morphing AT&T into a media heavy hitter. The deal is expected to be announced officially later and if it happens it will be by far the largest deal the media industry has seen. When AT&T bought Time Warner this has caused:
Answer
  • Downsizing
  • A merger
  • Consolidation
  • Joint venture

Question 19

Question
Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:
Answer
  • injunction.
  • authority.
  • initiative.
  • attrition.

Question 20

Question
What type of organizational structure is best for smaller companies or those that focus on a single product or service?
Answer
  • Matrix
  • Formal
  • Functional
  • Divisional

Question 21

Question
What is the measurement of how many workers are supervised by one manager?
Answer
  • Line of Command
  • Line of Authority
  • Dictatorship
  • Span of Control

Question 22

Question
Adrian and Bailey own a salon. Adrian is a nail technician and Bailey is a cosmetologist. Adrian gives Bailey a pedicure. Bailey gives Adrian a haircut. They do not pay money for the services provided. What does this demonstrate?
Answer
  • rationing
  • exchange
  • scarcity
  • trade-off
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