Introduction to Business 1st Semester Review (Chapters 1-21)

Name:

True/False
Indicate whether the statement is true or false.

Mass production is not the standard of U.S. manufacturing.

Building a specific, unique product for one customer is called processing.

Marketing activities add value to a product.

Service businesses are the fastest growing part of our economy.

A supermarket, a bank, and a utility company are all examples of businesses.

The production process of getting goods to consumers usually requires only one business.

Determining what work has to be done and who is to do it is called organizing.

A corporation is a legal entity and has a life separate from its owners.

A partnership is owned by two or more people who own shares of stock in the company.

10.

A wholesaler sells directly to consumers.

11.

Consumers often have a negative or narrow view of marketing.

12.

Because managers must keep information from employees, it is not possible for them to be open and honest.

13.

Participating in clubs, organizations, and activities can actually develop leadership skills that are useful in business.

14.

Most leadership characteristics are a part of a person’s personality and cannot be developed.

15.

An effective leader must be able to work with groups as well as with individuals.

16.

The management of people today has not changed from the way it was done many years ago.

17.

Being dressed very informally for a position interview lets the employer know that you are “cool” and will get along well with everybody.

18.

It is important that a letter of application be businesslike and courteous.

19.

Getting a position interview is the main purpose of a letter of application.

20.

Successful small-business owners like to plan and organize.

21.

There is very little help available to small-business owners.

22.

When you pay your taxes, you are performing your citizen role.

23.

Success in your role as a worker will affect your standard of living.

24.

Demand and supply interact to determine what price is charged for a good and service.

25.

Everyone in our economy has three economic roles to perform.

26.

Recovery in the business cycle occurs after a period of inflation.

27.

When the economy slows down, it enters a phase of the business cycle known as recession.

28.

Labor is another name for human resources.

29.

Goods and services are produced through the use of economic resources.

30.

A need is something that you desire to have because someone else has one.

31.

One of the problems in economics is that wants are unlimited.

32.

Freedom of choice is one of the important rights of the private enterprise system.

33.

The profit motive is designed to allow lazy owners to become rich.

34.

In the private enterprise system, you may start or invest in any business as long as it is not illegal to do so.

35.

Every business begins with an idea.

36.

Small-business owners are able to take long vacations and often have a lot of time for hobbies.

37.

Fewer than half of all new businesses will survive for five years.

38.

When a new piece of equipment or a new procedure is added to a small business, employees will usually receive training.

39.

One of the reasons people work is to earn money.

40.

Staffing is a vital part of human resource management.

41.

Human resources, the people who work for the business, are important to every business.

42.

Net income results when costs are greater than revenue.

43.

All successful businesses maintain accurate financial records.

44.

Few skills are needed by the person responsible for preparing business budgets.

45.

The central processing unit (CPU) is used to store data for use in the future.

46.

Keyboards, disk drives, and printers are commonly called software.

47.

Computer-assisted instruction allows people to learn at their own pace.

48.

E-mail is commonly sent by using a fax machine.

49.

A computer virus can cause damage to software or stored data.

50.

Video conferencing allows the movement of documents through telephone lines.

51.

Computer literacy is the ability to use computers to process information or solve problems.

52.

Immigrants have had little effect on our work force and economy until recent years.

53.

The need for businesses to remain profitable and competitive has led to downsizing.

54.

Most white-collar workers are employed in offices and stores.

55.

There is only one major type of industry today: service-producing.

56.

Human resources are not very important in the production of goods.

57.

Newspaper help wanted ads are interesting but of little value in career planning.

58.

School libraries should be avoided in career planning.

59.

Studying careers is continuous because new career opportunities come along regularly.

60.

The process of studying careers, assessing yourself, and making decisions about the future is called career planning.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

61.

Which of the following is a type of manufacturing?

a.	custom manufacturing	c.	processing
b.	mass production	d.	all of the above

62.

Which of the following is a function performed by all businesses?

a.	generating ideas	c.	keeping records
b.	raising capital	d.	all of the above

63.

Which of the following is NOT a reason for a business to keep records?

a.	To provide information for management decisions.
b.	To provide information for tax returns.
c.	To provide jobs for accountants.
d.	To provide information about income and expenses.

64.

What effect does a new business have on a community?

a.	It has multiple benefits.
b.	It profits only the new businesses.
c.	Other businesses are not effected.
d.	Few resources are needed.

65.

Businesses affect a community when they

a.	buy products.	c.	employ workers.
b.	use services.	d.	all of the above.

66.

The form of business that represents two-thirds of US businesses is the

a.	corporation.	c.	sole proprietorship.
b.	partnership.	d.	cooperative.

67.

People who become part owners of a corporation are called

a.	partners.	c.	shareholders.
b.	special owners.	d.	cooperative owners.

68.

Which of the following is NOT one of the five activities of business managers?

a.	planning	c.	controlling
b.	purchasing	d.	staffing

69.

The parent company of a franchise business is known as the

a.	franchisee.	c.	Big Daddy.
b.	franchisor.	d.	all of the above

70.

The way that people get along with each other is known as

a.	leadership.	c.	communications.
b.	human relations.	d.	identity influence.

71.

Which of the following is NOT an important human relations skill of managers?

a.	self understanding
b.	understanding others
c.	criticizing poor employee performance
d.	communications

72.

A leader who has the personal trust and respect of group members will have what kind of influence?

a.	reward	c.	expert
b.	position	d.	identity

73.

Which of the following is true of informal influence?

a.	It is part of the organization’s formal structure.
b.	It is the type of influence most often found among managers.
c.	It is usually found in a well-liked and respected employee.
d.	A good manager will not allow informal influence.

74.

The way that managers treat and direct employees is

a.	human relations ability.	c.	formal influence.
b.	leadership style.	d.	team building.

75.

An organized group of employees that negotiates with employers about issues such as wages and working conditions is a

a.	work team.	c.	labor union.
b.	strategic management unit.	d.	cooperative.

76.

Employees have discovered that when they cooperate with managers,

a.	managers tend to take advantage of them.
b.	managers will be more likely to use tactical management.
c.	there will be less vertical communication.
d.	managers will have a better understanding of employee needs and expectations.

77.

Which of the following is NOT true about marketing?

a.	It is viewed positively by all consumers.
b.	It increases our standard of living.
c.	It creates many jobs.
d.	It benefits consumers.

78.

Directing all marketing activities at profitably satisfying customer needs is called

a.	a commission.	c.	the marketing mix.
b.	a target market.	d.	the marketing concept.

79.

The four marketing mix elements are

a.	marketing, distribution, production, pricing.
b.	production, marketing, decision-making, advertising.
c.	product, place, promotion, pricing.
d.	promotion, pricing, distribution, marketing.

80.

Anything offered to the target market to satisfy their needs is

a.	a market.	c.	distribution.
b.	promotion.	d.	the product.

81.

To be effective, promotion must

a.	be noticed.
b.	encourage consumers to pay attention to the message.
c.	result in consumers taking action.
d.	all of the above.

82.

Today most promotion is done through

a.	sales promotion.	c.	media advertising.
b.	publicity.	d.	personal selling.

83.

What effect will a carelessly written letter of application have on readers?

a.	They will wonder if you can operate a computer.
b.	They will think you have a lot to do at home.
c.	They will think that you will be a careless worker.
d.	They will want to see you right away.

84.

Which of the following are generally good sources of job openings?

a.	your parents or guardians	c.	your friends
b.	your neighbors	d.	all of the above

85.

Why do employers use position application forms?

a.	They desire standard information about all applicants.
b.	They do not trust the letters of application.
c.	They need something for their files.
d.	All of the above.

86.

Which of the following is NOT a good procedure when filling out a position application form?

a.	Take the assignment seriously.
b.	Leave blanks if you do not understand or like a question.
c.	Consider it your first job task.
d.	Answer everything honestly.

87.

Employers may use ability tests to find out about

a.	keyboarding skills.	c.	calculating skills.
b.	word processing skills and knowledge.	d.	All of the above.

88.

Which of the following best describes a position interview?

a.	An employer asks questions about how you liked your work.
b.	A person’s appearance or speech is of little concern.
c.	It is a two-way conversation.
d.	It is usually conducted by secretaries and clerks.

89.

Which of the following is NOT correct about exiting a job?

a.	Let your co-workers know that they were appreciated.
b.	Give a proper, two-week notice.
c.	Don’t complete your work; let the new worker do that.
d.	Be cooperative in the exit interview.

90.

Which of the following is NOT true about a small business?

a.	The owner usually is the manager.
b.	It employs fewer than 500 people.
c.	It is dominant in its field of operation.
d.	It is local and serves a nearby community.

91.

Which of the following is true about small businesses?

a.	Most begin as sole proprietorships.
b.	Many eventually become corporations.
c.	Many begin through a franchise agreement.
d.	All of the above.

92.

When a company does not have enough money and other assets to pay its creditors, the situation is called

a.	negative financing.	c.	owner’s dilemma.
b.	poor management.	d.	bankruptcy.

93.

Which of the following is one of the reasons why small businesses fail?

a.	The owner has a lack of sales and management experience.
b.	The owner is an immigrant.
c.	The owner allows customers to charge purchases.
d.	All of the above.

94.

Someone who takes a risk in starting a business to earn a profit is

a.	an entrepreneur.	c.	a business tycoon.
b.	a daredevil.	d.	a millionaire.

95.

Which of the following is NOT one of the economic roles performed in our economy?

a.	worker	c.	leader
b.	citizen	d.	consumer

96.

In performing economic roles, which of the following is NOT true?

a.	You don’t need to know the importance of making good decisions.
b.	The entire economy is affected.
c.	It is helpful to understand the private enterprise system.
d.	Everyone performs all three roles to some degree.

97.

Which of the following is NOT true about prices?

a.	If prices are too high, consumers won’t buy.
b.	If prices are too low, businesses will not earn a profit.
c.	Prices are affected by both supply and demand.
d.	Setting a price does not require any study by a business.

98.

The factor that helps to keep prices at a reasonable level is

a.	kind-hearted people	c.	government regulations
b.	competition among businesses	d.	profit motive

99.

Which of the following is true about your worker role?

a.	It is the least important of the three economic roles.
b.	It supports your consumer role.
c.	Your productivity is unimportant.
d.	It has no relationship to your standard of living.

100.

Productivity is affected by

a.	technology and worker training.
b.	the wages paid to workers.
c.	the number of workers in the work force.
d.	all of the above.

101.

Which of the following is true about your citizen role?

a.	Voting is not part of it.
b.	Keeping informed is not important.
c.	Decisions made are individual and not collective.
d.	It helps provide goods and services needed by the community.

102.

Which of the following is true about the business cycle?

a.	It has four phases.
b.	There are recurring ups and downs.
c.	There is a pattern of good times to bad times and back again.
d.	All of the above.

103.

Which of the following is the correct sequence of the phases of the business cycle?

a.	Recovery, recession, depression, prosperity.
b.	Prosperity, recovery, recession, depression.
c.	Prosperity, recession, recovery, depression.
d.	Prosperity, recession, depression, recovery.

104.

Which of the following is NOT true about inflation?

a.	It is one problem that our country has not had to worry about.
b.	It is a sustained increase in the general level of prices.
c.	Prices of goods and services rise faster than wages.
d.	In general, most people think inflation is harmful.

105.

Which of the following is NOT a need?

a.	food	c.	car
b.	housing	d.	clothing

106.

Which of the following are goods?

a.	jackets	c.	gasoline
b.	CD players	d.	all of the above

107.

Which of the following are considered to be natural resources?

a.	TV announcers	c.	oil
b.	bankers	d.	farmers

108.

Which of the following statements about natural resources is true?

a.	Natural resources satisfy wants by themselves.
b.	Natural resources require people to turn them into goods.
c.	Natural resources come from the earth and water but not the sky.
d.	Natural resources include people who operate plows and trucks.

109.

The person who checks out purchases at the supermarket is part of

a.	natural resources	c.	human resources
b.	capital resources	d.	none of the above

110.

The Economic Decision Making Process is used for

a.	daily decisions	c.	difficult decisions
b.	simple decisions	d.	none of the above

111.

Which is NOT one of the 3 basic economic questions?

a.	What is produced?	c.	How much is produced?
b.	Why is it produced?	d.	For whom it is produced?

112.

Which is NOT one of the 3 types of economic systems?

a.	Custom Based	c.	Market
b.	Directed or Planned	d.	Competitive

113.

The United States has what type of economic system?

a.	Custom Based	c.	Market
b.	Directed or Planned	d.	Competitive

114.

The economic principle of Private Enterprise means

a.	the right to own land, houses, and goods.
b.	the right to own your own business.
c.	businesses make money.
d.	the right to buy where and what you please.

115.

The economic principle of Private Property means

a.	the right to own your own land, houses, and goods.
b.	the right to own your own business.
c.	businesses make money.
d.	the right to buy where and what you please.

116.

A business that contributes to community groups, such as the arts, is being

a.	careless with profits.	c.	ethically correct.
b.	socially responsible.	d.	none of the above

117.

Which of the following is a social-responsibility issue?

a.	Protection of the environment.
b.	Employment of the physically challenged.
c.	Providing a healthy and safe workplace.
d.	All of the above.

118.

Preserving our society’s scarce resources is an act of business known as

a.	conservation.	c.	soil engineering.
b.	non-polluting.	d.	all of the above.

119.

Which of the following is true about employee wellness?

a.	Workers who have good health are valuable company assets.
b.	Overweight workers are not an employer concern.
c.	Smoking on the job is not a concern.
d.	OSHA sets and enforces safety standards.

120.

Ethics are

a.	the natural behavior of people.	c.	of little concern to businesses.
b.	principles of morality.	d.	behaviors performed by groups.

121.

A statement developed for guiding the behavior of employees is called

a.	a box of standards.	c.	a statement of guidelines.
b.	a code of ethics.	d.	none of the above.

122.

Goods and services we sell to other countries are known as

a.	imports.	c.	exports.
b.	embargos.	d.	all of the above.

123.

The value of one currency compared with the value of another is the

a.	currency exchange rate.	c.	US dollar conversion.
b.	currency barometer.	d.	currency divider.

124.

Which of the following is used to completely stop the import or export of a product?

a.	embargo	c.	duty
b.	tariff	d.	tax

125.

Which of the following is NOT a benefit of international trade?

a.	Consumers must pay higher prices.
b.	There is a greater abundance of goods and services for consumers.
c.	Jobs are created.
d.	Mutual understanding and respect among countries is promoted.

126.

Business transactions involving companies in more than one state are referred to as

a.	intrastate commerce.	c.	multiple state business.
b.	interstate commerce.	d.	none of the above.

127.

An agreement to exchange goods or services for something of value is called a

a.	contract.	c.	copyright.
b.	bargain.	d.	market.

128.

When individuals or companies create new products, they may seek to obtain

a.	a copyright.	c.	a patent.
b.	a contract.	d.	none of the above

129.

Which of the following is a correct description of a copyright?

a.	issued for 17 years.
b.	issued for inventions.
c.	lasts for 50 years only.
d.	continues for the life of the person receiving it, and beyond.

130.

What is the government agency that has been set up to help new businesses get started?

a.	Small Business Administration (SBA)
b.	New Business Agency (NBA)
c.	Bureau of Labor Statistics (BLS)
d.	None of the above

131.

Which of the following is true about our federal government?

a.	It is the largest employer in our economy.
b.	It is an important economic force because of its purchasing power.
c.	It must raise money to fund operations and pay wages.
d.	All of the above.

132.

Which of the following is the largest source of revenue for local governments?

a.	sales tax	c.	real estate property tax
b.	income tax	d.	excise tax

133.

Operating a business requires skill in

a.	management.	c.	marketing.
b.	finance.	d.	all of the above.

134.

When compared to the past, today’s small-business owners are more likely to be

a.	less educated.	c.	minorities.
b.	males.	d.	older.

135.

The most important first step in starting a business is

a.	information.	c.	financing.
b.	preparation.	d.	an idea.

136.

Short-term financing is obtained for a period of

a.	more than two years.
b.	one to two years.
c.	less than a year and often for one or two months.
d.	less than a year and often more than five months.

137.

Which statement is true about a proprietorship?

a.	One person will supply the money needed to start the business.
b.	Partners contribute to the necessary financing of the business.
c.	The company is owned and operated by shareholders.
d.	Two people control the money, and a board of directors helps with the decision-making.

138.

One to whom the company makes a long-term commitment is a

a.	temporary employee.	c.	permanent employee.
b.	part-time employee.	d.	full-time employee.

139.

A temporary employee is

a.	one hired for a specific time or to complete a specific project.
b.	one who works less than a full-time employee.
c.	one who works a schedule of 30 or more hours per week.
d.	none of the above.

140.

An employee who works every Thursday and Friday for three hours each day is considered a

a.	permanent employee.	c.	full-time employee.
b.	temporary employee.	d.	part-time employee.

141.

Compensation is defined as

a.	commissions and base incentives.
b.	straight salary and commissions.
c.	money paid to an employee for work performed.
d.	profit sharing and piece rates.

142.

What is an incentive where an employee is paid a percentage of sales?

a.	commission	c.	straight salary
b.	wages	d.	piece rate

143.

Compensation where an employee receives a specific amount of each unit of work produced is called a

a.	wage.	c.	commission.
b.	straight salary.	d.	piece rate.

144.

A type of incentive where employees receive their regular compensation plus a share of the profits earned by a company is called

a.	profit sharing.	c.	straight salary.
b.	commission.	d.	base plus incentive salary.

145.

Full-time employees often receive benefits such as

a.	health and life insurance plans.	c.	paid vacations.
b.	disability insurance.	d.	all of the above

146.

If you own your own small business, the money you receive is called

a.	profit.	c.	expenses.
b.	revenue.	d.	owner’s equity.

147.

A budget that estimates income and expenses from the beginning of the business until it becomes profitable is called a

a.	start-up budget.	c.	cost budget.
b.	financial plan.	d.	long-term budget.

148.

The budget that describes the financial plan for the day-to-day operations of the business is called

a.	a start-up budget.	c.	a cash budget.
b.	an operating budget.	d.	a financial plan.

149.

Budgeting requires an understanding of financial information and

a.	technical writing skills.	c.	business management skills.
b.	computer skills.	d.	a degree in English.

150.

When preparing a budget for the first time, many small businesses seek help from

a.	a financial analyst.	c.	an established permanent employee.
b.	an established corporation.	d.	an accountant.

151.

What records contain information on all employees of the company and their earnings?

a.	cash records	c.	employee records
b.	financial records	d.	payroll records

152.

A balance sheet lists

a.	assets and liabilities.	c.	liabilities and budgets.
b.	financial plans and budgets.	d.	net incomes.

153.

When expenses are greater than income, the result is

a.	net income.	c.	a net loss.
b.	gross income.	d.	none of the above.

154.

What statements do business owners review to determine how their businesses are performing?

a.	liability statements	c.	cash statements
b.	financial statements	d.	profit statements

155.

An example of hardware in a computer system would be

a.	a computer language.	c.	software.
b.	a keyboard.	d.	a CD-ROM.

156.

A system of computers linked together is called

a.	a computer network.	c.	a CD-ROM.
b.	application software.	d.	a multimedia system.

157.

A common input device is

a.	a printer.	c.	a keyboard.
b.	a central processing unit.	d.	operating system software.

158.

A commonly used storage device is a

a.	disk drive.	c.	keyboard.
b.	printer.	d.	mouse.

159.

E-mail refers to correspondence that is transmitted through

a.	word processing software.	c.	a computer network.
b.	fax machines.	d.	a database.

160.

Word processing software is commonly used to create

a.	memos.	c.	lists of related customer data.
b.	financial statements.	d.	bar charts.

161.

Which feature is usually included in spreadsheet software?

a.	desktop publishing	c.	database marketing
b.	the ability to check spelling & grammar	d.	built-in calculations

162.

Telecommuting refers to

a.	the activities of a worker using a computer at home to do a job.
b.	the movement of data through a computer network within the same city.
c.	the creation of newsletters & other publications with a personal computer.
d.	the use of software to maintain, analyze, & combine customer information files.

163.

Displaced workers are unemployed as a result of

a.	injuries on the job.	c.	changing job conditions.
b.	poor educational training.	d.	lower consumer demand.

164.

Robots would most likely be used to work in

a.	management jobs.	c.	training centers.
b.	dangerous situations.	d.	the operation of motor vehicles.

165.

Expert systems would be most appropriate in situations related to

a.	preparing business correspondence.
b.	sending a memo by E-mail.
c.	creating a database.
d.	making decisions about technical situations.

166.

The use of technology to create product styles & designs is called

a.	video conferencing.	c.	E-mail.
b.	computer networking.	d.	computer-aided design.

167.

Which of the following allows consumers to store personal financial and health data for easy access while shopping or traveling?

a.	a SMART card	c.	virtual reality
b.	E-mail	d.	computer-aided design

168.

Stealing or illegally copying software or data files is called

a.	piracy.	c.	artificial intelligence.
b.	a computer virus.	d.	white-collar crime.

169.

What is the name of the US government agency that does research on thousands of jobs and issues reports on them?

a.	Bureau of Labor Statistics	c.	Bureau of Labor Relations
b.	Bureau of Worker Records	d.	Bureau of Worker Information

170.

Someone who works in a fast-food restaurant is working in

a.	the goods-producing industry.	c.	the extracting industry.
b.	the service-producing industry.	d.	none of the above.

171.

Which of the following is part of new technology?

a.	electronic equipment	c.	automated machines
b.	integrated systems	d.	all of the above

172.

Which of the following is NOT true about immigrants?

a.	They have made important contributions to our economy.
b.	They often fill jobs that otherwise would go unfilled.
c.	They seldom start new businesses.
d.	Many immigrants become US citizens.

173.

A task or series of tasks that are performed to produce a good or service is

a.	a goal.	c.	an occupation.
b.	a career.	d.	a plan.

174.

Which of the following is true about career planning?

a.	It is a process of studying careers.
b.	It includes assessing yourself.
c.	It involves making decisions.
d.	All of the above.

175.

Which of the following is NOT something you need to find out about in career planning?

a.	The age of workers in an occupation.
b.	wages paid
c.	education and training required
d.	duties performed

176.

What occurs when jobs go unfilled because qualified people are not willing to relocate?

a.	employment gridlock	c.	locational unemployment
b.	locational dilemma	d.	unemployment mismatch

177.

The things in life that are important to you are your

a.	goals.	c.	values.
b.	talents.	d.	abilities.

178.

The quality of being able to perform mental and physical tasks is

a.	a talent.	c.	a value.
b.	an ability.	d.	none of the above