Intro To Business Test 1 Spring 2010

Front 1

An intangible product that is bought or sold is called?

Back 1

A service

Front 2

A company warns a profit when?

Back 2

the company's revenue is greater than its expenses?

Front 3

Which of the following types of businesses usually has only a few stores in one general location?

Back 3

Local Business

Front 4

Danielle recently lost her job at a customer service call center because her job was outsourced to India. What is the BEST course of action for Danielle to recover from this setback?

Back 4

Focus on learning new skills that will allow her to compete in the job market.

Front 5

In order to enjoy long-term success, a business must be able to keep pace with?

Back 5

technological progress

Front 6

Rachel wants to start a website so that she can sell electronic versions of her poetry collection. What business structure would be inappropriate for her online business?

Back 6

General partnership

Front 7

Which of the following best describes a global economy?

Back 7

Interdependence

Front 8

In a competitive environment, what is a skill that employers DO NOT look for in their employees?

Back 8

INTRApersonal skills

Front 9

What distinguishes a corporation from other forms of business ownership in terms of taxes?

Back 9

It is double taxed

Front 10

Articles of incorporation are required to form?

Back 10

Corporation

Front 11

What is the MOST important role in allowing all companies, no matter the size, to compete in a global market?

Back 11

technological advances

Front 12

What makes entrepreneurs diferent from workers?

Back 12

their willingness to take risk

Front 13

What factors should you focus on to make sure that your company's production process is running efficiently?

Back 13

Good communication, Timely arrival of shipments, Cooperative representatives

Front 14

What is not an advantage of forming a limited liability company?

Back 14

Double taxation on profits

Front 15

Describe the scope of a distribution of a multinational company?

Back 15

Its products are sold in several countries, although items sometimes vary

Front 16

What would most likely change the income distribution demographic?

Back 16

An Economic slump

Front 17

What refers to the physical facilities used to produce goods and services?

Back 17

Real capital

Front 18

Why is McDonald's classified as a multinational business?

Back 18

it has branches in more than 100 countries

Front 19

Private information is often easily accessible online because?

Back 19

Internet users often utilize online storage instead of local hard drives

Front 20

What is not part of a diversity initiative?

Back 20

ethics training

Front 21

Liability insurance typically covers?

Back 21

damaged property

Front 22

A business partnership where one partner provides money and occasionally gives advice is?

Back 22

Limited Partnership

Front 23

What type of economy describes the U.S. economy?

Back 23

Market-based economy

Front 24

In what way does a successful business NOT benefit society?

Back 24

ever-growing business debts and liabilities

Front 25

What does not result from under-capitalization?

Back 25

increased demand

Front 26

What is a way that a successful business not likely to earn greater revenue?

Back 26

request a tax deduction from the government

Front 27

What action can a firm take with its profits to increase productivity?

Back 27

invest in a new computer system to digitize the firm's paper records

Front 28

Someone who takes on the risks of creating and operating a business and decides how resources should be allocated is a(n)

Back 28

An entrepreneur

Front 29

What type of business ownership requires a written or oral agreement?

Back 29

Partnership

Front 30

Information technology is often the single largest expense in many companies because?

Back 30

computers and software become outdated quickly and it is costly to purchase new equipment.

Front 31

What is a basic assumption of a private enterprise system?

Back 31

Competition benefits consumers

Front 32

A multibillion-dollar car manufacturing company and a small-town souvenir shop are alike in that they

Back 32

both offer goods and services

Front 33

Kate purchases her textbooks used from a bookseller that acquired the books from other students through an online market such as eBay.com. The bookseller purchased its textbook inventory using?

Back 33

business-to-consumer

Front 34

What business format is often preferred by new businesses because of the safety and flexibility it provides?

Back 34

Limited liability company

Front 35

Maria wants to start a new software company, but she lives in a remote community where few skilled software programmers live. What is the MOST cost-effective strategy for building her workforce?

Back 35

Use the Internet and other technologies to hire remote employees who want to telecommute

Front 36

The money a business earns is called

Back 36

revenue

Front 37

Stephen is opening a new restaurant that will serve similar fare to fast-food restaurants like Burger King. Because his is a small business, he cannot order in quantities large enough to get the discounts that the national chains do, so he is unable to compete with them on price. What strategy should he use to compete?

Back 37

Make a high-quality product that consumers will be willing to pay extra for

Front 38

In what types of partnership is at least one, but not all, of the partners personally liable for any business debts?

Back 38

Limited partnership

Front 39

What demographic factor is MOST affected by an influx of immigrants?

Back 39

Ethnic background

Front 40

What characteristic distinguishes local businesses from regional businesses?

Back 40

A regional business serves a wider area than a local business.

Front 41

A marriage works like a business partnership in that?

Back 41

a married couple is responsible for each other's debts and actions.

Front 42

How does competition not affect companies?

Back 42

forcing them to increase their production levels

Front 43

Which of the following types of businesses has the disadvantage of facing possible double taxation?

Back 43

corporation

Front 44

Mr. Fox sued the Randall Corporation over a million-dollar deal. If he wins, he can ?

Back 44

collect money from the corporation.

Front 45

Limited liability companies must have articles of?

Back 45

organization.

Front 46

The Little Shop of Hardware is a privately-owned regional company organized as a limited liability company. Compared to a large public corporation like Best Buy, you would MOST likely expect the Little Shop of Hardware to have?

Back 46

fewer stakeholders

Front 47

Nonprofit organizations are similar to businesses because?

Back 47

they are created to fulfill a need in their communities.

Front 48

Which of the following factors allows the supply chain in a big business to run smoothly?

Back 48

Cooperation among all representatives in each service

Front 49

What type of business is MOST prone to undercapitalization due to inadequate funding?

Back 49

Local business

Front 50

Medicare Rights Center (MRC) in New York helps people with disabilities receive good, affordable health care. It also has programs that train volunteers to educate Westchester County residents about Medicare issues. MRC is considered a nonprofit organization because it?

Back 50

uses the money it earns only as a means to further help the community.

Front 51

What does NOT increase the money supply?

Back 51

increase in supply of goods.

Front 52

What do economists call an instance where factors are ignored to examine the fundamentals of a process?

Back 52

All else held constant