PoB 5.00 - Economics (3 Of 3) Question Preview (ID: 33585)


Economics. TEACHERS: click here for quick copy question ID numbers.

The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product?
a) marketing
b) finance
c) management
d) production

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?
a) Yes, the museum will be a not-for-profit business.
b) Yes, the museum will be a for-profit business.
c) No, the museum will be a charitable institution.
d) No, the museum will not be considered a business.

A 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?
a) Start by hiring an export management company
b) Start by building facilities in the countries of interest
c) Start by merging with a foreign business that can sell your products
d) Start by renting facilities in the countries of interest and hiring foreign employees

What is a business's net profit if it has $762,750 in income, $291,400 in operating expenses, and $102,620 in cost of goods?
a) $368,730
b) $232,420
c) $471,350
d) $523,820

A major characteristic of a market economy is which type of ownership of property?
a) private
b) government
c) limited
d) monopolistic

Which situation would most likely indicate the need to adapt to changes in the business environment?
a) The supply of materials used in manufacturing a product has decreased.
b) The number of the business's competitors has decreased
c) The demand for the product is stable.
d) The business has experienced little employee turnover during the past year

The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product?
a) marketing
b) finance
c) management
d) production

Which problem is most associated with communist command economies?
a) no competition
b) Supply and demand control what will be produced
c) high taxes
d) Individuals run the risk of losing their businesses

When manufacturers give back part of the purchase price of an item to the customer, the manufacturers are engaged in:
a) offering rebates
b) clearance sales
c) nonprice competition
d) price fixing

Which would customers need to present at the time of purchase to get money taken off the purchase price of the item?
a) discount coupons
b) rebate certificates
c) refund checks
d) sales receipts

A 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?
a) Clayton Act
b) Celler-Kefauver Act
c) Sherman Act
d) Robinson-Patman Act

The basic economic role of the United States government is to:
a) increase production
b) limit business startups
c) maintain control of prices
d) protect U.S. citizens

Carefully selecting goods or services to sell is an example of handling business risks by _______________ the risk.
a) controlling
b) transferring
c) bypassing
d) avoiding

In business terms, what is profit?
a) A monetary reward
b) A holiday bonus
c) A risky venture
d) A good investment

Which of the following represents a natural risk for the owner of a delivery service?
a) Snowstorm
b) Accident
c) Rising prices
d) Government intervention

What 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) $232,420
b) $368,730
c) $471,350
d) $523,820

Which of the following is an example of a speculative business risk?
a) A special promotion fails to increase sales.
b) A supplier's shipment is lost in transit.
c) A cashier gives unauthorized discounts to friends.
d) A cutomer is injured at a business and sues the company.

For a business, income remaining after payment of expenses is:
a) profit
b) loss
c) capital
d) debt

The two main divisions of the trade industry are:
a) wholesalers and retailers
b) manufacturers and wholesalers
c) producers and retailers
d) wholesalers and producers

If a business is not concerned about social responsibility, it is likely to
a) be a failure
b) grow
c) prosper
d) become solvent

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