Exam Review

Topics: Economics, Sole proprietorship, Corporation Pages: 27 (4502 words) Published: August 29, 2013
Intro To Business
Student: ___________________________________________________________________________ 1. Any activity which seeks to earn a profit by providing a good or service is known as a(n): A. industry
B. corporation
C. business
D. service

2. __________ is the amount a business earns over and above what it spends for salaries and other expenses. A. Profit
B. Revenue
C. Interest
D. Dividends

3. A business incurs a ___________ if its costs and expenses exceed its revenues. A. loss
B. liability
C. debit
D. dividend

4. __________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable. A. Depreciation
B. Risk
C. Fallibility
D. Redundancy

5. The total amount of money that businesses earn by selling goods and services is called ________. A. profit
B. revenue
C. loss
D. retained earnings

6. A(n) ____________ is a person who assumes the risk of starting a business. A. manager
B. entrepreneur
C. private investor
D. stakeholder

7. According to our text, which of these individuals is the richest person in the world? A. Sam Walton
B. Sultan of Brunei
C. Bill Gates
D. Oprah Winfrey

8. Starting a business always involves a ________.
A. profit
B. loss
C. revenue
D. risk

9. Often in business the greater the risk, the:
A. greater the potential reward.
B. lower the expected revenues.
C. lower the value provided to society.
D. greater the number of stakeholders.

10. Which of the following is the largest private employer? A. U.S. federal government
B. Wal-Mart
C. General Motors
D. Microsoft

11. A country's ___________ refers their general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment. A. standard of living

B. quality of life
C. gross national income
D. social satisfaction index

12. The amount of goods and services people can buy with the money they have is called their: A. nominal income.
B. consumer price index.
C. profit margin.
D. standard of living.

13. The most important difference between businesses and nonprofit organizations is that: A. businesses do not benefit society.
B. nonprofit organizations do not strive for financial gains. C. nonprofit organizations focus on social and educational goals. D. nonprofit organizations do not benefit society.

14. Any organization that produces a good or service can be classified as a business. True False

15. Businesses seek to earn a profit by providing goods and services to others. True False

16. Revenue is the amount a business earns above and beyond what it spends for expenses and costs. True False

17. A major part of America's business success is due to an economic and social climate that allows businesses to operate freely. True False

18. Global economics and politics have no influence on businesses in the United States. True False

19. The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various competing groups and individuals is known as sociology. True False

20. The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various competing groups and individuals is known as economics. True False

21. Economics is the study of how:
A. to invest wisely in the stock market.
B. to employ resources to produce goods and services and distribute them among competing groups and individuals. C. sophisticated statistical techniques can be used to make predictions about the evolution of society over the long run. D. people govern themselves in a democratic society.

22. __________ is the study of how to employ resources to produce goods and services and distribute them among competing groups and individuals. A. Economics
B. Capitalism
C. Marketing...
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