Deck 1: Business in the United States

Question 1

The various resources used to create a company's goods and services are collectively referred to as ________.

A)raw material
B)factors of production
C)supplies
D)inventory

Answer 1

B

Question 2

Which of the following BEST describes competition?

A)Two or more companies compete with one another for greater federal, state, and local subsidies.
B)Two or more companies compete with one another to attract customers and gain an advantage.
C)Two or more companies compete with one another to maintain a monopoly.
D)Two or more companies complete with one another to influence trade policy.

Answer 2

B

Question 3

The economy of the United States is ________.

A)market-based
B)government-owned
C)socialistic
D)nonprofit

Answer 3

A

Question 4

Which of the following is an example of real capital?

A)a business loan
B)computer software
C)natural gas
D)a manufacturing plant

Question 5

Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity?

A)Pay for utilities and inventory in advance.
B)Develop a Web site that would enable customers to place orders online.
C)Hire more staff.
D)Create an emergency fund.

Question 6

Robert wants to upgrade his real estate company's computer systems. Which of the following factors of production would Robert find LEAST useful for his project?

A)financial capital
B)technology
C)real capital
D)labor

Question 7

Competition affects companies in all of the following ways EXCEPT ________.

A)forcing them to increase their production levels
B)forcing them to improve their products
C)forcing them to aggressively promote their brands
D)forcing them to lower their prices

Question 8

Which of the following is NOT a benefit of business competition?

A)It may lead to a wider variety of goods and services.
B)It may lead to higher quality goods and services.
C)It may lead to a limited variety of goods and services.
D)It may lead to cheaper goods and services.

Question 9

A ________ seeks primarily to service its community through social, educational, or political means.

A)limited liability company
B)mutual fund
C)nonprofit organization
D)competitive organization

Question 10

Emma bought an MP3 player and a portable DVD player. These products are called goods because ________.

A)they do a good job of satisfying a customer's needs
B)they are physical or tangible products
C)they are produced in an economical offshore factory
D)they can be sold either in a store or online

Question 11

Teresa and Luis are getting married next month. Which of the following elements of their wedding does NOT require a natural resource for its production?

A)the wedding rings
B)the wedding vows
C)the wedding cake
D)the bridesmaids' dresses

Question 12

The physical products that a business offers are called ________.

A)goods
B)services
C)assets
D)devices

Question 13

Profits allow a company to ________.

A)increase productivity
B)lower employee wages
C)reduce its span of operations
D)disregard concern about expenses

Question 14

When a company's revenue is greater than its expenses, it means that ________.

A)the company earns a profit
B)the company spends more than it earns
C)the company's income is decreasing
D)the company needs to increase its spending

Question 15

Melinda is a store owner who buys items online to sell in her shop. Which of the following factors of production is BEST illustrated in Melinda's use of the Internet?

A)capital
B)labor
C)technology
D)entrepreneurs

Question 16

Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician's repairs?

A)a service
B)a good
C)a benefit
D)an appointment

Question 17

Chris orders a salad at a restaurant. What is the BEST definition of what he is buying?

A)Chris is buying a good.
B)Chris is buying a service.
C)Chris is buying both a good and a service.
D)Chris is buying neither a good nor a service.

Question 18

Labor is a factor of production that refers to any physical or ________ work people contribute to a business's production.

A)intellectual
B)emotional
C)unionized
D)entrepreneurial

Question 19

Which of the following statements is true of a nonprofit organization?

A)It makes profits.
B)It does not pay expenses.
C)It can earn excess revenue.
D)It cannot operate like a business.

Question 20

Leroy owns a small hardware store that is known for its high level of customer service. A large chain home improvement store has just opened up in his community. Which of the following would BEST help Leroy deal with his new competitor?

A)Pay his employees "under the table" to avoid costly payroll taxes and keep prices lower.
B)Close the business, since small stores cannot compete effectively with chain stores.
C)Advertise aggressively to increase consumer awareness of his reputation for service.
D)Move his store in order to be farther away from the large store.

Question 21

Which of the following events would MOST likely change the racial demographic of a population?

A)a political scandal
B)an aging population
C)an economic slump
D)an influx of immigrants

Question 22

Which of the following BEST enables all companies, regardless of size, to compete in the global market?

A)effective marketing
B)a talented workforce
C)government subsidies
D)technological advances

Question 23

Which of the following is NOT a danger to U.S. companies posed by globalization?

A)increased competition from international companies
B)security and patent protection concerns
C)stabilization in the value of the U.S. dollar
D)unstable political climates in foreign countries

Question 24

"Computers are outdated after three years and obsolete after five." What aspect of technology does that statement BEST represent?

A)Technological innovations can be used to keep a company well-organized.
B)Technological innovation is changing the focus of how many businesses are run.
C)Technological innovation is necessary in order to remain competitive.
D)Technological innovation is expensive and time-consuming.

Question 25

Which of the following problems is potentially posed by an aging population?

A)higher taxes
B)lower deficit
C)labor surpluses
D)fewer business opportunities

Question 26

Which of the following social issues would LEAST affect the environment in which U.S. businesses operate?

A)aging population
B)reality television
C)increasing diversity
D)the green movement

Question 27

Tom is a college senior who would like to get a green collar job when he graduates. Which of the following positions is he LEAST likely to apply for?

A)a job as a wind turbine engineer
B)a job selling solar panels
C)a job as manager at an oil refinery
D)a job weatherproofing houses

Question 28

Jarvis runs a restaurant that has had a lot of complaints from customers lately. Jarvis is a strict manager and prefers to make all the decisions himself. A concerned friend recommends that Jarvis delegate more decision-making responsibility to his employees. Which of the following would be the MOST likely result of Jarvis' delegating responsibility?

A)Customers will be upset because the restaurant is being run differently.
B)Customer satisfaction will improve because employees can be more responsive to customer needs.
C)Customer satisfaction will decrease because employees will make the wrong decisions.
D)Employees will quit because of the change in Jarvis' management style.

Question 29

Globalization is a controversial subject for many people because ________.

A)it allows U.S. companies to import and export goods from anywhere in the world
B)it increases the cost of goods and services in the United States
C)it results in the closing of some U.S. manufacturing facilities
D)it allows companies of any size to compete globally

Question 30

Which of the following would MOST likely happen to companies that are less efficient than their competitors?

A)They would continue to do business as usual.
B)They would close down.
C)They would be taken over by the government.
D)They would receive additional money from investors.

Question 31

________ is the movement toward a more interconnected and interdependent world economy.

A)Globalization
B)G-20
C)NAFTA
D)Multiculturalism

Question 32

Carla wants to start a new software company, but she lives in a remote community where few skilled software programmers live. Which of the following is the BEST cost-effective strategy for building her workforce?

A)Produce only software she can create herself.
B)Use the Internet and other technologies to hire remote employees who want to telecommute.
C)Offer free computer programming training programs to the local populace.
D)Relocate to an urban area where there are many software programmers.

Question 33

Which of the following refers to an interconnected system of different demographic factors?

A)cultural environment
B)economic environment
C)political environment
D)social environment

Question 34

Which of the following factors do multinational companies MOST often look for in a country when they are considering a location for offshore manufacturing?

A)a diverse culture
B)strict government regulations
C)low production costs
D)low cost of living

Question 35

Which of the following would MOST likely be part of a company's diversity initiative?

A)ethics training
B)minority network
C)360-degree feedback
D)corporate history

Question 36

Addison wants her new t-shirt store to be environmentally friendly. With the concept of the green economy in mind, which of the following business initiatives would BEST make her business greener?

A)mail out paper fliers advertising her business
B)raise prices to include the cost of a donation to a green nonprofit organization
C)sell t-shirts with environmental slogans
D)install solar panels on her store's roof to provide electricity

Question 37

In a business environment, the term "minority" applies to more than just people of different ethnicities. Minority groups represent all of the following EXCEPT ________.

A)a person's political party
B)a person's gender
C)a person's culture
D)a person's sexual orientation

Question 38

________ refers to a company's choice to relocate its production facilities overseas or subcontract at least some of the components to foreign companies at low costs.

A)Globalization
B)Offshoring
C)Downsizing
D)Contracting

Question 39

Which of the following is NOT an advantage of technology?

A)streamline businesses
B)cut costs
C)foster a more personal work environment
D)help employees work more efficiently

Question 40

Patricia owns a small electronics store in a rural area. She carries two different brands of weather radios that are equally priced. One model is selling well, but the other does not seem to be attracting customers. What should Patricia do?

A)Stop advertising the radio that is not selling well.
B)Donate the poorly selling radios to local schools.
C)Reduce the price of the model that is not selling well.
D)Try to discourage customers from buying the model that is selling well.

Question 41

Humberto is a supply chain manager for a multinational company. Which of the following challenges should he be LEAST concerned about?

A)His office is missing certain business supplies.
B)Products may get backed up in a long supply chain.
C)a lack of communication among companies in the chain
D)a large number of customer returns

Question 42

Articles of organization are required only for ________.

A)sole proprietorships
B)corporations
C)partnerships
D)limited liability companies

Question 43

Marc wants to help his friend Alexei start a business, but he doesn't want to leave his current job and devote all his time to the new business. Marc is willing to contribute money and give advice in return for a share of the profits. Which type of business ownership would be best for Marc?

A)general partnership
B)limited partnership
C)corporate partnership
D)silent partnership

Question 44

Sandy is a nurse who wants to start a home health care business. She is concerned about the possibility that she could be sued by one of her patients. Which type of business ownership should she avoid?

A)a limited liability company
B)a sole proprietorship
C)a corporation
D)an S corporation

Question 45

Mr. Hansen sued the Reilly Corporation in a dispute over a failed million-dollar deal. If he wins, he can ________.

A)collect money from the president
B)collect money from shareholders
C)collect money from the corporation
D)collect money from stakeholders

Question 46

Which of these characteristics is NOT applicable to a multinational company?

A)It provides goods or services to international consumers.
B)It may serve only one country but have suppliers or facilities in other countries.
C)Its employees must speak multiple languages.
D)It may adapt its operations to fit the cultures of the countries in which it operates.

Question 47

A ________ is owned by one person and does not need to register with the state.

A)sole proprietorship
B)a corporation
C)a limited liability company
D)a partnership

Question 48

Which of the following is often imposed by governments on multinational companies operating in their countries?

A)laws regarding product diversity
B)laws regarding tax exemptions
C)laws regarding minimal profits
D)laws regarding quality control

Question 49

Which of the following would ensure that business owners would be responsible for losses only up to the amount they invested in the business?

A)unlimited liability
B)limited liability
C)liability insurance
D)liability protection

Question 50

Bill is an information technology manager for a large firm. His company needs to install a new software program, which he orders from his company's online supplier. This is an example of ________ e-commerce.

A)business-to-business
B)business-to-customer
C)business-to-consumer
D)business-to-supplier

Question 51

Which of the following can be a disadvantage of establishing a corporation?

A)A corporate owner's personal assets are not protected.
B)A corporation can be sued.
C)A corporation must report business income in a separate tax return.
D)A corporation can limit profits for tax purposes.

Question 52

In a general partnership, the company's debts are the responsibility of the ________.

A)members
B)president
C)partners
D)LLC

Question 53

Which of the following poses the MOST COMMON financial threat to local and regional businesses?

A)employee retention
B)undercapitalization
C)low productivity
D)limited customer base

Question 54

A(n)________ is the process by which products, information, and money move between supplier and consumer.

A)operational flow
B)delivery system
C)funneling mechanism
D)supply chain

Question 55

Warren is about to file taxes for a company he owns. If Warren needs to file his company's taxes separately from his personal taxes, what kind of company does he own?

A)limited liability company
B)sole proprietorship
C)corporation
D)partnership

Question 56

Which of the following types of business ownership could be formed based only on an oral agreement?

A)partnership
B)limited liability company
C)nonprofit organization
D)corporation

Question 57

Who is legally responsible for protecting the privacy of consumer information that businesses store online?

A)Social Security Administration
B)Internal Revenue Service
C)Internet service providers
D)business owners

Question 58

An Old Navy store is an example of a ________ business.

A)national
B)multinational
C)local
D)regional

Question 59

The WAWA chain of convenience stores has 500 locations in five states in the Mid-Atlantic region of the United States. WAWA is an example of ________.

A)a local business
B)a regional business
C)a national business
D)a state business

Question 60

Which of these qualities BEST explains why a specialty shop is classified as a local business?

A)It is not able to borrow funds for expansion.
B)It accepts cash, checks, and credit cards as forms of payment.
C)It is a one-of-a-kind operation and relies on local consumers to generate business.
D)It sells only products that are made locally.

Question 61

In what way does marriage work like a general business partnership?

A)Each spouse is responsible only for his or her debts and actions.
B)Both spouses are responsible for their children and assets.
C)Each spouse is responsible for the debts and actions of the other spouse.
D)One spouse controls the marriage and makes all decisions.

Question 62

The U.S. economy favors greater government intervention in the market than socialist economies would favor.

Question 63

Keeping up with technological advances is an inexpensive way for companies to remain competitive.

Question 64

As more profit is generated, a company is able to increase its productivity.

Question 65

Competition arises when two or more businesses contend with one another to attract customers and gain an advantage.

Question 66

Real capital refers to the money used to facilitate a business enterprise.

Question 67

Your life is similar to a small company in that it requires careful planning, precise record keeping, and ________.

A)a good memory
B)openness to change
C)an outgoing personality
D)physical fitness

Question 68

Car insurance is an example of a good.

Question 69

Which of the following is NOT a stakeholder of a large athletic equipment manufacturer?

A)an employee
B)a customer
C)a supplier
D)a competitor

Question 70

To become successful, a company should keep pace with the latest technology.

Question 71

The private enterprise system assumes that competition benefits consumers.

Question 72

Globalization is recognized by all as a force for good in the U.S. economy.

Question 73

Not all businesses provide a product.

Question 74

Diversity initiatives in businesses are essential to a company's ability to be competitive.

Question 75

Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barbara's, are able to expand as they earn more profits.

Question 76

A university, an inner city health clinic, and a church are all run specifically to generate profits.

Question 77

When businesses compete, products usually become more expensive.

Question 78

Baby boomers are an unprofitable demographic target for businesses.

Question 79

When a business is profitable, the whole society benefits.

Question 80

Which of the following is an example of how today's social environment may affect individuals' lives?

A)It may help them learn from people who are different from them.
B)It may help them afford less energy-efficient cars.
C)It may reduce their taxes as demand for government services declines.
D)It may limit the number of entrepreneurial opportunities.