1. Final Exam Review
December 2015

2. A ________________ is a written description of a new business venture that describes all aspects of the business.
a. Legal Plan
b. Entrepreneurship
c. Business Plan
d. Market Plan
Business Plan

3. A Which statement about Natural Resources is NOT true?
a. The amount of natural resources available to a society has little effect on its economy.
b. Countries that have scarce natural resources must get them from somewhere else.
c. Synthetic materials such as nylon can be made from natural resources.
d. Natural resources can be processed to make goods.

4. A Which is NOT considered an aspect of technology? a. inventors
b. tools
c. machines
d. computers A

5. A (n) _______________________ is a business started by someone who notices a need for a product or service.
a. Entrepreneurship
b. Start Up
c. Market Place
d. Risk Taker
Entrepreneurship

6. B Which is the most popular type of product to buy online? a. music
b. e-tickets for travel
c. clothes
d. computer software B

7. False A sole proprietorship is a business owned by 2 people.
Select one:
True
False
False

8. The Americans with Disabilities Act protects children from working.
Select one:
True
False
False

9. D Which managerial function comes first when executing business goals?
a. organizing
b. controlling
c. leading
d. planning D

10. A What is a brick and mortar store? a. a store with an actual building
b. a store that sells products in stores and online
c. a store that sells products in stores, by mail and online
d. a store that sells online only

11. The 2 basic types of economic systems are: Market Economy and Command Economy.
Select one:
True
False
True

12. B What is a multi-chain retailer?
a. a company that sells its products over several Web sites
b. a company that sells its goods using several methods
c. a company that sells its products over the Internet
d. a company that only sells its goods at a store or through a catalog

13. B What is another term for a period of economic prosperity? a. demand
b. peak
c. decline
d. downturn B

14. A What is competition? a. a contest to win customers
b. inexpensive goods and services
c. the freedom to produce new products
d. voluntary exchange

15. D Which of the following is NOT an element of the marketing mix?
a. price
b. product
c. place
d. population D

16. A corporation is a business owned by many people but treated by law as one person.
Select one:
True
False
True

17. Which is most important in determining the price of a product or service?
a. business owners preferences
b. equilibrium pricing
c. supply and demand
d. profit and competition C

18. B What should happen to unemployment if the economy is picking up?
a. It reverts to previous levels.
b. It decreases
c. It increases B

19. ____________________ is the paid, non personal form of communication that businesses use to promote their products.
a. Manufacturing
b. Promotion
c. Distributing
d. Advertising
Advertising

20. C Which is NOT true of businesses?
a. They are rewarded with profits by satisfying consumers
b. They pay taxes and provide jobs.
c. They can survive without profits.
d. The wealth they create benefits the entire community.

21. ________________________ is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.
a. Manufacturing
b. Distributing
c. Promotion
d. Marketing
Marketing

22. C What is profit? a. commercial activity b. motivation and wealth
c. money remaining after costs have been paid
d. an opportunity to earn a better living

23. In the business cycle, what generally comes after a period of depression?
a. recession
b. prosperity
c. another depression
d. Recovery D

24. An example of employer's treating employee's fairly would be to provide good training.
Select one:
True
False
True

25. A What does an organizational chart show?
a. who is in charge of whom in a firm
b. the direction and vision of a company
c. how a certain project is to be accomplished
d. the daily operations of a business A

26. B Which is a disadvantage to being a manager?
a. getting less respect than others.
b. getting blamed when things go wrong.
c. earning less money than a regular employee.
d. having less control over your time. B

27. A Which is NOT a factor of production? a. the marketplace b. capital
c. natural resources
d. labor A

28. C Which is NOT true of a manager's job?
a. He or she should know something about the technical part of the company
b. He or she has to be able to handle several tasks at one time.
c. He or she should spend most of the time doing paperwork.
d. He or she must be a good problem-solver. C

29. Why might you visit a brick-and-mortar store instead of shopping online?
a. so you can buy it tax-free
b. because you're shopping in the middle of the night.
c. so you can have it delivered to your door
d. so that you can try out the product then and there D

30. D At what level do most managers begin their careers?
a. middle management
b. top-level management
c. operational management
d. entry-level position D

31. B What protects consumers from dangerous or falsely advertised goods?
a. Earth-friendly products
b. Food and Drug Administration (FDA)
c. others consumers
d. businesses B