Business Concepts Exam Practice
Tests
Course Introduction
Business Concepts introduces students to the fundamental principles and practices that drive the world of commerce. Covering essential topics such as organizational structures, marketing, finance, operations, and entrepreneurship, the course provides a comprehensive overview of how businesses are formed, managed, and grown. Students will explore core terminology, decision-making processes, and the broader economic, ethical, and global contexts in which businesses operate. By the end of the course, learners will have a solid foundation to understand business activities and apply basic analytical tools in real-world scenarios.
Recommended Textbook
Business Essentials 10th Edition by Ronald J. Ebert
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17 Chapters
2016 Verified Questions
2016 Flashcards
Source URL: https://quizplus.com/study-set/625
Page 2
Chapter 1: The USBusiness Environment
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125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/11845
Sample Questions
Q1) The consumer price index is expressed as a percentage of prices as compared to a base period.
A)True
B)False
Answer: True
Q2) Explain the role of private enterprise in a market economy.Include an explanation of the elements that comprise free enterprise. Answer: Market economies rely on a private enterprise system,one that allows individuals to pursue their own interests with minimal government restriction.Private enterprise requires four elements: private property rights,freedom of choice,profits,and competition.Private property rights allow the ownership of resources used to create wealth to be in the hands of individuals.Freedom of choice allows a number of freedoms in the market,including the freedom for a worker to sell his or her labor to any employer he or she chooses,the freedom to choose which products and brands to buy,and the freedom for producers to choose whom they hire and what they will produce.Profits are the incentives for entrepreneurs to assume the risks of business ownership.Competition occurs when businesses vie for the same resources and customers; competition is a driver of quality and price levels.All four of these elements are necessary to a market economy.
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Page 3
Chapter 2: Understanding Business Ethics and Social Responsibility
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) How does certain software protect e-mail communication?
Answer: Software has been created that encrypts e-mail messages.In addition,the software sets an expiration date and prevents resending or printing.
Explanation:Software such as that created by Omniva may be used to preserve e-mails, as users cannot unilaterally delete their own e-mail on their own initiative.
Q2) The proactive approach to social responsibility argues that profits should not be spent on social programs.
A)True
B)False
Answer: False
Q3) The Consumer Bill of Rights is backed by numerous federal and state laws.
A)True
B)False
Answer: True
Q4) If MKD were to adopt a written code of ethics,what would it include generally?
Answer: All codes of ethics announce their intent to do business in an ethical manner.
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Page 4
Chapter 3: Entrepreneurship, New Ventures, and Business Ownership
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) Assuming the farm is organized as a general partnership,what are the advantages?
Answer: The advantages of a general partnership include the ability to grow by adding new talent and money,easy formation with few legal requirements,and tax benefits since a partnership is taxed at the individual level.
Q2) Viola wants to be a business owner and is contemplating whether to start her own business or open a franchise.Which of the following,if true,would be a compelling reason for Viola to open a franchise rather than start a new business?
A) The franchiser requires $3,000 in start-up costs and a 5 percent monthly royalty fee.
B) The franchiser tightly controls and monitors the service protocol.
C) The franchisee is responsible for developing all marketing materials.
D) The company has only recently become a franchise.
E) There are several other franchises with the same company in the area.
Answer: A
Q3) Assuming the farm is organized as a private corporation,what are the disadvantages?
Answer: The disadvantages of a private corporation include significant start-up costs and double taxation,in which profits are taxed at corporate and individual levels.
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Page 5
Chapter 4: Understanding the Global Context of Business
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.
A)True
B)False
Q2) Which of the following types of firms design,produce,and manufacture products in many nations?
A) multinational firms
B) importing firms
C) domestic firms
D) international firms
E) exporting firms
Q3) Strategic alliances give firms greater control over foreign activities than do agents and licensees.
A)True
B)False
Q4) The single largest trading partner of the United States is China.
A)True
B)False
Q5) How might the international market specifically affect the success of a local coffee shop in Cleveland,Ohio?
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Chapter 5: Managing the Business
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) It is not possible to change an organization's corporate culture.
A)True
B)False
Q2) Which of the following,if true,would support the conclusion that disbanding the centralized planning unit helped Disney perform strongly?
A) The centralized planning unit used a decision procedure that required business units to answer the same fundamental questions each year.
B) In the entertainment industry, companies can be profitable if just a few of their projects earn extraordinarily high returns.
C) The centralized planning unit was created in response to concerns that the company was losing focus on its core business.
D) An economic downturn that took place after Disney disbanded the centralized planning unit reduced Disney customers' discretionary income.
E) Disney's rivals often change their management structures as part of efforts to make their organizations more efficient and customer-focused.
Q3) What are the purposes of having a strong corporate culture?
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Chapter 6: Organizing the Business
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Which of the following,if true,would weaken the claim that this division of labor keeps employees focused on the tasks that fit their skills and leads to a better product?
A) Some employees who work in the Marketing department used to work in the Design department.
B) Projects often fail to meet their revenue goals because the Design department develops products for market segments that the Marketing department cannot reach.
C) Projects are often late because of product distribution problems that occur after the project is completed.
D) The number of projects that fail because they do not meet their revenue goals is lower than the number of projects that fail because they go too far over budget.
E) Projects often are unprofitable because of changes in the external environment that could not have been predicted before the project started.
Q2) How might a divisional structure benefit Ace Products?
Q3) List and describe the three forms of authority.
Q4) How would you advise Samantha about the best organizational structure for Ace Products? Why?
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Page 8
Chapter 7: Operations Management and Quality for Producing Goods and Services
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) Which operations capability has Toyota given greatest credit for winning orders in the marketplace?
A) quality
B) low cost
C) flexibility
D) dependability
E) exclusivity
Q2) Because supply chain strategy is based on the collective effort of a number of firms,no one firm in the chain gains a competitive advantage.
A)True
B)False
Q3) The sameness of product quality from unit to unit is referred to by which term?
A) utility
B) reliability
C) performance
D) consistency
E) quality control
Q4) In a TQM environment,what are some steps that companies use to emphasize the importance of quality?
Page 9
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Chapter 8: Employee Behavior and Motivation
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) The two-factor theory examines the relationship between effort and performance.
A)True
B)False
Q2) The extent to which people are self-aware is an aspect of which of the following?
A) attitude
B) emotional intelligence
C) negative emotionality
D) social skills
E) empathy
Q3) An employee with a low level of social skills would be unlikely to do which of the following?
A) be very detail oriented
B) circulate a get-well card
C) produce creative work
D) work well independently
E) track milestones effectively
Q4) How does Maslow's hierarchy of needs model explain employee motivation?
Q5) Discuss the potential benefits to the employer from a flextime program.
Q6) Contrast Theory X and Theory Y.
Page 10
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Chapter 9: Leadership and Decision Making
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125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/11853
Sample Questions
Q1) An inward belief about something,often without conscious consideration,is frequently referred to as what?
A) intuition
B) risk taking
C) commitment
D) discernment
E) rationality
Q2) What is the definition of a coalition?
A) an informal group formed to achieve a common goal
B) an institution incorporated in order to achieve a common goal
C) a pro-business political party
D) the network of management within a firm
E) the network of employees within a firm
Q3) Most leaders can successfully demonstrate transactional and transformational leadership.
A)True
B)False
Q4) How transactional and how transformational is Mary's leadership style in this scenario? Explain.
Q5) Why has virtual leadership become an important issue for organizations?
Page 11
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Chapter 10: Human Resource Management and Labor Relations
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The Internet start-up company QuickThink is considering whether to hire recent college grad Thomas as a full-time employee or as a contingent worker.Which of the following is NOT a likely disadvantage to the company if they hired Thomas as a contingent worker rather than a full-time one?
A) Thomas may not be fully committed to the organization and its long-term goals.
B) QuickThink will have to provide Thomas with ongoing and highly specialized training to prevent his skills from becoming obsolete.
C) Thomas may lack much firm-specific knowledge.
D) Managers will face possibly complicated decisions about how to integrate Thomas into the organization.
E) Thomas may be less willing to engage in organizational citizenship behaviors.
Q2) In setting wage and salary levels,a firm may start by looking at competitors' levels. A)True
B)False
Q3) What are the two types of sexual harassment as defined by the courts?
Q4) What options are available to the union when contract negotiations break down?
Q5) What common incentive program options are available for workers?
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Chapter 11: Marketing Processes and Consumer Behavior
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/11855
Sample Questions
Q1) Reading the relevant issues of Consumer Reports prior to purchasing a product is an example of what part of the consumer buying process?
A) problem recognition
B) information seeking
C) selecting substitutes
D) need recognition
E) consideration setting
Q2) In Martin's first staff meeting,a heated discussion erupts over the need to develop new products.The product manager explains that they have had a loyal following of consumers and do not need to develop new products.Others disagree.How should Martin respond?
Q3) The reseller market includes farmers,manufacturers,and some retailers.
A)True
B)False
Q4) Target marketing requires dividing a market into categories of customer types or "segments."
A)True
B)False
Q5) Describe the three types of competition faced by marketers.
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Chapter 12: Developing and Pricing Products
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Describe a situation in which a company might adopt a pricing objective other than profit maximization.
Q2) Why is speed to market so important?
Q3) Which of the following assumptions is the strategy of pricing above the market based on?
A) Higher price implies higher quality.
B) Higher price means higher customer support.
C) Higher prices means higher customer satisfaction.
D) Higher price creates higher demand.
E) Higher price means easier distribution.
Q4) The only goal of determining prices is to maximize profit for the firm.
A)True
B)False
Q5) A value package consists of an in-store advertisement that makes the product attractive and identifies features and benefits.
A)True
B)False
Q6) The breakeven point is the price at which a company earns the maximum profits.
A)True
B)False
Page 14
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Chapter 13: Distributing and Promoting Products
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) List and describe the three personal selling tasks.
Q2) Discount houses,catalog showrooms,and factory outlets are examples of product-line retailers.
A)True
B)False
Q3) Which of the following is crucial for high-priced consumer products such as homes and cars?
A) creative selling
B) interactive marketing
C) missionary selling
D) order processing
E) trade shows
Q4) In addition to physical goods,point-of-sale pedestals also provide services,namely information for consumers.
A)True
B)False
Q5) E-intermediaries include syndicated sellers and shopping agents.
A)True
B)False
Q6) What is a push strategy of promotion?
Page 15
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Chapter 14: Information Technology (IT)for Business
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) What feature does a firewall provide?
A) Internet access
B) protection from electrical surges
C) connectivity between stations in a LAN
D) privacy protection
E) links to computers in a WAN
Q2) Which of the following BEST describes enterprise resource planning?
A) an information processing application for routine business activities of a company's business units
B) an information system for organizing and managing a firm's activities across product lines, departments, and geographic locations
C) a system used for transforming data into information for use in decision making
D) a computer-based electronic technology that assists in designing products by simulating a real product and displaying it in three-dimensional graphics
E) an internal inventory of a company's product lines
Q3) Describe the ways in which businesses protect themselves from the threats and risks information technology poses.
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Chapter 15: The Role of Accountants and Accounting Information
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Which of the following questions would a balance sheet NOT be able to help answer about the current state of Streeter & Sons?
A) Is it a good time for the business to grow?
B) Can the company survive a season of low revenues?
C) Does the company have too many employees?
D) Can the company take on more debt?
E) What is the value of the company's assets?
Q2) The auditor's report has come back and Mary Ann is reviewing the financial statements.The current balance sheet shows that the business has more liabilities than assets.Why would this explain the need to sell the business?
Q3) Which of the following terms refers to the amount of money that owners would receive if they sold all of a company's assets and paid all of its liabilities?
A) asset
B) owners' equity
C) inventory
D) liability
E) credit
Q4) Identify the potential users of accounting information.
Page 17
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Chapter 16: Understanding Money and the Role of Banking
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) What is the difference between a credit card and a debit card?
Q2) Which of the following statements BEST describes how the Automated Clearing House Network (ACH)maintains its integrity as a processor of electronic payments?
A) The ACH network is an institution within the Federal Bank System and is regulated by strict government standards.
B) The ACH network is a for-profit company and is regulated by its need to make a profit, which it can only do by strictly regulating itself.
C) The ACH network is a financial institution and is thus regulated by its obligations to its investors.
D) The ACH network is a not-for-profit association and is regulated by its independence from outside interests.
E) The ACH network is a professional organization to which all financial institutions are obligated to contribute resources and is regulated by the interests of these institutions.
Q3) Why might nations decline International Monetary Fund funds?
Q4) What are the components of the M-2 money supply?
Q5) How does the Fed's monetary policy influence banks' willingness to loan money?
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Page 18
Chapter 17: Managing Business Finances
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Which of the following is a formal pledge (an IOU)obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date)to the lender?
A) commercial bank loan
B) corporate bond
C) mutual fund
D) bond indenture
E) prospectus
Q2) Stock brokers earn commissions from the individuals and organizations for whom they place orders.
A)True
B)False
Q3) The time it takes to double an investment can be estimated by using which of the following?
A) book value
B) the Rule of 72
C) blue-chips
D) dividends
E) market value
Q4) Explain the difference between angel investors and venture capital.
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