Business Fundamentals
Pre-Test Questions
Course Introduction
Business Fundamentals introduces students to the essential concepts and practices that underpin the modern business environment. The course covers key areas such as management principles, marketing strategies, financial decision-making, organizational behavior, and operations. Through case studies, real-world examples, and interactive activities, students develop an understanding of how businesses are structured, how they operate, and the factors that contribute to their success. By the end of the course, students will be equipped with foundational knowledge and skills necessary for further study or entry-level positions in the world of business.
Recommended Textbook
Essentials of Contemporary Business 1st Edition by Louis E. Boone
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2453 Verified Questions
2453 Flashcards
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Chapter 1: The Changing Face of Business
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) When farmers rent land in order to increase crop production,they are acquiring capital.
A)True
B)False
Answer: False
Q2) Define profit.Explain why you agree or disagree with the following statement: "The success of a business is measured only by the profit it earns."
Answer: Profit is the financial reward received by successful businesspeople who take the risks involved in blending people,technology,and information to create and market want-satisfying goods and services.In order to be successful in a private enterprise system,a business must earn a satisfactory profit;otherwise,the owners and investors will turn to more attractive opportunities.However,businesses today are expected to do more than earn a satisfactory profit-they also have social and ethical responsibilities.In other words,businesses must behave responsibly in their dealings with employees,customers,suppliers,the general public,and even with their competitors.
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3
Chapter 2: Business Ethics and Social Responsibility
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172 Flashcards
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Sample Questions
Q1) Developing a close personal relationship with a client or supplier is only a conflict of interest if others find out about the relationship.
A)True
B)False
Answer: False
Q2) Solving family crises and caring for elderly parents are considered quality of life issues.
A)True
B)False
Answer: True
Q3) A conflict of interest exists when a person is faced with a decision in which an action will harm one individual or group while benefiting another.
A)True
B)False
Answer: True
Q4) Employees should always be loyal,regardless of the situation.
A)True
B)False
Answer: False
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Chapter 3: Economic Challenges Facing Contemporary Business
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) A(n)_____ is characterized by relatively few sellers and barriers to entry due to high start-up costs.
A)Consumer Price Index (CPI)
B)inflation
C)gross domestic product (GDP)
D)fiscal policy
E)monetary policy
F)equilibrium price
G)budget deficit
H)pure competition
I)supply
J)demand
K)productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly
Answer: N
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Page 5
Chapter 4: Competing in World Markets
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147 Flashcards
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Sample Questions
Q1) A favorable balance of trade is known as a trade surplus.
A)True
B)False
Q2) A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese.This is an example of ________.
A)an exchange control
B)an import quota
C)a protective tariff
D)dumping
Q3) Joint venturesallow companies to share risks,costs,profits,and management responsibilities with one or more host country nationals.
A)True
B)False
Q4) A country that cannot maintain a monopoly from producing a certain good can still have an absolute advantage.
A)True
B)False
Q5) Describe one contractual agreement firms can enter into when going global.
Q6) Define balance of trade and its relation to trade surplus and trade deficit.
Page 6
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Chapter 5: Small Business and Forms of Business
Ownership
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) Which type of merger results in decreased competition within the same industry?
A)vertical merger
B)conglomerate merger
C)joint venture
D)horizontal merger
Q2) Owners of corporations may owe personal income taxes on dividends,which are paid from after-tax corporate profits.This is an example of double taxation.
A)True
B)False
Q3) All of the following are duties of the board of directors of a corporation EXCEPT
A)guaranteeing the payment of cash dividends every year
B)electing its own officers
C)hiring the corporation's chief executive officer
D)authorizing major transactions of the corporation
Q4) Owners of preferred stock receive dividends after owners of common stock. A)True
B)False
Q5) Compare and contrast the three forms of business ownership.
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Chapter 6: Starting Your Own Business
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108 Flashcards
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Sample Questions
Q1) Internal locus of control involves the personal belief that you control your own destiny.
A)True
B)False
Q2) Entrepreneurial environments created within companies can help firms retain valuable employees who might otherwise leave to start their own businesses.
A)True
B)False
Q3) People should not attempt to convert their hobbies into a business,since starting a business is a serious venture.
A)True
B)False
Q4) As a rule,entrepreneurs believe in their ability to succeed.
A)True
B)False
Q5) Many colleges and universities offer programs in entrepreneurship.
A)True
B)False
Q6) Explain the difference between debt financing and equity financing.
Page 8
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Chapter 7: Management, Leadership, and the Internal Organization
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191 Verified Questions
191 Flashcards
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Sample Questions
Q1) Guideposts by which managers define the organization's desired performance are called ________.
A)mission
B)standards
C)opportunities
D)objectives
Q2) The best style of leadership is ________.
A)democratic
B)it depends on the situation
C)dependent on employee feedback
D)free-rein
Q3) Democratic leaders ________.
A)are always the most effective leaders
B)let people know only what they need to know to do their jobs
C)involve their subordinates in making decisions
D)leave all decisions to their subordinates
Q4) Middle managers develop detailed plans and procedures to implement the firm's strategic plans.
A)True
B)False
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Chapter 8: Human Resource Management: From
Recruitment to Labor Relations
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) Claire announces to her staff that she intends to lower costs in their department by 5 percent.Which component of goal setting is Claire utilizing?
A)goal specificity
B)time management
C)goal acceptance
D)performance review
Q2) According to Maslow,high-order needs must be satisfied before low-order needs.
A)True
B)False
Q3) An example of a job factor that is important to job satisfaction though it does not contribute directly to motivation is ________.
A)company policies
B)opportunity for growth
C)achievement
D)job responsibility
Q4) Salary is a term that represents compensation based on the number of hours worked.
A)True
B)False
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Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
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134 Verified Questions
134 Flashcards
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Sample
Questions
Q1) Explain the key differences between employee stock ownership plans and employee stock option plans.
Q2) Polite listeners are attentive listeners.
A)True
B)False
Q3) Immediately after listening to a message,the average person can recall only half of it.
A)True
B)False
Q4) Japan is considered to be a ________ context country and thus,Japanese businesspeople place importance on ________ communications.
A)high;both verbal and nonverbal
B)low;both verbal and nonverbal
C)high;explicit verbal
D)low;explicit verbal
Q5) Distinguish between cognitive and affective conflict.
Q6) Explain the four types of listening behaviors.
Q7) Team cohesiveness increases with frequent team member interaction.
A)True
B)False Page 11
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Chapter 10: Production and Operations Management
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Sample Questions
Q1) All of the following statements concerning robots are correct EXCEPT:
A)The use of robots is only beneficial in manufacturing settings.
B)A variety of industries are now using robot technology.
C)Robots have freed people from boring and dangerous assignments.
D)Robots can move finished goods from one place to another.
Q2) The need for confidentiality sometimes affects the decision to purchase or lease.
A)True
B)False
Q3) Computer chip manufacturers,such as Intel,must be primarily concerned with
A)availability to energy
B)proximity to markets
C)community living conditions
D)availability of water supply
Q4) The decision to make,buy,or lease sometimes hinges on the availability of outside suppliers that can dependably meet a firm's standards for quality and quantity.
A)True
B)False
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Chapter 11: Customer-Driven Marketing
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132 Flashcards
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Sample Questions
Q1) Data collected for the first time through observation or surveys is ________.
A)secondary data
B)external data
C)primary data
D)a marketing information system
Q2) Personal factors influence the way buyers behave more than interpersonal factors.
A)True
B)False
Q3) As its ultimate goal,relationship marketing seeks to achieve customer satisfaction.
A)True
B)False
Q4) Marketing is rarely useful as an education tool.
A)True
B)False
Q5) Marketing segmentation is the group of potential customers toward whom an organization directs its marketing efforts.
A)True
B)False
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Chapter 12: Product and Distribution Strategies
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167 Flashcards
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Sample Questions
Q1) One advantage of Internet retailing is that adding a large product mix to a Web site is less costly than making room on a store's shelves.
A)True
B)False
Q2) Greta has been analyzing the competitive standings of one of her products.Since she began her operation,20 similar products have appeared,forcing her to change distribution strategies.Greta has also needed to change pricing strategies in order to remain competitive.Sales volume has dipped,and she suspects sales of her product have reached a saturation level.At what stage of the product life cycle is this item?
A)decline stage
B)growth stage
C)maturity stage
D)introductory stage
Q3) A manufacturer of a new moisturizing shampoo offers free samples to all potential consumers.The product is generally in the introductory stage.
A)True
B)False
Q4) Explain the five major transport modes.
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15
Chapter 13: Promotion and Pricing Strategies
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Sample Questions
Q1) A recent newspaper article reported that the CEO of Brown & Smith Corporation has been accused for accounting fraud.This article is an example of publicity.
A)True
B)False
Q2) Which of the following pricing objectives has the most influence on Rolex's pricing strategy?
A)profitability
B)prestige
C)meeting the competition
D)volume
Q3) Volume objectives bases pricing decisions on ________.
A)image goals and status quo pricing
B)supply and demand
C)market share
D)breakeven analysis
Q4) To gain a competitive advantage,marketers that utilize integrated marketing communications should narrow their focus on promotional strategies.
A)True
B)False
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Chapter 14: Using Technology to Manage Information
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112 Flashcards
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Sample Questions
Q1) On-demand computing is different than utility computing.
A)True
B)False
Q2) Decision support systems provide support to people making business decisions.
A)True
B)False
Q3) Which of the following reasons is a reason for the increasing popularity of notebook computers?
A)more computing capacity than midrange systems
B)limited displays
C)faster processing speeds
D)higher prices
Q4) A computer program that imitates human thinking is a(n)________.
A)information interface
B)decision support system
C)enterprise resource planning system
D)expert system
Q5) Information is the result of processed data.
A)True
B)False
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Chapter 15: Understanding Accounting and Financial Statements
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Sample Questions
Q1) The right side of the balance sheet lists claims against assets.
A)True
B)False
Q2) The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.
A)True
B)False
Q3) Profitability ratios measure a firm's ability to meet its short-term obligations.
A)True
B)False
Q4) Accountants play fundamental roles in not only business but also other aspects of society.
A)True
B)False
Q5) What is the primary role of a government accountant?
A)preparing the organization's tax return
B)determining how much money the organization is taking in
C)determining the cost of goods and services provided by the organization
D)determining how efficiently the organization accomplishes its objectives
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Chapter 16: The Financial System
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158 Verified Questions
158 Flashcards
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Sample Questions
Q1) When the Fed sells government securities,banks have ________ money to lend and economic growth ________.
A)less;will slow
B)less;will accelerate
C)more;will slow
D)more;will accelerate
Q2) Explain the government regulation of the financial markets and the role of the SEC.
Q3) Today,savings banks and credit unions now offer many of the same services as commercial banks.
A)True
B)False
Q4) These securities are backed by a pool of mortgage loans purchased from lenders,such as savings banks.
A)mortgage pass-through security
B)mortgage bond
C)commercial paper
D)corporate bond
Q5) Describe the two ways that funds can be transferred between savers and users.
Q6) Explain the process of underwriting in reference to financial markets.
Page 19
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Chapter 17: Financial Management
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Sample Questions
Q1) Companies sell securities publicly through a process called underwriting.
A)True
B)False
Q2) Explain the concept of leverage.
Q3) What is the purpose of a financial plan?
Q4) Explain what can be indicated by the growing importance of financial professionals.
Q5) In the typical firm,the ________ is the chief accounting manager.
A)chief executive officer
B)controller
C)treasurer
D)chief financial officer
Q6) When a firm receives goods or services from a supplier and agrees to pay for them at a later date,this arrangement is called ________.
A)a short-term loan
B)a repurchase agreement
C)trade credit
D)commercial credit
Q7) Why do firms divest assets?
Q8) Describe hedge funds.
Page 20
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