Contemporary Business Exam Practice Tests
Course Introduction
Contemporary Business explores the dynamic environment in which businesses operate today, covering key concepts such as globalization, technology, innovation, ethics, and sustainability. The course examines modern business structures, market strategies, and organizational behavior, while also addressing current challenges and opportunities faced by companies in a rapidly changing world. Students gain practical insights through case studies, current events, and real-world applications to better understand decision-making and the evolving role of business in society.
Recommended Textbook
Foundations of Business 6th Edition by William M. Pride
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20 Chapters
3720 Verified Questions
3720 Flashcards
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Chapter 1: Exploring the World of Business and Economics
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251 Verified Questions
251 Flashcards
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Sample Questions
Q1) Weyerheuser owns vast acres of land in Washington State near Mt.Saint Helens where it grows trees for harvesting to make everything from lumber to build houses to newsprint for newspapers. Which of the following best represents some of the material resources of this business.
A) Trees,logging trucks,and paper mills.
B) Secretaries,loggers,and truckers.
C) Computers,cash,and desks.
D) Trees,loggers,and computers.
Answer: A
Q2) Explain how the basic economic questions are answered in capitalistic and command economies.
Answer: The four basic economic questions are (1)what goods and services will be produced;(2)how will they be produced;(3)for whom will they be produced;and (4)who controls the factors of production.In a capitalistic economy,supply and demand is primarily driven by the market and what price a product or service will bring.In a capitalistic economy,businesses and individuals answer the four basic economic questions.In a command economy,the government decides what goods and services will be produced,how they will be produced,and at what price they will be offered.
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Chapter 2: Ethics and Social Responsibility in Business
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282 Verified Questions
282 Flashcards
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Sample Questions
Q1) Noise pollution can be reduced by
A) cleaning up land polluted with chemicals and industrial waste.
B) modifying machinery and equipment.
C) banning strip-mining of coal.
D) nonselective cutting of forests.
E) the development of agricultural land for housing and industry.
Answer: B
Q2) The socioeconomic model of social responsibility emphasizes the effect of business decisions on society.
A)True
B)False
Answer: True
Q3) Most authorities agree that business ethics should be improved.
A)True
B)False
Answer: True
Q4) Social responsibility is good business,but it does cost money.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Global Business
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257 Verified Questions
257 Flashcards
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Sample Questions
Q1) Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?
A) They will be faced with the highest demand ever.
B) They will become more competitive.
C) They will be put out of business because they cannot compete with the prices.
D) They will try to dump their toys in other countries.
E) Their revenues will decrease,but their long-term success will not be affected.
Answer: C
Q2) The total flow of money into a country minus the total flow of money out of the country over some period of time is called the nation's balance of trade.
A)True
B)False
Answer: False
Q3) Selling and shipping raw materials or products to other nations is known as exporting.
A)True
B)False
Answer: True
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Chapter 4: Choosing a Form of Business Ownership
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221 Verified Questions
221 Flashcards
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Sample Questions
Q1) Which of the following is an example of a vertical merger?
A) The purchase of TWA by American Airlines
B) The purchase of Marathon Oil Company by U.S.Steel
C) The purchase of Kentucky Fried Chicken by PepsiCo
D) The purchase of Malone's Cost-Plus Supermarkets by the Kroger supermarket chain
E) The purchase of Gulf Oil by Standard Oil Company of California
Q2) Cooper wants to start a sports club to benefit inner-city children and teach them rock climbing,mountaineering,and other outdoor sports.He wants to take donations to support the club rather than sell stock.What business form would be best for this club?
A) Not-for-profit corporation.
B) S-corporation.
C) Partnership.
D) Syndicate.
Q3) All corporations operate primarily for profit.
A)True
B)False
Q4) Define "growth from within" in regard to a corporation.Is it generally a suggested path for corporations?
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Page 6
Chapter 5: Small Business,Entrepreneurship,and Franchises
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219 Verified Questions
219 Flashcards
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Sample Questions
Q1) Zully has obtained an SBA loan to start a new business in her town.She has an arrangement with Ford Motor Company to be the exclusive seller of Ford vehicles.She has used the SBA loan to purchase this dealership,purchase land,build the dealership buildings,and pay for all of the initial advertising.What is the most likely form of business she has adopted for this company?
A) She most likely has a manufacturing franchise.
B) She most likely has a producer distributor franchise.
C) She most likely has a brand franchise.
D) She most likely has an independent sales franchise.
Q2) Society usually does not benefit from entrepreneurs who pursue their individual goals;it is only the entrepreneurs who reap the benefits of their own work and creativity. A)True
B)False
Q3) About one-third of franchised businesses fail during the first two years of operation. A)True
B)False
Q4) What is a business plan? What are its components? Why is it so important?
Q5) What are the disadvantages of owning a small business?
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Chapter 6: Understanding the Management Process
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206 Verified Questions
206 Flashcards
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Sample Questions
Q1) Middle managers implement the strategy developed by top management.
A)True
B)False
Q2) Mike Kelleher,long-time chief executive officer of Southwest Airlines,was known for inspiring and motivating his employees.He related well to people within and outside the Southwest Airlines organization.Mike Kelleher had good ____ skills.
A) technical
B) conceptual
C) interpersonal
D) interactive
E) personnel
Q3) An aspect of the strategic planning process is to allocate resources to achieve an organization's goals and objectives.
A)True
B)False
Q4) Describe the style of the democratic leader.
Q5) In what ways does leading differ from motivating?
Q6) What are two components that are crucial to the effectiveness of a total quality management program?
Page 8
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Chapter 7: Creating a Flexible Organization
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198 Verified Questions
198 Flashcards
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Sample Questions
Q1) Most large organizations use
A) departmentalization by product.
B) departmentalization by location.
C) departmentalization by customer.
D) a combination of departmentalization bases.
E) no departmentalization.
Q2) A manager with many subordinates is said to have a
A) tall organizational structure.
B) narrow span of control.
C) managerial hierarchy.
D) wide span of control.
E) matrix structure.
Q3) Among an ad hoc committee,a standing committee,and a task force,only a standing committee is relatively permanent.
A)True
B)False
Q4) Cross-functional teams are not very effective structures to use when developing a new product or service.
A)True
B)False
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Chapter 8: Producing Quality Goods and Services
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221 Flashcards
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Sample Questions
Q1) The objective of purchasing is to ensure that required materials are available when they are needed,in the proper amounts,and at minimum cost.
A)True
B)False
Q2) Productivity is a measure of output per unit of time per worker.
A)True
B)False
Q3) Oil companies use a synthetic process when they refine crude oil.
A)True
B)False
Q4) Which of the following statements is false in relation to choosing a supplier?
A) Purchasers should consider price,quality,and reliability when choosing a supplier.
B) Purchasers should always be on the lookout for new suppliers.
C) Purchasers should ensure that the credit terms a supplier offers are agreeable to their company.
D) Purchasers should consider the quality of life for employees and management in the proposed location.
E) Purchasers should focus on having only one supplier for each material needed.
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Chapter 9: Attracting and Retaining the Best Employees
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227 Verified Questions
227 Flashcards
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Sample Questions
Q1) The three types of performance feedback interviews are tell-and-listen,tell-and-sell,and A) objective.
B) problem-solving.
C) judgmental.
D) MBO.
E) self-evaluative.
Q2) A firm attempting to reduce the size of its workforce may use several approaches.The approach most likely to be saved as a last resort is A) attrition.
B) early retirement.
C) firing.
D) hiring freeze.
E) layoff.
Q3) Job evaluation is almost always the basis for developing a A) wage survey.
B) wage structure.
C) bonus system.
D) profit-sharing program.
E) performance appraisal.
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Chapter 10: Motivating and Satisfying Employees
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212 Verified Questions
212 Flashcards
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Sample Questions
Q1) Which of the following motivational techniques involves expanding a worker's assignments to include additional but similar tasks?
A) Job enlargement
B) Job enhancement
C) Job redesign
D) Job sharing
E) Management by objectives (MBO)
Q2) IBM,Eastman Kodak,and Hewlett-Packard are organizations that emphasize long-term employment,collective decision making,individual responsibility for the outcomes of decisions,and moderately specialized career paths.These companies are examples of ____ firms.
A) type J
B) type X
C) type A
D) type Y
E) type Z
Q3) Self-managed teams take over most management functions.
A)True
B)False
Q4) What are the advantages and disadvantages of a flextime work schedule?
Page 12
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Chapter 11: Building Customer Relationships Through Effective Marketing
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217 Verified Questions
217 Flashcards
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Sample Questions
Q1) Products that can be marketed successfully with the undifferentiated approach include sugar and A) cars.
B) clothing.
C) writing pens.
D) flour.
E) furniture.
Q2) From the start of the Industrial Revolution until the early twentieth century,business had a strong production orientation.
A)True
B)False
Q3) Marketing activities amount to about one-half of every dollar that consumers spend.
A)True
B)False
Q4) Consumers are usually better informed than business buyers about the products they buy.
A)True
B)False
Q5) What is a market?
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Chapter 12: Creating and Pricing Products That Satisfy Customers
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281 Verified Questions
281 Flashcards
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Sample Questions
Q1) Sprint charges different rates for long-distance service depending on time of day and distance of the call.This pricing method is called ____ pricing.
A) geographic
B) odd
C) discriminatory
D) demand-based
E) segmented
Q2) Equate,a brand of health and beauty care products,is available only at Target stores.Equate is a ____ brand.
A) producer
B) private
C) distributor
D) generic
E) conglomerate
Q3) The depth of a product mix is a measure of the average number of individual products within each line.
A)True
B)False
Q4) What are the major phases involved in the new product development process?
Page 14
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Chapter 13: Distributing and Promoting Products
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252 Flashcards
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Sample Questions
Q1) A neighborhood shopping center usually has at least one large department store to attract customers to the center.
A)True
B)False
Q2) MeComick Trucking serves as a carrier for several private oilfield supply companies.It is classified as a _____ carrier.
A) heavy-equipment
B) long distance
C) contract
D) private
E) common
Q3) All of the following are helpful in evaluating the effectiveness of advertising except:
A) past sales.
B) responses to coupon offers.
C) salespersons' salaries.
D) consumer surveys by research organizations.
E) current sales.
Q4) What types of public-relations tools can organizations use?
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Page 15
Chapter 14: Exploring Social Media and E-Business
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) Firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B focus.
A)True
B)False
Q2) Crowdsourcing involves outsourcing tasks to another business--most often a business overseas.
A)True
B)False
Q3) Which of the following is a website that allows a company to share information about products or services?
A) Blog
B) Podcast
C) Forum
D) Crowdsource
E) Wiki
Q4) Reading comments on social media sites about companies or products rarely offers valid insight into how consumers are reacting to products or services.
A)True
B)False
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Chapter 15: Using Management and Accounting Information
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193 Verified Questions
193 Flashcards
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Sample Questions
Q1) Resources that a firm owns are classified as assets.
A)True
B)False
Q2) How might the information needs of a marketing manager differ from those of an operations manager?
Q3) According to the Sarbanes-Oxley Act,the FTC is required to establish a full-time,five-member federal oversight board that will police the accounting industry.
A)True
B)False
Q4) Numerical or verbal descriptions that usually result from measurements of some sort are known as
A) information.
B) statistics.
C) software.
D) assets.
E) data.
Q5) In your own words,describe the relationship between information and risk and how this relationship could impact the business decision-making process.
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Chapter 16: Mastering Financial Management
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246 Verified Questions
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Sample Questions
Q1) A written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date is called
A) a promissory note.
B) collateral.
C) a factor account.
D) a charge account.
E) a term loan agreement.
Q2) Refer to Rollins,Inc.If Chris were to offer advice to a client about obtaining a loan,which of the following would be the first step?
A) Get to know potential lenders before requesting debt financing.
B) Have the financial manager meet with the loan officer.
C) Fill out a loan application.
D) Show current business plan.
E) Have your CPA prepare financial statements.
Q3) The legal document detailing all the conditions relating to a bond issue is called a bond indenture.
A)True
B)False
Q4) What is a budget? How is it used by a business firm?
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Chapter 17: Understanding Personal Finances and Investments
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Sample Questions
Q1) Which of the following best explains the purpose of asset allocation?
A) Reduce commission charges
B) Increase investment risk
C) Reduce government fees associated with investing
D) Reduce taxes paid to the IRS
E) Reduce investment risk
Q2) Which of the following would not satisfy the safety factor of investing?
A) Savings accounts
B) Blue-chip stocks
C) Certificates of deposit
D) Highly rated municipal bonds
E) Antiques and collectibles
Q3) Which of the following is not one of the types of bonds issued by the U.S.federal government?
A) Treasury notes
B) Savings bonds
C) Treasury municipals
D) Treasury bills
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Chapter 18: Enhancing Union-Management Relations
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Sample Questions
Q1) If you were an over-the-road truck driver who wants to learn how to help other drivers at your company organize a union.You would most likely contact the
A) United Auto Workers.
B) Teamsters Union.
C) Knights of Labor.
D) American Federation of Labor (AFL).
E) Congress of Industrial Organizations (CIO).
Q2) What has been the most significant event in labor history since World War II?
A) The merger of the AFL and CIO
B) A downturn in union membership
C) Strikes,which caused public opinion to shift against unions
D) The emergence of new negotiating tactics
E) The merger of the IWW and AFL
Q3) The AFL-CIO may represent all of the following occupations except
A) actors,painters,and barbers.
B) carpenters,painters,and construction workers.
C) teachers,postal workers,and retail clerks.
D) administrators,board members,and managers.
E) firefighters,bricklayers,and newspaper reporters.
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Page 20
Chapter 19: Risk Management and Insurance
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Sample Questions
Q1) What is the name given to an insurance plan that directly employs or contracts with selected physicians and hospitals to provide health care services in exchange for a fixed,prepaid monthly premium?
A) The Affordable Care Act (ACA)
B) Preferred Provider Organization (PPO)
C) A Health Maintenance Organization (HMO)
D) Major medical insurance
Q2) Suppose that early this year you buy a home valued at $180,000 and purchase $200,000 worth of fire insurance on it.According to the principle of indemnity,what amount of money would the insurer pay you if the home were totally destroyed by fire?
A) $90,000
B) $100,000
C) $180,000
D) $200,000
Q3) What is the name given to recipients of life insurance proceeds?
A) Beneficiaries
B) Recipients
C) Survivors
D) Actuaries
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Chapter 20: Business Law regulation and Taxation
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Sample Questions
Q1) New York City's law covering asbestos cleanup in residential and commercial buildings has been in effect for many years.The law requires that no apartment or commercial space be given a building permit for alterations unless it has been inspected for asbestos.What would be the classification for this kind of law?
A) Common
B) Constitutional
C) Statutory
D) Law
Q2) If All-City Sports is being charged a higher price for the baseball,softball,and soccer equipment by Haskins Manufacturing than the manufacturer charges larger firms,of what practice would All-City Sports be the victim?
A) Price-fixing
B) Price discrimination
C) A community of interest
D) Tying agreements
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