Principles of Business
Chapter Exam Questions
Course Introduction
Principles of Business introduces students to the foundational concepts and practices that drive modern enterprises. The course explores a broad range of topics including entrepreneurship, management, marketing, economics, accounting, and the legal environment of business. Students will develop an understanding of how businesses are structured and operated, the roles and responsibilities of managers, and the importance of ethical decision-making and social responsibility. By examining real-world business scenarios, students gain insights into the challenges faced by organizations and the strategies used to achieve success in a dynamic global marketplace.
Recommended Textbook
Better Business 3rd Edition by Michael R. Solomon
Available Study Resources on Quizplus
21 Chapters
1726 Verified Questions
1726 Flashcards
Source URL: https://quizplus.com/study-set/2019
Page 2
Chapter 1: Business Basics
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/40166
Sample Questions
Q1) Providing temporary disability insurance for employees is a federal requirement imposed on companies that operate in the United States.
A)True
B)False
Answer: False
Q2) Ron plans to open his own café.He wants to offer a variety of coffees,sandwiches,and salads.He also plans to hire employees who will prepare food and serve customers.What type of product would Ron's customers be offered?
Answer: Ron's customers would be paying for both physical goods,that is,the food items Ron would offer,and nonphysical services,that is,the preparation and serving of the food items.
Q3) When businesses compete,products usually become more expensive.
A)True
B)False
Answer: False
Q4) Real capital refers to the money used to facilitate a business enterprise.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Economics and Banking
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/40168
Sample Questions
Q1) The price of a product or service is based entirely on its actual value.
A)True
B)False
Answer: False
Q2) The main function of economics is to study ________.
A) the exchange of goods and services between individuals, businesses, and nations
B) the exchange of cultural information in a diverse society
C) the stock exchange
D) the exchange of diplomatic relations between nations
E) the exchange of ideas about motivation and behavior in the workplace
Answer: A
Q3) ________ is a decrease in the rate of inflation.
A) Deflation
B) Inflation
C) Disinflation
D) Deflection
E) Depression
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Ethics in Business
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/40170
Sample Questions
Q1) United States companies that locate their operations in less developed parts of the world are required to enforce U.S.standards regarding child labor,pollution,fair wages,and human rights.
A)True
B)False
Answer: False
Q2) Which of the following is NOT an example of how corporate social responsibility can be consistent with profitability?
A) using recycled styrofoam as cups in a coffee shop
B) offering bonuses to employees who embellish profit and loss statements
C) paying employees in a developing nation more than the minimum
D) encouraging employees to volunteer within the local community
E) improving environmental practices in their factories and plants
Answer: B
Q3) The production of toxic materials is moving at a far faster pace than the growth of proper storage facilities and techniques,so disposal becomes more and more expensive.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Business in a Global Economy
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/40172
Sample Questions
Q1) As a result of their influence on the quantity,variety,and quality of products,trade barriers ________ domestic consumers.
A) give an absolute advantage to
B) hurt
C) have no effect on
D) help
E) appease
Q2) Which of the following is contributing to the acceleration of globalization?
A) increasing democratization
B) a rise in the number of non-U.S. small, local businesses
C) restricting the amount of foreign direct investment
D) the dominance of the U.S. economic system
E) a shrinking role for developing nations
Q3) A free trade area is a compact abolishing trade barriers among member countries.
A)True
B)False
Q4) What are multinational enterprises? How have they contributed to the growth of globalization?
Q5) In addition to exchange rates,what are three economic challenges to conducting international business?
6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Small Business and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/40174
Sample Questions
Q1) Maggie wants to start a fine dining restaurant in her town and dreams someday of having a chain of restaurants all over the country.She can be considered a growth entrepreneur because she ________.
A) hopes that her restaurant will attract customers
B) believes that revenues from her restaurant will grow rapidly
C) plans to have her business expand beyond her original restaurant
D) understands that there is an increasingly large market for dining experiences
E) wants to be able to run her business out of her home
Q2) Which of the following is LEAST likely to be a characteristic of successful entrepreneurs?
A) likes to take risks
B) is motivated to succeed
C) prefers not to work around other people
D) prefers not to work for other people
E) is flexible and self-directed
Q3) A system thinker is someone who focuses on the entire process of turning an idea into reality.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Forms of Business Ownership
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/40175
Sample Questions
Q1) Management and ownership roles would most likely be separate in what type of business structure?
A) sole proprietorship
B) general partnership
C) corporation
D) limited liability partnership
E) unlimited partnership
Q2) Explain what is involved in starting a business as a sole proprietor and the advantages to choosing this form of ownership.
Q3) After a successful five years,Double Z,LLC (a retirement ranch for race horses)thinks it may be able to attract donations from animal activist groups and even the federal government if it becomes a not-for-profit corporation.Explain what changes the owners of Double Z would need to make in order to be a not-for-profit corporation?
Q4) Sarah,Mike and Mark are dentists who would like to form a partnership.They have decided to form a limited liability corporation.Explain why this is a good choice for their dental practice.
Q5) An advantage of S corporations over C corporations is they avoid double taxation.Explain how this works.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Business Management and Organization
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/40176
Sample Questions
Q1) Which is a primary function of management?
A) planning
B) organizing
C) leading
D) monitoring
E) all of the above
Q2) Describe the horizontal organizational structure.
Q3) The specifics of carrying out tactical plans are ________.
A) strategies
B) internal strengths
C) operational plans
D) objectives
E) contingencies
Q4) What is organizing?
Q5) A mission statement identifies what a business wants to be in the future.
A)True
B)False
Q6) Explain at least three ways that the vision and mission statement are critically important for an organization.
Q7) What is controlling?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Motivation, Leadership, and Teamwork
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/40177
Sample Questions
Q1) Monica enjoys her job and her coworkers.She feels her work environment is safe and her salary is a good one.Her benefits,though,are inadequate for her family's situation.According to Herzberg,Monica will not be motivated by the hygiene factors she experiences because she takes them for granted.
A)True
B)False
Q2) Strong leadership often comes at the expense of others.
A)True
B)False
Q3) What was R.M.Belbin's contribution to the study of work teams?
Q4) Ross's work team is made up of various members of the art department who have all worked together for many years.They like that they work in synch and rarely have to explain things to each other because they are so much alike.A threat to Ross' work team is narrow-mindedness caused by ________.
A) groupthink
B) group flow
C) virtual think
D) virtual flow
E) the Hawthorne effect
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Human Resource Management
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/40178
Sample Questions
Q1) When Firefighters Local 48 negotiates directly and only with its employers for better work conditions and terms of employment,it is called ________.
A) united mediation
B) collaborative arbitration
C) common striking
D) collective bargaining
E) boycotting
Q2) Ronald was recently hired as a restaurant manager for McDonald's and must attend classes at Hamburger University.What type of training is Ronald receiving? How do you know?
Q3) What are the functions of human resource management?
Q4) Tyrone is an African American and,during a recent job interview,was told that he would not be hired because the interviewer had issues with the color of his skin.Which federal law was created to combat this kind of discrimination?
A) Civil Rights Act of 1964
B) Americans with Disabilities Act
C) Age Discrimination in Employment Act
D) Race Discrimination in Employment Act
E) Workplace Diversity Act
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Online Business and Technology
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/40179
Sample Questions
Q1) Which of the following BEST describes how businesses convert raw data into information?
A) asking information technology experts to review data for accuracy
B) organizing the data in a way that helps make decisions
C) storing the data in a data warehouse
D) using the prevalent automatic process
E) maintaining the representations of facts or ideas in their original form
Q2) What new jobs have been created with the rise of social media?
Q3) IT departments must ensure that companies use the newest technology that is available.
A)True
B)False
Q4) What are the four main types of B2C models discussed in the textbook?
Q5) Data and information are two terms that are often used interchangeably in business settings.Describe the differences between the two terms and provide an example to illustrate the business uses of data and information.
Q6) What are the threats that challenge e-business?
Q7) Most states are pleased that their residents buy products online.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Production, operations, and the Supply Chain
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/40180
Sample Questions
Q1) Good supply chain management is key to Ikea's success.
A)True
B)False
Q2) Crystal is the production manager at Pawelk's,a vacuum cleaner manufacturer.When ordering from her supplier,she must ensure that it does all of the following EXCEPT ________.
A) provide trusted quality
B) meet product deadlines
C) deliver appropriate quantities
D) gives positive recommendations
E) offers a competitive price
Q3) Richard owns a waste disposal factory that emits potentially harmful gases into the air.He decided not to open another factory that would have been close to a small town.He considered the human factor.
A)True
B)False
Q4) How has quality control evolved over the years?
Q5) Dan is opening a new restaurant specializing in barbecued ribs.He is looking for the perfect location for his rib restaurant.What transportation factor should he consider?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Marketing and Consumer Behavior
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/40181
Sample Questions
Q1) The more loyal a traveler is to a certain hotel chain,the more sensitive he or she is to the room rate at hotels in that chain.
A)True
B)False
Q2) In business-to-business (B2B)market purchases,purchasing agents often weigh the benefits and the costs in a more systematic fashion than buyers in consumer markets; therefore,sellers don't have to pitch their products at as sophisticated a level as is used in competitive consumer markets.
A)True
B)False
Q3) The first step in the marketing process is to ________.
A) conduct market research
B) identify an unfilled market need
C) determine costs in relation to potential benefits of the product
D) establish brand recognition
E) nurture good customer relationships
Q4) What are some approaches a business could take to nurture good customer relationships?
Q5) Describe the kinds of utility that marketing provides to customers.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Product Development and Pricing Strategies
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/40182
Sample Questions
Q1) How does convenient packaging affect sales?
Q2) What are the seven steps in new product development?
Q3) The ________ product of a fast food meal is the calories and relief from hunger provided.
A) augmented
B) value
C) core D) actual
E) perceived
Q4) Demand-based pricing (sometimes called value-based pricing)is pricing a good or service based on the demand for the product or its perceived value.
A)True
B)False
Q5) What are the tangible and intangible benefits of a spring break vacation?
Q6) How does a company benefit from product differentiation?
Q7) Give an example of a company that uses the pricing strategy of bundling.
Q8) Downloading a song for 99 cents is an example of psychological pricing.
A)True
B)False
Page 15
Q9) What is penetration pricing? Give an example.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 14: Promotion and Distribution
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/40183
Sample Questions
Q1) What is the last step in the personal selling process?
A) closing the sale
B) following up
C) meeting customer's needs
D) asking for referrals
E) overcoming objections
Q2) Promotion is designed to increase brand awareness,sales,and ________.
A) identification of target
B) brand loyalty
C) distribution
D) market share
E) media plan budget
Q3) When wholesalers take title to merchandise and bear the costs of theft,damage,spoilage,and obsolescence,they are providing ________ to retailers.
A) management service
B) risk bearing service
C) warehousing
D) financing
E) bulk bearing
Q4) What do purchasing agents do?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Financing and Tracking Business Operations
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/40184
Sample Questions
Q1) Iris Velez manages a department that calculates payments to be made to federal,state,and local governments.Iris works in ________.
A) managerial accounting
B) auditing
C) tax accounting
D) sales accounting
E) financial
Q2) A commercial finance company is an alternative to a bank as a source of short-term financing.
A)True
B)False
Q3) Because accounting requires a great deal of precision and accuracy,there is no room for interpretation in accounting.
A)True
B)False
Q4) Financial statements serve as a basis for management to develop expectations of where the company will be in future periods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Investment Opportunities in the Securities Market
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/40185
Sample Questions
Q1) What are the basic characteristics of a bull market and a bear market in terms of stock market performance and investor confidence?
Q2) What is the distinction between an option and a futures contract?
Q3) What are the names and characteristics of the three major stock indices in the United States?
Q4) Junk bonds ________.
A) are paid with the highest interest rates
B) are typically rated in the A or B category
C) are relatively safe investments
D) are backed by insurance policies
E) are not attractive to any investors
Q5) Why is asset allocation important for an investor?
Q6) ________ stocks are issued by companies that produce goods or services that are affected by economic trends.
A) Cyclical
B) Value
C) Growth
D) Blue chip
E) Income
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: Business Law
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/40165
Sample Questions
Q1) Domenica had a tree on her property that blocked Mark's view of the lake across the street from his house.Mark got more and more annoyed by the tree's presence until the day he cut down the tree when Domenica was at work.Domenica is able to sue Mark for intentional tort.
A)True
B)False
Q2) Regulatory bodies like the SEC and the FTC have the power to pass ________ law.
A) constitutional
B) statutory
C) administrative
D) common
E) case
Q3) The United States is a federalist system,meaning ________.
A) the national government has complete authority
B) the fifty states have no autonomy
C) only the U.S. government is divided into executive, legislative, and judicial branches
D) states don't have written constitutions
E) there is government authority at both the national and state levels
Q4) Can anyone enter into a business contract?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Constructing an Effective Business Plan
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/40167
Sample Questions
Q1) Which of the following statements is TRUE about the components of a business plan?
A) Potential business owners can use a common template to write a business plan because all plans share the same components.
B) Business plans all have the same key components; however, some may be included in a different order.
C) All business plans discuss the specific product before analyzing how the product fits the market.
D) All business plans are different depending on the business; however, most have a few components in common.
E) All business plans are unique and share no common characteristics or components.
Q2) You recently graduated from business school and you want to open up a small pizzeria in a large college town.There is a perfect space to lease for the pizzeria; however,a few doors down is a very well-established Italian restaurant that has been around since 1964.Their food has been legendary for all of those years.How would a market analysis help you decide if opening up the pizzeria near the restaurant would be a good idea or not?
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 19: Business Communications
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/40169
Sample Questions
Q1) Instant messaging (IM)and e-mail are similar in some ways,different in others.Describe some of the similarities and some of the differences.
Q2) Interpersonal skills are important in business because business people spend at least ________ communicating and interacting with others during the course of the day.
A) half of their time
B) 75 percent of their time
C) two hours
D) 20 minutes out of every hour
E) a quarter of their time
Q3) Which of the following examples demonstrates the most effective use of color in a PowerPoint presentation?
A) a presentation that uses white text over a black background for stark contrast
B) a presentation that uses a combination of light background and dark text
C) a presentation that uses primary colors to wake up audience attention
D) a presentation that uses a variety of colors on every slide
E) a presentation that uses black text on a blue background
Q4) What are some of the characteristics of good speaking skills?
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 20: Finding a Job
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/40171
Sample Questions
Q1) When attending a networking event such as a job fair,it is important to let people know right away that you are looking for a job,so ask for a job right away.
A)True
B)False
Q2) During the course of the interview,it is BEST to ________.
A) avoid direct eye contact
B) speak quickly
C) ask questions that could be answered in company literature
D) be confident
E) don't ask for clarification on questions
Q3) When you are preparing to write your resume,which of the following is NOT a primary consideration?
A) What are my strengths?
B) Where would I like to be living when I get a new job?
C) What types of skills do I possess?
D) What do I want from an employer?
E) What are my weaknesses?
Q4) What are three ways the Internet can be helpful in searching for a job?
Q5) What is a chronological resume and when is it the appropriate?
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 21: Personal Finance
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/40173
Sample Questions
Q1) Making a spending plan is an example of which step in financial planning?
A) create a budget
B) execute the plan
C) set financial goals
D) take a financial inventory
E) know where your money goes
Q2) Money management is critical for corporations,but not for individuals.
A)True
B)False
Q3) It is not at all necessary to revisit a financial plan periodically.
A)True
B)False
Q4) What is a credit score?
Q5) Special retirement pretax savings accounts created by the government are ________.
A) Roth IRAs
B) pension plans
C) IRAs
D) NDAs
E) 401(k) plans
Page 24
To view all questions and flashcards with answers, click on the resource link above.