Principles of Business Review Questions

Course Introduction

Principles of Business introduces students to the foundational concepts and practices essential to understanding how businesses operate in local, national, and global markets. The course covers topics such as types of business ownership, organizational structures, business environments, entrepreneurship, marketing, finance, management, and ethical decision-making. Through real-world case studies and interactive activities, students will explore the role of business in society, the importance of innovation, and the impact of external factors on business success. This course provides a comprehensive overview for those interested in pursuing further studies or careers in the field of business.

Recommended Textbook

Foundations of Business 6th Edition by William M. Pride

Available Study Resources on Quizplus

20 Chapters

3720 Verified Questions

3720 Flashcards

Source URL: https://quizplus.com/study-set/2038 Page 2

Chapter 1: Exploring the World of Business and Economics

Available Study Resources on Quizplus for this Chatper

251 Verified Questions

251 Flashcards

Source URL: https://quizplus.com/quiz/40532

Sample Questions

Q1) Deflation

A) is a typical economic event in the U.S.economy.

B) is scheduled by the nation's economists to make economic corrections.

C) occurs only in command economies.

D) is a general decrease in the level of prices.

E) is characteristic of a mixed economy.

Answer: D

Q2) Although all casual clothing ultimately provides the same purpose,companies such as The Gap strive to make their brand seem unique from the many other brands available on the market.The market for casual clothing can best be characterized as A) pure competition.

B) monopolistic competition.

C) an oligopoly.

D) a monopoly.

E) a natural monopoly.

Answer: B

To view all questions and flashcards with answers, click on the resource link above. Page 3

Chapter 2: Ethics and Social Responsibility in Business

Available Study Resources on Quizplus for this Chatper

282 Verified Questions

282 Flashcards

Source URL: https://quizplus.com/quiz/40534

Sample Questions

Q1) One way a social responsibility program can be funded is by passing on the cost to the consumer in the form of higher prices.

A)True

B)False

Answer: True

Q2) Consumer advocates,such as Ralph Nader,take it upon themselves to protect the rights of consumers.

A)True

B)False

Answer: True

Q3) Within a firm,social responsibility begins with management's attitude.

A)True

B)False

Answer: True

Q4) Fortunately,the acid-rain problem has been solved in recent years.

A)True

B)False

Answer: False

To view all questions and flashcards with answers, click on the resource link above.

Page 4

Chapter 3: Global Business

Available Study Resources on Quizplus for this Chatper

257 Verified Questions

257 Flashcards

Source URL: https://quizplus.com/quiz/40536

Sample Questions

Q1) The United States wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

A) import duty.

B) foreign exchange control.

C) import quota.

D) embargo.

E) export duty.

Answer: C

Q2) When the United States levies a tax on textiles from India,this tax is a type of A) export duty.

B) barter.

C) import.

D) tariff.

E) responsibility.

Answer: D

Q3) What is an embargo? When might it be used?

Answer: An embargo is a complete halt to trading with a particular country or of a particular product.An embargo is most often used as a political weapon such as the import embargoes that the United States has with Iran and North Korea.

To view all questions and flashcards with answers, click on the resource link above.

Page 5

Chapter 4: Choosing a Form of Business Ownership

Available Study Resources on Quizplus for this Chatper

221 Verified Questions

221 Flashcards

Source URL: https://quizplus.com/quiz/40538

Sample Questions

Q1) When Compaq and Hewlett-Packard decided to become one company,this was an example of a(n)

A) acquisition.

B) hostile takeover.

C) horizontal merger.

D) conglomerate merger.

E) joint venture.

Q2) All of the following are advantages of the partnership form of organization except A) unlimited liability.

B) retention of profits.

C) combined skills and knowledge.

D) better access to capital and credit.

E) ease of start-up.

Q3) Describe the merger trends affecting American business.

Q4) Shareholders of an S-corporation are taxed as if they were owners in a partnership. A)True

B)False

Q5) Describe the ownership,operation,and size of a sole proprietorship.

To view all questions and flashcards with answers, click on the resource link above. Page 6

Chapter 5: Small Business,Entrepreneurship,and Franchises

Available Study Resources on Quizplus for this Chatper

219 Verified Questions

219 Flashcards

Source URL: https://quizplus.com/quiz/40539

Sample Questions

Q1) Which of the following statements is not true about small businesses?

A) Small businesses provide technical innovation.

B) Small businesses create cyclical unemployment.

C) Small businesses provide employment.

D) Small businesses provide competition.

E) Small businesses fill the needs of society and other businesses.

Q2) Service industries account for approximately what percentage of all small businesses?

A) 27

B) 35

C) 48

D) 72

E) 84

Q3) Why do certain industries tend to be more attractive for the start-up of a small business?

Q4) Data from 2017 from the Small Business Administration shows women-owned businesses as a dominate part of the U.S.economy.What were some of the findings of that data?

Q5) What are small-business investment companies? Name some companies that were financed through SBICs during their initial stages.

Page 7

To view all questions and flashcards with answers, click on the resource link above.

Chapter 6: Understanding the Management Process

Available Study Resources on Quizplus for this Chatper

206 Verified Questions

206 Flashcards

Source URL: https://quizplus.com/quiz/40540

Sample Questions

Q1) Conceptual skills refer to the ability to deal effectively with other people,both inside and outside the organization.

A)True

B)False

Q2) Prioritizing by top management and coordination of the specific elements so they work in harmony with each other are required for _____ to be effective.

A) total quality management (TQM)

B) institutional communications

C) industrial relations

D) negotiation strategies

Q3) The manager who provides overall guidance and leadership for the entire corporation is known as the ____ manager.

A) human resources

B) financial

C) operations

D) marketing

E) administrative

Q4) Why would technical skills be important to first-line managers?

Q5) Describe the style of the democratic leader.

To view all questions and flashcards with answers, click on the resource link above. Page 8

Chapter 7: Creating a Flexible Organization

Available Study Resources on Quizplus for this Chatper

198 Verified Questions

198 Flashcards

Source URL: https://quizplus.com/quiz/40541

Sample Questions

Q1) Many online companies strive to have a corporate culture based on trust and friendship among employees,a strong commitment to the company,and a relaxed and informal atmosphere.This is a ____ culture.

A) communal

B) fragmented

C) networked

D) family

E) mercenary

Q2) Identify and discuss the major steps in the delegation process.

Q3) Human resources is a(n)____ type of job,so it does not fit directly into the chain of command.

A) line

B) staff

C) advisory

D) top management

E) authoritative

Q4) Another term used to refer to a formal organization's network of communication is grapevine.

A)True

B)False

Page 9

To view all questions and flashcards with answers, click on the resource link above.

Chapter 8: Producing Quality Goods and Services

Available Study Resources on Quizplus for this Chatper

221 Verified Questions

221 Flashcards

Source URL: https://quizplus.com/quiz/40542

Sample Questions

Q1) Gary manufactures solar-powered automobiles.He has been having difficulties controlling his inventory.He has experienced inventory shortages and inventory overages.He has considered several alternatives to address these issues but is uncertain which one would be most effective.Which of the following would be most effective in alleviating the inventory issues he is experiencing?

A) He could use materials requirements planning.

B) He could hire an inventory specialist to track the inventory.

C) He could use a just-in-time production system.

D) He could set a more effective planning horizon.

Q2) A labor-intensive technology is one in which people must do most of the work.

A)True

B)False

Q3) If a good or service satisfies a human need,it has A) value.

B) focus.

C) magnitude.

D) form.

E) utility.

Q4) Compare and contrast the ideas of labor-intensive and capital-intensive technology.

Page 10

To view all questions and flashcards with answers, click on the resource link above.

Chapter 9: Attracting and Retaining the Best Employees

Available Study Resources on Quizplus for this Chatper

227 Verified Questions

227 Flashcards

Source URL: https://quizplus.com/quiz/40543

Sample Questions

Q1) Employee compensation systems are generally developed and administered by ____,and pay increases and promotions are usually recommended by ____.

A) top management;HRM specialists

B) unions;line managers

C) HRM specialists;line managers

D) top management;unions

E) professional HR consultants;HRM staff personnel

Q2) A specific amount of money paid for each hour of work is called A) salary.

B) wage.

C) benefits.

D) bonus.

E) compensation.

Q3) The phase of human resources management in which an employee's skills are improved and his or her capabilities are expanded is known as maintaining.

A)True

B)False

Q4) What are the advantages and disadvantages of internal recruiting?

Q5) What is cultural diversity,and why is it an important issue?

To view all questions and flashcards with answers, click on the resource link above. Page 11

Chapter 10: Motivating and Satisfying Employees

Available Study Resources on Quizplus for this Chatper

212 Verified Questions

212 Flashcards

Source URL: https://quizplus.com/quiz/40544

Sample Questions

Q1) Performing is the stage where the team begins to focus strongly on the assigned tasks.

A)True

B)False

Q2) A work schedule that allows employees to work ten hours a day for four days instead of eight hours a day for five days is an example of a flextime system.

A)True

B)False

Q3) Kevin Long's first year as unit supervisor for a local manufacturer was quite a challenge.To encourage his subordinates to meet unit and company goals,he instituted quality circles.These circles were then enabled to directly affect unit operations.Kevin's managerial attitude reflects the assumptions underlying

A) the expectancy theory.

B) Theory Y.

C) the equity theory.

D) reinforcement.

E) Theory X.

Q4) Explain the different facets of job enrichment and behavior modification.

Q5) Describe the various stages of team development.

To view all questions and flashcards with answers, click on the resource link above. Page 12

Chapter 11: Building Customer Relationships Through Effective Marketing

Available Study Resources on Quizplus for this Chatper

217 Verified Questions

217 Flashcards

Source URL: https://quizplus.com/quiz/40545

Sample Questions

Q1) Influences on the external marketing environment that stem from actions of elected and appointed officials are called ____ forces.

A) government regulatory

B) legal

C) external cultural

D) social

E) political

Q2) Martha,a marketing researcher,is currently analyzing the information collected and determining what possible opportunities it has for management.At which stage of marketing research is she?

A) Interpreting information

B) Defining the problem

C) Making a preliminary investigation

D) Planning the research

E) Gathering factual information

Q3) Sales forecasts generally are not affected by the level of marketing effort planned for the forecast period.

A)True

B)False

Page 13

To view all questions and flashcards with answers, click on the resource link above.

Chapter 12: Creating and Pricing Products That Satisfy Customers

Available Study Resources on Quizplus for this Chatper

281 Verified Questions

281 Flashcards

Source URL: https://quizplus.com/quiz/40546

Sample Questions

Q1) An early-bird special offered by a restaurant during off-peak hours is an example of a secondary-market pricing strategy.

A)True

B)False

Q2) The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

A)True

B)False

Q3) How does product differentiation allow a firm to exert some control over a product's price?

Q4) Refer to Slick It,Inc.As Slick It management considers the pricing issues,they should know that all of the following are major pricing objectives except

A) status-quo pricing.

B) market-share goals.

C) survival.

D) profit minimization.

E) target return on investment.

Q5) What is brand equity? Describe the major factors that make up brand equity.

To view all questions and flashcards with answers, click on the resource link above. Page 14

Chapter 13: Distributing and Promoting Products

Available Study Resources on Quizplus for this Chatper

252 Verified Questions

252 Flashcards

Source URL: https://quizplus.com/quiz/40547

Sample Questions

Q1) Discount stores are self-service merchandise outlets that sell goods at lower prices than usual and

A) locate their showrooms in high-rent districts.

B) offer a wide variety of customer services.

C) operate on lower markups.

D) offer narrow but deep product mixes.

E) provide numerous services to customers.

Q2) What types of public-relations tools can organizations use?

Q3) Products such as very expensive wristwatches are distributed using _____ distribution.

A) exclusive

B) patterned

C) selective

D) intentional

E) intensive

Q4) Moving products from producer to wholesaler to retailer to consumer is called the traditional channel because most consumer goods are sold this way.

A)True

B)False

To view all questions and flashcards with answers, click on the resource link above. Page 15

Chapter 14: Exploring Social Media and E-Business

Available Study Resources on Quizplus for this Chatper

154 Verified Questions

154 Flashcards

Source URL: https://quizplus.com/quiz/40548

Sample Questions

Q1) Social media offers extensive,nearly full control over what is said about a company and/or their products or services.

A)True

B)False

Q2) An Internet consulting company uses its website to allow its corporate clients to obtain information,analyze data,and ask questions.This consulting company is using a ____ model.

A) B2C

B) C2C

C) B2B

D) C2B

E) consulting

Q3) Describe the two primary models of e-business.Provide examples.

Q4) Which of the following would not be considered a revenue stream?

A) Sale of a Sony music warehouse

B) Sales of CDs by Sony music

C) Sales of online help services by Microsoft

D) Fees charged by Hoover's Online to access information

E) An ad placed by a credit-card company on Amazon.com

Q5) Describe how a blog could be beneficial for a company.

Page 16

To view all questions and flashcards with answers, click on the resource link above.

Chapter 15: Using Management and Accounting Information

Available Study Resources on Quizplus for this Chatper

193 Verified Questions

193 Flashcards

Source URL: https://quizplus.com/quiz/40549

Sample Questions

Q1) As the accountant for Franks Retail Stores,you must calculate the current ratio for the firm's last accounting period.The firm's current assets were $120,000,its fixed assets were $240,000,its current liabilities were $80,000,and its long-term liabilities were $60,000.Given these facts,what is the firm's current ratio?

A) 1

B) 1.5

C) 2

D) 3

E) 4

Q2) Cecilia's business has more expenses than it has revenues this year;therefore,her business has a

A) net loss.

B) net increase.

C) net income.

D) net cash flow.

Q3) Why are current assets listed before fixed assets on the balance sheet?

Q4) Equipment and patents are known as intangible assets.

A)True

B)False

To view all questions and flashcards with answers, click on the resource link above.

Chapter 16: Mastering Financial Management

Available Study Resources on Quizplus for this Chatper

246 Verified Questions

246 Flashcards

Source URL: https://quizplus.com/quiz/40550

Sample Questions

Q1) A factor is a financial firm that specializes in buying other firms' accounts receivables.

A)True

B)False

Q2) The Nasdaq,part of the ___ market,provides price information on more than 3,600 stocks.

A) NYSE

B) secondary

C) primary

D) over-the-counter

E) securities exchange

Q3) Priscilla purchases a corporate bond from Safeway.She has the option of redeeming her bond for 55 shares of Safeway common stock at any time.This is a ____ bond.

A) callable

B) subordinated

C) debenture

D) mortgage

E) convertible

Q4) What is a budget? How is it used by a business firm?

To view all questions and flashcards with answers, click on the resource link above. Page 18

Chapter 17: Understanding Personal Finances and Investments

Available Study Resources on Quizplus for this Chatper

21 Verified Questions

21 Flashcards

Source URL: https://quizplus.com/quiz/40531

Sample Questions

Q1) How much money do most investment counselors recommend that an individual save for an emergency fund?

A) One month's living expenses

B) One month's gross salary

C) Two times the take-home salary

D) Three months' living expenses

E) Nine months' living expenses

Q2) Which of the following is not a suggested tip for making investment decisions?

A) Do your homework about potential investments.

B) Keep copies of materials used to make investment decisions.

C) Monitor the value of your investments.

D) Keep accurate records.

E) Choose the least expensive online broker for stock purchases.

Q3) What is the name of a government security that is sold in minimum units of $100 and has maturities that may be as long as one year?

A) Series EE savings bond

B) U.S.savings bond

C) Treasury bond

D) Treasury note

E) Treasury bill

To view all questions and flashcards with answers, click on the resource link above. Page 19

Chapter 18: Enhancing Union-Management Relations

Available Study Resources on Quizplus for this Chatper

22 Verified Questions

22 Flashcards

Source URL: https://quizplus.com/quiz/40533

Sample Questions

Q1) 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.

Q2) If the AFL-CIO were to set up a long-range strategic partnership with a company,which of the following could be included in the agreement?

A) Less employee involvement

B) Decreased worker accountability

C) Decreased worker responsibility and thus less stress

D) Increased costs

E) Increased worker participation in decision making

Q3) What was the goal of the Industrial Workers of the World?

A) Eliminate depersonalization of workers

B) Improve the moral standards of labor and business

C) Improve its members' living standards

D) Overthrow capitalism

E) Take over the steel industry

To view all questions and flashcards with answers, click on the resource link above.

Page 20

Chapter 19: Risk Management and Insurance

Available Study Resources on Quizplus for this Chatper

20 Verified Questions

20 Flashcards

Source URL: https://quizplus.com/quiz/40535

Sample Questions

Q1) Which of the following is not an insurable loss?

A) A loss due to a windstorm

B) A loss of a key executive

C) An undeterminable or unpredictable loss

D) A measurable loss of property

Q2) What is another name for whole life insurance?

A) Term life insurance

B) Indemnity life insurance

C) Straight life insurance

D) Ordinary life insurance

Q3) What is the name given to the fee charged by an insurance company to cover a business for possible loss due to fire?

A) Premium

B) Indemnity

C) Policy

D) Dividends

To view all questions and flashcards with answers, click on the resource link above.

Chapter 20: Business Law regulation and Taxation

Available Study Resources on Quizplus for this Chatper

20 Verified Questions

20 Flashcards

Source URL: https://quizplus.com/quiz/40537

Sample Questions

Q1) Juju Foster,owner of All-City Sports Equipment,has a long-term business relationship with Haskins Manufacturing.The relationship has always been professional,amicable,and has benefited both sides.Recently,Haskins Manufacturing has brought in a new CEO as well as two new board members of its publicly traded corporation.These new changes are beginning to worry Juju as it appears that not only the relationship,but also the business terms and potential future contracts,are also about to change.Juju is keeping an open mind about what the future relationship will look like but is also willing to consider her own options.What kind of agreement would All-City be entering into if Juan,Haskins Manufacturing's sales rep that Juju works with,presents a requirement that All-City Sports purchase "all" softball equipment only from Haskins to get a "special" price discount?

A) Binding contract

B) Tying agreement

C) Implied contract

D) FTC violation

Q2) Who executes a power of attorney?

A) A principal

B) An agent

C) A bank

D) A notary public

To view all questions and flashcards with answers, click on the resource link above. Page 22