QUESTION Experts say that the first law of business is to take care of what group? A) shareholders B) customers C) employees D) suppliers E) government regulators ANSWER Answer: B Explanation: B) This is a good rule, because customers pay to use an organization’s goods or services.
Date: September 3rd, 2020
QUESTION Marya’s dog got overheated when she walked him in the hot sun, so she created a lightweight harness umbrella to keep him shaded. When other dog owners liked the idea, Marya saw an opportunity and started a successful online business selling doggy shades. What is Marya considered to be? A) a venture capitalist B) […]
Date: September 3rd, 2020
QUESTION Entrepreneurs invest time and money in a business in spite of the fact that it may not make a profit. In business terminology, what is this situation known as? A) uncertainty B) risk C) venture D) liability E) jeopardy ANSWER Answer: B Explanation: B) Entrepreneurs face the risk that their business might fail […]
Date: September 3rd, 2020
QUESTION Many factors are necessary to achieve financial success in business. What do Stanley and Danko, authors of The Millionaire Next Door, consider to be the most important factor? A) access to capital B) serving a high-end market C) quality products D) personal character E) limited government regulation ANSWER Answer: D Explanation: D) The […]
Date: September 3rd, 2020
QUESTION Which of the following is not considered a traditional factor of production? A) capital B) natural resources C) human resources D) knowledge E) entrepreneurship ANSWER Answer: D Explanation: D) Management guru Peter Drucker considers knowledge to be an important production factor even though it is not a traditional one. The use of information […]
Date: September 3rd, 2020
QUESTION Most affluent households in America are headed by business owners. The self-employed account for what proportion of this group? A) one-third B) one-fourth C) one-half D) two-thirds E) three-quarters ANSWER Answer: D Explanation: D) Researchers Stanley and Danko have found that self-employed business owners comprise more than two-thirds of affluent U.S. households not […]
Date: September 3rd, 2020
QUESTION How might a business that is training cable installation technicians use natural resources as a factor of production while also benefitting society? A) by using the least expensive items for classroom fixtures B) by installing solar panels to generate power C) by using only recycled paper to protect forests D) by replacing bottled water […]
Date: September 3rd, 2020
QUESTION As part of his high school entrepreneur team, Nathan has been asked to research capital factors of production for their proposed business. Which of the following will Nathan NOT include in his research? A) machines B) tools C) money D) technology E) buildings ANSWER Answer: C Explanation: C) Capital factors of production do […]
Date: September 3rd, 2020
QUESTION Minerals, water, and wind are examples of which factor of production? A) intangible resources B) natural resources C) human resources D) capital resources E) technological resources ANSWER Answer: B Explanation: B) Production inputs that are useful just as they appear in nature are called natural resources.
Date: September 3rd, 2020
QUESTION Cathy is a one-woman dynamo. She knows her idea for in-home cupcake decorating parties will be a smash. With her energy, personality, and creativity, she’s sure this will make her rich. What should Cathy step back and consider first for her business if she wants to build wealth? A) tax liabilities B) human resources […]
Date: September 3rd, 2020
