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 […]
QUESTION What is the term for the total amount of money produced by the sale of goods and services? A) revenue B) profit C) assets D) expenses E) loss ANSWER Answer: A Explanation: A) Businesses commonly calculate revenue received from selling goods and services for a defined period.
QUESTION Which of the following is an example of a business? A) San Francisco State University B) Sears C) Red Cross D) St. Augustine Parish E) Massachusetts Teachers Association ANSWER Answer: B Explanation: B) Sears is a retail business that sells goods to earn a profit.
QUESTION What is the primary purpose of a business? A) to pay employees B) to provide services C) to generate revenue D) to earn profit E) to support the community ANSWER Answer: D Explanation: D) A business is a for-profit organization.
QUESTION The variety of forces that can encourage or discourage business development comprises the business environment. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: These forces are economic, technological, competitive, global, and social.
QUESTION Which of the following is NOT an example of a good? A) a pair of shoes B) a print ad C) a dozen farm-fresh eggs D) a barrel of oil E) a stack of diner pancakes ANSWER Answer: B Explanation: B) Goods are tangible products that can be touched. While a print advertisement […]
QUESTION Advances in technology always exert positive forces in the business environment. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: One example of a negative technological force is the increased risk to both businesses and consumers from computer hackers who gain access to sensitive information.
QUESTION What is the formula for calculating profit? A) revenue minus loss B) revenue plus costs C) expenses minus revenue D) revenue minus expenses E) expenses plus revenue ANSWER Answer: D Explanation: D) The amount of revenue remaining after all business costs are paid is profit.
QUESTION Businesses facing competitive forces are only concerned with customers. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A company may compete with other businesses for employees in a tight labor market.
QUESTION Last year, Carmela’s florist shop had higher expenses than revenues. Which of the following must be true? A) Carmela is operating a nonprofit organization. B) The florist shop posted a profit for last year. C) The florist shop posted a loss for last year. D) Carmela needs to raise the prices for her goods. […]
