Quarter 3 Final Exam

Question 1

A limited partnership allows an individual in invest and make management decisions in a business without incurring the liability associated with a regular partnership

Answer 1

False

Question 2

The quantity to be purchased with minimizes total cost

Answer 2

Economic Order Quantity

Question 3

A group of potential customers having purchasing power and unsatisfied needs is called a market

Answer 3

true

Question 4

In business, a reduction of selling price below the original selling price is referred to as

Answer 4

Markdown

Question 5

Partnership property is not protected against creditors of one partner

Answer 5

False

Question 6

A BFOQ is

Answer 6

A qualification that is absolutely necessary

Question 7

An unfavorable marketing sign would be the inability of residents to find local jobs

Answer 7

true

Question 8

Which of the following is NOT included on the employment application

Answer 8

Applicant’s sex

Question 9

WHich is a disadvantage of the Limited Liability Company form of business

Answer 9

If improperly structured, can be taxed as a “C” corporation

Question 10

The Census of Population, Census of Business, and Census of Housing are all sources of published market data

Answer 10

true

Question 11

The main objective in a market survey is

Answer 11

to determine where the potential customers are

Question 12

A favorable marketing sign would include construction activity and the lack of vacant buildings

Answer 12

true

Question 13

Which of the following is normally NOT a source of published market data

Answer 13

Census of banking

Question 14

The process of determining by observation and study, pertinent information about the nature of a specific job is known as job analysis

Answer 14

true

Question 15

A summary of how a business intends to organize and implement activities required in order to be successful

Answer 15

Business Plan

Question 16

An individual owning a funeral home as a proprietor reports business income on his own income tax returns and is generally not liable for debts incurred by the business

Answer 16

false

Question 17

A document that lists the major responsibilities and tasks of a job is known as

Answer 17

Description

Question 18

A partnership is not a legal entity for most purposes

Answer 18

false

Question 19

Purchasing power is the potential personal or family income available for the purchase of consumer goods

Answer 19

true

Question 20

A partnership is limited to two individuals who both participate in the profits of the business according to some agreement

Answer 20

false

Question 21

A business with growth potential that is small compared to large companies in an industry

Answer 21

Small business

Question 22

Competition is the practice of trying to obtain something that is being sought by others under similar circumstances at the same time

Answer 22

true

Question 23

In a business, the number of time the average inventory is sold or used up can be referred to as

Answer 23

Inventory Turnover

Question 24

The wealth produced in or near a community that provides employment and income to the local population is known as the

Answer 24

economic base

Question 25

The difference between merchandise cost and the selling price is known as the

Answer 25

mark-up

Question 26

Which of the federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?

Answer 26

Equal Pay Act of 1963

Question 27

When a business provides a particular service to its customers it is aptly referred to as a

Answer 27

Service Business

Question 28

A business organization that has a distinct existence separate and apart from existence of its individual members

Answer 28

Corporation

Question 29

Comfort, convenience, and economy are three types of customer buying motives

Answer 29

true

Question 30

A buying unit, or customers, are always described as a geographical area

Answer 30

false

Question 31

If a prospective business owner attempts to statistically study such factors as human population size, density, distribution, and wealth, we would refer to this as

Answer 31

Demographics

Question 32

The statistical study of human populations with respect to their size, density, distribution composition, and income is known as

Answer 32

demographics

Question 33

A plan which provides inducements to potential purchasers of products and/or services is called

Answer 33

Sales Promotions

Question 34

The art of making the public aware of the services or commodities that the business has for sale is known as public relations

Answer 34

false

Question 35

Deciding how to make your product distinctive so that it will offer more value to your customers than your competitor's products is a problem common to all businesses, large and small

Answer 35

true

Question 36

Determining what can be done to make sure customers perceive the superior value of one's products is a problem unique to small businesses

Answer 36

false

Question 37

Which of the following is NOT used to measure the success of advertising

Answer 37

Income trends in the community

Question 38

The practice of trying to get something that is being sought by other's under similar circumstances at the same time is known as

Answer 38

Competition

Question 39

Which of the following statements is TRUE concerning consumer credit

Answer 39

Credit customers are more interested in quality and service than price

Question 40

The art of making the public aware of one's products and/or services that are for sale can be referred to as

Answer 40

Advertising

Question 41

Small Business

Answer 41

A business with growth potential that is small compared to large companies in an industry, has geographically localized operations, is financed by only a few individuals, and has a small management team.

Question 42

Entrepreneur

Answer 42

A person willing to create value, in either a new or an existing business, while assuming both the risks and the rewards for his/her efforts

Question 43

Functions of Management

Answer 43

Planning Organizing Directing/Actuating Evaluating/Controlling

Question 44

Planning

Answer 44

- That function of determining in advance what needs to be accomplished to achieve a particular goal - Developing a Mission Statement - Setting Goals - Setting Objectives

Question 45

Organizing

Answer 45

Using all resources; human resources, materials, processes etc. to meet goals - Specifics are decided - Creates team environment

Question 46

Directing/Actuating

Answer 46

- A process in which the **managers instruct, guide, and oversee the performance of the workers** to achieve predetermined goals. - This can be achieved by removing obstacles, creating a pleasant environment, and placing the proper resources in place.

Question 47

Evaluating/Controlling

Answer 47

- Compares organizational and individual performance with predetermined standards or expected results

Question 48

Manufacturing Business

Answer 48

A business that makes finished goods from raw materials by hand or machinery

Question 49

Merchandising Business

Answer 49

A business that purchases finished goods for resale

Question 50

Service Business

Answer 50

A business that provides a service as opposed to a product

Question 51

Sole Proprietorship

Answer 51

A business owned by one person, who bears unlimited liability for the enterprise - AD:Simplest and cheapest way to start a business - AD: Owner holds title to all firm's assets and receives all the firm's profits - DIS: Owner is subject to claims of creditors - DIS: Owner must bear all risk, pays all debts - DIS: Death of owner terminates business - DIS: Owner bears unlimited liability

Question 52

Partnership

Answer 52

A legal entity formed by two or more co-owners to operate a business for profit AD: Faster business setup AD: All aspects of business are shared DIS: Share profits and losses equally (unless agreed to a different ratio) DIS: Owners share unlimited liability DIS: Personal conflicts DIS: Decision-making may be harder DIS: Owners must share equal parts

Question 53

Corporation

Answer 53

A business organization that exists as a legal entity and provides limited liability to its owners AD: Continuity in existence AD: Ease of ownership AD: Limited Liability AD: Large Financial Capability DIS: Legal restrictions on activities ownership in a corporation is readily transferable upon death DIS: Separation of ownership/control DIS: Lack of personal interest DIS: Double taxation of earnings

Question 54

Limited partnership

Answer 54

A partnership with at least one general

Question 55

Limited Partner

Answer 55

A partner in a limited partnership who is not active in its management and whose liability is limited to his or her investment.

Question 56

C Corporation

Answer 56

An ordinary corporation, taxed by the federal government as a separate legal entity.

Question 57

S Corporation

Answer 57

- subchapter S corporation - A corporation that offers limited liability to its owners and passes taxable income or losses on to stockholders.

Question 58

Limited Liability Company

Answer 58

A form of organization in which owners have limited liability but pay personal income taxes on business profits