INTRO TO BUSINESS EXAM 1 QUESTIONS & ANSWERS

Описание: INTRO TO BUSINESS — PRACTICE EXAM 1 (100)

Answer Key at the end

A) Business basics (1–20)

A business is an organization that:
A. Exists only to help people
B. Provides goods/services to earn a profit
C. Is always government-owned
D. Never takes risks

Profit equals:
A. Revenue − Expenses
B. Expenses − Revenue
C. Assets − Liabilities
D. Cash − Debt

Revenue is:
A. Money earned from sales
B. Money paid for supplies
C. Money owed to banks
D. Value of equipment

Which is an example of a service?
A. Smartphone
B. Haircut
C. Clothing
D. Laptop

Which is part of the external environment?
A. Employee morale
B. Inventory level
C. Interest rates
D. Store layout

Inflation refers to:
A. Falling prices overall
B. Rising prices overall
C. Rising productivity only
D. Lower unemployment only

A recession typically involves:
A. Rising unemployment and lower spending
B. Guaranteed higher profits
C. Higher demand everywhere
D. No change in sales

A company’s mission statement describes:
A. Current daily schedule
B. Purpose/reason it exists
C. Future dream only
D. Stock price targets

A vision statement describes:
A. Past performance
B. Desired future direction
C. Inventory method
D. Tax policy

A competitive advantage is:
A. Something competitors easily copy
B. Something that makes a firm better than rivals in ways customers value
C. A government subsidy
D. A slogan

Productivity means:
A. Output per unit of input
B. Hours worked only
C. Advertising budget
D. Taxes paid

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