Business Basics
What is the term for a person who purchases goods or services?
What is a consumer?
What do you call the money someone earns from working or operating a business?
What is Income / Salary
What do you call someone who starts and operates a business, often taking on financial risks?
What is an Entrepreneur
What is the term for a visual symbol or design that represents a company?
What is a Logo?
What is the general increase in prices of goods and services over time called?
What is Inflation?
Which of the following is NOT one of the four traditional factors of production?
A. Land
B. Labor
C. Advertising
D. Capital
C. Advertising
What does APR stand for when discussing loans and credit cards?
A. Annual Payment Rate
B. Annual Percentage Rate
C. Average Profit Return
D. Applied Principal Ratio
B. Annual Percentage Rate
What is startup capital?
A. The money a business needs to begin operating
B. The total profit a company makes
C. The money paid to employees
D. The taxes a company owes
A. The money a business needs to begin operating
Which of the following correctly identifies the four Ps of marketing?
A. Product, Price, Place, Promotion
B. Planning, Profit, People, Production
C. Product, Planning, Promotion, Profit
D. Price, People, Production, Performance
A. Product, Price, Place, Promotion
Which economic system allows individuals and businesses to privately own resources and operate businesses for profit?
A. Communism
B. Capitalism
C. Socialism
D. Feudalism
B. Capitalism
What document outlines a company's goals, strategies, target market, and financial projections?
A. Income statement
B. Business plan
C. Receipt
D. Balance sheet
B. Business plan
If you deposit $1,000 into a savings account with a 5% annual simple interest rate, how much interest will you earn after one year?
What is $50
What is the term for the point at which a business's total revenue equals its total costs?
A. Profit margin
B. Break-even point
C. Market share
D. Return on investment
B. Break-even point
What is a target market?
A. The location where a business sells products
B. The specific group of consumers a business aims to reach
C. The total amount of money a business earns
D. The competitors of a company
B. The specific group of consumers a business aims to reach
According to the law of demand, what generally happens when the price of a product decreases, assuming all other factors remain constant?
A. Quantity demanded decreases
B. Quantity demanded increases
C. Supply automatically disappears
D. Consumers stop purchasing the product
B. Quantity demanded increases
What is the total amount of money a business earns from selling goods and services before subtracting expenses?
What is Revenue / Profit?
A business purchases a product for $4000 and sells it for $6500. What is its profit before other expenses?
What is $2500
What is the term for a business model that allows an individual to operate a business using another company's established brand, products, and operating system?
What is a Franchise?
What marketing strategy involves creating a recognizable identity for a company through its name, logo, messaging, and overall image?
What is Branding?
What is a monopoly?
A market where one seller dominates the supply of a product or service
Which business structure is legally separate from its owners and can issue shares to investors?
A. Sole proprietorship
B. Partnership
C. Corporation
D. General partnership
C. Corporation
What is the primary difference between a debit card and a credit card?
A. Debit cards always earn interest, while credit cards do not.
B. Debit cards generally use money from your bank account, while credit cards borrow money from a lender.
C. Credit cards can only be used online.
D. Debit cards require monthly loan payments.
B. Debit cards generally use money from your bank account, while credit cards borrow money from a lender.
A company introduces a product at a very low price to attract customers and gain market share quickly. Which pricing strategy is it using?
A. Price skimming
B. Penetration pricing
C. Premium pricing
D. Cost-plus pricing
B. Penetration pricing
A company discovers that its competitors are selling nearly identical products at lower prices. Instead of lowering its own prices, the company emphasizes the unique benefits and features that make its product different. What marketing strategy is it using?
A. Market penetration
B. Product differentiation
C. Price skimming
D. Mass marketing
B. Product differentiation
Which institution is responsible for conducting monetary policy in the United States?
A. Internal Revenue Service (IRS)
B. Department of Commerce
C. Federal Reserve
D. Securities and Exchange Commission (SEC)
C. Federal Reserve