Business Midterm

Row One

100

What is the Stock Market?

• A) A place where stocks and other securities are bought and sold
• B) A type of loan
• C) A government program
• D) A company’s internal financial records

 

• A) A place where stocks and other securities are bought and sold

200

Which of the following is a key factor in determining mortgage rates?

• A) Inflation rate
• B) Number of real estate agents
• C) Marketing costs
• D) Popularity of real estate websites

• A) Inflation rate

300

17. Which of the following is the primary purpose of a mortgage?

• A) Buying real estate
• B) Paying for travel
• C) Saving money for the future
• D) Starting a business

A) Buying real estate

400

20. Why do businesses need to pay taxes? CHOOSE THE BEST 

• A) To support public services and infrastructure
• B) To increase business profits
• C) To compete with other businesses
• D) To avoid legal penalties

• A) To support public services and infrastructure

500

23. What does a business loan usually require as collateral?

• A) Property or assets
• B) Employee salaries
• C) Business invoices
• D) Bank statements

A)Property or assets 

Row Two

100

What does “business ethics” refer to?

• A) Making responsible and moral decisions in business
• B) The legal structure of a business
• C) How businesses reduce costs
• D) How businesses focus on profit maximization

A) Making responsible and moral decisions in business

200

1. Negotiating in business is important because:

• A) It helps to settle disputes without compromising
• B) It enables businesses to create better contracts and deals
• C) It eliminates all risks in business transactions
• D) It reduces the need for legal documents

• B) It enables businesses to create better contracts and deal

300

16. Which of the following is a good business practice for maintaining ethics?

• A) Transparency with clients
• B) Cutting costs without regard to safety
• C) Focusing only on profits
• D) Ignoring customer complaints

A) Transparency with clients

400

21. What is the purpose of a sales tax?

• A) To fund government services
• B) To increase profits for businesses
• C) To track personal income
• D) To measure market trends

A) To fund government services

500

18. Which of the following would be considered a variable expense in a business?

• A) Rent
• B) Raw materials
• C) Salaries
• D) Utilities

B) Raw materials

Row Three

100

What is the purpose of a budget?

• A) To limit spending without a plan
• B) To manage income and expenses for financial stability
• C) To avoid paying taxes
• D) To track only expenses

B) To manage income and expenses for financial stability

200

15. What is the first step in the process of goal setting?

• A) Defining your goals clearly
• B) Creating a timeline for your goals
• C) Determining the cost of your goals
• D) Reviewing previous goals

A) Defining your goals clearly

300

19. What is the best way to improve teamwork in a business setting?

• A) By focusing on individual performance
• B) Through team-building activities and strong communication
• C) By only rewarding one person
• D) By limiting team members’ input

B) Through team-building activities and strong communication

400

22. Which of the following is a characteristic of a good budget?

• A) It is realistic
• B) It doesn’t allow for adjustments
• C) It ignores future goals
• D) It’s based solely on personal preferences

A) It is realistic

500

25. Why is it important for a business to have a diverse team?

• A) To make decisions based solely on majority opinions
• B) To enhance problem-solving and bring in varied perspectives
• C) To focus on a single way of thinking
• D) To reduce the number of ideas in brainstorming sessions

B) To enhance problem-solving and bring in varied perspectives

Row Four

100

Which of these is NOT a goal-setting strategy?

• 
  
  • A) Creating SMART goals
  • B) Focusing on one task at a time
  • C) Setting unrealistic goals
  • D) Reviewing and adjusting goals regularly

 

C) Setting unrealistic goals

200

12. What is the role of advertising in marketing?

• A) To track company expenses
• B) To create awareness and attract customers
• C) To pay for employee salaries
• D) To keep track of competition

To create awareness and attract customers

300

13. Which of the following is NOT an example of a business expense?

• A) Rent
• B) Employee salaries
• C) Stock investments
• D) Office supplies

C) Stock investments

400

14. What is an example of a fixed expense for a business?

• A) Rent
• B) Advertising
• C) Utility bills
• D) Raw materials

A) Rent

500

Which of these documents is used for financial transactions between businesses?

• A) Purchase order
• B) Resume
• C) Business report
• D) Personal letter

 

A) Purchase order

Row Five

100

 

Why is teamwork important in business?

• A) It helps build competition
• B) It improves productivity and creativity
• C) It focuses only on individual achievements
• D) It decreases company profits

B) It improves productivity and creativity

200

 

11. Which of the following is a consequence of not having a budget?

• A) Financial instability
• B) Increased profit
• C) Clearer financial goals
• D) Improved savings rate

A) Financial instability

300

What is an interest rate?

• A) A fee for a loan that is paid to the borrower
• B) The percentage charged by a lender for borrowing money
• C) The total amount paid for a loan
• D) The value of an asset in the market

B) The percentage charged by a lender for borrowing money

400

 

Which of the following is NOT a part of business taxes?

• A) Corporate income tax
• B) Sales tax
• C) Employee wages
• D) Property tax

C) Employee wages

500

24. What is the primary advantage of investing in the stock market?

• A) Potential for higher returns on investment
• B) Guaranteed profits every year
• C) No risk of losing money
• D) No need to research companies

A)Potential for higher returns on investment