Business Types
A business owned by one person.
A. Corporation
B. Sole proprietorship
C. Partnership
D. Franchise
B. Sole proprietorship
Function that plans and manages records related to money.
A. Finance
B. Management
C. Marketing
D. Ownership
A. Finance
Costs like rent and insurance that do not change.
A. Fixed costs
B. Variable costs
C. Opportunity costs
D. Unnecessary costs
A. Fixed costs
The geographical area where a business attracts customers.
A. Locale
B. Trade area
C. Market area
D. Target area
B. Trade area
An advantage of entrepreneurship where you can choose work that appeals to you.
A. Avoiding taxes
B. Freedom from regulations
C. Choosing work that appeals to you
D. Earning less money
C. Choosing work that appeals to you
A business with legal rights of a person, may be owned by many people.
A. Corporation
B. Franchise
C. Partnership
D. LLC
A. Corporation
Function that sets goals and determines how to meet them.
A. Marketing
B. Finance
C. Management
D. Ownership
C. Management
Costs like flour, sugar, and coffee that fluctuate with production.
A. Fixed costs
B. Opportunity costs
C. Variable costs
D. Indirect costs
C. Variable costs
What occurs when resources are limited, but wants and needs are unlimited.
A. Surplus
B. Demand increase
C. Scarcity
D. Price decrease
C. Scarcity
A risk where personal assets can be taken to pay business debts.
A. Tax liability
B. Personal asset seizure
C. Debt risk
D. Opportunity loss
B. Personal asset seizure
A business granted the right to sell a company’s products or services in a specific area.
A. Sole proprietorship
B. LLC
C. Franchise
D. Corporation
C. Franchise
Function whose goal is to attract as many customers as possible.
A. Management
B. Finance
C. Marketing
D. Ownership
C. Marketing
The type of cost when you use a birthday check for prom tickets instead of a new phone.
A. Fixed costs
B. Variable costs
C. Opportunity costs
D. Indirect costs
C. Opportunity costs
What usually happens as the price of a product decreases.
A. Demand increases
B. Supply decreases
C. Equilibrium price is set
D. Demand decreases
A. Demand increases
A disadvantage of buying an existing business.
A. Expensive initial investment
B. Strong customer relationships
C. Good financial planning
D. Low costs
A. Expensive initial investment
A business owned by two or more people.
A. LLC
B. Sole proprietorship
C. Corporation
D. Partnership
D. Partnership
The function not used in defining finance, management, or marketing.
A. Finance
B. Ownership
C. Marketing
D. Management
B. Ownership
Monthly electricity payments for a business.
A. Fixed costs
B. Variable costs
C. Opportunity costs
D. Overhead costs
B. Variable costs
The percentage of a target market population buying a specific product.
A. Market portion
B. Market size
C. Market share
D. Market reach
C. Market share
An advantage of purchasing a franchise.
A. Higher profits guaranteed
B. Complete business control
C. Training and business plan provided
D. Less investment needed
C. Training and business plan provided
A business blending partnership and corporate structures.
A. LLC
B. Franchise
C. Partnership
D. Corporation
A. LLC
The process of selecting the best candidate for a role.
A. Check references
B. Let applicants try the job
C. Interview applicants
D. Screen job applicants
D. Screen job applicants
An example of an expense recorded in a P&L statement.
A. Supplies
B. Inventory
C. Assets
D. Liabilities
A. Supplies
The first step in hiring for a position.
A. Interview job applicants
B. Screen job applicants
C. Check references
D. Test job applicants
B. Screen job applicants
A way demographic changes might affect a business in Anytown, CA.
A. Increased hiring of bilingual employees
B. Decreased products and services
C. More advertising in English
D. No change
A. Increased hiring of bilingual employees