Ch. 1: Foundations of Business
Which is the primary purpose of business?
A) Avoid competition
B) Solve unmet needs
C) Maximize taxes
D) Reduce employment
B) Solve unmet needs
Which describes a tariff?
A) A limit on imports
B) A tax on imports
C) Government support for producers
D) A trade agreement
B) A tax on imports
Which is owned by one person?
A) Partnership
B) Corporation
C) Sole proprietorship
D) Joint venture
C) Sole proprietorship
Which department converts resources into goods and services?
A) Finance
B) Operations
C) Accounting
D) Marketing
B) Operations
Which department handles hiring and training?
A) Operations
B) Finance
C) Accounting
D) Human resources
D) Human resources
Which is a characteristic of PESTLE analysis?
A) Measures profit
B) Evaluates internal strengths
C) Ranks employees
D) Scans the external environment
D) Scans the external environment
Which describes a quota?
A) A tax
B) A subsidy
C) A limit on quantity imported
D) A ban on exports
C) A limit on quantity imported
Which is a disadvantage of a sole proprietorship?
A) No control
B) Corporate taxes
C) Complex setup
D) Unlimited liability
D) Unlimited liability
Which is a function of management?
A) Controlling
B) Hiring
C) Selling
D) Auditing
A) Controlling
Which describes training?
A) Long-term career growth
B) Teaching skills for the current job
C) Setting pay
D) Choosing candidates
B) Teaching skills for the current job
Which is a Political factor?
A) Interest rates
B) Wearables
C) Elections
D) Climate change
C) Elections
How is balance of trade calculated?
A) Imports minus exports
B) Exports plus imports
C) Exports minus imports
D) GDP minus imports
C) Exports minus imports
Which of the following is a characteristic of a general partnership?
A) Owned by one person
B) Partners share profits and liabilities
C) Liability is limited to investment
D) Separate legal entity from its owners
B) Partners share profits and liabilities
A company’s strong brand recognition is an example of which part of a SWOT analysis?
A) Strength
B) Weakness
C) Opportunity
D) Threat
A) Strength
What is a performance appraisal?
A) A hiring test
B) A pay raise
C) A formal review of employee performance
D) A training plan
C) A formal review of employee performance
Which is an Economic factor?
A) Labor laws
B) Inflation
C) AI
D) Elections
B) Inflation
Comparative advantage is based on which concept?
A) Opportunity cost
B) Tariffs
C) Quotas
D) Exchange rates
A) Opportunity cost
Which is an advantage of a corporation?
A) Simple to form
B) Dissolves with owner
C) Limited liability
D) No regulation
C) Limited liability
Which structure combines functional and divisional elements?
A) Geographic
B) Matrix
C) Functional
D) Divisional
B) Matrix
Which is a characteristic of a best practice for a team?
A) Unclear roles
B) Clear goals and defined roles
C) Avoiding feedback
D) One dominant member
B) Clear goals and defined roles
Which tracks price changes in a basket of goods?
A) GDP
B) PESTLE
C) SWOT
D) CPI
D) CPI
Which describes franchising?
A) Use of a logo only
B) Use of the brand and full business model
C) Government subsidy
D) Importing goods
B) Use of the brand and full business model
Which best describes entrepreneurship?
A) Managing an existing company
B) Investing in the stock market
C) Starting and operating a new business
D) Working for a large corporation
C) Starting and operating a new business
Which leadership style has the leader decide alone?*
A) Democratic
B) Laissez-faire
C) Autocratic
D) Participative
C) Autocratic
Which describes active listening?
A) Interrupting to help
B) Multitasking
C) Planning your reply
D) Fully focusing on the speaker
D) Fully focusing on the speaker