Increase and Decreases
If the demand for a product decreases, what is likely to happen to the price?
Price will decrease.
A computer game that can be purchased online and played right away has good ________ utility.
a) form
b) information
c) value
d) time
Time Utility
Which of the following business ownership structures is the simplest and easiest to set up?
a) Partnership
b) LLC
c) A sole proprietorship
d) Corporation
c) Sole proprietorship
What is the best way to deal with the volatility and get the best return on your investment?
a) Invest only in very safe investments.
b) Put money in a savings
c) Avoid investments that create capital gains
d) Use diversification
d) Use diversification
What does your credit score tell lenders about you?
How likely you are to pay them back
What is an increase in competition likely to do to the demand elasticity?
Make the demand more elastic.
Which type of utility can only be added by the maker of the product?
a) Place utility
b) Possession utility
c) Form utility
d) Time utility
C) Form Utility
Which of the following business ownership structures offers the best liability protection but higher taxes?
a) A nonprofit corporation
b) A C Corporation
c) A Partnership
d) A sole proprietorship
b) A C Corporation
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If you use credit, what are you creating?
Debt
Which of the following is a way to increase possession utility for a refrigerator?
a) Creating brochures about the product
b) Providing a delivery service
c) Expanding store hours
b) Providing a delivery service
Which of the following is an example of possession utility for a refrigerator?
a) Creating brochures
b) Providing a delivery service
c) Expanding store hours
d) Make a website
b) Provide a delivery service
Which type of funding requires that the business owner share ownership with investors?
a) debt funding
b) reserve funding
c) equity funding
d) angel funding
c) equity funding
A good investment should do one or both of which two things?
a) Grow in value or produce income
b) Raise prices or increase demand
c) Avoid opportunity cost or increase volatility
d) Decrease diversification or decrease interest
a) Grow in value or produce income
If you co-sign for a friend's credit card, what is the danger to you if your friend fails to pay?
Your credit score might go down.
What is likely to happen to the supply of a product if the price of a product goes up?
The supply is likely to increase if the price goes up, because producers will be more motivated to provide the product at a higher price.
What is a commodity?
Something of value that can be bought, sold, or traded
Which of the following types of business ownership has the highest personal liability risk?
a) sole proprietorship
b) partnership
c) corporation
d) an LLC
b) a Partnership
What is the opportunity cost of an investment?
The value of the next most valuable opportunity
Which of the following is a strategy for using credit wisely while improving your credit score?
a) pay off credit cards in full each month
b) Use as much of your total available credit as possible
c) avoid using your credit card
a) Pay off credit cards in full each month
If productivity increases significantly and demand is not very elastic, what is likely to happen:
a) Fewer workers will be needed.
b) The number of consumers increases
c) Division of labor will decrease.
ppen?
a) Fewer workers will be needed.
Which of the following commodities is a good?
a) Swimming Lesson
b) A Desk
c) House Cleaning
d) Dog Walking
b) A Desk
Your company will need a business plan in order to do what?
Get Funding.
If you invested in a company, what type of funding would require the business owner to share ownership with you?
Equity Funding
Which of the following is an example of revolving credit?
a) a loan that uses collateral
b) a loan that doesn't use collateral
c) a credit card
d) a single-payment loan
c) a credit card