4.01-4.02
Which question should be answered by the purchasing function?
A. How can we inform customers of available merchandise?
B. How much merchandise should we buy?
C. How will merchandise be shipped to us?
D. How can we protect merchandise from pilferage?
How much merchandise should we buy?
Which processes turn economic resources into goods and services?
A. distribution
B. marketing
C. promotion
D. production
production
Equilibrium price of a good or service is determined by trial and error and exists when:
A. research shows what the market will tolerate.
B. the amount supplied is equal to the amount demanded.
C. businesses total their costs and markup.
D. businesses compute the average selling price in the area.
the amount supplied is equal to the amount demanded
A major characteristic of a market economy is which type of ownership of property?
A. monopolistic
B. limited
C. government
D. private
private
The formula that is generally used to measure productivity is:
A. outputs divided by inputs.
B. labor divided by resources.
C. goods divided by time.
D. inputs divided by labor
outputs divided by inputs
Trey compares the prices offered by different vendors for the same goods and services. Which part of the purchasing process is Trey involved in?
A. price fixing
B. bid analysis
C. invoice payment
D. receipt of goods
bid analysis
Why is it important for employees to follow instructions when using equipment and machinery?
A. to speed up production
B. to minimize loss
C. to increase output
D. to decrease overtime
to minimize loss
Which situations would cause prices to rise?
A. The corn crop is unusually large one summer.
B. Insects destroy a large cotton crop.
C. Animal rights activists march in front of a fur store.
D. A newspaper article describes poor service provided by a hotel.
Insects destroy a large cotton crop
In a private enterprise economic system, the interaction of supply and demand primarily determines:
A. government regulation.
B. economic choices.
C. the extent of pollution.
D. product prices.
product prices
The government can borrow money from the private sector in order to pay the costs of regulation by:
A. setting prices.
B. raising taxes.
C. issuing bonds.
D. selling licenses.
issuing bonds
By purchasing just the quantity of supplies that is needed, purchasing can:
A. plan the company's cash flow.
B. provide an uninterrupted flow of supplies.
C. buy supplies at the lowest possible price.
D. minimize inventory investment.
minimize inventory investment
Which protects employees from liability when they administer first aid to customers?
A. Good Samaritan Law
B. Workers' compensation
C. Health and Human Services Department
D. Occupational Safety and Health Administration
Good Samaritan Law
A killing frost destroys 80% of Florida's citrus crop. This will most likely create:
A. pure competition.
B. a buyer's market.
C. a seller's market.
D. inelastic demand.
a seller's market
Which situation would most likely indicate the need to adapt to changes in the business environment?
A. The supply of materials used in manufacturing a product has decreased.
B. The number of the business's competitors has decreased.
C. The demand for the product is stable.
D. The business has experienced little employee turnover during the past year.
The supply of materials used in manufacturing a product has decreased
One reason that has caused the government's role in business to expand is that:
A. competition in the marketplace has increased.
B. products have become very technical.
C. costs of production have continued to increase.
D. people's attitudes have changed.
people's attitudes have changed
The primary reason that governments develop workplace health and safety regulations is to:
A. protect employees from injury and illness.
B. reduce the risk of employment discrimination.
C. ensure that employees have access to insurance.
D. prevent the breach of business information systems.
protect employees from injury and illness
Some safety hazards in the workplace are caused by the unsafe actions of workers. An example would be:
A. driving a company vehicle.
B. talking to coworkers on a break.
C. wearing inappropriate clothing.
D. standing close to a load in order to lift it.
wearing inappropriate clothing
Which occurs when the supply of individuals who are able and willing to work diminishes?
A. Capital goods become unlimited.
B. Capital goods become limited.
C. Human resources become limited.
D. Human resources become unlimited.
Human resources become limited
Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:
A. injunction.
B. authority.
C. initiative.
D. attrition.
authority
The productivity of an individual worker can be measured by:
A. dividing the dollar totals of sales by the number of salespeople who made the sales.
B. dividing the total number of products produced by the number of production steps.
C. dividing the dollar totals of sales by the costs of making all of those sales.
D. dividing the number of customers served by the number of hours an employee worked.
dividing the number of customers served by the number of hours an employee worked.
The first step in maintaining an inventory of supplies for the business is to:
A. conduct research to find vendors that sell the supplies.
B. develop a list of supplies that the business needs.
C. compare prices among vendors.
D. organize a space to store the supplies.
develop a list of supplies that the business needs
What production activity evaluates products to make sure that the products the business produces meet certain quality standards?
A. form utility
B. automation
C. follow-up
D. standardization
follow-up
A business that begins selling winter holiday decorations in late autumn is creating what type of utility?
A. time
B. place
C. form
D. possession
time
A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?
A. Celler-Kefauver Act
B. Clayton Act
C. Sherman Act
D. Robinson-Patman Act
Clayton Act
Which provides government protection of business property?
A. consumer protection laws
B. patents
C. economic incentives
D. revenues
patents