Title 1
Maria is passionate about providing after-school tutoring to underprivileged children in her city. She decides to establish Bright Futures Academy to fund and operate free tutoring programs. What type of Corporation is this?
A. Subchapter S Corporation
B. Nonprofit Organization
C. C-Corporation
D. Non of the above
B. Nonprofit Organization
A student is opening a small smoothie shop. They decide what flavors to sell, how much to charge, advertise on social media, and choose a location near a school. Which of the four Ps of marketing includes the flavors they decide to sell?
A. Price
B. Promotion
C. Product
D. Place
C. Product
A manager interviews two job applicants for the same position. During the interview, the manager asks one applicant about their medical condition instead of their job skills. Later, an employee with a disability requests a small change to their workstation so they can perform their job, but the employer refuses. Which law is the employer most likely violating in this situation?
A. Americans with Disabilities Act (ADA)
B. Labor Standards Act
C. Equal Pay Act
D. Occupational Safety and Health Act
A. Americans with Disabilities Act (ADA)
A business owner pays employees their weekly wages but does not deduct any Social Security or Medicare taxes from their paychecks. Which requirement is the employer failing to follow?
A. FICA payroll tax rules
B. Uniform Commercial Code (UCC)
C. Occupational Safety and Health Act (OSHA)
D. Robinson-Patman Act
A. FICA payroll tax rules
A toy manufacturer sells a new toy, but a defect causes several children to get injured while using it. The parents file lawsuits against the company for medical costs and damages. Which type of insurance would help protect the manufacturer from these injury claims?
A. Property insurance
B. Casualty insurance
C. Product liability insurance
D. Life insurance
C. Product liability insurance
A local bakery has been doing well, collecting many loyal customers, but a large supermarket nearby has started selling baked goods at lower prices. Using SWOT analysis, identify the threat in this scenario.
A. The bakery doing well
B. Collecting many loyal customers
C. Large supermarket selling baked goods at lower prices
D. None of the above
C. Large supermarket selling baked goods at lower prices
A small café owner notices that customer service has been declining. To improve the business, the owner hires new employees, provides training, and motivates staff to work more efficiently so the café can improve productivity and customer satisfaction. Which business concept focuses on managing employees to improve performance and productivity?
A. Marketing
B. Human Resources
C. Finance
D. Operations
B. Human Resources
A factory owner tells employees to continue working even though several machines have missing safety guards and exposed wiring. One worker report feeling unsafe, but the manager says stopping work would slow production too much. Which law is most likely being violated in this situation?
A. Equal Pay Act
B. Civil Rights Act
C. Family and Medical Leave Act
D. Occupational Safety and Health Act (OSHA)
D. Occupational Safety and Health Act (OSHA)
A restaurant suddenly experiences a kitchen fire that forces employees and customers to evacuate immediately, and the business must close for the rest of the day. What best describes this situation?
A. Routine business operation
B. Workplace emergency
C. Employee scheduling conflict
D. Price discrimination
B. Workplace emergency
A warehouse employee injures their back while lifting heavy boxes at work and must miss several weeks of work to recover. The employer’s insurance helps cover the employee’s medical bills and provides part of their lost wages. Which type of insurance provides these benefits to the injured employee?
A. Health insurance
B. Workers’ compensation insurance
C. Product liability insurance
D. Property insurance
Workers’ compensation insurance
A small smoothie shop near a school has loyal customers, but a cheaper fast-food chain just opened nearby and fruit prices have increased. Most students are becoming interested in healthy eating. Using the SWOT analysis, identify the strength.
A. Loyal customers
B.High fruit costs
C. Growing interest in healthy eating
D. Cheaper fast-food chain nearby
A. Loyal customers
A restaurant manager is hiring new employees. One applicant is very qualified, but the manager considers not hiring them because of their age. The company reminds the manager that hiring decisions must follow federal laws that protect applicants from discrimination based on age, race, religion, gender, disability, or national origin. Which organization enforces these laws to protect employees and job applicants from workplace discrimination?
A. Federal Trade Commission (FTC)
B. Equal Employment Opportunity Commission (EEOC)
C. Department of Labor (DOL)
D. Internal Revenue Service (IRS)
B. Equal Employment Opportunity Commission (EEOC)
A grocery store chain charges one price for milk in a wealthy neighborhood but charges a significantly lower price for the exact same milk in a different neighborhood to attract more customers. A competing store believes this gives an unfair advantage. Which law is most likely being violated in this situation?
A. Occupational Safety and Health Act
B. Fair Labor Standards Act
C. Robinson-Patman Act of 1936
D. Americans with Disabilities Act
C. Robinson-Patman Act of 1936
During a fire drill, employees in an office building discover that the only marked exit is blocked by storage boxes, forcing them to take a longer, unmarked hallway to leave the building. Which requirement of an emergency action plan is being violated?
A. Employees must work overtime during drills
B. Employers must provide paid leave during emergencies
C. Customers must be notified before evacuation
D. Evacuation routes must be clearly marked, unobstructed, and safe
D. Evacuation routes must be clearly marked, unobstructed, and safe
A construction company signs a contract to build a new office building by a specific deadline. The project is not completed on time, causing financial losses for the client. The client receives compensation through an insurance policy that guarantees the contractor will complete the job as agreed. Which type of insurance provides this protection?
A. Product liability insurance
B. Workers’ compensation insurance
C. Casualty insurance
D. Performance bond insurance
D. Performance bond insurance
You are the manager of a new international buffet and speakeasy restaurant preparing for opening. You set long-term goals for the next 3–5 years, assign employees to different roles, train and guide staff, and later compare expected sales with actual results to make improvements. Which management function is being used when the manager compares expected results with actual performance and makes corrections?
A. Planning
B. Organizing
C. Directing
D. Controlling
D. Controlling
A retail store employee tells her manager that she is pregnant. The manager considers reducing her work hours and denying her the same benefits that other employees with temporary medical conditions receive. Which federal law requires the employer to treat the pregnant employee the same as other employees when determining benefits and work policies?
A. Family and Medical Leave Act (FMLA)
B. Equal Pay Act
C. Pregnancy Discrimination Act
D. Fair Labor Standards Act
C. Pregnancy Discrimination Act
A store owner sells a large shipment of laptops to another business. After the agreement is made, the buyer refuses to pay, claiming they “changed their mind,” even though both parties had a written contract. Which law governs this type of commercial transaction?
A. Title VII of the Civil Rights Act
B. Uniform Commercial Code (UCC)
C. Occupational Safety and Health Act
D. Robinson-Patman Act
C. Uniform Commercial Code (UCC)
A small business owner buys insurance to cover possible fire damage to their store. Each month, they pay a set amount of money to the insurance company in exchange for protection against losses. What is the monthly payment called, and what risk management strategy is the business using?
A. Deductible and risk avoidance
B. Interest and risk retention
C. Dividend and risk reduction
D. Premium and risk transfer
D. Premium and risk transfer
A cashier at a retail store secretly steals money from the cash register over several weeks. When the theft is discovered, the business files a claim with its insurance to recover the stolen funds. Which type of insurance helps protect the business in this situation?
A. Fidelity bonds
B. Workers’ compensation insurance
C. Product liability insurance
D. Casualty insurance
A. Fidelity bonds
Two friends decide to open a restaurant together. They both invest money, share responsibilities, and split profits and losses. However, they are worried about being personally responsible for business debts, so they choose a structure that protects their personal assets while still allowing flexibility in management and taxes. Which type of business structure best fits their needs?
A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Corporation
C. Limited Liability Company
Jordan was fired from a restaurant for “poor performance.” However, the employer has no records of warnings, disciplinary actions, or negative evaluations. If Jordan sues the company for wrongful termination, what is the biggest problem for the employer?
A. The employer did not give Jordan a raise
B. The employer did not interview Jordan
C. The employer hired too many employees
D. The employer cannot prove there was a valid reason for firing
D. The employer cannot prove there was a valid reason for firing
A clothing store offers customers a “buy now, pay later” plan but does not clearly explain the interest rate or total cost of payments. Another store advertises a product as “50% off,” but the price was never actually higher before the sale. Which laws are being violated in this situation?
A. Equal Pay Act and Title VII
B. Occupational Safety and Health Act and UCC
C. Robinson-Patman Act and ADAD.
D. Consumer Credit Protection Act and FTC truth-in-advertising laws
D. Consumer Credit Protection Act and FTC truth-in-advertising laws
A customer slips on a wet floor in a store and sues the business for medical expenses and damages. The business also has to pay legal fees to defend itself in court. Which type of insurance would help protect the business in this situation?
A. Casualty insurance
B. Health insurance
C. Life insurance
D. Unemployment insurance
A. Casualty insurance
A small restaurant owner worries about different problems that could hurt the business, such as a fire damaging the building or customers choosing a competitor instead. The owner realizes that every business faces the possibility of loss or injury. What is this possibility of loss or injury called in business?
A. Profit
B. Investment
C. Risk
D. Revenue
C. Risk