All About Companies
Which type of business structure provides personal liability protection to owners while allowing for flexible management and pass-through taxation?
A. General Partnership
B. Limited Liability Company (LLC)
C. Sole Proprietorship
D. C Corporation
B. Limited Liability Company (LLC)
13. Which type of business organization requires at least two owners?
A. Sole Proprietorship
B. Partnership
C. LLC
D. S Corporation
B. Partnership
2. What is the primary purpose of a SWOT analysis in business planning?
A. To analyze competitors only
B. To set product prices
C. To evaluate strengths, weaknesses, opportunities, and threats
D. To manage employee schedules
C. To evaluate strengths, weaknesses, opportunities, and threats
10. Which marketing mix element includes decisions about distribution channels?
A. Product
B. Price
C. Place
D. Promotion
C. Place
What federal agency enforces workplace discrimination laws?
A. OSHA
B. EEOC
C. FDA
D. EPA
B. EEOC
20. What is the primary advantage of a limited partnership?
A. All partners have equal management rights
B. Limited partners have liability protection
C. No formal agreement is required
D. Simple tax structure
B. Limited partners have liability protection
11. What document outlines a company's projected income and expenses for a specific
period?
A. Mission Statement
B. Business Plan
C. Budget
D. Balance Sheet
C. Budget
14. What is the primary purpose of a break-even analysis?
A. To determine product quality
B. To calculate when revenues equal costs
C. To evaluate employee performance
D. To assess market share
B. To calculate when revenues equal costs
4. What marketing strategy involves dividing the market into distinct groups based on
characteristics like demographics or behavior?
A. Market Penetration
B. Market Segmentation
C. Market Integration
D. Market Orientation
B. Market Segmentation
Which type of business ownership has the owner personally liable for ALL business debts?
A. Corporation
B. Limited Liability Company
C. Sole Proprietorship
D. Partnership
C. Sole Proprietorship
5. In a general partnership, how is liability typically distributed among partners?
A. Limited to investment
B. Equally among all partners
C. Based on profit sharing
D. Based on seniority
B. Equally among all partners
9. What is a key characteristic of a C Corporation?
A. Pass-through taxation
B. Double taxation
C. No taxation
D. Single member ownership
B. Double taxation
6. Which planning tool helps visualize project timelines and dependencies?
A. Gantt Chart
B. Pie Chart
C. Line Graph
D. Scatter Plot
A. Gantt Chart
15. Which global business strategy involves adapting products to local markets?
A. Standardization
B. Localization
C. Centralization
D. Globalization
B. Localization
What type of insurance protects a business from employee theft?
A. Casualty insurance
B. Fidelity bonds
C. Performance bonds
D. Workers' compensation
B. Fidelity bonds
3. Which financial statement shows a company's revenues and expenses over a specific period?
A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
D. Bank Reconciliation
C. Income Statement
17. Which financial statement shows a company's assets, liabilities, and equity at a specific point in time?
A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Profit and Loss Statement
C. Balance Sheet
Which business planning tool helps identify and map key business processes?
A. Flowchart
B. Bar Graph
C. Pie Chart
D. Line Graph
A. Flowchart
7. What is the term for selling products in international markets at a lower price than in the domestic market?
A. Price Skimming
B. Market Penetration
C. Dumping
D. Value Pricing
C. Dumping
Which is a physical cause in Root Cause Analysis?
A. Lack of employee training
B. Poor communication systems
C. Broken equipment
D. Unclear company policies
C. Broken equipment
8. Which financial ratio measures a company's ability to pay its short-term obligations?
A. Debt-to-Equity Ratio
B. Current Ratio
C. Profit Margin
D. Return on Investment
B. Current Ratio
12. In international business, what does PESTEL analysis evaluate?
A. Product features only
B. Marketing strategies
C. External macro-environmental factors
D. Internal company structure
C. External macro-environmental factors
16. What type of research involves collecting new data specifically for a current project?
A. Secondary Research
B. Primary Research
C. Tertiary Research
D. Market Analysis
B. Primary Research
18. What is the term for the strategy of entering new international markets with existing products?
A. Market Development
B. Product Development
C. Market Penetration
D. Diversification
A. Market Development
What is FICA?
A. Federal Investment Credit Association
B. Federal Insurance Contribution Act
C. Federal Income Control Authority
D. Federal Insurance Credit Association
B. Federal Insurance Contribution Act