PEREGRINE Business Practice Test 2026-2027 – a
Review of 200 Questions and Correct Answers
1. Which of the following is NOT a strategic alternative to laying off employees?
A) implementing a restricted hiring policy
B) downsizing the workforce
C) lowering employment standards
D) mandating reduced hours
Correct answer: C
2. KJ built his taco truck out of $75,000,000 worth of titanium and duct tape. He
uses $10.25 of organic bok choy, $6.75 of Wisconsin cheddar cheese, and $25.25
of foie gras in each taco. If he sells tacos at $475 each, what is his break-even
quantity?
A) 173,310
B) 175,000
C) 180,000
D) 170,000
Correct answer: A
3. The Marketing Concept today is about what?
A) Sales
B) Relationships
C) Aggressive advertising
D) Price
Correct answer: A
4. Which of these is not a cash flow activity category in the Statement of cash
flows?
A) operating
B) investing
1
,C) financing
D) depreciating
Correct answer: D
5. Which one of the following statements is false?
A) TC = TFC + TVC
B) ATC = AFC + AVC
C) AFC = TFC divided by Q
D) MC = TC divided by Q
Correct answer: C
6. The ratio that explains how efficiently companies use their assets to generate
revenue.
A) Receivables turnover ratio
B) Asset turnover ratio
C) Income ratio
D) Quick ratio
Correct answer: B
7. The sum of the squares total (SST):
A) measures the total variability in X about the mean.
B) measures the total variability in Y about the mean.
C) measures the variability in X about the regression line.
D) measures the variability in Y about the regression line.
Correct answer: D
8. This strategy sacrifices responsiveness to local markets in favor of efficiency.
Microsoft, for example, offers the same software programs around the world but
adjusts the programs to match local languages.
A) Multinational strategy
B) Global strategy
2
,C) Transnational strategy
D) Multidomestic strategy
Correct answer: B
9. Another Time Around helps young inner city kids develop products they can
make and sell to earn money for college. What concept best describes this?
A) cause marketing
B) social marketing
C) green marketing
D) direct marketing
Correct answer: A
10. Lauren is an HR manager at a marketing firm. Which of the following
functions is LEAST likely to be an aspect of Lauren's job?
A) Employee and labor relations
B) Staffing
C) Employee staffing
D) Product testing
Correct answer: D
11. Local area networks (LANs) are used to _____.
A) integrate services to a single building or campus
B) connect multiple buildings across a city
C) provide wireless internet to a region
D) connect global offices
Correct answer: A
12. In June 2015, American steel companies filed a complaint with the Department
of Commerce and the ITC alleging that China (and other countries) were selling
steel in the U.S. market at prices lower than their own markets. This practice is
known as:
3
, A) dumping
B) subsidizing
C) embargo
D) tariff evasion
Correct answer: A
13. Dumping is considered:
A) The sale of an exported product at a price higher than the domestic market
B) The sale of an exported product at a price lower than that charged for the same
or a like product in the "home" market of the exporter
C) The sale of an exported product at cost
D) The sale of an exported product only to developing countries
Correct answer: B
14. Marginal revenue is equal to:
A) marginal cost
B) total revenue
C) average revenue
D) average cost
Correct answer: A
15. The primary purpose of employer branding is to ________.
A) promote employee benefits
B) encourage mentions in social media
C) attract quality employees
D) sell consumer products
Correct answer: C
16. The days required for a business to receive inventory, sell the inventory, and
collect cash from the sale of the inventory is called:
A) operating cycle
4
Review of 200 Questions and Correct Answers
1. Which of the following is NOT a strategic alternative to laying off employees?
A) implementing a restricted hiring policy
B) downsizing the workforce
C) lowering employment standards
D) mandating reduced hours
Correct answer: C
2. KJ built his taco truck out of $75,000,000 worth of titanium and duct tape. He
uses $10.25 of organic bok choy, $6.75 of Wisconsin cheddar cheese, and $25.25
of foie gras in each taco. If he sells tacos at $475 each, what is his break-even
quantity?
A) 173,310
B) 175,000
C) 180,000
D) 170,000
Correct answer: A
3. The Marketing Concept today is about what?
A) Sales
B) Relationships
C) Aggressive advertising
D) Price
Correct answer: A
4. Which of these is not a cash flow activity category in the Statement of cash
flows?
A) operating
B) investing
1
,C) financing
D) depreciating
Correct answer: D
5. Which one of the following statements is false?
A) TC = TFC + TVC
B) ATC = AFC + AVC
C) AFC = TFC divided by Q
D) MC = TC divided by Q
Correct answer: C
6. The ratio that explains how efficiently companies use their assets to generate
revenue.
A) Receivables turnover ratio
B) Asset turnover ratio
C) Income ratio
D) Quick ratio
Correct answer: B
7. The sum of the squares total (SST):
A) measures the total variability in X about the mean.
B) measures the total variability in Y about the mean.
C) measures the variability in X about the regression line.
D) measures the variability in Y about the regression line.
Correct answer: D
8. This strategy sacrifices responsiveness to local markets in favor of efficiency.
Microsoft, for example, offers the same software programs around the world but
adjusts the programs to match local languages.
A) Multinational strategy
B) Global strategy
2
,C) Transnational strategy
D) Multidomestic strategy
Correct answer: B
9. Another Time Around helps young inner city kids develop products they can
make and sell to earn money for college. What concept best describes this?
A) cause marketing
B) social marketing
C) green marketing
D) direct marketing
Correct answer: A
10. Lauren is an HR manager at a marketing firm. Which of the following
functions is LEAST likely to be an aspect of Lauren's job?
A) Employee and labor relations
B) Staffing
C) Employee staffing
D) Product testing
Correct answer: D
11. Local area networks (LANs) are used to _____.
A) integrate services to a single building or campus
B) connect multiple buildings across a city
C) provide wireless internet to a region
D) connect global offices
Correct answer: A
12. In June 2015, American steel companies filed a complaint with the Department
of Commerce and the ITC alleging that China (and other countries) were selling
steel in the U.S. market at prices lower than their own markets. This practice is
known as:
3
, A) dumping
B) subsidizing
C) embargo
D) tariff evasion
Correct answer: A
13. Dumping is considered:
A) The sale of an exported product at a price higher than the domestic market
B) The sale of an exported product at a price lower than that charged for the same
or a like product in the "home" market of the exporter
C) The sale of an exported product at cost
D) The sale of an exported product only to developing countries
Correct answer: B
14. Marginal revenue is equal to:
A) marginal cost
B) total revenue
C) average revenue
D) average cost
Correct answer: A
15. The primary purpose of employer branding is to ________.
A) promote employee benefits
B) encourage mentions in social media
C) attract quality employees
D) sell consumer products
Correct answer: C
16. The days required for a business to receive inventory, sell the inventory, and
collect cash from the sale of the inventory is called:
A) operating cycle
4
