SMB 5 Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Market - CORRECT ANSWER The business term for a group of potential customers
possessing purchasing power and unsatisfied needs.
Market Survey - CORRECT ANSWER Research, a study used by a business to determine
where potential customers are located.
Demographics - CORRECT ANSWER A statistical study of human populations with respect to
their size, density, distribution, composition, and income.
Economic Base - CORRECT ANSWER The wealth produced in or near a community that
provides employment and income to the local population.
Population Trends - CORRECT ANSWER The direction of change in the total number of
persons inhabiting a country, city, district, or area.
Components of Population Change - CORRECT ANSWER There are three components of
change: births, deaths, and migration.
Disposable Income Trends - CORRECT ANSWER Disposable income is what is left over after
taxes, and is what households used for consumption of needs and wants.
Competition - CORRECT ANSWER The practice of trying to obtain something being sought
by others at the same time.
Social and Business Climate - CORRECT ANSWER A social environment that includes the
values, beliefs, customs, and practices of a group of people.
Business Location - CORRECT ANSWER All considerations contribute information that is
applied to decisions regarding the location of a business.
QUESTIONS AND CORRECT ANSWERS
Market - CORRECT ANSWER The business term for a group of potential customers
possessing purchasing power and unsatisfied needs.
Market Survey - CORRECT ANSWER Research, a study used by a business to determine
where potential customers are located.
Demographics - CORRECT ANSWER A statistical study of human populations with respect to
their size, density, distribution, composition, and income.
Economic Base - CORRECT ANSWER The wealth produced in or near a community that
provides employment and income to the local population.
Population Trends - CORRECT ANSWER The direction of change in the total number of
persons inhabiting a country, city, district, or area.
Components of Population Change - CORRECT ANSWER There are three components of
change: births, deaths, and migration.
Disposable Income Trends - CORRECT ANSWER Disposable income is what is left over after
taxes, and is what households used for consumption of needs and wants.
Competition - CORRECT ANSWER The practice of trying to obtain something being sought
by others at the same time.
Social and Business Climate - CORRECT ANSWER A social environment that includes the
values, beliefs, customs, and practices of a group of people.
Business Location - CORRECT ANSWER All considerations contribute information that is
applied to decisions regarding the location of a business.
