ASTRONOMY EXAM 1 STUDY GUIDE: AST 101 Exam 1 Questions and Answers

 Question 1
2 out of 2 points
In order to protect all parties and minimize misunderstandings among
partners, all terms of the partnership should be spelled out in writing.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 2
2 out of 2 points
Inflation refers to a general rise in the prices of goods and services over
time.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 3
2 out of 2 points
When a group of investors take a firm private, they purchase all the
company's outstanding stock.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 4
2 out of 2 points
Although franchise arrangements are a good source of income for the
franchisee, these businesses do not contribute significantly toward job
creation.
Selected Fals
Answer: e
Answers: True
Fals
e
 Question 5
2 out of 2 points
Thomas Malthus believed that people in most countries would never be
able to achieve high standards of living unless the problems of
overpopulation were addressed.
Selected Tru
Answer: e
Answers: Tru

, e
False
 Question 6
2 out of 2 points
As an employee of a small business, DeMonte has observed the owner's
desire to retire. Since DeMonte would like to buy the business, he needs to
determine how much the business is worth. In order to determine a fair
price for the business, DeMonte should add up the market value of all of
the firm's physical assets such as buildings, machinery, equipment, and
inventory, and willingly pay this amount for the business.
Selected Fals
Answer: e
Answers: True
Fals
e
 Question 7
2 out of 2 points
Marilyn paid a sizeable franchise fee to obtain a Fontmaster Printers
franchise in Cleveland, Ohio. With the franchise fee behind her, she can
look forward to using her creative talents to make her print shop different
and more attractive than other Fontmaster shops in the Cleveland area.
Selected Fals
Answer: e
Answers: True
Fals
e
 Question 8
2 out of 2 points
Senator Spendital made a speech deploring the continuous deficits in the
federal budget. He is proposing an increase in tax rates to raise more
revenue for the government and thus gradually reduce the size of the
national debt over a period of several years. The strategy Senator
Spendital is proposing is a common type of monetary policy.
Selected Fals
Answer: e
Answers: True
Fals
e
 Question 9
2 out of 2 points
The small business sector that has the best chance of significant growth is
legal services.
Selected Fals
Answer: e
Answers: True

, Fals
e
 Question 10
2 out of 2 points
High tax rates that put money into the government's coffers tend to slow
spending, and ultimately slow the economy.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 11
2 out of 2 points
The advice provided by a marriage counselor is an example of the service
industry.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 12
2 out of 2 points
A major advantage of preparing a formal business plan is that prospective
entrepreneurs must identify the resources and activities required to
successfully operate their proposed venture.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 13
2 out of 2 points
Nutty Dough is a small chain of donut shops currently owned and
operated by a group of seven partners. The owners think that their chain
has the potential for rapid growth, but several of the partners are
concerned about the growing financial risks that will accompany this
growth. One way the partners could deal with this problem would be to
incorporate their business.
Selected Tru
Answer: e
Answers: Tru
e
False
 Question 14
0 out of 2 points