20 Questions on Business
Administration with Answer - Pre-
Exam | BUS
Introduction to Business Management
Indiana University Purdue University (IUPUI)
6 pag.
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, Pre-Exam 1
1. Which of the following would not be included in the gross domestic
product of the United States?
A. Value of tax return services performed by H&R Block
B. Value of BMW automobiles manufactured in Alabama
C. Total value of Procter & Gamble products produced in Michigan
D. Value of medical care services rendered in the United States
E. Value of McDonald's sales for their Tokyo locations
Response: E
Answer: E
Points:
2. Laura wants to start a business, but she is unsure of the legal form
best for her. Short of cash, she has decided to take the form that is the
least expensive and most flexible in terms of decision making and
implementation. Which would you recommend?
A. Joint venture
B. Partnership
C. Sole proprietorship
D. Cooperative
E. Corporation
Response: E
Answer: C
Points:
3. The Kingdom of Rhonda has no high tariffs, yet other countries find it
difficult to trade with the Kingdom of Rhonda because of its
requirements for labeling, product testing, and certifications. These
restrictions can best be classified as
A. embargos.
B. currency devaluations.
C. import quotas.
D. quality import restrictions.
E. bureaucratic red tape.
Response: D
Answer: E
Points:
4. When a country's currency is devalued, this ______________ the cost of
foreign goods and ______________ the cost of domestic goods to foreign
firms.
A. increases; decreases
B. reduces; reduces
C. decreases; increases
D. neutralizes; raises
E. neutralizes; decreases
Response: A
Answer: A
Points:
5. Gail Nelson begins her first job after graduating from college and starts
putting money away in a savings account. She believes she has
removed this money from the circular flow between buyers and sellers
that she studied in Introduction to Business. Is Gail correct?
A. Yes, by putting this money into a savings account, only she has
access to the funds and they are no longer available to the circular
flow.
B. No, even though she has saved this money, the bank will in turn
Document shared on https://www.docsity.com/en/20-questions-on-business-administration-with-answer-pre-exam-bus/6127338/
Downloaded by: adal-youth-ayedo ()
Administration with Answer - Pre-
Exam | BUS
Introduction to Business Management
Indiana University Purdue University (IUPUI)
6 pag.
Document shared on https://www.docsity.com/en/20-questions-on-business-administration-with-answer-pre-exam-bus/6127338/
Downloaded by: adal-youth-ayedo ()
, Pre-Exam 1
1. Which of the following would not be included in the gross domestic
product of the United States?
A. Value of tax return services performed by H&R Block
B. Value of BMW automobiles manufactured in Alabama
C. Total value of Procter & Gamble products produced in Michigan
D. Value of medical care services rendered in the United States
E. Value of McDonald's sales for their Tokyo locations
Response: E
Answer: E
Points:
2. Laura wants to start a business, but she is unsure of the legal form
best for her. Short of cash, she has decided to take the form that is the
least expensive and most flexible in terms of decision making and
implementation. Which would you recommend?
A. Joint venture
B. Partnership
C. Sole proprietorship
D. Cooperative
E. Corporation
Response: E
Answer: C
Points:
3. The Kingdom of Rhonda has no high tariffs, yet other countries find it
difficult to trade with the Kingdom of Rhonda because of its
requirements for labeling, product testing, and certifications. These
restrictions can best be classified as
A. embargos.
B. currency devaluations.
C. import quotas.
D. quality import restrictions.
E. bureaucratic red tape.
Response: D
Answer: E
Points:
4. When a country's currency is devalued, this ______________ the cost of
foreign goods and ______________ the cost of domestic goods to foreign
firms.
A. increases; decreases
B. reduces; reduces
C. decreases; increases
D. neutralizes; raises
E. neutralizes; decreases
Response: A
Answer: A
Points:
5. Gail Nelson begins her first job after graduating from college and starts
putting money away in a savings account. She believes she has
removed this money from the circular flow between buyers and sellers
that she studied in Introduction to Business. Is Gail correct?
A. Yes, by putting this money into a savings account, only she has
access to the funds and they are no longer available to the circular
flow.
B. No, even though she has saved this money, the bank will in turn
Document shared on https://www.docsity.com/en/20-questions-on-business-administration-with-answer-pre-exam-bus/6127338/
Downloaded by: adal-youth-ayedo ()
