Introduction to Business Midterm Study Guide
Study
Fiscal policy is concerned with:
taxation and spending.
The most basic measure of economic growth is the:
gross domestic product.
A strategic alliance is sometimes called a(n):
strategic partnership.
Which one characteristic most clearly defines a market structure?
the number of suppliers in a market.
_______ is the quantity of a good or service that people are willing to buy at
various prices.
Demand.
An economic system based on complete freedom of trade and little, if any,
government control is known as:
capitalism.
Market equilibrium is:
the point at which quantity supplied equals quantity demanded.
When a single firm accounts for 100 percent of industry sales, it is an example of:
a pure monopoly.
How has diversity impacted the marketing and customization of products?
Along with their numbers, the buying power of minorities is growing.
______ is the amount of money remaining from a firm's sales revenue after it
deducts production costs, interest costs, and taxes.
Profit.
A term that means that business damages and/or debts can also be attached to
the personal assets of the owners is ______ liability.
unlimited.
Which of the following statements about a general partnership is true?
Partners in a general partnership co-own the company's assets.
A corporation:
a. is a taxable entity.
b. is subject to the laws of the state in which it was formed.
c. can own property.
d. can sue and be sued.
e. is accurately described by all of the above.
e. is accurately described by all of the above.
What type of business organization generates the most total sales?
Corporation.
Which of the following demographic groups is having the greatest impact on the
growth of the franchising industry?
baby boomers.
Pete Yankin and Ken Lowery consider themselves to be experts on hunting in the
mountains in North Carolina. As a result, the two men established a company that
markets hunting expedions. Yankin and Lowery share responsibilies for booking
the trips, gathering supplies, and guiding groups of five to seven hunters into
, locaons where they can hunt for deer and bear. Since the two will share any profit
equally, this would be an example of a(n)
partnership.
A firm's stockholders have the right to do all of the following EXCEPT:
a. sell or transfer their ownership.
b. share in company profits, in the form of dividents.
c. elect the board of directors.
d. get discounts on the company's product or service.
e. attend annual meetings.
d. get discounts on the company's product or service.
Which of the following is a disadvantage for the fast-food franchisee?
royalty fees.
The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a
producer of health-care inventory soware, is an example of a(n) _____ merger.
vertical.
Which of the following is an example of a disadvantage associated with a
partnerhsip?
unlimited liability.
Which of the following is a characteristic of the entrepreneurial personality?
Ambitious.
The person who takes the risk of starting and managing a business to make a
profit is called a(n):
entrepreneur.
Which of the following is a trend that is changing the face of entrepreneurship
and small business ownership?
entrepreneurial diversity.
______ financing is a form of financing consiisting of funds raised through the
sale of stock in a business.
Equity.
One of the advantages of owning a small business is:
flexibility.
The Small Business Administration (SBA):
helps people start and manage small businesses.
A _______ is a formal written statement that describes in detail the idea for a new
business and how it will be carried out.
business plan.
Which of the following is NOT a reason why small business thrives in the United
States?
guaranteed profits.
Intrapreneurs:
a. have a high degree of autonomy in spite of the fact they work for a large
corporaon
b. have the characteriscs of creavity, vision, and risk taking.
c. receive regular salaries and employee benefits
d. run mini-companies within large corporaons
e. are accurately described by all of the above
Study
Fiscal policy is concerned with:
taxation and spending.
The most basic measure of economic growth is the:
gross domestic product.
A strategic alliance is sometimes called a(n):
strategic partnership.
Which one characteristic most clearly defines a market structure?
the number of suppliers in a market.
_______ is the quantity of a good or service that people are willing to buy at
various prices.
Demand.
An economic system based on complete freedom of trade and little, if any,
government control is known as:
capitalism.
Market equilibrium is:
the point at which quantity supplied equals quantity demanded.
When a single firm accounts for 100 percent of industry sales, it is an example of:
a pure monopoly.
How has diversity impacted the marketing and customization of products?
Along with their numbers, the buying power of minorities is growing.
______ is the amount of money remaining from a firm's sales revenue after it
deducts production costs, interest costs, and taxes.
Profit.
A term that means that business damages and/or debts can also be attached to
the personal assets of the owners is ______ liability.
unlimited.
Which of the following statements about a general partnership is true?
Partners in a general partnership co-own the company's assets.
A corporation:
a. is a taxable entity.
b. is subject to the laws of the state in which it was formed.
c. can own property.
d. can sue and be sued.
e. is accurately described by all of the above.
e. is accurately described by all of the above.
What type of business organization generates the most total sales?
Corporation.
Which of the following demographic groups is having the greatest impact on the
growth of the franchising industry?
baby boomers.
Pete Yankin and Ken Lowery consider themselves to be experts on hunting in the
mountains in North Carolina. As a result, the two men established a company that
markets hunting expedions. Yankin and Lowery share responsibilies for booking
the trips, gathering supplies, and guiding groups of five to seven hunters into
, locaons where they can hunt for deer and bear. Since the two will share any profit
equally, this would be an example of a(n)
partnership.
A firm's stockholders have the right to do all of the following EXCEPT:
a. sell or transfer their ownership.
b. share in company profits, in the form of dividents.
c. elect the board of directors.
d. get discounts on the company's product or service.
e. attend annual meetings.
d. get discounts on the company's product or service.
Which of the following is a disadvantage for the fast-food franchisee?
royalty fees.
The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a
producer of health-care inventory soware, is an example of a(n) _____ merger.
vertical.
Which of the following is an example of a disadvantage associated with a
partnerhsip?
unlimited liability.
Which of the following is a characteristic of the entrepreneurial personality?
Ambitious.
The person who takes the risk of starting and managing a business to make a
profit is called a(n):
entrepreneur.
Which of the following is a trend that is changing the face of entrepreneurship
and small business ownership?
entrepreneurial diversity.
______ financing is a form of financing consiisting of funds raised through the
sale of stock in a business.
Equity.
One of the advantages of owning a small business is:
flexibility.
The Small Business Administration (SBA):
helps people start and manage small businesses.
A _______ is a formal written statement that describes in detail the idea for a new
business and how it will be carried out.
business plan.
Which of the following is NOT a reason why small business thrives in the United
States?
guaranteed profits.
Intrapreneurs:
a. have a high degree of autonomy in spite of the fact they work for a large
corporaon
b. have the characteriscs of creavity, vision, and risk taking.
c. receive regular salaries and employee benefits
d. run mini-companies within large corporaons
e. are accurately described by all of the above
