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Principles of Business, Marketing, and Finance Midterm
Questions with Detailed Verified Answers
One of the best ways a business can keep labor costs down is to invest in: Ans: ✓ ✓ ✓ its employees
When a business's expenses change based on factors that occur within the business, these are called _____ factors. Ans: ✓ ✓
✓ internal
Todd is the CEO of a large accounting firm. When one of his top accountants recently retired, he needed to fill the position;
because it was a higher position in the company, he decided to retain the services of a firm that specializes in ____ to help him
fill the position. Ans: ✓ ✓ ✓ recruiting
When a business's expenses change based on external factors, this means that these factors are _____ the business's control.
Ans: ✓ ✓ ✓ outside
Assigning employees specific tasks for which they have the required skills and experience is referred to as: Ans: ✓ ✓ ✓
specialization of labor
All businesses are required to pay their employees an hourly rate, with some exemptions. This rate is set by federal law and is
referred to as what? Ans: ✓ ✓ ✓ minimum wage
For a business, _____ sales mean greater revenue. Ans: ✓ ✓ ✓ higher
Expenses like rent, insurance, or payments on a loan do not change and are known as: Ans: ✓ ✓ ✓ fixed expenses
In a capitalist society like the United States, the government takes on functions like what and private businesses pick up
everything left over? Ans: ✓ ✓ ✓ the military and infrastructure
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Adam Smith made the division of labor theory popular and argued that practice and specialization would automatically make
people better at certain tasks, and when people improved their efficiency, who benefitted? Ans: ✓ ✓ ✓ the entire society
External factors—like the overall health of the economy, unemployment, or increased competition from a similar business—
can do what to sales for a business? Ans: ✓ ✓ ✓ drive them down
Jeannie owns a small business that sells candles and other little household knick-knacks. For several years her boyfriend, who
was also an accountant, handled her budget. However, since they broke up, Jeannie must now handle the budget on her own.
What is the best way for Jeannie to create a realistic budget? Ans: ✓ ✓ ✓ look at the previous year's budget
While employers can decide which benefits they would like to offer, they have no choice when it comes to paying what at the
state and federal level? Ans: ✓ ✓ ✓ taxes
What brand manufactures their product in Costa Rica and is the only authorized brand to produce balls for Major League
baseball? Ans: ✓ ✓ ✓ Rawlings
Sampson is the sole proprietor of his business which means that he takes on a variety of tasks in addition to the administrative
obligations. However, Sampson is not great with numbers, so he outsources the task of managing his financial records to
whom? Ans: ✓ ✓ ✓ an accountant or bookkeeper
Some things, such as the cost of heating or cooling following a sudden change in the weather, can change from month to
month for businesses and are referred to as what kind of expense? Ans: ✓ ✓ ✓ variable expense
What does the functional organizational structure organize employees by? Ans: ✓ ✓ ✓ specialty
For most retailers, what period of time is generally the busiest and has the greatest number of sales, which means that these
businesses require more labor and inventory during this time? Ans: ✓ ✓ ✓ between Thanksgiving and Christmas
How much space does the average employee working in a traditional office require? Ans: ✓ ✓ ✓ 200-250 square feet
What term refers to the ratio of the number of employees a company hires to the number that stay at the company? Ans: ✓ ✓
✓ retention rate
© Get it right 2025 Getaway - Stuvia US All rights reserved
Principles of Business, Marketing, and Finance Midterm
Questions with Detailed Verified Answers
One of the best ways a business can keep labor costs down is to invest in: Ans: ✓ ✓ ✓ its employees
When a business's expenses change based on factors that occur within the business, these are called _____ factors. Ans: ✓ ✓
✓ internal
Todd is the CEO of a large accounting firm. When one of his top accountants recently retired, he needed to fill the position;
because it was a higher position in the company, he decided to retain the services of a firm that specializes in ____ to help him
fill the position. Ans: ✓ ✓ ✓ recruiting
When a business's expenses change based on external factors, this means that these factors are _____ the business's control.
Ans: ✓ ✓ ✓ outside
Assigning employees specific tasks for which they have the required skills and experience is referred to as: Ans: ✓ ✓ ✓
specialization of labor
All businesses are required to pay their employees an hourly rate, with some exemptions. This rate is set by federal law and is
referred to as what? Ans: ✓ ✓ ✓ minimum wage
For a business, _____ sales mean greater revenue. Ans: ✓ ✓ ✓ higher
Expenses like rent, insurance, or payments on a loan do not change and are known as: Ans: ✓ ✓ ✓ fixed expenses
In a capitalist society like the United States, the government takes on functions like what and private businesses pick up
everything left over? Ans: ✓ ✓ ✓ the military and infrastructure
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Adam Smith made the division of labor theory popular and argued that practice and specialization would automatically make
people better at certain tasks, and when people improved their efficiency, who benefitted? Ans: ✓ ✓ ✓ the entire society
External factors—like the overall health of the economy, unemployment, or increased competition from a similar business—
can do what to sales for a business? Ans: ✓ ✓ ✓ drive them down
Jeannie owns a small business that sells candles and other little household knick-knacks. For several years her boyfriend, who
was also an accountant, handled her budget. However, since they broke up, Jeannie must now handle the budget on her own.
What is the best way for Jeannie to create a realistic budget? Ans: ✓ ✓ ✓ look at the previous year's budget
While employers can decide which benefits they would like to offer, they have no choice when it comes to paying what at the
state and federal level? Ans: ✓ ✓ ✓ taxes
What brand manufactures their product in Costa Rica and is the only authorized brand to produce balls for Major League
baseball? Ans: ✓ ✓ ✓ Rawlings
Sampson is the sole proprietor of his business which means that he takes on a variety of tasks in addition to the administrative
obligations. However, Sampson is not great with numbers, so he outsources the task of managing his financial records to
whom? Ans: ✓ ✓ ✓ an accountant or bookkeeper
Some things, such as the cost of heating or cooling following a sudden change in the weather, can change from month to
month for businesses and are referred to as what kind of expense? Ans: ✓ ✓ ✓ variable expense
What does the functional organizational structure organize employees by? Ans: ✓ ✓ ✓ specialty
For most retailers, what period of time is generally the busiest and has the greatest number of sales, which means that these
businesses require more labor and inventory during this time? Ans: ✓ ✓ ✓ between Thanksgiving and Christmas
How much space does the average employee working in a traditional office require? Ans: ✓ ✓ ✓ 200-250 square feet
What term refers to the ratio of the number of employees a company hires to the number that stay at the company? Ans: ✓ ✓
✓ retention rate
© Get it right 2025 Getaway - Stuvia US All rights reserved
