MGMT 1010 MIDTERM QUESTIONS AND ANSWERS
Natural resources would include which of the following?
-Unleaded Gasoline
-Steel
-Wind - Answers - Wind
External forces that affect businesses include ________.
-Motivated Employees
-Advances in Technology
-The Company Mission - Answers - Advances in Technology
Denice invented a small, portable purse hook that allows a purse to be hung from a
table and not touch the floor. She knows that there is a market for her purse hook and
takes a loan out on her home to finance a small start-up company in Rock Creek, WI.
As an entrepreneur, Deniece's primary motivation for opening the business is
________.
-the potential of improving personal skills
-the potential of making a profit if the business succeeds
-the potential to improve the community if the business succeeds - Answers - the
potential of making a profit if the business succeeds
Which function is responsible for creating financial reports that can be used to evaluate
the financial performance of the business?
-Finance
-Management
-Accounting - Answers - Accounting
Walter opens a motorcycle repair shop where he will not only repair motorcycles, but
will also offer custom paint jobs, accessories and some t-shirts. When Walter opened
his business, his primary objective was to ________.
-Improve Personal Skills
-Help the motorcycle community
-make a profit - Answers - Make a profit
Which function is responsible for raising the funds required for the business to grow?
-Accounting
-Finance
-Marketing - Answers - Finance
Which functional area is charged with the responsibility of preparing budgets and
information about costs and asset allocation to be used by the managers of a business?
-Accounting
, -Marketing
-Finance - Answers - Accounting
A hotel provides both goods and services. Which of the following is an example of a
good provided by a hotel?
-Offering a bathrobe that you can purchase to take home with you.
-Providing clean linens for use during your stay.
-Offering rooms for rent. - Answers - Offering a bathrobe that you can purchase to take
home with you.
Many ________ organizations are governed by board of trustees.
-Entrepreneurial
-Nonprofit
-For-Profit - Answers - nonprofit
When a business establishes a web-site and begins to allow customers to place orders
online without ever coming into their store, they are responding to changes in the
________.
-Technological Environment
-Social Environment
-Economic Environment - Answers - Technological Environment
Nearly all supply curves share a basic similarity. They slope:
-down from left to right
-up from right to left
-up from left to right - Answers - up from left to right
In a market with an upward sloping supply curve and a downward sloping demand
curve, when the actual price must be higher than the equilibrium price, there will be:
-Excess supply
-Excess Demand
-An increase in the price - Answers - Excess Supply
When a market is experiencing a shortage, or "excess demand":
-in the typical warehouse for that item, inventory is unintentionally rising.
-the equilibrium price is higher than the current market price.
-the quantity supplied is less than the quantity demanded. - Answers - the equilibrium
price is higher than the current market price.
In a planned economy, government determines the prices for goods and services, and:
-businesses determine what goods to produce to maximize profits.
-government also determines what goods will be produced.
-government allows consumers to influence prices based on demand behavior. -
Answers - government also determines what goods will be produced.
Rising economic indicators typically signal ________ in the economy.
Natural resources would include which of the following?
-Unleaded Gasoline
-Steel
-Wind - Answers - Wind
External forces that affect businesses include ________.
-Motivated Employees
-Advances in Technology
-The Company Mission - Answers - Advances in Technology
Denice invented a small, portable purse hook that allows a purse to be hung from a
table and not touch the floor. She knows that there is a market for her purse hook and
takes a loan out on her home to finance a small start-up company in Rock Creek, WI.
As an entrepreneur, Deniece's primary motivation for opening the business is
________.
-the potential of improving personal skills
-the potential of making a profit if the business succeeds
-the potential to improve the community if the business succeeds - Answers - the
potential of making a profit if the business succeeds
Which function is responsible for creating financial reports that can be used to evaluate
the financial performance of the business?
-Finance
-Management
-Accounting - Answers - Accounting
Walter opens a motorcycle repair shop where he will not only repair motorcycles, but
will also offer custom paint jobs, accessories and some t-shirts. When Walter opened
his business, his primary objective was to ________.
-Improve Personal Skills
-Help the motorcycle community
-make a profit - Answers - Make a profit
Which function is responsible for raising the funds required for the business to grow?
-Accounting
-Finance
-Marketing - Answers - Finance
Which functional area is charged with the responsibility of preparing budgets and
information about costs and asset allocation to be used by the managers of a business?
-Accounting
, -Marketing
-Finance - Answers - Accounting
A hotel provides both goods and services. Which of the following is an example of a
good provided by a hotel?
-Offering a bathrobe that you can purchase to take home with you.
-Providing clean linens for use during your stay.
-Offering rooms for rent. - Answers - Offering a bathrobe that you can purchase to take
home with you.
Many ________ organizations are governed by board of trustees.
-Entrepreneurial
-Nonprofit
-For-Profit - Answers - nonprofit
When a business establishes a web-site and begins to allow customers to place orders
online without ever coming into their store, they are responding to changes in the
________.
-Technological Environment
-Social Environment
-Economic Environment - Answers - Technological Environment
Nearly all supply curves share a basic similarity. They slope:
-down from left to right
-up from right to left
-up from left to right - Answers - up from left to right
In a market with an upward sloping supply curve and a downward sloping demand
curve, when the actual price must be higher than the equilibrium price, there will be:
-Excess supply
-Excess Demand
-An increase in the price - Answers - Excess Supply
When a market is experiencing a shortage, or "excess demand":
-in the typical warehouse for that item, inventory is unintentionally rising.
-the equilibrium price is higher than the current market price.
-the quantity supplied is less than the quantity demanded. - Answers - the equilibrium
price is higher than the current market price.
In a planned economy, government determines the prices for goods and services, and:
-businesses determine what goods to produce to maximize profits.
-government also determines what goods will be produced.
-government allows consumers to influence prices based on demand behavior. -
Answers - government also determines what goods will be produced.
Rising economic indicators typically signal ________ in the economy.
