LUOA Essentials of Business Exam
Questions with Verified Answers
In general, a business is an organization that provides what two things? -
ANSWERSgoods and services
The main goal of a business that is not a charity or a free provider of goods and
services is to make a... - ANSWERSprofit
the overriding objective for a business should be to earn as much profit for its owners as
possible - ANSWERSprofit maximization
businesses should strive not only to increase their profit but also to improve society -
ANSWERScorporate social responsibility
everyone affected by a business should have some say in how that business operates -
ANSWERSstakeholder theory
Select all of the following that are considered internal stakeholders. -
ANSWERSemployees
managers
owners
Select all of the following that are considered external stakeholders. -
ANSWERScommunity and government
suppliers and creditors
customers
Choose from the list the four specialized departments that make up the functional areas
of a typical for-profit business. - ANSWERSmanagement
finance
marketing
accounting
The difference between a company's sales (or revenue) and the amount it cost them to
produce the goods that they sold is called the... - ANSWERSgross profit
A for-profit company distributes excess revenue to its... - ANSWERSowners or
shareholders
A nonprofit company distributes excess revenue in... - ANSWERSthe organization to
further its goals
, Market research is... - ANSWERSthe gathering and analysis of data about consumers.
retail stores, shopping malls, flea markets, and grocery stores - ANSWERSphysical
markets
Amazon, eBay, and other online providers - ANSWERSinternet markets
the available workforce in a country or specific geographic region - ANSWERSlabor
market
the New York Stock Exchange, NASDAQ, Wall Street, Standard and Poor's and others -
ANSWERSstock market
illegal contraband, sex trafficking, drugs, and other items sold without regulation -
ANSWERSblack market
The two main types of small businesses are... - ANSWERSsole propertiership
partnership
Small businesses are regulated by what federal department? - ANSWERSThe Small
Business Administration (SBA)
A limited partnership is a business where... - ANSWERSonly one partner (the general
partner) has liability for the business.
What is the most significant risk of a sole proprietorship? - ANSWERSunlimited
personal liability for losses and debts incurred by the business
When referencing businesses, there is only one kind of profit. - ANSWERSNo. There
are several types of profit scenarios depending on what factors and costs are
considered.
The stakeholder theory as applied to business states that... - ANSWERSeveryone who
is affected by a business should have a say in how that business operates.
If the chief goal of a business is to not only to increase their profit but also to improve
society, then that business is operating with... - ANSWERScorporate social
responsibility.
Approximately what percent of American businesses are partnerships? -
ANSWERS10%
What is an agreement between business partners that outlines each partner's privileges
and responsibilities? - ANSWERSpartnership agreement
Questions with Verified Answers
In general, a business is an organization that provides what two things? -
ANSWERSgoods and services
The main goal of a business that is not a charity or a free provider of goods and
services is to make a... - ANSWERSprofit
the overriding objective for a business should be to earn as much profit for its owners as
possible - ANSWERSprofit maximization
businesses should strive not only to increase their profit but also to improve society -
ANSWERScorporate social responsibility
everyone affected by a business should have some say in how that business operates -
ANSWERSstakeholder theory
Select all of the following that are considered internal stakeholders. -
ANSWERSemployees
managers
owners
Select all of the following that are considered external stakeholders. -
ANSWERScommunity and government
suppliers and creditors
customers
Choose from the list the four specialized departments that make up the functional areas
of a typical for-profit business. - ANSWERSmanagement
finance
marketing
accounting
The difference between a company's sales (or revenue) and the amount it cost them to
produce the goods that they sold is called the... - ANSWERSgross profit
A for-profit company distributes excess revenue to its... - ANSWERSowners or
shareholders
A nonprofit company distributes excess revenue in... - ANSWERSthe organization to
further its goals
, Market research is... - ANSWERSthe gathering and analysis of data about consumers.
retail stores, shopping malls, flea markets, and grocery stores - ANSWERSphysical
markets
Amazon, eBay, and other online providers - ANSWERSinternet markets
the available workforce in a country or specific geographic region - ANSWERSlabor
market
the New York Stock Exchange, NASDAQ, Wall Street, Standard and Poor's and others -
ANSWERSstock market
illegal contraband, sex trafficking, drugs, and other items sold without regulation -
ANSWERSblack market
The two main types of small businesses are... - ANSWERSsole propertiership
partnership
Small businesses are regulated by what federal department? - ANSWERSThe Small
Business Administration (SBA)
A limited partnership is a business where... - ANSWERSonly one partner (the general
partner) has liability for the business.
What is the most significant risk of a sole proprietorship? - ANSWERSunlimited
personal liability for losses and debts incurred by the business
When referencing businesses, there is only one kind of profit. - ANSWERSNo. There
are several types of profit scenarios depending on what factors and costs are
considered.
The stakeholder theory as applied to business states that... - ANSWERSeveryone who
is affected by a business should have a say in how that business operates.
If the chief goal of a business is to not only to increase their profit but also to improve
society, then that business is operating with... - ANSWERScorporate social
responsibility.
Approximately what percent of American businesses are partnerships? -
ANSWERS10%
What is an agreement between business partners that outlines each partner's privileges
and responsibilities? - ANSWERSpartnership agreement
