BUS120 FINAL EXAM QUESTIONS AND ANSWERS
A core goal for successful businesses is to deliver value to customers while generating
long-term profits. - Answers - True
Even though non-profit organizations are not in business for financial gain, they are still
businesses in every other sense. - Answers - True
Organizations generate long-term success by delivering unsurpassed value to their
customers. - Answers - True
Value is the relationship between the price of a good or a service and the benefit that
the service offers to the customer. - Answers - True
Economic factors are not as important to non-profit organizations as they are to for-
profits. - Answers - True
The technological environment is less important to small business than it is to large
businesses. - Answers - False
For-profits are understandably less concerned about trends in the social environment. -
Answers - False
Non-profits have no need to be concerned about the competitive environment. -
Answers - False
Small businesses have no need to be concerned about the global environment. -
Answers - False
Supply is defined as: - Answers - the quantity of products that a producer will make for a
specific price.
Ann is a manager at a store than sells casual clothing and accessories for both men
and women. She notices that the jeans priced at $120 aren't selling very well. She
wants to increase sales of these jeans before next season. The approach Ann should
take to achieve this is: - Answers - lower the price of the jeans so that demand will
increase.
Demand is defined as - Answers - the amount of products or services consumers are
willing to pay at different prices.
Fair competition among businesses: - Answers - drives higher quality and lower prices
in capitalism.
,A basic characteristic of ______________________ is that both producers and
consumers are free to make their own economic decisions on many basic issue. -
Answers - capitalism.
_____________________ is an economic system based upon the principle that the
government should own and operate key enterprises that directly affect public welfare. -
Answers - Socialism
Which of the following is a difference between a socialist economic system and a
communist economic system? - Answers - Socialism controls social welfare.
Communism controls almost everything.
To encourage fair competition and protect both consumers and workers, the Federal
Government: - Answers - creates regulations to intervene in the free market.
Government regulations are likely to become stronger in the wake of the
_____________________. - Answers - economic crisis like the Great Recession.
Fiscal policy refers to: - Answers - government efforts to influence the economy through
taxation and spending.
_______________________ refers to actions that shape the economy by influencing
interest rates and the supply of cash. - Answers - Monetary policy.
The primary way that the Fed controls the supply of money is by: - Answers - buying
and selling government securities in open market operations.
The amount of goods and services produced by an economy divided by the amount of
resources used to make those goods and services equals: - Answers - productivity.
Capitalism, as an economic system, has many advantages and disadvantages.
Describe some of these advantages and disadvantages. - Answers - The advantages
with capitalism is: capitalism provides customers with a choice, a huge deal of economic
growth happens with capitalism, and naturally we are compassionate when it comes to
living in a capitalist society.
The disadvantages are: Inequality eventually occurs with capitalism, there is never a set
pattern with capitalism, and it always require consumption on order to be successful.
Economies have their advantages and disadvantages, as do free market economies.
Why do global economists believe that most global economic powers are moving
towards "mixed economies"? - Answers - Global economists believe that most global
economic powers are moving towards a "mixed economy" because it will help eliminate
any inequality, and provide a better advantage for us as a society to work together in
the business world. It also helps people enjoy their financial rewards and to work hard
and to gain a sense of pride.
, Which of the following is an advantage of a sole proprietorship? - Answers - Retention
of control.
A key advantage of a sole proprietorship is that: - Answers - it is easy and inexpensive
to form this type of business.
Tina is the owner of a dance studio. As a sole proprietor, any profit she earns is: -
Answers - treated as a personal income of Tina.
A key reason most sole proprietorships remain relatively small is that: - Answers - they
have limited ability to raise funds needed to finance growth.
Sole proprietorships have _______________________ for the debts of their companies.
- Answers - unlimited liability.
Which of the following statements is true of the formation of a general partnership? -
Answers - It is safer to get everything in writing and to seek expert legal assistance
when drawing up an agreement.
Compared with a sole proprietorship, a general partnership: - Answers - is likely to have
a stronger financial base.
A similarity between a general partnership and a sole proprietorship is: - Answers - they
each have unlimited liability if the organization is sued.
______________________ are the most common types of corporations. - Answers - C-
corporations
Which of the following best describes the document filed with a state government to
establish the existence of a new corporation? - Answers - Articles of incorporation.
Stockholders are __________________________ of the corporation. - Answers -
owners
A key advantage of a C corporation is: - Answers - ability to raise large amounts of
financial capital.
Which of the following describes and S-corporation? - Answers - It is a form of
corporation that avoids double taxation by having its profits flow through as income for
the owners of the corporation.
Which of the following is true of a non-profit corporation? - Answers - Non-profit
corporations cannot distribute dividends to members.
Liz, Ashley and Selena started an interior design/renovation business where they all
actively manage the company. They don't like formality and don't want to hold regular
A core goal for successful businesses is to deliver value to customers while generating
long-term profits. - Answers - True
Even though non-profit organizations are not in business for financial gain, they are still
businesses in every other sense. - Answers - True
Organizations generate long-term success by delivering unsurpassed value to their
customers. - Answers - True
Value is the relationship between the price of a good or a service and the benefit that
the service offers to the customer. - Answers - True
Economic factors are not as important to non-profit organizations as they are to for-
profits. - Answers - True
The technological environment is less important to small business than it is to large
businesses. - Answers - False
For-profits are understandably less concerned about trends in the social environment. -
Answers - False
Non-profits have no need to be concerned about the competitive environment. -
Answers - False
Small businesses have no need to be concerned about the global environment. -
Answers - False
Supply is defined as: - Answers - the quantity of products that a producer will make for a
specific price.
Ann is a manager at a store than sells casual clothing and accessories for both men
and women. She notices that the jeans priced at $120 aren't selling very well. She
wants to increase sales of these jeans before next season. The approach Ann should
take to achieve this is: - Answers - lower the price of the jeans so that demand will
increase.
Demand is defined as - Answers - the amount of products or services consumers are
willing to pay at different prices.
Fair competition among businesses: - Answers - drives higher quality and lower prices
in capitalism.
,A basic characteristic of ______________________ is that both producers and
consumers are free to make their own economic decisions on many basic issue. -
Answers - capitalism.
_____________________ is an economic system based upon the principle that the
government should own and operate key enterprises that directly affect public welfare. -
Answers - Socialism
Which of the following is a difference between a socialist economic system and a
communist economic system? - Answers - Socialism controls social welfare.
Communism controls almost everything.
To encourage fair competition and protect both consumers and workers, the Federal
Government: - Answers - creates regulations to intervene in the free market.
Government regulations are likely to become stronger in the wake of the
_____________________. - Answers - economic crisis like the Great Recession.
Fiscal policy refers to: - Answers - government efforts to influence the economy through
taxation and spending.
_______________________ refers to actions that shape the economy by influencing
interest rates and the supply of cash. - Answers - Monetary policy.
The primary way that the Fed controls the supply of money is by: - Answers - buying
and selling government securities in open market operations.
The amount of goods and services produced by an economy divided by the amount of
resources used to make those goods and services equals: - Answers - productivity.
Capitalism, as an economic system, has many advantages and disadvantages.
Describe some of these advantages and disadvantages. - Answers - The advantages
with capitalism is: capitalism provides customers with a choice, a huge deal of economic
growth happens with capitalism, and naturally we are compassionate when it comes to
living in a capitalist society.
The disadvantages are: Inequality eventually occurs with capitalism, there is never a set
pattern with capitalism, and it always require consumption on order to be successful.
Economies have their advantages and disadvantages, as do free market economies.
Why do global economists believe that most global economic powers are moving
towards "mixed economies"? - Answers - Global economists believe that most global
economic powers are moving towards a "mixed economy" because it will help eliminate
any inequality, and provide a better advantage for us as a society to work together in
the business world. It also helps people enjoy their financial rewards and to work hard
and to gain a sense of pride.
, Which of the following is an advantage of a sole proprietorship? - Answers - Retention
of control.
A key advantage of a sole proprietorship is that: - Answers - it is easy and inexpensive
to form this type of business.
Tina is the owner of a dance studio. As a sole proprietor, any profit she earns is: -
Answers - treated as a personal income of Tina.
A key reason most sole proprietorships remain relatively small is that: - Answers - they
have limited ability to raise funds needed to finance growth.
Sole proprietorships have _______________________ for the debts of their companies.
- Answers - unlimited liability.
Which of the following statements is true of the formation of a general partnership? -
Answers - It is safer to get everything in writing and to seek expert legal assistance
when drawing up an agreement.
Compared with a sole proprietorship, a general partnership: - Answers - is likely to have
a stronger financial base.
A similarity between a general partnership and a sole proprietorship is: - Answers - they
each have unlimited liability if the organization is sued.
______________________ are the most common types of corporations. - Answers - C-
corporations
Which of the following best describes the document filed with a state government to
establish the existence of a new corporation? - Answers - Articles of incorporation.
Stockholders are __________________________ of the corporation. - Answers -
owners
A key advantage of a C corporation is: - Answers - ability to raise large amounts of
financial capital.
Which of the following describes and S-corporation? - Answers - It is a form of
corporation that avoids double taxation by having its profits flow through as income for
the owners of the corporation.
Which of the following is true of a non-profit corporation? - Answers - Non-profit
corporations cannot distribute dividends to members.
Liz, Ashley and Selena started an interior design/renovation business where they all
actively manage the company. They don't like formality and don't want to hold regular
