Business Management- 2026-2027 Final
Exam Questions with Correct Answers
Reduction in price given for paying by a certain date. - CORRECT ANSWER -Cash discount
Difference between sellingZprice and cost of goodsZsold. - CORRECT ANSWERZ-Net profit
Cost to produce a product or buy it for resale. - CORRECT ANSWER -Cost of goods sold
Advertising that violates the law - CORRECT ANSWER -False advertising
Advertising designed to change a false impression left by earlier misleading information. -
CORRECT ANSWER -Corrective advertising
Amount added to the cost of goods sold to calculate a selling price. -ZCORRECT ANSWER -Markup
Price reduction given toZchannel partners in exchange for additional services. - CORRECT ANSWER -
Trade discount
Amount by which the original selling price is reduced for sale. - CORRECT ANSWER -Markdown
Providing all information that allows consumersZto make an informed buying decision. -
CORRECT ANSWER -Full disclosure
Difference between sellingZprice and all costs and expenses. - CORRECT ANSWER -List price
A measure of a person's or business's sense of financial responsibility or belief in the obligation to pay de
bts. - CORRECT ANSWER -Character
AZmeasure of an individual's or business's ability and willingness to repay a loan. - CORRECT ANSWER -
Creditworthiness
, A measure of the credit applicant's current financial worth or ability to pay based on assets. -
CORRECT ANSWER -Capital
AZprivate company that acts as an intermediary between businesses and one or more credit card compan
ies to establish and maintain credit services. - CORRECT ANSWER -Merchant account provider
An assessment of the economic environment that affect credit decisions. - CORRECT ANSWER -Conditions
Insurance which offers payments to employees whoZare no longer able to work because of accidents or ill
nesses. - CORRECT ANSWER -Disability insurance
Insurance which provides protection against the expenses of health care. - CORRECT ANSWER -
Health insurance
Person who receives a life insurance payment on the death of an insured person. - CORRECT ANSWER -
Beneficiary
PlasticZcard with an embedded microprocessor thatZcan store and process a large amount of information
that can be read by computers. - CORRECT ANSWER -Smart card
The possible financial loss that the policyholder will suffer if the property is damaged or destroyed. -
CORRECT ANSWER -Insurable interest
Pay based on an hourly rate. - CORRECT ANSWER -Wage
Planned instruction with a specific curriculum and instructor. - CORRECT ANSWER -Formal training
Compensation plan that pays a percentage of the volume of sales for which an employee is responsible. -
CORRECT ANSWER -Commision plan
Exam Questions with Correct Answers
Reduction in price given for paying by a certain date. - CORRECT ANSWER -Cash discount
Difference between sellingZprice and cost of goodsZsold. - CORRECT ANSWERZ-Net profit
Cost to produce a product or buy it for resale. - CORRECT ANSWER -Cost of goods sold
Advertising that violates the law - CORRECT ANSWER -False advertising
Advertising designed to change a false impression left by earlier misleading information. -
CORRECT ANSWER -Corrective advertising
Amount added to the cost of goods sold to calculate a selling price. -ZCORRECT ANSWER -Markup
Price reduction given toZchannel partners in exchange for additional services. - CORRECT ANSWER -
Trade discount
Amount by which the original selling price is reduced for sale. - CORRECT ANSWER -Markdown
Providing all information that allows consumersZto make an informed buying decision. -
CORRECT ANSWER -Full disclosure
Difference between sellingZprice and all costs and expenses. - CORRECT ANSWER -List price
A measure of a person's or business's sense of financial responsibility or belief in the obligation to pay de
bts. - CORRECT ANSWER -Character
AZmeasure of an individual's or business's ability and willingness to repay a loan. - CORRECT ANSWER -
Creditworthiness
, A measure of the credit applicant's current financial worth or ability to pay based on assets. -
CORRECT ANSWER -Capital
AZprivate company that acts as an intermediary between businesses and one or more credit card compan
ies to establish and maintain credit services. - CORRECT ANSWER -Merchant account provider
An assessment of the economic environment that affect credit decisions. - CORRECT ANSWER -Conditions
Insurance which offers payments to employees whoZare no longer able to work because of accidents or ill
nesses. - CORRECT ANSWER -Disability insurance
Insurance which provides protection against the expenses of health care. - CORRECT ANSWER -
Health insurance
Person who receives a life insurance payment on the death of an insured person. - CORRECT ANSWER -
Beneficiary
PlasticZcard with an embedded microprocessor thatZcan store and process a large amount of information
that can be read by computers. - CORRECT ANSWER -Smart card
The possible financial loss that the policyholder will suffer if the property is damaged or destroyed. -
CORRECT ANSWER -Insurable interest
Pay based on an hourly rate. - CORRECT ANSWER -Wage
Planned instruction with a specific curriculum and instructor. - CORRECT ANSWER -Formal training
Compensation plan that pays a percentage of the volume of sales for which an employee is responsible. -
CORRECT ANSWER -Commision plan
