MGMT 1010 Exam Questions With 100% Correct Answers 2024/2025

MGMT 1010 Exam Questions With 100% Correct Answers 2024/2025 The primary goal of a nonprofit business is to ________. - answeruse its revenues to provide a public service What is the business function accountable for raising funds to grow a business? - answerFinance. Glenda opened a tax accounting business where she works with small businesses to manage their finances and prepare their records for tax season. Glenda's primary objective when she opened her business was ________. - answermaking a profit Both for-profit and nonprofit organizations can ________. - answerearn revenues When a business does not generate enough revenue to cover salaries, rent, and other expenses, it incurs a ________. - answerloss A person who seeks to earn profits by assuming the risk of owning and running a business is a(n)________. - answerentrepreneur InfoTech is a computer application firm based in Silicon Valley and has been responsible for introducing some of the highest rated applications available for personal productivity. Two brothers originally founded the company, but they quickly realized they needed to convert the business into a corporation and establish functional areas within the company to handle various aspects of operations. The company is now considering expanding operations by building a production facility in another country. The Board of Directors has approved this move, and now it will become the responsibility of which functional area to secure the necessary funding for the expansion? - answerFinance. The American Red Cross raises money by asking for donations and selling t-shirts and other merchandise. The American Red Cross does not return its profits to the owners, but uses them to provide a public service. For this reason, the American Red Cross is ________. - answera nonprofit business 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? - answerAccounting. When companies adjust their processes to be sure they offer high-quality products and good service at competitive prices they are responding to which external force? - answerThe competitive environment. What is the term for an extended period of economic decline with no improving indicators? - answerdepression When the actual price in some market is above the equilibrium price, the resulting market condition is known as: - answerexcess supply. The point of a business cycle fluctuation during which growth ceases and the economy has hit a bottom is called a(n): - answertrough. Which of the following items is not scarce? - answerair Falling economic indicators typically signal ________ in the economy. - answerrecession According to the law of supply, assuming other factors are held constant: - answeras the price of milk decreases, the quantity of milk supplied will decrease. Rising economic indicators typically signal ________ in the economy. - answerexpansion When higher prices result in higher quantity supplied, economists call this relationship: - answerthe law of supply. What will we never do in a world of scarcity? - answerMeet all of society's wants. The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases. - answerprice : quantity demanded If you were given the task of totalling all the M2 money in circulation in the US, which of the following would you include in your calculations? - answerSavings accounts Hometown Bank has made a significant number of loans to their customers, some of which have been very large. An audit of the bank's records shows that as a result of this increased lending activity, the bank is now below the Federal Reserve's minimum reserve requirement. The Fed lends the bank the amount necessary to bring its reserves up to the required level. Even though Hometown Bank is borrowing the money from the Fed, it will still have to pay interest on this money. The interest rate that is paid to the Fed on this loan is the - answerdiscount rate Shannon went to the pet store and bought a dog bowl. The bowl cost $15 and Shannon used a $20 bill to pay for the bowl. She received $5 back in change during this transaction. The $15 price of the dog bowl - answeris a precise measurement of the value of the dog bowl. Your company decides to hire a new employee named Philip. Philip makes $40,000 salary for the year. The $40,000 Philip earns is - answera measurement of his work's value to the company.