IUPUI Bus X100 Exam 1 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Today the U.S. economy is often characterized as a __________ economy. - CORRECT
ANSWER - Mixed
Which of the following is NOT one of the four resources used by businesses today?
A. Material
B. Governmental C. Informational
D. Human
E. Financial - CORRECT ANSWER - Governmental
Business is the organized effort of individuals to _________ and ___________ for a profit the
products and services that satisfy society's needs. - CORRECT ANSWER - produce / sell
There are _________ sole proprietorships and partnerships in the United States today than there
are corporations. - CORRECT ANSWER - more
What type of partner in a limited partnership can lose no more money than that which they
invested in the business? - CORRECT ANSWER - Limited
The type of business that is the easiest to start and is the simplest form of business is the -
CORRECT ANSWER - Sole Proprietorship
Ease of raising capital is a characteristic of which type of ownership? - CORRECT
ANSWER - Corporations
The top governing body of a corporation of which are elected by the stockholders is called the -
CORRECT ANSWER - board of directors.
, A corporation whose stock is bought and sold on security exchanges and can be purchased by
any individual is referred to as a(n)_____________ corporation. - CORRECT ANSWER -
Open
Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale with weakening
ties to any single country. These are examples of - CORRECT ANSWER - multinational
enterprises
Laura wants to start a business, but she is unsure of the legal form best for her. Short of cash, she
has decided to take the form that is the least expensive and most flexible in terms of decision
making and implementation. Which would you recommend? - CORRECT ANSWER - Sole
proprietorship
Gail Nelson begins her first job after graduating from college and starts putting money away in a
savings account. She believes she has removed this money from the circular flow between
buyers and sellers that she studied in Introduction to Business. Is Gail correct? - CORRECT
ANSWER - No, even though she has saved this money, the bank will in turn invest the money
back into the circular flow.
When a country's currency is devalued, this ______________ the cost of foreign goods and
______________ the cost of domestic goods to foreign firms - CORRECT ANSWER -
increases; decreases
Which of the following would not be included in the gross domestic product of the United
States? - CORRECT ANSWER - Value of McDonald's sales for their Tokyo locations
Shawn Sine decides to start his own business. How likely is Shawn to still be operating a
successful business in ten years - CORRECT ANSWER - It is unlikely because well over half
of new small businesses fail.
The Kingdom of Rhonda has no high tariffs, yet other countries find it difficult to trade with the
Kingdom of Rhonda because of its requirements for labeling, product testing, and certifications.
These restrictions can best be classified as - CORRECT ANSWER - bureaucratic red tape
ACTUAL Exam Questions and CORRECT
Answers
Today the U.S. economy is often characterized as a __________ economy. - CORRECT
ANSWER - Mixed
Which of the following is NOT one of the four resources used by businesses today?
A. Material
B. Governmental C. Informational
D. Human
E. Financial - CORRECT ANSWER - Governmental
Business is the organized effort of individuals to _________ and ___________ for a profit the
products and services that satisfy society's needs. - CORRECT ANSWER - produce / sell
There are _________ sole proprietorships and partnerships in the United States today than there
are corporations. - CORRECT ANSWER - more
What type of partner in a limited partnership can lose no more money than that which they
invested in the business? - CORRECT ANSWER - Limited
The type of business that is the easiest to start and is the simplest form of business is the -
CORRECT ANSWER - Sole Proprietorship
Ease of raising capital is a characteristic of which type of ownership? - CORRECT
ANSWER - Corporations
The top governing body of a corporation of which are elected by the stockholders is called the -
CORRECT ANSWER - board of directors.
, A corporation whose stock is bought and sold on security exchanges and can be purchased by
any individual is referred to as a(n)_____________ corporation. - CORRECT ANSWER -
Open
Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale with weakening
ties to any single country. These are examples of - CORRECT ANSWER - multinational
enterprises
Laura wants to start a business, but she is unsure of the legal form best for her. Short of cash, she
has decided to take the form that is the least expensive and most flexible in terms of decision
making and implementation. Which would you recommend? - CORRECT ANSWER - Sole
proprietorship
Gail Nelson begins her first job after graduating from college and starts putting money away in a
savings account. She believes she has removed this money from the circular flow between
buyers and sellers that she studied in Introduction to Business. Is Gail correct? - CORRECT
ANSWER - No, even though she has saved this money, the bank will in turn invest the money
back into the circular flow.
When a country's currency is devalued, this ______________ the cost of foreign goods and
______________ the cost of domestic goods to foreign firms - CORRECT ANSWER -
increases; decreases
Which of the following would not be included in the gross domestic product of the United
States? - CORRECT ANSWER - Value of McDonald's sales for their Tokyo locations
Shawn Sine decides to start his own business. How likely is Shawn to still be operating a
successful business in ten years - CORRECT ANSWER - It is unlikely because well over half
of new small businesses fail.
The Kingdom of Rhonda has no high tariffs, yet other countries find it difficult to trade with the
Kingdom of Rhonda because of its requirements for labeling, product testing, and certifications.
These restrictions can best be classified as - CORRECT ANSWER - bureaucratic red tape
