BUSI 1301 FINAL EXAM QUESTIONS WITH VERIFIED
ANSWERS
Which type of business physically produces the product it sells to consumers? -
Answers - Manufacturing
In ______ competition there are many sellers and the market sets the price. - Answers -
Perfect
During which part of the business cycle does unemployment reach its lowest? -
Answers - Peak
The sum total of all goods and services produced within the boundaries of a country in
one year is called what? - Answers - Gross Domestic Product
Capital, land, labor, and entrepreneurship are the four factors of production. - Answers -
True
Every business must do three things to be successful. Which of the following is not one
of those things?
Make a profit
Be organized with resources
Set the most competitive price for products
Satisfy a need - Answers - Set the most competitive price for products
In the chapter 1 PowerPoint lecture this week your instructor said she has always
wanted to be on what reality TV show - Answers - Shark Tank
What was the earliest form of American business systems - Answers - Barter systems
Products that are made or grown abroad but sold in the United States are called what -
Answers - Imports
If a good like oil is an import in the United States it cannot also be an export - Answers -
False
If a country imports the same value of goods it exports it would have what - Answers -
Perfect balance of trade
A trade deficit is created by what - Answers - Negative balance on trade
, Which of the following has the highest level of international involvement - Answers -
Multinational company
If a US business is operating in another country they are not required to follow the laws
of that country for business. They are only required to follow the laws of the US when
doing business. - Answers - False
Which model of business ethics says that society will be most benefited when a
business is left alone to produce and market products that society needs. - Answers -
Economic model
The simplest form of business owned and operated by one person is called - Answers -
Sole proprietorship
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? -
Answers - Sole proprietorship
Which of the following is an advantage of a sole proprietorship - Answers - Profits are
taxed as individual income
All of the following are advantages of the partnership form of organization except
Combined skills and knowledge
Retention of profits
Better access to capital and credit
Unlimited liability - Answers - Unlimited liability
Thomas wants to make money so he starts his own business as a sole proprietor he
likes this form of business because - Answers - he will get to keep all of the profits the
business makes.
Which form of business is the easiest to start - Answers - Sole proprietorship
All of the following are disadvantages that Sean should consider before entering a
general partnership agreement with his cousin except
Lack of continuity
The inability to get out the money he invest
Double taxation
Unlimited liability - Answers - Double taxation
What is the primary disadvantage of both a sole proprietor ship and a partnership that a
corporation overcomes - Answers - Unlimited liability
ANSWERS
Which type of business physically produces the product it sells to consumers? -
Answers - Manufacturing
In ______ competition there are many sellers and the market sets the price. - Answers -
Perfect
During which part of the business cycle does unemployment reach its lowest? -
Answers - Peak
The sum total of all goods and services produced within the boundaries of a country in
one year is called what? - Answers - Gross Domestic Product
Capital, land, labor, and entrepreneurship are the four factors of production. - Answers -
True
Every business must do three things to be successful. Which of the following is not one
of those things?
Make a profit
Be organized with resources
Set the most competitive price for products
Satisfy a need - Answers - Set the most competitive price for products
In the chapter 1 PowerPoint lecture this week your instructor said she has always
wanted to be on what reality TV show - Answers - Shark Tank
What was the earliest form of American business systems - Answers - Barter systems
Products that are made or grown abroad but sold in the United States are called what -
Answers - Imports
If a good like oil is an import in the United States it cannot also be an export - Answers -
False
If a country imports the same value of goods it exports it would have what - Answers -
Perfect balance of trade
A trade deficit is created by what - Answers - Negative balance on trade
, Which of the following has the highest level of international involvement - Answers -
Multinational company
If a US business is operating in another country they are not required to follow the laws
of that country for business. They are only required to follow the laws of the US when
doing business. - Answers - False
Which model of business ethics says that society will be most benefited when a
business is left alone to produce and market products that society needs. - Answers -
Economic model
The simplest form of business owned and operated by one person is called - Answers -
Sole proprietorship
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? -
Answers - Sole proprietorship
Which of the following is an advantage of a sole proprietorship - Answers - Profits are
taxed as individual income
All of the following are advantages of the partnership form of organization except
Combined skills and knowledge
Retention of profits
Better access to capital and credit
Unlimited liability - Answers - Unlimited liability
Thomas wants to make money so he starts his own business as a sole proprietor he
likes this form of business because - Answers - he will get to keep all of the profits the
business makes.
Which form of business is the easiest to start - Answers - Sole proprietorship
All of the following are disadvantages that Sean should consider before entering a
general partnership agreement with his cousin except
Lack of continuity
The inability to get out the money he invest
Double taxation
Unlimited liability - Answers - Double taxation
What is the primary disadvantage of both a sole proprietor ship and a partnership that a
corporation overcomes - Answers - Unlimited liability
