Indicate whether the sentence or statement is True or False. Mark "A" if the answer is True or "B" If the answer is False. 1. The National Advertising Review Board investigates
complaints about national advertisers.
a. True b. False
2. It is very important for employees to conserve company
resources. a. True b. False
3. T-Bills are issued by Class I financial houses of the New
York Stock Exchange. a. True b. False
4. Market Research firms have proven that consumers spend less in a supermarket by not having a predetermined shopping list.
a. True b. False
5. Each partner is liable for the decisions made by the other
partners. a. True b. False
6. There is little chance to be unethical in corporate America because of strong federal review.
a. True b. False
7. Credit unions are user-owned financial institutions. a. True b. False 8. When a stockholder loses on a stock investment, the
stockholder can lose only the dividend portion of the investment.
a. True b. False
9. A bull market would indicate an active stock market. a. True b. False 10. Shoplifting costs both the business and the consumer
money. a. True b. False
11. Departmentalization is an informal structure that many
large businesses use to achieve company objectives. a. True b. False 12. A business may improve its image by being socially
responsible. a. True b. False
13. A sole proprietor is ultimately responsible for all business
decisions. a. True b. False
14. A seller of an automobile may turn back the odometer on a vehicle, but must make an implied warranty to the customer before the sale is valid.
a. True b. False
15. Blue-collar workers work primarily with the operation of
machinery and equipment. a. True b. False
16. The Equal Pay Act of 1964 has ended earning inequities between men and women.
a. True b. False
17. Manufacturing jobs are growing more rapidly in the USA than service-based jobs.
a. True b. False
18. A passbook is issued to savings account customers to
keep a record of savings, withdrawals, and interest. a. True b. False 19. One advantage of being a manager is less interpersonal
skills are involved because you supervise personnel beneath you.
20. The magazine, Good Housekeeping, may endorse products it has not tested if the manufacturer provides an express warranty.
a. True b. False
21. A business may do an activity that is both legal and
unethical. a. True b. False
22. An individual should maintain as many credit cards as
possible to insure maximum buying power. a. True b. False
23. Dividends are guaranteed to each stockholder, common and preferred, at the end of the fiscal year.
a. True b. False
24. Employers can deny employment if the prospective employee is too old, but not deny employment based upon race.
a. True b. False
Mark the correct answer on your Scantron sheet for each of the following questions. 25. ABJ Trucking delivers oranges from local growers to the
Tropicana Bottling Facility, in Tampa, FL. ABJ Trucking is what type of business?
a. Processor b. Manufacturer c. Intermediary d. Corporation
26. An independent, non-profit, publication that reports on a
wide range of consumer products tested is a. Consumer Digest. b. Consumer Report. c. Good Housekeeping. d. Parents. 27. Employers who make accommodations for physically
challenged workers are complying with regulations of the
a. ADA. b. FDA. c. FTC. d. FCC.
28. Managers perform which of the following functions. a. Planning b. Organizing c. Controlling d. All the above 29. A student should base his/her career choice primarily
upon
a. interests and aptitudes. b. earning potential. c. a school counselor recommendation.
d. academic record. 30. When the government combines government controls of
basic industry with private ownership of consumer goods businesses, the result is a
a. communist economy. b. supply based economy. c. mixed economy. d. public-induced economy. 31. A local chiropractor is an example of what type of
business? a. Processor b. Manufacturer c. Intermediary d. Service
32. The largest form of advertising media that businesses use
today is a. television. b. radio. c. Internet. d. newspaper.
33. In order to verify the official authorized signature of a person issuing a check, the financial institution maintains a(n)
a. signature card. b. EFT. c. account database. d. optical scanner.
34. Fewer farmers producing beef because more people are
buying chicken is an example of a. inflation. b. deflation. c. down-sizing. d. derived demand.
35. Cuba’s economic system allows _____ government input
on the distribution of goods and services. a. total b. no c. minimal d. moderate
36. A business that buys in large quantities, stores products, ships products, and finances products is an example of a(n)
a. retailer. b. job shopper. c. wholesaler. d. outlet.
37. Labels list ingredients a. alphabetically. b. in ascending order of
38. A legal permit issued to a doctor to practice medicine is a
a. license. b. medical school diploma. c. surety bond. d. permit issued by the American Medical
Association. 39. A person driving an older car may not want to purchase
what type of coverage? a. Collision b. Medical Payments c. Property Liability d. Uninsured Motorist Liability 40. A plan for spending money is a(n) a. annual report. b. balance sheet. c. income statement. d. budget.
41. Insurance agents participate in an occupational grouping
as a a. goods producing industry. b. service producing industry. c. production based industry. d. manufacturing based industry. 42. A business that buys from many suppliers and sells to the
consumer is a
a. wholesaler. b. retailer. c. specialty outlet d. single line distributor. 43. The federal agency that enforces rules that protect the
environment is the
a. DEC. b. EOP. c. DEA. d. EPA.
44. If someone intentionally scraped paint off your car with a
key, what type of insurance coverage is required? a. Collision b. No-fault c. Umbrella d. Comprehensive 45. Public utilities are regulated by a a. Federal Oversight
Committee. b. State Public Utilities Commission. c. Local Chamber of Commerce. d. Board of Directors. 46. The amount of money a policyholder must pay for an
automobile repairs before the insurance company pays for the automobile repairs is called a
a. bond. b. deductible. c. writ. d. waiver.
47. The Smith household has an annual income of $60,000. The budget developed includes 25% food, 14% clothing, 31% housing, 15% transportation, 11% personal, and 4% savings. What dollar amount has been budgeted for food?
a. $ 6,900 b. $ 9,000 c. $15,000 d. $18,600
48. Sole proprietorships have a. limited life. b. limited liability. c. limited earning
potential. d. limited hours of operation. 49. The Better Business Bureau a. is a self-regulated
organization of
businesses. b, can force a business to do what a consumer wants.
c. helps a consumer break
a contract. d. is regulated by each state.
50. The division of the Department of Labor that sets and enforces work-related health and safety rules is the
a. EOC. b. FSA. c. ACLU. d. OSHA.
51. All of the following are functions of money except
money is a. a medium of exchange. b. a standard of value. c. based upon the gold standard. d.store of value.
52. Things that are important to you in life are your a. aptitudes. b. attitudes. c. values. d. social welfare. 53. In a market economic system, which of the following is
not a component? a. Supply b. Government based control of a product c. Demand d. Equilibrium Pricing
54. The possibility of losing personal property and savings in
a partnership is a. bankruptcy. b. lien. c. unlimited liability. d. foreclosure.
55. The first step a consumer makes in a buying decision is to
56. An attorney cannot represent both a parent’s group and a school district that the parent group chartered because a(n) _____ would exist.
a. usury b. conflict of interest c. collusion d. fraud
57. Which type of life insurance is not an example of
cash-value insurance? a. Whole Life b. Variable Life c. Limited Payment Life d. Term Life
58. Many credit unions, today, offer a. credit cards. b. home equity loans and
mortgages. c. small business loans. d. a full range of financialservices. 59. Talking with other people about their job is an example of
a. job shadowing. b. indirect observation. c. networking. d. direct observation. 60. If a 12 ounce package of bologna has a retail price of
$2.40 and a unit price of $3.20 per pound, what is the unit price per ounce?
a. $ .20 b. $ .40 c. $ .80 d. $1.20
61. A set of moral principles by which people conduct
themselves professionally are called a. bylaws. b. ethics. c. regulations. d. laws.
62. The closing paragraph of a letter of application should a. refer to the resume. b. recap the opening
paragraph. c. cite an e-mail address. d. request an interview. 63. A term used to describe factories that have unsafe
working conditions, treat workers badly, and pay poorly is
a. closed shop. b. open shop. c. migrate farm. d. sweatshop.
64. The group responsible to guide the operations of a
corporation is its a. management group. b. board of directors. c. shareholders. d. controlling interest. 65. Promotional sales are used by retailers to a. clear merchandise that
the retailer no longer wishes to carry.
b. sell merchandise no longer made.
c. sell merchandise from a vendor going out of business.
d. build acceptance for new products and services available. 66. A situation that results when all workers in a factory must
belong to a union is a(n) a. unionism. b. labor movement. c. closed shop. d. open shop.
67. Which agency is responsible for printing and maintaining
paper currency? a. Federal Reserve b. U.S. Treasury c. FDIC d. Congress
68. People who can give a report on your character,
education, and work habits are called a. sponsors. b. testimonials. c. work counselors. d. references. 69. A retail store that offers a wide variety of products and
services is a a. department store. b. discount store. c. specialty store. d. outlet store.
70. When a business contributes to the well being of a
community, the business engages in a. social responsibility. b. profit sharing. c. tax incentives. d. block grant funding. 71. Something of value a borrower puts up for a loan that a
bank may take if the borrower fails to make payments is a(n)
a. security deposit. b. collateral. c. escrow. d. bond.
72. MKL Industries established divisions in accounting, marketing, production, and human resources. This is an example of
a. line authority. b. departmentalization. c. centralization. d. unionism.
73. All of the following are efficient shopping techniques
except a. planning purchases before you shop. b. maximizing impulse buying. c. researching product information. d. planning the route of your shopping trip. 74. Businesses that are sensitive to the role of women, ethnic
75. What is the value of 30 shares of CTW stock, if the stock
closed at 8¼ yesterday? a. $ 84.50 b. $ 108.90 c. $ 247.50 d. $2,535.00
76. During an interview, you should a. be no later than 15
minutes. b. avoid eye contact with the interviewer. c. guide the discussion. d. answer all questions completely. 77. The Consumer Bill of Rights declares all the following
rights to consumers except the right to a. safety. b. privacy. c. remedy. d. service.
78. The primary factor in determining a budget is a. knowing the total
earnings. b. paying necessities first. c. planning for savings. d. analyzing family needs. 79. A share of ownership in a corporation is achieved by
purchasing
a. securities. b. bonds. c. t-bills. d. stock.
80. False information given to a customer to make a sale is considered
a. fraud. b. libel. c. slander. d. sales puffery.
81. The French economy is best described as a a. command economy. b. moderate command
economy. c. capitalist economy. d. pure private enterprise economy. 82. The organization that compiles the CPI is the a. Bureau of Labor
Statistics. b. New York Stock Exchange. c. Treasury Department. d. IRS. 83. What is the amount of interest paid on a $1,500.00
purchase, 9% APR, for 1 year? a. $115 b. $125 c. $135 d. $145
84. An organization owned and operated by its members for the purpose of saving money on the purchase of certain goods and services is a
a. cooperative. b. commune. c. joint venture. d. municipal authority.
85. A smelting plant is best described as what type of
business? a. Processor b. Manufacturer c. Intermediary d. Service business
86. The group responsible for deciding what goods and
services to produce in the United States is the a. consumers. b. manufacturers. c. wholesalers. d. retailers. 87. The National Association of Automobile Manufacturers
is an example of a a. cooperative. b. trade association. c. trade union. d. consumer oversight organization. 88. A local Pepsi-Cola bottling plant is an example of what
type of business?
a. Processor b. Manufacturer c. Intermediary d. Service Business
89. The organization that enforces laws and regulations of the
manufacturers of cosmetics is the a. FDA. b. OCA. c. FCC. d. FTC.
90. All of the following are benefits of a franchise except a
franchise a. is easy to start. b. has name recognition. c. offers proven marketing procedures. d. has unlimited products and services you can offer customers.
91. New laws such as the Food Labeling Act, is an example
of the right of _____ of the Consumer Bill of Rights. a. information b. safety c. remedy d. service 92. Spending time with a worker for a brief period of time to
learn about a certain occupation is an example of a. job shadowing. b. interning. c. cooperative education. d. work-study. 93. The primary advantage of a command economy is a. no shortage of goods. b. ease of production. c. guaranteed
employment. d. equal standard of living. 94. If your insurance carrier requires a $200 deductible and
your company policy requires 20% co-pay, how much will you pay for a $10,000 surgery?
95. The Articles of Partnership may include all of the
following components except a. duties of each partner. b. investments of each partner. c. how to end the partnership. d. division of the stock dividends the partnership issued.
96. A person renting property will purchase which type of
insurance? a. HO-2 b. HO-4 c. HO-5 d. HO-6
97. All of the following are characteristics of money except
money must be a. abundant. b. accepted. c. divisible. d. portable and durable.
98. Nathan wants to purchase special coverage for valuable antiques. The agent agrees to add a(n) _____ to Nathan’s policy.
a. unit policy b. exclusive policy c. rider d. exclusion
99. Smaller businesses use this type of management structure.
a. Line Authority b. Informal Structure c. Departmentalization d. Formal Structure
BUSINESS CONCEPTS ANSWER KEY
1. A 26. B 51. C 76. D
2. A 27. A 52. C 77. B
3. B 28. D 53. B 78. A
4. B 29. A 54. C 79. D
5. A 30. C 55. A 80. A
6. B 31. D 56. B 81. B
7. A 32. D 57. D 82. C
8. B 33. A 58. D 83. C
9. A 34. D 59. C 84. A
10. A 35. A 60. A 85. A
11. B 36. C 61. B 86. C
12. A 37. C 62. D 87. B
13. A 38. A 63. D 88. A
14. B 39. A 64. B 89. A
15. A 40. D 65. D 90. D
16. B 41. B 66. C 91. C
17. B 42. B 67. A 92. A
18. A 43. D 68. D 93. D
19. B 44. D 69. A 94. D
20. B 45. B 70. A 95. D
21. A 46. B 71. B 96. B
22. B 47. C 72. B 97. A
23. A 48. A 73. B 98. C
24. B 49. A 74. B 99. B
