INTRODUCTION TO BUSINESS FINAL
EXAM QUESTIONS & ANSWERS
2023/2024
A partnership with foreign country that can provide immediate market knowledge and access comedies
risk and control over product attributes is a - ANSWER-Joint venture
A reduction in value of a nations currency relative to the curtains about the country is called - ANSWER-
Currency devaluation
A trade restriction that limits the amount of a particular good that may have been imported into a
country during a given period of time is - ANSWER-Import quota
An organization of Nations formed to promote the free movement of resources and product among its
members and to create common economic policies - ANSWER-Economic community
A firm that operates on a worldwide scale is called - ANSWER-Multinational Enterprise
Initiating is social responsibility program takes - ANSWER-A commitment of employees
Funding a program of social responsibility can come from - ANSWER-A corporate that absorb the cost as
a business expense
An employee's decision to inform the press or government officials of his or her firm's unethical
practices is referred to as - ANSWER-A whistleblower
Many economists refer to the average level of output per worker as - ANSWER-Productivity
Which of the following is not the four states of the business cycle - ANSWER-Deficit
,The Business Cycle
1. Trough
2. Expansion
3. Peak
4. Recession
A general rise in the level of prices is called - ANSWER-Inflation
A market situation in which there are many buyers and sellers of a product and no single buyer or seller
can control the price - ANSWER-Pure competition
A system of Exchange in which goods and services are exchanged without the use of money is known as -
ANSWER-A barter system
Which of the following is not one of the four resources used by businesses today - ANSWER-
Governmental
Do Use:
1. Material
2. Informational
3. Financial
4. Human
One person maintaining a business is known as - ANSWER-Sole proprietorship
Advantages of Sole Proprietorships - ANSWER-Ease of Formation
Retention of Control
Pride of Ownership
Retention of Profits
, Possible Tax Advantages
Disadvantages of Sole Proprietorships - ANSWER-Limited Financial Resources
Unlimited Liability
Limited ability to attract and maintain talented employees
Lack of Permanence
Advantages of - ANSWER-Pooled Financial Resources
Shared Responsibilities
Ease of Formation
Tax Advantages
Disadvantages of - ANSWER-Unlimited Liability
Disagreements
Difficulty in withdrawing from agreement
Lack of Continuity
Advantages of Corporations - ANSWER-Limited Liability
Permanence
Easy to Transfer Ownership
Ability to Raise Capital
Specialized Management
Disadvantages of Corporations - ANSWER-Expense/complexity of formation and operation
Double Taxation
Paperwork and Regulation
Conflicts of Interest
Unlimited liability means - ANSWER-The owner is responsible for all the business debt
EXAM QUESTIONS & ANSWERS
2023/2024
A partnership with foreign country that can provide immediate market knowledge and access comedies
risk and control over product attributes is a - ANSWER-Joint venture
A reduction in value of a nations currency relative to the curtains about the country is called - ANSWER-
Currency devaluation
A trade restriction that limits the amount of a particular good that may have been imported into a
country during a given period of time is - ANSWER-Import quota
An organization of Nations formed to promote the free movement of resources and product among its
members and to create common economic policies - ANSWER-Economic community
A firm that operates on a worldwide scale is called - ANSWER-Multinational Enterprise
Initiating is social responsibility program takes - ANSWER-A commitment of employees
Funding a program of social responsibility can come from - ANSWER-A corporate that absorb the cost as
a business expense
An employee's decision to inform the press or government officials of his or her firm's unethical
practices is referred to as - ANSWER-A whistleblower
Many economists refer to the average level of output per worker as - ANSWER-Productivity
Which of the following is not the four states of the business cycle - ANSWER-Deficit
,The Business Cycle
1. Trough
2. Expansion
3. Peak
4. Recession
A general rise in the level of prices is called - ANSWER-Inflation
A market situation in which there are many buyers and sellers of a product and no single buyer or seller
can control the price - ANSWER-Pure competition
A system of Exchange in which goods and services are exchanged without the use of money is known as -
ANSWER-A barter system
Which of the following is not one of the four resources used by businesses today - ANSWER-
Governmental
Do Use:
1. Material
2. Informational
3. Financial
4. Human
One person maintaining a business is known as - ANSWER-Sole proprietorship
Advantages of Sole Proprietorships - ANSWER-Ease of Formation
Retention of Control
Pride of Ownership
Retention of Profits
, Possible Tax Advantages
Disadvantages of Sole Proprietorships - ANSWER-Limited Financial Resources
Unlimited Liability
Limited ability to attract and maintain talented employees
Lack of Permanence
Advantages of - ANSWER-Pooled Financial Resources
Shared Responsibilities
Ease of Formation
Tax Advantages
Disadvantages of - ANSWER-Unlimited Liability
Disagreements
Difficulty in withdrawing from agreement
Lack of Continuity
Advantages of Corporations - ANSWER-Limited Liability
Permanence
Easy to Transfer Ownership
Ability to Raise Capital
Specialized Management
Disadvantages of Corporations - ANSWER-Expense/complexity of formation and operation
Double Taxation
Paperwork and Regulation
Conflicts of Interest
Unlimited liability means - ANSWER-The owner is responsible for all the business debt
