1. INTRO TO BUSINESS TERMINOLOGY REVIEW

2. A About what percentage of U.S. businesses employ 100 or more workers? a.1 percent b.5 percent c.20 percent d.35 percent

3. EVERY BUSINESS PERFORMS ALL OF THE FOLLOWING ACTIVITIES EXCEPT B a.maintaining business records. b.manufacturing products. c.raising capital. d.buying goods and services.

4. WHICH OF THE FOLLOWING TYPE OF BUSINESS IS NOT A PRODUCER? A a.pharmacy b.appliance factory c.coal mine d.chicken farm

5. WHICH MAJOR CATEGORY OF BUSINESS IS THE FASTEST-GROWING IN THE U.S. ECONOMY? D a.producer b.manufacturer c.intermediary d.service business

6. PROPRIETORSHIPS C a.are owned and controlled by two or more people who have entered into a written agreement. b.account for the largest percentage of business revenues in the U.S. c.are the easiest form of business to start. d.protect the liability of the business owners to only the amount of money they have invested directly in the business.

7. OF THE MAJOR FORMS BUSINESS OWNERSHIP IN THE U.S., WHICH IS THE LEAST COMMON? A a.partnership b.franchise c.corporation d.proprietorship

8. WHICH OF THE FOLLOWING WOULD TYPICALLY NOT BE SPECIFIED IN A PARTNERSHIP AGREEMENT? B a.the business name b.the number of hours per week the business will operate c.the amount of investment of each partner d.the level of authority each partner has

9. A WRITTEN LEGAL DOCUMENT DEFINING OWNERSHIP AND OPERATING PROCEDURES AND CONDITIONS FOR A CORPORATION IS D a.corporate code of ethics. b.partnership agreement. c.articles of confederation. d.articles of incorporation.

10. THE PEOPLE WHO MAKE THE MAJOR POLICY AND FINANCIAL DECISIONS FOR A CORPORATION ARE CALLED THE C a.stockholders. b.owners. c.board of directors. d.partners.

11. A UNIQUE BUSINESS ORGANIZED BY TWO OR MORE OTHER BUSINESSES TO OPERATE FOR A LIMITED TIME AND FOR A SPECIFIC PROJECT IS CALLED A A.JOINT VENTURE. B.LIMITED LIABILITY PARTNERSHIP. C.LIMITED LIABILITY COMPANY. D.NONPROFIT CORPORATION. A

12. A PRECISE STATEMENT OF RESULTS A BUSINESS EXPECTS TO ACHIEVE IS A A.MISSION STATEMENT. B.GOAL. C.POLICY. D.PROCEDURE. B

13. THE RIGHT TO MAKE DECISIONS ABOUT HOW RESPONSIBILITIES SHOULD BE ACHIEVED IS CALLED A.LIABILITY. B.SPAN OF CONTROL. C.ACCOUNTABILITY. D.AUTHORITY. D

14. A MAJOR ADVANTAGE OF A FUNCTIONAL ORGANIZATIONAL STRUCTURE IS THAT A.PEOPLE WORK WITH OTHERS WHO HAVE THE SAME SKILLS. B.ALL OF THE PEOPLE WITH SIMILAR JOBS WILL BE PAID THE SAME SALARY. C.PEOPLE WORKING IN ONE FUNCTION HAVE LITTLE INTERACTION WITH PEOPLE IN OTHER PARTS OF THE BUSINESS. D.PEOPLE OFTEN BECOME MORE FOCUSED ON THEIR SPECIFIC FUNCTION THAN ON THE SUCCESS OF THE WHOLE BUSINESS. A

15. WHICH OF THE FOLLOWING IS PROBABLY THE LEAST IMPORTANT FACTOR IN BECOMING AN ENTREPRENEUR? A.LIVING IN A MAJOR U.S. CITY B.HAVING SPECIAL SKILLS AND ABILITIES C.HAVING A REAL DESIRE TO BE YOUR OWN BOSS D.DEVELOPING A GOOD INITIAL BUSINESS PLAN A

16. SUCCESSFUL ENTREPRENEURS TEND TO HAVE ALL OF THE FOLLOWING CHARACTERISTICS EXCEPT A.ENERGETIC. B.GOAL-ORIENTED. C.CREATIVE. D.HESITANT. D

17. ENTREPRENEURS A.MUST HAVE A VERY LOW TOLERANCE FOR AMBIGUITY. B.ALMOST ALWAYS OWN THEIR FIRST BUSINESS WHILE IN THEIR TEENS. C.COME FROM ALL AGE CATEGORIES AND EDUCATIONAL BACKGROUNDS. D.MUST HAVE A BUSINESS DEGREE TO BE SUCCESSFUL. C

18. MOST OF THE MONEY NEEDED TO START A NEW BUSINESS COMES FROM A.THE SALE OF STOCK. B.CREDIT GIVEN BY BUSINESSES THAT SELL PRODUCTS AND SERVICES TO THE NEW BUSINESS. C.BANK LOANS. D.THE ENTREPRENEUR AND HIS/HER FAMILY AND FRIENDS. D

19. SCRUBBLES LAUNDRY DETERGENT HAS BEEN ON THE MARKET FOR YEARS. THE MANUFACTURER OF SCRUBBLES RECENTLY ADDED A NEW INGREDIENT TO GIVE THE DETERGENT EXTRA CLEANING POWER. THIS IS AN EXAMPLE OF AN A.IMPROVEMENT. B.INVENTION. C.INNOVATION. D.OPPORTUNITY COST. A

20. WHICH OF THE FOLLOWING DOES NOT DESCRIBE A TYPICAL SMALL BUSINESS? A.THE OWNER IS USUALLY THE MANAGER. B.IT IS DOMINANT IN ITS FIELD. C.IT SERVES A SMALL MARKET. D.IT OPERATES IN ONE OR VERY FEW LOCATIONS. B

21. SMALL BUSINESS OWNERS A.USUALLY GET DIRECT INFORMATION FROM THEIR CUSTOMERS ABOUT WHAT THEY LIKE AND DISLIKE. B.HAVE LESS FREQUENT CONTACT WITH THEIR CUSTOMERS THAN LARGE BUSINESSES. C.RELY HEAVILY ON CONSUMER RESEARCH TO GATHER INFORMATION. D.TYPICALLY FOCUS ON PRODUCTS AND SERVICES THAT MEET THE NEEDS OF A LARGE GROUP OF CUSTOMERS. A

22. SMALL BUSINESSES HAVE AN ADVANTAGE OVER BIG BUSINESSES WHEN CUSTOMERS A.ARE WILLING TO BUY STANDARD PRODUCTS. B.WANT MORE INDIVIDUAL ATTENTION. C.PREFER LOW COST AND EFFICIENT DELIVERY. D.ALL OF THE ABOVE B

23. LOCATION IS IMPORTANT TO SMALL RETAIL BUSINESSES BECAUSE A.MOST RETAILERS NEED GOOD CUSTOMER TRAFFIC TO SURVIVE. B.MANY POTENTIAL CUSTOMERS WILL STAY AWAY IF THE BUSINESS IS NOT EASY TO FIND. C.CUSTOMERS GENERALLY DO NOT WANT TO TRAVEL LONG DISTANCES TO FIND WHAT THEY NEED. D.ALL OF THE ABOVE D

24. THE MOST SUCCESSFUL SMALL BUSINESS OWNERS A.ESTABLISH GOOD WORKING RELATIONSHIPS WITH PROFESSIONALS SUCH AS BANKERS, LAWYERS, AND ACCOUNTANTS. B.HAVE NEVER WORKED FOR ANYONE ELSE BEFORE. C.DO NOT NEED TO CHOOSE EMPLOYEES CAREFULLY BECAUSE THEY WILL BE THE ONES GIVING ORDERS. D.UNDERSTAND THAT A WRITTEN BUSINESS PLAN IS A WASTE OF TIME AND MONEY. A

25. WHICH ELEMENT OF A BUSINESS PLAN DISCUSSES THE ENTREPRENEUR’S SHORT- AND LONG-TERM GOALS FOR THE BUSINESS? A.FINANCIAL PLANS B.DESCRIPTION OF THE COMPETITION C.DESCRIPTION OF THE BUSINESS D.CUSTOMER ANALYSIS C

26. WHICH OF THE FOLLOWING WOULD NOT BE DISCUSSED IN THE OPERATIONS PLAN SECTION OF A BUSINESS PLAN? A.ORGANIZATION OF THE COMPANY B.SALES FORECASTS C.HUMAN RESOURCE PLANS D.ANALYSIS OF RESOURCES NEEDED B

27. IF YOU START A NEW BUSINESS, YOU NEED INFORMATION ABOUT A.COMPETITORS. B.GOVERNMENT REGULATIONS. C.CUSTOMERS. D.ALL OF THE ABOVE D

28. THE FIRST STEP IN DEVELOPING A BUSINESS PLAN IS TO A.IDENTIFY ALTERNATIVE PLANS FOR PRODUCTION AND MARKETING. B.WRITE THE INTRODUCTORY SECTION. C.DEVELOP THE “GAME PLAN.” D.GATHER AND REVIEW INFORMATION. D

29. SHORT-TERM FINANCING IS OBTAINED FOR A PERIOD OF LESS THAN A.THREE MONTHS. B.SIX MONTHS. C.ONE YEAR. D.TWO YEARS. C

30. WHICH ONE OF THE MANAGEMENT FUNCTIONS INVOLVES ANALYZING INFORMATION, SETTING GOALS, AND MAKING DECISIONS ABOUT WHAT NEEDS TO BE DONE? A.ORGANIZING B.PLANNING C.IMPLEMENTING D.CONTROLLING B

31. THE STAFFING MANAGEMENT FUNCTION A.INCLUDES ALL OF THE ACTIVITIES INVOLVED IN OBTAINING AND COMPENSATING EMPLOYEES. B.MEANS IDENTIFYING AND ARRANGING THE RESOURCES NEEDED TO GET THE JOB DONE. C.MEASURES HOW WELL AN ORGANIZATION IS ACCOMPLISHING ITS GOALS. D.INVOLVES GETTING THE DAY-TO-DAY WORK OF THE ORGANIZATION DONE. A

32. JUST ONE PERSON IS MOST LIKELY RESPONSIBLE FOR ALL OF THE MANAGEMENT FUNCTIONS IN A A.NEW SMALL BUSINESS. B.PARTNERSHIP. C.LARGE CORPORATION. D.MULTINATIONAL COMPANY. A

33. WHICH OF THE FOLLOWING IS PROBABLY NOT A MID-MANAGEMENT JOB? A.CUSTOMER SERVICE REPRESENTATIVE B.INFORMATION TECHNOLOGY MANAGER C.MARKETING MANAGER D.VICE-PRESIDENT OF HUMAN RESOURCES D

34. EXECUTIVES SPEND MOST OF THEIR TIME ON A.PLANNING AND CONTROLLING ACTIVITIES. B.PLANNING AND ORGANIZING ACTIVITIES. C.IMPLEMENTING, STAFFING, AND CONTROLLING ACTIVITIES. D.ORGANIZING AND IMPLEMENTING ACTIVITIES. A

35. THE FIRST LEVEL OF MANAGEMENT IN A BUSINESS ARE A.MID-MANAGERS. B.SUPERVISORS. C.ENTREPRENEURS. D.EXECUTIVES. B

36. THE WAY A MANAGER TREATS AND INVOLVES EMPLOYEES IS CALLED A.ENTREPRENEURSHIP. B.INFLUENCE. C.MANAGEMENT STYLE. D.LEADERSHIP. C

37. IN WHICH OF THE FOLLOWING SITUATIONS SHOULD A MANAGER USE TACTICAL MANAGEMENT? A.WHEN THE WORK IS ROUTINE WITH NEW CHALLENGES B.WHEN WORKING WITH PART-TIME OR TEMPORARY EMPLOYEES C.WHEN EMPLOYEES ARE DOING WORK THEY ENJOY D.WHEN THE MANAGER WANTS TO IMPROVE GROUP RELATIONS B

38. THE COMBINED USE OF TACTICAL AND STRATEGIC MANAGEMENT IS KNOWN AS A.MIXED MANAGEMENT. B.MISMANAGEMENT. C.MANAGEMENT BY COMMITTEE. D.MANAGEMENT BY OTHERS. A

39. THIS LEADERSHIP CHARACTERISTIC INVOLVES MAKING DECISIONS CAREFULLY. A.INITIATIVE B.COMMUNICATION C.JUDGMENT D.UNDERSTANDING C

40. ALL LEADERS NEED TO BE DEPENDABLE, WHICH MEANS THAT THEY A.ABLE TO LISTEN, SPEAK, AND WRITE EFFECTIVELY. B.CAN LOOK AT ALL SIDES OF AN ISSUE BEFORE MAKING A DECISION. C.RESPECT THE FEELINGS AND NEEDS OF THE PEOPLE THEY WORK WITH. D.FOLLOW THROUGH ON COMMITMENTS. D

41. MANAGERS TYPICALLY SPEND MUCH OF THEIR TIME DEALING WITH A.CUSTOMERS. B.PEOPLE FROM OTHER ORGANIZATIONS. C.OTHER MANAGERS IN THEIR OWN ORGANIZATIONS. D.ALL OF THE ABOVE D

42. WHICH OF THE FOLLOWING IS NOT AN IMPORTANT HUMAN RELATIONS SKILL NEEDED BY LEADERS AND MANAGERS? A.HIGH LEVEL OF EDUCATION B.SELF UNDERSTANDING C.COMMUNICATION D.TEAM BUILDING A

43. JOHN, A CUSTOMER SERVICE MANAGER, HAS SENT A MEMO TO BRIANNE, ONE OF HIS EMPLOYEES. THIS IS AN EXAMPLE OF A.HORIZONTAL COMMUNICATION. B.EXTERNAL COMMUNICATION. C.VERTICAL COMMUNICATION. D.ORAL COMMUNICATION. C

44. A GROUP OF EMPLOYEES MEET EVERY DAY AT LUNCH TO CHAT ABOUT WHAT’S GOING ON IN THE OFFICE. THIS IS AN EXAMPLE OF A.UNAUTHORIZED COMMUNICATION. B.LATERAL COMMUNICATION. C.INFORMAL COMMUNICATION. D.EXTERNAL COMMUNICATION. A

45. SOURCES OF JOB SATISFACTION INCLUDE A.ASSIGNMENTS EMPLOYEES DO NOT LIKE. B.RECOGNITION FROM SUPERVISORS FOR A JOB WELL DONE. C.INEFFECTIVE COMMUNICATION. D.POOR WORKING CONDITIONS. B

46. THE MEMBERS OF KIMBERLY’S WORK UNIT SUPPORT HER BECAUSE THEY LIKE HER AND BELIEVE SHE HAS THE BEST INTERESTS OF HER EMPLOYEES IN MIND. THIS IS AN EXAMPLE OF A.IDENTITY INFLUENCE. B.EXPERT INFLUENCE. C.REWARD INFLUENCE. D.POSITION INFLUENCE. A

47. MISSION STATEMENTS A.ARE THE GUIDELINES THAT DIRECT EMPLOYEES’ BEHAVIOR. B.DESCRIBE THE REASON BUSINESSES EXISTS AND WHAT THEY WANT TO ACCOMPLISH. C.ARE WRITTEN EXPLANATIONS OF HOW SPECIFIC BUSINESS IDEAS WILL BE CARRIED OUT. D.ARE THE PRINCIPLES OF CONDUCT GOVERNING AN INDIVIDUAL OR GROUP. B

48. X

49. X

50. X