Commerce Quiz Questions
Questions: 16 · 10 minutes
1. Which equation is the foundation of a balance sheet?
Cash = Revenue + Liabilities
Revenue = Assets − Expenses
Assets = Liabilities + Owner's Equity
Profit = Assets − Owner's Equity
2. A manager assigns a supervisor authority to schedule shifts but remains answerable for the department's results. Which management practice does this illustrate?
Outsourcing
Centralization
Job rotation
Delegation
3. A clothing company divides potential customers into groups based on age, buying habits, and preferred styles. What is this process called?
Market segmentation
Product diversification
Vertical integration
Sales forecasting
4. Procurement favors a cheaper supplier, while operations worries that its unreliable deliveries will halt production. Which approach best supports a sound decision?
Choose the supplier with the lowest quoted unit price
Let the department with the larger budget decide
Compare total costs and delivery impacts using agreed criteria
Split all orders equally without evaluating performance
5. A small firm can fund either staff training or a new machine, but not both. It chooses the machine. What is the opportunity cost of that decision?
The purchase price of the machine
The value of the staff training that was not chosen
The firm's total operating expenses for the year
The future depreciation recorded on the machine
6. A purchasing manager realizes that one bidder is owned by a close relative. Which response best protects the integrity of the purchasing process?
Privately favor the bid if its price appears competitive
Continue evaluating it without mentioning the relationship
Disclose the conflict and step back as required by policy
Reject the bid immediately without documenting a reason
7. A company reports an annual profit, yet it cannot pay suppliers this week because customers have not settled their invoices. What is the most immediate problem?
Excessive market share
Insufficient gross margin
Overstated employee productivity
Poor cash-flow timing
8. A store sells an average of 20 units per day, and replenishment takes five days. Assuming stable demand and no safety stock, at what inventory level should it reorder?
25 units
400 units
200 units
100 units
9. A product sells for $40 per unit, has a variable cost of $25 per unit, and incurs $30,000 in fixed costs. How many units must be sold to break even?
750 units
1,200 units
2,750 units
2,000 units
10. If consumer income rises and a product is a normal good, what would generally happen, assuming other factors remain unchanged?
The demand curve would shift to the right
The demand curve would shift to the left
Supply would automatically decrease
There would be movement down the same demand curve
11. An entrepreneur wants a business form that can raise capital by issuing shares while generally limiting owners' personal liability. Which form best fits?
Corporation
General partnership
Nonprofit association
Sole proprietorship
12. A manufacturer negotiates volume discounts and spreads factory overhead across more units as production expands. This is an example of what?
Price discrimination
Economies of scale
Market saturation
Diseconomies of scope
13. What is the central idea of the contingency approach to management?
Employees should manage without formal leadership
Effective management practices depend on the situation
One leadership style is effective in every organization
Managers should base decisions only on past financial results
14. Last month, a team produced 720 units in 90 labor hours. This month, it produced 800 units in 100 labor hours. What happened to labor productivity?
It increased by 10%
It remained at 8 units per labor hour
It increased from 8 to 10 units per hour
It decreased by 10%
15. A retailer records $50,000 in sales revenue and $30,000 in cost of goods sold. Before operating expenses, what is its gross profit?
$20,000
$50,000
$30,000
$80,000
16. A brand begins selling directly through its own website instead of relying only on retail stores. Which element of the marketing mix is most directly changed?
Product
Price
Place
Promotion