Intro to Business Quiz
Questions: 16 · 10 minutes
1. Which objective is the best example of a SMART business goal?
Become a much better company as soon as possible
Encourage employees to care more about customer service
Increase repeat online purchases from 25% to 30% by the end of the next quarter
Earn the highest possible profit while keeping every customer satisfied
2. Which expense is most likely to be a variable cost for a company that ships jars of sauce?
The monthly rent for its warehouse
The annual premium for property insurance
The packaging used for each jar sold
The fixed salary of its general manager
3. What is the primary purpose of a business mission statement?
To report the business's financial performance for the past year
To list detailed daily tasks for every employee
To forecast exact sales and expenses for a future period
To express the organization's fundamental purpose and whom it aims to serve
4. A factory discovers that a legally permitted process may still impose substantial costs on nearby residents. Which response most closely reflects a stakeholder approach to ethics?
Consider only whether changing the process would increase short-term profit
Continue unchanged because legal compliance settles every ethical question
Consult affected groups and seek ways to reduce the harm, even if the process is legal
Wait to respond unless residents become paying customers or shareholders
5. A product sells for $50 per unit, has a variable cost of $30 per unit, and carries $4,000 in fixed costs. How many units must be sold to break even?
80 units
200 units
134 units
250 units
6. A manager delegates responsibility for preparing a client presentation. Which approach best reflects effective delegation?
Specify every minor action so the employee cannot choose how to proceed
Assign the task but retain all decision-making authority and information
Transfer both the task and the manager's ultimate accountability to the employee
Clarify the expected result and authority while remaining accountable for the assignment
7. A workshop makes 600 units using 120 labor hours. Which figure represents its labor productivity for this period?
0.2 labor hours per employee
4 units per labor hour
480 units after labor costs
5 units per labor hour
8. Which statement best describes a business's revenue?
The assets remaining after all liabilities are deducted
The income earned from sales before related expenses are subtracted
The cash available after the owners receive dividends
The amount by which operating costs exceed sales
9. A sportswear company groups potential buyers by age, exercise habits, and preferred activities before designing campaigns. What is it doing?
Diversifying its suppliers
Segmenting its market
Calculating its liquidity
Standardizing its accounting records
10. Maya spends Saturday developing her online shop instead of taking a paid shift worth $120. What is the clearest opportunity cost of her choice?
The $120 wage she gives up by not taking the shift
The total amount she has previously invested in the shop
The future revenue the shop might eventually generate
The price customers are willing to pay for her products
11. A popular health report increases consumers' desire for blueberries, while supply conditions remain unchanged. What is the most likely immediate market effect?
The supply curve shifts left because producers sell fewer blueberries
Demand falls because consumers expect blueberry prices to rise
Equilibrium quantity falls while the demand curve remains unchanged
Demand shifts right, putting upward pressure on equilibrium price and quantity
12. A profitable wholesaler cannot pay a bill on time because many customers bought on credit and have not yet paid. Which issue is the wholesaler experiencing?
A cash-flow shortage linked to accounts receivable
Excessive market segmentation
A decline in employee productivity
A loss of brand equity
13. A local repair company offers a patented same-day process that competitors cannot readily copy, and customers value the speed. This is best described as what?
A conflict of interest
A break-even position
A competitive advantage
An economy-wide recession
14. Who is a stakeholder in a business?
Any person or group affected by, or able to affect, the business
Only someone who owns shares in the business
Only a customer who purchases from the business regularly
Any company that sells the same type of product
15. A company has $90,000 in assets and $35,000 in liabilities. Under the basic accounting equation, how much owners' equity does it have?
$55,000
$90,000
$125,000
$35,000
16. A founder needs capital and agrees to give an investor a 20% ownership interest in the company. What type of financing is this?
Trade credit
Equity financing
Operating revenue
Debt financing