Final Reveiw

Question: Profit is the only goal a business has when setting a price. True or False?

Question: The economic system generally found in countries with democratic governments is....


Question: When buyers & sellers decide a price for goods and services, they are involved in....

Voluntary Exchange

Question: Several years of operationare usually required before a new business earns a(n)
Answer: Profit

Question: Small Ownership is...

Made for those who want independence
Made for those with persistence

Question: Money needed for the important resources of a business that will last for many years is a _______


long-term financing

Question: When you buy the right to sell a product or service using a company’s name, logo, and prescribed methodof doing business, you have purchased a ___________

Answer: Fanchise

Question: What is not a type of budget? 

Answer: inventory budget 

Question: Long-term financing is the money needed to pay for the current operating activities of a business. True of False?
Answer: False 

Question: The what is the most used financial statements are ______

Answer: income statement

Question: The production process of getting goods to consumers usually requires only one business. True or False?

Answer: False 

Question: People who become part owners of a corporation are called________

Answer: cooperative owners

Question: Who would be the most impressed by a business plan?

Answer: leaders and investors

Question: All businesses must raise capital, use human resources, and keep records. True or False? 

Answer: True

Question: What is NOT one of the five activities of business managers?

Answer: Purchasing 

Question: Things that are necessary for survival such as food, clothing, and shelter are...
Answer: Needs

Question: ____________ are principles of morality or rules of conduct.
Answer: Ethics

Question: Centralized agencies deciding to make computers for business and typewriters for families this is an example of...
Answer: how to produce in a custom economy 

Question: A type of business that sells directly to the consumer is known as a...
Answer: Retailer

Question: A type of business that sells directly to the consumer is known as a...
Answer: Retailer

Question: Marketing increases our standard of living by helping businesses understand our needs so they can produce the products and services we want. True or False?
Answer: False

Question: This form of business represents two-thirds of U.S. businesses it is  __________
Answer: sole porprietorship

Question: The four marketing mix elements are:
Answer: product, place, promotion, pricing

Question: In this economy, the three economic questions are answered through people buying and selling activities in the marketplace. What economy is it? 
Answer: market economy 

Question: Which of the following steps is the correct order of the economic decision making process?
Answer: define the problem, evaluate the advantages of each, chose