27. The part of the profitsthat are paid to shareholders is called
| a. | excess profit | c. | a dividend |
| b. | a surplus | d. | none of the above |
28. Considering the needs ofcustomers when developing new products or services is an important part of the
| a. | Marketing concept | c. | Target Market |
| b. | Buying motive | d. | Distribution channel |
29. A business that takesnatural resources and converts them to consumer goods is a
| a. | manufacturer | c. | marketer |
| b. | extractor | d. | wholesaler |
30. If one store must lowerits prices in response to another store’s advertised low prices, it is facingthe effects of ________________.
| a. | productivity | c. | standard of living |
| b. | supply | d. | competition |
31. Changing something fromone form to another so it can be consumed or used to make something else isknown as
| a. | extracting | c. | marketing |
| b. | processing | d. | evolution |
32. Throughout the economy,the consumption of luxuries is beginning to increase. This scenario would most likely fall into the _______________ business cycle.
| a. | Prosperity | c. | Depression |
| b. | Recession | d. | Recovery |
33. The United States isprimarily a __________________economy.
| a. | custom | c. | market |
| b. | directed | d. | military |
34. When you pay forsomething that you cannot see or touch, you have purchased a
| a. | goods | c. | service |
| b. | product | d. | none of the above |
35. High labor productivityresults in
| a. | lower cost of production | c. | lower prices for consumers |
| b. | higher standards of living | d. | all of the above |
36. The most important stepin starting a business is ______________
| a. | information | c. | financing |
| b. | preparation | d. | an idea |
37. The employees who work inan automobile assembly plant are that company’s
| a. | natural resources | c. | capital gains |
| b. | capital resources | d. | human resources |
38. A franchise can beoperated as a proprietorship, partnership, or corporation.
| a. | TRUE | b. | FALSE |
39. A balance sheetlists___________
| a. | assets and liabilities | c. | liabilities and budgets |
| b. | financial plans and budgets | d. | net incomes |
40. Maximizing profits,increasing sales, and maintaining an image are objectives related to
| a. | Pricing | c. | Distribution |
| b. | Promotion | d. | Marketing |
41. Timing is not importantin starting a business as long as a solid idea is formed.
| a. | TRUE | b. | FALSE |
42. Emotional buying motivesare based on
| a. | logic | c. | feelings |
| b. | facts | d. | none of the above |
43. A producers cooperativeis often created by large number of small producers that want to be morecompetitive in the marketplace.
| a. | TRUE | b. | FALSE |
44. A supermarket, a bank,and a utility company are all examples of businesses.
| a. | TRUE | b. | FALSE |
45. Which of the following iscorrect about the pricing when considering the relationship between supply anddemand.
| a. | If supply goes up and demand goes down, prices go up. |
| b. | If supply goes down and demand goes up, prices stay about the same. |
| c. | If demand goes up and supply goes down, prices go up. |
| d. | If demand goes down and supply goes up, prices go up. |
46. A rational buying motiveis exemplified by choosing a tee shirt because of the carton character on it.
| a. | TRUE | b. | FALSE |
47. Marketing involves justtransporting and selling products.
| a. | TRUE | b. | FALSE |
48. Which of the following isNOT one of the economic roles performed in our economy?
| a. | leader | c. | citizen |
| b. | worker | d. | consumer |
49. The type of business thatdoes something for you rather than providing products is called____
| a. | manufacturing | c. | producing goods |
| b. | service | d. | extractor |
50. Ms. Haung has a businessthat has generated a net income for the month of $12,000. Here income before expenses was $42,000. How much were her expenses?
| a. | $20,000 | c. | $35,000 |
| b. | $25,000 | d. | none of the above |