You passed this Milestone
18 questions were answered correctly.
1UNIT 1 — MILESTONE 1 question was answered incorrectly.
1 Which of the following
... [Show More] should guide ethical behavior in a business?
Moral judgments
Personal goals
Scientific theories
Cultural standards
CONCEPT
Ethics as a Lifestyle
2
Kyle owned a small business that sold and repaired several styles of bicycles. Last month, Kyle had sales of $15,000 and the costs of operating his business were $12,300.
Which of the following is true about Kyle's business?
The business experienced a loss.
The business should focus on expansion.
Stuvia.com - The Marketplace to Buy and Sell your Study Material
The business earned a profit.
The business is not capitalizing on a need.
CONCEPT
What Is Business? 3
A business owner decides to give all her employees a living wage and benefits, including any new employees.
Which social responsibility stance did the business owner demonstrate?
Proactive
Defensive
Obstructionist
Accommodating
CONCEPT
Stances to Social Responsibility Issues 4
In modern times, companies need to be socially responsible toward various stakeholders.
When a company ensures that its products will not cause personal injury when used, the company is demonstrating particular consideration to which stakeholder?
Employees
Customers
Investors
Environment
CONCEPT
Models of Social Responsibility and Considering the Stakeholder 5
Which of the following is a disadvantage of a sole proprietorship?
May have difficulty raising money for business operations
May have problems resulting from frozen investments
May have issues with government regulations
May have a more complicated tax structure
CONCEPT
Non-Corporate Business 6
Anita borrowed money from a bank to help her start her small business. Which factor of production below does the loan represent?
Capital
Information resource
Physical resource
Human resource
CONCEPT
Economic Systems
7
Penelope worked for several years at an art gallery after graduating college. She had always imagined she would own her own studio one day, where she could showcase her own works as well as provide private art lessons and classes. She had saved money toward this goal but had little experience running any type of business. Based on Penelope's situation, which of the following is a disadvantage to her becoming a sole proprietor?
Penelope is worried about who will be responsible for making final business decisions.
Penelope has few contacts she could use to obtain startup funding.
Penelope lacks significant expertise and experience in the art field.
Penelope may have difficulty managing all aspects of a small business alone.
CONCEPT
Non-Corporate Business
8
Kowabunga was a US based beach clothing and gear company. The owner of the company wanted to expand into markets in Mexico, Australia and Fiji. The company compared the emerging markets to see which had the highest growth rates. Which external business environment did the company evaluate for its expansion?
Sociocultural
Political-legal
Global
Domestic
CONCEPT
Business Environments 9
Which of the following controls production in a planned economy?
Monopolistic corporations
Producers of products and services
Centralized government
Consumers of products and services
CONCEPT
Economic Systems 10
NAFTA, the EU and the WTO are all forms of .
trade agreements
nontariff barriers
trade restrictions
protective tariffs
CONCEPT
Interactions within the Global Economy 11
Which of the following describes an entrepreneur rather than a small business owner?
More focused on making decisions where the outcome is clear
More concerned with running day-to-day operations
More satisfied with a consistently profitable business
More likely to develop innovations and business expansions
CONCEPT
Small Business and the Entrepreneur
12
A US based company manufactures and sells custom motor homes. All engine parts are made in Michigan, and the tires are made in Virginia. The computer system is made in China. The leather for all seating is made in Italy.
The carpet and wood flooring are made in Pennsylvania. Select the item below that is an import to the US.
Tires
Carpet and wood flooring
Computer system
Engine parts
CONCEPT
Global Economy 13
What information does the sales forecast provide in a business plan?
It details the investments needed to start the business.
It focuses more on a pricing strategy than on production costs.
It predicts how the business will compete in the marketplace.
It provides the timelines for starting the business.
CONCEPT
The 3 Part Business Plan 14
Which of the following is an advantage of buying a franchise as an existing business, instead of starting from scratch?
Able to use own ideas for running the business
The ability to operate without pre-existing expectations from customers
The ability to use a well-known brand
The ability to choose suppliers for the business
CONCEPT
The Small Business Franchise 15
A toy company created a new truck to offer to consumers.
Based on the graph shown above, which of the following is the equilibrium quantity and price at which the company should sell the truck? [Show Less]