Deck 7: Core Components of Finance and Banking

Question 1

Barb, the owner of a lawn mowing business, gave half of her monthly revenue to a local homeless shelter. From this information, you can conclude that Barb's company is a

A) for-profit organization.
B) nonprofit organization.
C) charitable business.
D) public company.
E) not-for-profit business.

Answer 1

for-profit organization.

Question 2

Which of these organizations is most likely a nonprofit organization?

A) a retail store
B) Amazon
C) the Humane Society
D) an Internet store
E) a local bakery

Answer 2

the Humane Society

Question 3

Bradley was excited when he made $1000 selling his paintings until he realized that he had to pay the gallery owner a fee for displaying them. The fee is an example of

A) risk.
B) a loss.
C) profit.
D) an expense.
E) revenue.

Answer 3

an expense.

Question 4

A small business owner sold $2500 worth of product in one month. The owner had to pay rent of $500 and materials costs of $1250. What was the profit for the month?

A) $750
B) $500
C) $1000
D) $2500
E) $2000

Question 5

An example of a good is

A) a book.
B) a haircut.
C) a manicure.
D) lawn mowing.
E) education.

Question 6

During the late 19th and early 20th centuries, the United States evolved into a(n) ________ nation.

A) global
B) industrial
C) technological
D) agricultural
E) service

Question 7

In the last 25 years, most new jobs in the United States can be attributed to the growth in

A) services.
B) technology.
C) globalism.
D) manufacturing.
E) labor.

Question 8

Since Maia moved to Nebraska, she is finding that she can buy more with her money than she could in Hawaii. Maia is experiencing an improvement in her

A) earning potential.
B) return on investment.
C) standard of living.
D) human potential.
E) psychological benefits.

Question 9

After a hurricane in Florida, a beverage company delivered free bottles of water to residents. How is this company helping society in this case?

A) producing a product
B) providing a service
C) providing paychecks to employees
D) donating goods to the community
E) paying taxes

Question 10

Patrice knows that investing her own money in a start-up business may be a mistake, but she believes she can make it work. Patrice is willing to

A) take a risk.
B) follow others' advice.
C) live on a small salary.
D) forgo rewards.
E) buck the trend.

Question 11

Land, water, and wind are all

A) production outputs.
B) natural resources.
C) forms of capital.
D) forms of human resources.
E) forms of knowledge.

Question 12

Herbivores is a vitamin company with 14 employees. These employees are ________ resources of the company.

A) natural
B) capital
C) service
D) product
E) human

Question 13

The facts, information, and skills acquired by a person through training or education comprise

A) intelligence.
B) educational attainment.
C) knowledge.
D) expertise.
E) ability.

Question 14

Computers and technology have revolutionized which factor of production the most directly?

A) natural resources
B) knowledge
C) human resources
D) capital
E) entrepreneurship

Question 15

All companies operate within the ________, the arena of forces that encourage or discourage the development of business.

A) global sphere
B) economic policy area
C) technology window
D) external setting
E) business environment

Question 16

Time Keepers, Inc. wants to expand into a South American country, but the necessity of the use of bribery to do business there has made it financially unfeasible. Which of the five forces affecting the business environment ismost impacting Time Keepers' expansion decision?

A) economic
B) technological
C) competitive
D) social
E) global

Question 17

In some countries, agreements that are made between companies are not recognized because one country does not enforce the laws. This describes what element of economic forces on businesses?

A) taxation
B) contract enforcement
C) corruption
D) security
E) competitive advantage

Question 18

The purpose of all technology is to improve

A) profits.
B) flexibility.
C) security.
D) productivity.
E) product development.

Question 19

Technological systems can enhance productivity, but they can also compromise

A) reputation.
B) security.
C) commerce.
D) pricing.
E) competition.

Question 20

Plus Size has been selling larger size clothing in the same location for 10 years. Big Girls just opened across town and is threatening Plus Size's business. Big Girls is a(n) ________ of Plus Size.

A) customer
B) investor
C) employee
D) partner
E) competitor

Question 21

As more people age out of the workforce, companies are finding they are losing some of their most knowledgeable employees. What force affecting the business environment is at play in this situation?

A) global
B) legal/regulatory/political
C) competitive
D) social
E) economic

Question 22

China's One Child policy resulted in an imbalance of males to females in the country. This is a ________ change that can affect business.

A) global
B) demographic
C) technological
D) trade
E) economic

Question 23

Military alliances are considered ________ forces on trade and stability.

A) legal/regulatory/political
B) social
C) global
D) competitive
E) economic

Question 24

Immigration policies are ________ forces in the business environment.

A) legal/regulatory/political
B) social
C) global
D) competitive
E) economic

Question 25

The war in Afghanistan is an example of a ________ force in the business environment.

A) legal/regulatory/political
B) social
C) global
D) competitive
E) economic

Question 26

The United States has imposed trade sanctions on North Korea. This is primarily a ________ force in the business environment.

A) legal/regulatory/political
B) social
C) global
D) competitive
E) technological

Question 27

When Russia invaded Crimea, the United States imposed sanctions on Russia. What category of forces is impacting the business environment with these sanctions?

A) legal/regulatory/political
B) social
C) global
D) competitive
E) technological

Question 28

A ________ is a person or an organization that supplies raw materials, services, equipment, labor, energy, and other products to other organizations.

A) shareholder
B) supplier
C) distributor
D) interest group
E) customer

Question 29

Javier works for a company that helps sell clothing to customers by providing a place for customers to purchase the clothing. Javier's company is a(n)

A) shareholder.
B) supplier.
C) distributor.
D) interest group.
E) regulator.

Question 30

Holidays Galore is a seasonal business, so in the off season when it is buying inventory, it is often short of cash. The business usually borrows money from the bank to tide it over until the busy season begins. The bank is Holidays Galore's

A) shareholder.
B) supplier.
C) distributor.
D) interest group.
E) lender.

Question 31

________ are important stakeholders because schools and municipal governments rely on businesses for a portion of their tax base.

A) The media
B) Suppliers
C) Nearby communities
D) Interest groups
E) Customers

Question 32

Tommy's Little League team was sponsored by the local hardware store. This is an example of how ________ are business stakeholders.

A) the media
B) suppliers
C) nearby communities
D) interest groups
E) customers

Question 33

Newspapers, TV, and social media are all forms of ________ that influence businesses.

A) interest groups
B) customers
C) media
D) distributors
E) lenders

Question 34

Cookie World sells giant cookies through its store with the goal of making a profit. Cookie World is best described as a(n)

A) entrepreneurship.
B) sales generator.
C) entity.
D) business.
E) profit center.

Question 35

Which organization is thebest example of a for-profit organization?

A) Walgreens
B) United Way
C) Houston Zoo
D) American Civil Liberties Union
E) Boston Museum of Fine Arts

Question 36

What does a nonprofit organization typically do with any profit it makes?

A) Nothing. A nonprofit organization does not make any profits.
B) Pay expenses and donate the rest to the public sector.
C) Pay private sector taxes.
D) Pay expenses and put the rest toward new goals.
E) Invest it all in stocks and bonds.

Question 37

Tamalika is the owner of a small company that provides hot meals to disaster victims. She is hoping to make enough profit to pay her bills and expand the reach of the organization next year. Tamalika most likely runs a ________ business.

A) for-profit
B) media outlet
C) public sector
D) nonprofit
E) special interest

Question 38

Elle runs her own business, selling children's clothing. She wants to make as much money as possible and has set a goal to double the number of stores next year. Elle runs a ________ business.

A) public sector
B) charitable giving
C) nonprofit
D) tax-exempt
E) for-profit

Question 39

SAT Market Research had $150,000 in revenue and $200,000 in expenses last year. SAT Market Research experienced which of the following last year?

A) a competitive disadvantage
B) a loss
C) a profit
D) competitive inequity
E) economic inequity

Question 40

Gustava is a salesperson for Healthy Way Dog Food. Her annual sales total is classified as ________ for Healthy Way Dog Food.

A) an expense
B) profit
C) revenue
D) a loss
E) commissions

Question 41

Eliazor works in the company's accounting department and is responsible for sending out checks to company employees every other week. The payroll checks that Eliazor sends out canbest be described as a(n)

A) loss.
B) expense.
C) risk.
D) investment.
E) benefit.

Question 42

Milenka runs her own dance academy. Last year, she had $50,000 in expenses and $150,000 in profits. What was Milenka's revenue?

A) $150,000
B) $200,000
C) $50,000
D) $100,000
E) $300,000

Question 43

Assuming you already know revenue, which additional element is needed to calculate profit?

A) taxes
B) donations
C) expenses
D) capital gains
E) depreciation

Question 44

Smart Telephony has $500,000 in revenue and $600,000 in expenses this year. Which situation best describes the company's financial situation for the year?

A) nonprofit
B) loss
C) profit
D) risk-adverse
E) competitive disadvantage

Question 45

Brainiac Incorporated provides training to corporate employees across the globe. Brainiac is selling a(n)

A) good.
B) tangible product.
C) business.
D) service.
E) entrepreneurship.

Question 46

Which type of business wasmost likely to exist during the 18th century in the United States?

A) steel manufacturer
B) automobile store
C) dairy farm
D) hospital
E) law firm

Question 47

Which product grouping would most likely be sold by businesses today, based on the evolution of the U.S. economy?

A) wood refinishing services
B) new televisions
C) beef and pork
D) home improvement supplies
E) athletic apparel

Question 48

During the late 19th through the early 20th century, the United States evolved into a(n) ________ nation.

A) service
B) automated
C) global
D) industrial
E) agricultural

Question 49

What of the following would be thebest example of a good?

A) a massage and facial at a health salon
B) a used smartphone from a secondhand store
C) an immunization at a hospital
D) a movie at the theatre
E) a professional baseball game at the new stadium

Question 50

Valetta runs a small business doing independent construction work for businesses. In what way is Valetta most helping society with his business?

A) by increasing educational opportunities
B) by providing a product
C) by donating goods
D) by providing a service
E) by decreasing government spending

Question 51

Shamira runs a small catering business in her hometown. Every three months, Shamira and her staff take hot meals to a homeless shelter across town. In this example, how is Shamira most helping society with her business?

A) by producing services
B) by paying taxes
C) by providing benefits to her staff
D) by sharing her profits
E) by donating goods

Question 52

How can a businessbest support government spending?

A) by donating funds
B) by providing goods
C) by providing employee benefits
D) by paying taxes
E) by hiring temporary employees

Question 53

SuperComm provides a generous match to its employees' retirement plan contributions. How is SuperComm advancing the interests of society in this example?

A) by paying retirement taxes
B) by funding essential services
C) by providing benefits for employees
D) by producing services
E) by donating funds for employees

Question 54

Ingmar receives a substantial pay increase from his employer. He can now afford the new car he has been dreaming about for years. Ingmar canbest be described as having

A) better environmental health.
B) an improved standard of living.
C) more consumer freedom.
D) a lower tax bracket.
E) more community support.

Question 55

Which factormost impacts quality of life for society?

A) standard of living
B) revenue
C) environmental health
D) human resources
E) knowledge

Question 56

Kenleigh opens a new business and hires three of her friends to work there. They will take raw materials from a local supplier and create a mobile tracker targeted at middle-class consumers living in big cities. Who ismost likely to take on the biggest risk in this situation?

A) Kenleigh
B) the middle-class consumers
C) Kenleigh's employees
D) the suppliers
E) the government

Question 57

Shanicea recently took a job with a local entrepreneur who had opened a car detailing business in her town. What risk is Shanicea taking working for the entrepreneur?

A) her ability to vote as a shareholder
B) her current standard of living
C) her income and retirement potential
D) her reputation in her town and nearby communities
E) her commitment of time and effort in following a certain career path

Question 58

Alaric recently opened a new business providing remote technical support temporary workers to businesses. Why are people like Alaric important to the economy?

A) They drive innovation.
B) They donate time and money.
C) They increase market capital.
D) They improve natural resources.
E) They decrease market risk.

Question 59

Cluny realizes there are no automatic car washes in his town. He takes out a loan and builds an automatic car wash later that year. Cluny isbest described as a(n)

A) business developer.
B) investor.
C) entrepreneur.
D) thought leader.
E) supplier.

Question 60

Seabass, Incorporated recently implemented an online training program to facilitate continuing education for its employees. Senior leadership believes the new training will increase efficiency and quality. This implantation willmost likely impact which of the following factors of production?

A) natural resources
B) standard of living
C) competitive advantage
D) knowledge
E) capital

Question 61

Ozara is the plant manager for Estate Manufacturing. He is leading the efforts to double plant capacity with a new building. Which of the five factors of production is Ozara most impacting?

A) human resources
B) equity
C) capital
D) natural resources
E) knowledge

Question 62

Janan has been running a furniture refinishing business for more than ten years. The business has continued to grow, and she finds that she has less time for the administrative facets of her business. Janan decides to hire an office manager who has knowledge of accounting and payroll to assist her. Which of the five factors of production is Janan most impacting?

A) entrepreneurship
B) human resources
C) capital
D) risk
E) knowledge

Question 63

Laredo works for a construction company. He realizes that the local home improvement store does not sell lumber, so he quits his job and opens a home improvement store that specializes in lumber. Which factor of production is Laredo demonstrating?

A) entrepreneurship
B) knowledge
C) human resources
D) capital
E) natural resources

Question 64

Endellion owns a small delivery company. He decides to hire an office assistant and buys her a laptop to handle some of the administrative responsibilities for the company. This laptop is best described as which factor of production?

A) equity
B) capital
C) knowledge
D) human resources
E) tangible product

Question 65

Edna is a plant manager for Codeline Corporation. She is leading a project to add computer systems to the production lines in order to increase output. Which of the forces affecting the business environment does this examplebest demonstrate?

A) technological
B) competitive
C) economic
D) risk
E) social

Question 66

Vanille has been operating her cardstock manufacturing business for five years. She has primarily operated in the southeastern United States, but has recently begun advertising, selling, and shipping in Europe. Which of the forces affecting the business environment does this examplebest demonstrate?

A) economic
B) global
C) demographic
D) regulatory
E) social

Question 67

Dunbar operates a production facility overseas. Despite meeting all safety requirements, he is forced to pay local inspectors a safety surcharge to keep his factory open. His complaints to the local government agency do not lead to any changes, so he decides to close the facility and relocate to a new country. Which of the forces affecting the business environment does this examplebest demonstrate?

A) competitive
B) global
C) political
D) regulatory
E) economic

Question 68

Ryder works for a technology firm that has designed a proprietary software that tracks employee productivity by utilizing employees' heartrate. At this time, it is the only company offering this software. Ryder's firm can best be described as having a(n) ________ advantage.

A) global
B) competitive
C) productivity
D) security
E) e-business

Question 69

Eudora lives in the United States and relies on suppliers in Germany to run her glassblowing company. Lyric lives in Germany and relies on customers in the United States to keep her hand sanitizer company in business. Eudora's and Lyric's situations highlight the concept of

A) competitive advantage.
B) globalization.
C) contract enforcement.
D) entrepreneurship.
E) profitability.

Question 70

Koi is planning on opening her own business later in the year. She is working with her friend to prepare and begins reading about the business environment. The business environment is best described as the arena of forces that ________ business.

A) increase or decrease the globalization of
B) increase or decrease productivity in
C) encourage or discourage competition in
D) increase or decrease the level of corruption in
E) encourage or discourage the development of

Question 71

As more and more individuals in Generation Z move out into the world, the housing market has shifted to meet their changing needs. This change is best represented by the ________ forces in the business environment.

A) social
B) competitive
C) technological
D) economic
E) capital

Question 72

Jarrah sells office supplies from a store in Sandusky, Ohio. He decides to hire a web developer to create a website for customers with the option to view and purchase office supplies. This example best describes the concept of ________, which is a(n) ________ force.

A) competitive advantage; competitive
B) globalization; global
C) e-commerce; technological
D) security; economic
E) e-commerce; competitive

Question 73

Hernando works in public relations for No Whining Vineyards. He often advises the company's CEO on how to communicate through Facebook and Twitter. Through his work, Hernando is most likely trying to impact which of the following stakeholder groups?

A) media
B) owners
C) employees
D) distributors
E) security

Question 74

Armida is a lawyer with the American Civil Liberties Union (ACLU). She is regularly in court working to ensure fair treatment of all individuals in the business world. The ACLU canbest be described as a(n)

A) government regulator.
B) employee shareholder.
C) contract enforcement group.
D) special-interest group.
E) demographic compliance group.

Question 75

Saskia recently inherited a large amount of stock in the ThermCo Corporation. What kind of stakeholder does Saskia represent?

A) employee
B) customer
C) shareholder
D) lender
E) entrepreneur

Question 76

State Family Insurance uses independent agents across the country to sell policies to consumers. What kind of stakeholder do the independent agents best represent?

A) owner
B) supplier
C) vendor
D) distributor
E) lender

Question 77

Jolie is planning to open her own candle company. She writes a check provided by her credit card company to pay for the first six months of rent for her store. Which type of stakeholder does the credit card company represent?

A) lender
B) supplier
C) distributor
D) vendor
E) customer

Question 78

Which example best demonstrates how a large company could impact the town in which it operates?

A) The town is more likely to be approved for a bank loan to build a new pool.
B) Town schools are more likely to receive tax credits.
C) Distributors are more likely to open businesses in the town.
D) Customers are more likely to relocate to the town.
E) Suppliers are more likely to offer discounts on bulk shipping to the town.

Question 79

KBS Enterprise is a small company that delivers raw materials and office equipment to DeFo Corporation. KBS is best described as a(n) ________ business stakeholder.

A) distributor
B) owner
C) supplier
D) regulator
E) customer

Question 80

The local newspaper has its own website and social media accounts. It often conducts interviews with local businesses for the paper and online accounts. The local newspaper is best described as a(n) ________ stakeholder.

A) interest group
B) media
C) distributor
D) vendor
E) e-business