True or False:

An example of a public want is a family wanting a new car.

True or False:

Unlike goods, services are performed for free.

True or False:

Resources are the things necessary for making only what people need

True or False:

Resources are items used to make and provide goods and sevices. 

True or False:

Every type of business needs labor resources to produce goods and provide services

True or False:

Competition among businesses hurt the consumer.

True or False:

Entrepreneurial resources are different from labor resources

True or False:

Most people have unlimited wants for goods and services.

True or False: 

Every society has enough productive resources to produce everything people want and need

All of the following involve offering services except

1. Banking 
2. DVDs
3. Sports and Entertainment
4. Tourism

All of the following are factors of production except

1. Educational resources
2. Natural resources
3. Labor resources
4. Capital resources

For businesses to stay sucessful, they must offer

1. Quality Products
2. Outstanding Service
3. Competitive Prices
4. All of the Above

In a market economy, producers set a price that

1. Consumers can afford
2. The government will allow
3. Will cover the costs and result in a profit
4. Consumers are willing to pay

In an income economy,

1. Highly skilled workers can earn the same as low-skilled workers
2. Highly skilled workers earn less than low-skilled workers
3. Highly skilled workers earn more than low-skilled workers
4. Highly skilled workers are not needed

When developing a product or service, a business must do all the following except

1. Create a need for the product or service
2. Evaluate the demand for the product or service
3. Obtain start-up and operating capital
4. Keep records to satify government requirements

Most nations have a 

1. Moderate command economy 
2. Pure command economy
3. Pure market economy
4. Mixed economy

MArket research provides information that can help a business

1. Identify opportunities
2. Evaluate Demand
3. Respond to market goods and services
4. All of the Above

All of the following are resources except

1. Money
2. Transportation
3. Fuel
4. Labor

To avoid failure a business can modify 

1. Its products
2. Its services
3. Its businesses practices
4. All of the Above

True or False:

The United States has experienced to major economic shifts, starting with an agricultural economy and ending with an industrial economy

True or False:

Though the United States has a very high GDP compared to some countries, it has a low standard for living

True or False:

An important measure of economic strength is the rate of inflation

True or False:

The U.S. economy is shaped by a mix of oublic and private forces

True or False:

Economies go thrpugh ups and downs

During the 1600s, the U.S. economy was

1. Agriculture Based
2. Industry Based
3. Service Based
4. Information Based

Economic indicators measure

1. How much a country is producing 
2. Whether its economy is growing
3. How the country compares to others
4. All ot the Above

True or False:

Knowing about business only benefits you as an employee, not a consumer

True or False:

A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people

True or False: 

A virtual business acts like a business, but is not a real business

True or False: 

According to American City Business Journals,small businesses that use the Internet have grown more than 45 percent faster than those who do not

True or False: 

The only reason people become entrepreneurs is to have to opportunity to be creative

True or False: 

Many successful entrepreneurs work in related business before starting their own company 

True or False: 

Before you decide to start a particular business, you need to do market research to see if there is a demand for your product or service 

True or False:

There are 10 essential parts of the business plan

True or False: 

The executive summary of the business plan should be no more than two pages and should include the most important information from each section of the plan

True or False: 

The vision and mission statements in the business plan state the guiding principles by which a business functions

All of the following are recommended traits for a career in entrepreneurshipexcept being 

1. Enthusiastic
2. Cost-conscious
3. A risk-taker
4. Goal-oriented

One of the biggest obstacles in startin a business is

1. Obtaining financing
2. Having a good idea
3. Being good at something
4. Accepting responsibilty 

A written description of a business venture that describes all aspects of the business is called

1. A company charter
2. A company policy
3. A business plan
4. An executive summary

A business plan is used by

1. Potential investors to see if they want to invest in the business
2. Top management invilved in the start-up of a new business
3. The entrepreneur to keep focused on the goals of the business
4. All of the above

The company description section of a business plan helps investors understand

1. The size of the business
2. The scope of the business
3. The type of the business
4. All of the above

A vision statement

1. Expresses the specific aspirations of the company
2. Establishes th scope and purpose of the company
3. Includes the major goals that the company will try to reach
4. Explains why the venture will succeed

All of the following are examples of an industry except

1. Medical supply companies
2. Financial service forms
3. Auto mechanics
4. Food service businesses 

True or False: 

A financial plancan be used to attract investors

True or False: 

Acash budgetis a plan for the amount expected to be spent and earned over a given period of time

During a depression, there is

1. low unemployment and low production of goods and services 
2. high unemployment and high production of goods and services
3. low unenployment and high production of goods and services
4.  High unemployment and low production of goods and services

True or False: 

Anauditis a collection, recording, and reporting of financial transactions

True or False:

Everyone involved in a business should understand some of the basics of accounting 

During a recovery, 

1. unemployment is nonexistant
2. money is scarce
3. production starts to increase
4. GDP is stagnant

The purpose of a financial plan is to

1. Project future income 
2. See if there is enough money to start the business 
3. Describe the assets that need to be purchased to start a business 
4. All of the above 

The recovery of the great depression was helped by 

1. innovation
2. increased demand
3. WWI
4. WWII

Recovery is marked by

1. people are going back to work
2. more money to purchase goods and services
3. increases in all production
4. all of the above

The main reason start-up capital can be hard to obtain is because

1. There is no track record to prove the venture will be successful
2. Money is scarce
3. Assets are needed 
4. Of high interests rates

The federal reserve is a government agency that guides the economy by

1. regulating the amount of money in circulation
2. controlling interest rates
3. controlling the amount of money loaned
4. all of the above

Operating expenses include 

1. Remodeling costs
2. Security deposits
3. Utility bills
4. Legal permits

True or False:

A financial plan can be used to attract investors

Financial records can be managed by

1. The owner
2. A hired professional 
3. A qualified employee
4. All of the above

True or False: 

A cash budget is a plan for the amount expected to be spent and earned over a given period of time

True or False:

A audit is a collection, recording, and reporting of financial transactions

When preparing a financial forecast, it is best to keep estimates of

1. Income low and expense high
2. Income high and expense low
3. Both income and expenses low 
4. Both income and expenses high

True or False:

Everyone involved in a business should understand some of the basics of accounting

Unplanned growth

1. Yields unplanne income 
2. Can be rewarding
3. Can be chaotic
4. Builds a business faster

Accounting includes all of the followingexcept

1. Creating financial transactions 
2. Collecting financial transactions
3. Recording financial transactions
4. Reporting financial transactions

The purpose of a financial plan is to

1. project future income
2. see if there is enough money to start the business
3. describe the assets that need to be purchased to start a business
4. all of the above

An advantage of a partnership is 

1. That the partners make decisions together 
2. That the banks are often more willing to lend money to a partnership than a sole proprietorship
3. That the partners often bring different skills and talents to the business 
4. All of the above

One disadvantage that corporations face is 

1. Competition
2. Environmental laws
3. The cost of raw materials
4. Double taxation

Nonprofit organizations 

1. Focus on providing srvices rather than making a profit 
2. Outnumber sole proprietorships in the United States 
3. Must still pay taxes
4. Do not register with the government 

The main reason start-up capital can be hard to obtain is because

1. there is no track record to prove the venture will be successful
2. money is scarce
3. assets are needed
4. of high interest rates

An example of a franchise is 

1. A McDonald's restaurant
2. A "mom and pop" grocery store
3. A Sears department store
4. A Wal-Mart superstore

Processed goods include all of the following except

1. Organic Vegetables
2. White Sugar
3. Steel
4. Gasoloine

Consumers usually deal directly with

1. Manufacturers
2. Retailers
3. Wholesalers
4. Distributors

Cooporatives were formed to 

1. Save money on the purchase of certain goods and services
2. Sell more products
3. Promote each other
4. Help people cooporate

A dividend is

1. the cost of a share of stock
2. a tax paid by shareholders
3. the money made as a result of owning a share of stock
4. the money lost on a share of stock

True or False:

There are (3) main types of business orginazations: sole proprietorships, partnerships, and corporations

True or False:

About half of all businesses in the US are sole proprietorships

True or False:

Income from a corporation is taxed twice

True or False:

A major disadvantage of owning a sole proprietorship is that the owner has limited liability

True or False:

An advantage of owning a partnership is that banks are more often more willing to lend money to partnerships than sole proprietorships