BUSH 037 UNHS Proprietorship Ownership & Business Administration Questions This evaluation will cover the lessons in this unit. It is open book, meaning yo

BUSH 037 UNHS Proprietorship Ownership & Business Administration Questions This evaluation will cover the lessons in this unit. It is open book, meaning you can use your textbook and online course materials. You will need to understand, analyze, and apply the information you have learned in order to answer the questions correctly. To take the evaluation online, access your My Name
_________________________________
I.D. Number
_______________________
Unit 1 Evaluation
Evaluation 01
Entrepreneurship
BUSH 037 056
This evaluation will cover the lessons in this unit. It is open book, meaning you can use your
textbook and online course materials. You will need to understand, analyze, and apply the
information you have learned in order to answer the questions correctly. To take the evaluation
online, access your My Work page in the online course management system and follow the
directions provided.
Part A: Multiple-Choice
Select the response that best completes the statement or answers the question.
_____
1. What is a risk of being an entrepreneur?
a.
b.
c.
d.
_____
2. What advantage does a general partnership have over a sole proprietorship?
a.
b.
c.
d.
_____
Each partner is responsible for the business action of the others.
Partners may have trouble agreeing on policies.
Profit is split between the partners.
The incentive of becoming partners motivates employees.
3. The foreign exchange rate is
a.
b.
c.
d.
_____
making your own decisions
doing work you enjoy
making your own hours
unexpected obstacles
the rate at which countries do business.
the value of one currency in relation to another.
the fair trade value of currencies.
the amount of goods that a country can import.
4. Which of the following is NOT a benefit of entrepreneurship for a local economy?
a.
b.
c.
d.
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paying tariffs
hiring employees
paying taxes
donating to charities
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_____
5. In a sole proprietorship, how many people are responsible for the business?
a.
b.
c.
d.
_____
6. A mentor provides
a.
b.
c.
d.
_____
clothing
jewelry
plastic parts
groceries
8. Which product is considered a consumer good?
a.
b.
c.
d.
_____
low-interest loans.
financing.
tutoring.
free labor.
7. Which product would most likely be sold to a manufacturing business?
a.
b.
c.
d.
_____
one
one or more
at least two
any number
heavy machinery
metal part
lumber
shirt
9. What percentage of American business owners used money of their own, or from their
families, to start or buy a business?
a.
b.
c.
d.
_____ 10.
between 40 percent and 60 percent
more than 60 percent
less than 20 percent
between 20 percent and 30 percent
Which type of business ownership provides unlimited liability for its owners?
a.
b.
c.
d.
nonprofit corporation
C corporation
sole proprietorship
subchapter S corporation
_____ 11. Fair trade is a policy that
a.
b.
c.
d.
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allows tariffs but not quotas in trade relations between a group of countries.
removes all trade barriers and regulations between a group of countries.
allows quotas but not tariffs in trade relations between a group of countries.
ensures small producers in developing nations make sufficient profits on exports.
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_____ 12. Which statement about competition between suppliers is FALSE?
a.
b.
c.
d.
It pushes prices upward.
It pushes prices downward.
It is good for consumers.
It encourages innovation.
_____ 13. According to the Small Business Administration, a small, non-manufacturing business
has fewer than __________ employees.
a.
b.
c.
d.
10
50
20
100
_____ 14. The “profit motive” is
a.
b.
c.
d.
profit calculated as a percentage of costs.
the reason entrepreneurs take on business risks.
the good will a business earns with charitable works.
the money left over when sales are subtracted from costs.
_____ 15. Which type of business is tied to the life span of its owners?
a.
b.
c.
d.
nonprofit corporation
limited partnership
C corporation
subchapter S corporation
_____ 16. A business that sells goods directly to consumers is a
a.
b.
c.
d.
manufacturing business.
wholesaling business.
retailing business.
service business.
_____ 17. An entrepreneur
a.
b.
c.
d.
must take college-level courses.
works for someone else.
must employ more than five employees.
is responsible for his or her business success.
_____ 18. What is a personal characteristic of a successful entrepreneur?
a.
b.
c.
d.
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cautiousness
obedience
self-doubt
creativity
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_____ 19. The natural ability to perform a specific kind of task very well is referred to as
a.
b.
c.
d.
an attitude.
a skill.
an aptitude.
self-esteem.
_____ 20. A free market economy is based on
a.
b.
c.
d.
free enterprise.
government regulation.
socialism.
cooperative agreements.
_____ 21. A business that sells goods and services to its members, as well as employing its
members, is a
a.
b.
c.
d.
general partnership.
limited partnership.
corporation.
cooperative.
_____ 22. Auto repair is an example of which type of business?
a.
b.
c.
d.
retailing
service
manufacturing
wholesaling
_____ 23. Suppose the ingredients to make one bag of potato chips cost $1.00. Labor costs are
$.50; packaging is $.50, and shipping is $1.00. The bag of chips sells for $4.00. What
is the manufacturer’s profit from selling one bag of chips?
a.
b.
c.
d.
$4.00
$3.75
$2.00
$1.00
_____ 24. The biggest reward for entrepreneurs is often
a.
b.
c.
d.
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security.
unexpected challenges.
personal freedom.
government protections.
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_____ 25. A dot-com company is
a.
b.
c.
d.
a company focused on protecting the environment.
a company that runs its business from the Internet.
a company that has more than one hundred employees.
a company that operates internationally.
_____ 26. Equilibrium price is
a.
b.
c.
d.
the price of a product at which there is a surplus.
the price of a product at which there is a shortage.
a limit on production set by the government.
the price at which supply equals demand.
_____ 27. In international trade, the purpose of a quota is to
a.
b.
c.
d.
limit the quantity of a product that can be imported into a country.
generate tax income from imported goods.
create a positive impact on the foreign exchange rate.
limit the amount of goods that can be exported from a country.
_____ 28. What is a fundamental question of economics?
a.
b.
c.
d.
How can work be done more efficiently?
How can businesses hire dependable workers?
What can be done to improve working conditions?
What goods and services are produced?
_____ 29. How can a local economy affect a global economy?
a.
b.
c.
d.
_____ 30.
Local governments can enact tariffs.
Local markets sell imported goods.
Local governments can enact quotas.
Local markets cannot affect the global economy.
An attitude is
a.
b.
c.
d.
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a natural ability to perform a particular kind of work or activity well.
a desire to perform a particular kind of work or activity well.
a trend or pattern in public opinion that affects supply and demand.
a way of thinking about something that affects how you feel about it.
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Part B: True or False
Determine whether the statement is true or false.
_____ 31. If the selling price for an item is greater than the cost of making it, the seller has made
a profit.
a. True
b. False
_____ 32. A sole proprietorship is the simplest and least expensive option for business
ownership.
a. True
b. False
_____ 33. Competition between consumers pushes prices downward.
a. True
b. False
_____ 34. Nonprofit organizations are always run by the government.
a. True
b. False
_____ 35. One of the rewards of being an entrepreneur is being able to help your community.
a. True
b. False
_____ 36. In the United States, fewer than half of the entrepreneurs have some college
education.
a. True
b. False
_____ 37.
Thinking like an entrepreneur can help you become a more valued employee.
a. True
b. False
_____ 38. The profits made by nonprofit corporations are distributed to their donors.
a. True
b. False
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_____ 39. Countries use tariffs and quotas to give their domestic suppliers the best chance to
meet demand within the country.
a. True
b. False
_____ 40. When there are not enough goods to meet the demand, the result is a surplus of those
goods.
a. True
b. False
_____ 41. Entrepreneurs need “people skills” to be successful.
a. True
b. False
_____ 42. Services, as well as goods, can be imported and exported.
a. True
b. False
_____ 43. A tariff is similar to a tax and must be paid on imported goods.
a. True
b. False
_____ 44. Supply is the amount of goods customers are willing to buy.
a. True
b. False
_____ 45. Demand is the amount of goods a manufacturer is willing to produce.
a. True
b. False
_____ 46. For most of the twentieth century, manufacturing businesses played a relatively minor
role in the American economy.
a. True
b. False
_____ 47. New locations without financial responsibility is an advantage for a FRANCHISEE.
a. True
b. False
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_____ 48 . A flu epidemic will increase demand for a medicine that treats symptoms of the flu.
a. True
b. False
_____ 49. A decrease in the cost of ingredients needed to make a popular soft drink will increase
supply for the soft drink.
a. True
b. False
_____ 50. A franchise agreement would cover fees and royalties that a franchisee would pay to a
franchisor.
a. True
b. False
Carefully check your answers on this evaluation and make any corrections you feel are
necessary. When you are satisfied that you have answered the questions to the best of your
ability, transfer your answers to an answer sheet. Please refer to the information sheet that
came with your course materials.
Unit 1 Evaluation
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