Which of the following is an example of a business's intellectual property that is protected by law:
What is the trade surplus if net exports are $6,964,023 and imports are $6,497,382?
In which of the following types of business ownership does the owner bear the entire risk of loss:
B. Sole proprietorship
A business earns a profit of 6% on sales of $832,550. What amount of profit will the business earn if salespeople increase sales by 5% while expenses and profit rate remain the same?
The owner of a company would like to raise money for expansion by selling stock in the business. In order to do this she would need to
A. Form a corporation
There are 634,820 people in the labor force in a large metropolitan area. If 34,290 are currently out of work, what is the rate of unemployment?
The Consumer Price Index that measure the price of a group of goods and services is intended to show how those prices
D. Change over time
Calculate the start-up monies a business will need based on the following information: $5,400 for three months' rent, $3,750 for furniture and supplies, $825 for utilities for three months, $12,000 in working capital, and wages of $5,500 per month for three months.
When the economy is in a recession, most businesses respond by
A. Reducing production
A start-up business needs to purchase $35,000 worth of inventory. Calculate the amount the business will need to finance if vendors will provide 50% on credit and the owner will contribute $3,500.
Which of the following is not an economic good:
Cornucopia Specialty Gifts charges an 18% handling fee for customer orders. The fee is based on the total amount of the order. The invoice indicates that the total order amount is $249.00. What is the handling charge for the order?
Which of the following best describes capital goodsL
D. Purchased by businesses for use in their operations
What is a business's profit or loss if its income statement lists sales revenue of $450,000, cost of goods sold of $180,000, operating expenses of $245,000, and taxes of $14,000?
B. $11,000 profit
Dealing with shortages of resources is included in the study of
Last year, a business had sales of $690,500 and expenses of $415,825. What should the business budget for income for the coming year if it anticipates a 7% increase in sales and a 4% increase in expenses?
Which of the following is an example of a noneconomic want:
B. Good friend
If a business allocates six percent of its precious annual sales to its promotional budget, and it had $435,600 in sales last year, how much money will the business allocate for promotion?
Cutting timber and milling the trees into standard size lumber is an example of a form utility because
C. Trees are being made usable
Calculate a firm's net profit or loss, given the following informationL expenses $5,000; costs of goods sold, $22,000; sales $40,000
Determine the type of utility being described in the following situation: The clothing and equipment shop at an area ski resort carries a wide variety of boots, skis and sweaters.
An item that costs the wholesaler $228 has a selling price of $298. If operating expenses are $25, what is the gross profit?
Which of the following factors affects consumers' decisions to buy goods or services:
B. Buying power
A business analyzes a database of its 500 regular customers and finds that 78% of them place orders for $350 worth of goods three times a month. Based on this information, calculate the total amount this group spends each month.
To be able to charge competitive prices in a market economy, producers must combine resources and technologies to produce
D. Items at the lowest cost possible
A business had $750,000 in sales last year and expects a 10% increase this year. What is the sales forecast for the coming year if prices remain the same and the business hires one news salesperson who will be paid $45,000?
What type of economic system allows buyers and sellers to make economic decisions without government interference?
C. Market economy
Determine the wage portion of a marketing budget if five employees who are paid $11 an hour will each spend 40 hours working on a specific marketing activity, and two managers who are paid $41,600 a year will each spend one week supervising the activity.
The price of merchandise in a market economy is controlled by
B. Supply and demand
This year a business spends $425,500 in salaries, $88,000 in rent, $15,250 to maintain a web site, and gives employees $60,000 in bonuses. What are the fixed costs?
A business advertises, "Prove to us that you can buy it cheaper somewhere else, and we'll meet the lower price." This is an example of which of the following competitive techniques:
C. Price Matching
If a two-year service contract costs $2,900 and can be renewed for the same price and a four-year service contract costs $4,150, how much will a business save by purchasing the four-year contract rather than renewing the two-year contract?
Which of the following pairs of businesses are examples of indirect competitors:
D. JCPenney & Pizza Hut
A full-time employee earning $675 a week retires and is replaced by two part-time employees who each work five hours a day, five days a week, for $10.25 an hour. Calculate the amount the business will save in payroll expenses for a four-week period,
Dividing the dollar value of total sales by the cost of making those sales is one way that businesses often measure their
The cash office gave David his cash drawer when he arrived at work. He was told to verify that he had the correct amount of change fund for the day. David was given the following: 3 rolls of pennies, 2 rolls of nickels, 2 rolls of dimes, 2 rolls of quarters, 20 $1 bills, 5 $5 bills, 3 $10 bills, and 2 $20 bills. How much did he receive?
An advantage of specialization of labor is that workers perform specific job tasks efficiently and production rates usually
At the end of each day, the cash register has $475.50 in coins and bills and $190 in checks. The opening change fund is $50, and the audit tape shows a total of $610.50. The cash is
A. $5 over
Members of Local Union 999 refuse to buy products that are made by their company, Chip Rite. This is an example of
If a business sells products at the leader price of 3 for $1.99, calculate the cost to a customer who purchases 12 items.
A period of recession is normally accompanied by
B. Decreased production
On an item purchased for $12.65, a business has operating expenses of $1.95 and desires a profit of $3.50. At what price should the business sell the item?
Expansion, peak, contraction, and trough are terms that describe
B. Business cycles
What amount of frozen pizzas would a grocery store probably buy for the next year if sales of frozen pizzas have been increasing by 7% each year and last year's pizza sales totaled $398,650.
To develop realistic budgets, existing businesses usually base their estimates on
A. Past performance
Bob purchased golf clubs for $299.00, a golf glove for $10.00, and a package of golf balls for $5.00. Given a tax rate of 6%, what is the amount of tax due on his purchase?
What is the link that connects producers and consumers so that both benefit?
A customer makes the following purchases in a toy department: 3 trains @ $15.95 each; 2 puzzles @ $6.99 each; 2 trucks @ 3 for $5.70; and 3 stuffed animals @ 4 for $27.95. The sales tax rate is 7%. What is the subtotal of the customer's purchase?
The migration of people from one location to another that affects the types of products that businesses sell is an example of a
C. Population trend
Based on the following statistics in a sales report, which salesperson achieved at least 95% of monthly quota
Salesperson Monthly Quota Actual Sales
Anderson $75,000 $70,450
Brown $82,500 $78,750
Davis $68,250 $64,100
Miller $96,000 $90,850