Business Management Final Exam Review - Part 2

The demand for a product refers to

• the number of similar products that will be offered for sale at a particular time and at a particular price
• the number of similar products that will be bought at a given time at a given price
• the price at which a product will sell most readily
• the most competitive price for a product

The quantity of products produced within a given time is known as

• specialization
• productivity
• output
• effectiveness

In the United States, starting a small business

• is subject to many government controls
• is fairly easy
• requires a physical facility
• entails a large initial investment

Which of the following statements is usually true about work teams?

• As quality of work increases, morale decreases.
• As quality of work decreases, morale increases.
• As quality of work increases, morale also increases.
• As quality of work decreases, morale also decreases.

Which of the following statements about the treatment of employees is not true?

• Employees want more variety in their work.
• Employees want to participate in decisions affecting their work lives.
• Employees want to participate in wellness programs.
• Employees want less on-the-job responsibility.

An example of ethical behavior is

• using company resources for personal use
• accepting secret business gifts
• keeping company information confidential
• invading employee privacy

Which statement is most accurate about demand?

• If demand drops, profits drop.
• If demand increases, profits drop.
• If demand drops, profits increase.
• If demand drops, profits are not affected.

Which one of the following statements is true about entrepreneurs?

• Entrepreneurs would rather work for others.
• Entrepreneurs prefer to assign the decision-making responsibility to employees.
• Entrepreneurs usually work hard and for long hours.
• Entrepreneurs usually give up quickly when their businesses are not immediately successful.

Which of the following characteristics does not generally apply to entrepreneurs?

• They prefer consensus decision-making.
• They start businesses in fields they are experienced in.
• They are less interested in profit than in challenges.
• They rarely launch a new business after an unsuccessful start-up.

The process of starting a business begins with a

• lease
• business plan
• balance sheet
• contract