Entrepreneurship Standard 4 Review

Which of the following represents the most direct channel of distribution from the producer to the end user?

• Producer > Distributor

• Retailer > Consumer

• Producer > Consumer

• Producer > Retailer

Fred buys books in bulk from Books R Us and then sells them to various book stores and gift shops. What type of buyer is Fred in this scenario?

• Wholesaler

• Retailer

• Industrial User

• Business User

Jaime is responsible for acquiring raw materials for a manufacturing plant. What is the process called when these materials undergo a change in shape or appearance?

• affirmation

• specification

• transformation

• negotiation

What are the three primary types of purchasing strategies used in business operations?

• Buying for resale, buying for make-or-buy decisions, and buying for retailers

• Buying for entertainment, buying for transformation, and buying for retailers

• Buying for transformation, buying for business use, and buying for wholesalers

• Buying for resale, buying for transformation, and buying for business use

Which of the following companies is most likely to purchase raw materials and components to convert into finished products:

• Walmart

• Belk

• Chevrolet

• Dollar General

When a purchasing specialist engages in discussions with a supplier to address potential issues and explore solutions before finalizing a purchase, what activity are they primarily involved in?

• Transforming

• Negotiating

• Bidding

• Forecasting

What is another term commonly used to refer to operating costs in a business context?

• Capital expenses

• Overhead

• Revenue expenses

• Fixed expenses

Which of the following statements accurately describes operating costs in a business context?

• Operating costs are the expenses incurred by a company in its personal expenses.

• Operating costs are directly related to the day-to-day functioning and production activities of a business.

• Operating costs are the expenses incurred by a company in its investment activities.

• Operating costs only occur once or twice a year.

In the context of business expenses, how would you categorize sales commissions?

• Capital

• Operating

• Fixed

• Variable

Which of the following statements accurately describes the nature of operating costs in a business context?

• Purchasing a piece of equipment is an operating cost.

• Operating costs are typically categorized into selling expenses and manufacturing expenses.

• Some operating costs can be classified as either fixed or variable, depending on the nature of the expense.

• Businesses generally incur higher operating costs compared to production costs.