BE Obj. 2.04-05 Practice Questions

Which factor is a barrier to small-business and entrepreneurial success?

• poor management

• no vision for expansion

• having a clear strategic vision

• having a surplus of employees

A small business is defined as a business employing fewer than how many people?

• 500

• 750

• 1,000

• 1,500

What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil?

• oligopolies

• monopolies

• perfect competition

• monopolistic competition

Competition helps create a healthy society by:

• creating new jobs.

• increasing the money supply.

• making new government regulations.

• replacing small businesses with large businesses.

A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this?

• avoidance

• reduction

• retention

• transfer

In 1890, Congress passed a law that prevents monopolies from forming and hinders price fixing. What law is this?

• Clayton Act

• Robinson-Patman Act

• Sherman Antitrust Act

• Celler-Kefauver Antimerger Act

R & R Real Estate company buys errors and omissions liability insurance. What form of risk management is this?

• avoidance

• reduction

• retention

• transfer

Arc Electric Company holds regular safety training meetings for its employees. What form of risk management is this?

• capital

• reduction

• retention

• transfer

In some places, a company can have exclusive control of the supply of a good or service such as the trash service. This is an example of:

• price competition

• price discrimination

• nonprice competition

• a regulated monopoly

All Care pays for all of its expenses this fiscal year. The amount left over after all expenses have been paid is called what?

• capital

• debt

• loss

• profit