Business Essentials Practice

A business that buys goods or services and sells them to the ultimate consumer is known as?

• manufacturer

• producer

• retailer

• wholesaler

The Candy Store is selling more and more chocolate each quarter. Applying the law of supply and demand, what is most likely to happen over the next few quarters?

• The price will increase, and the supply will increase.

• The price will decrease, and the supply will increase.

• The price will increase, and the supply will decrease.

• The price will decrease, and the supply will decrease.

What is the primary reason customers give for not returning to a business?

• lack of available parking

• lack of advertised merchandise

• lack of courtesy from salespeople

• lack of customer-service personnel

What do service businesses sell?

• raw goods and services

• retail goods and services

• intangible goods and services

• wholesale goods and services

Which behavior best describes the primary business activity of operations?

• hiring qualified employees

• planning for future success

• producing goods and services

• keeping accurate financial records

The accounting document that shows a business’s revenue and expenses is known as a/an?

• balance sheet

• income statement

• cash flow statement

• statement of owner’s equity

Which document, provided either in paper format or in electronic format from a prospective employer’s website, does a company use to collect employment information about a candidate?

• license

• résumé

• job application

• letter of application

Kathy wants to know whether her boutique made or lost money this month. What financial document should she view?

• balance sheet

• income statement

• cash flow statement

• statement of owner’s equity

Jordan owns a successful landscaping business. Landscaping is an example of a/an?

• input

• inventory

• output

• service

What are the two main divisions of the trade industry?

• producers and retailers

• wholesalers and retailers

• wholesalers and producers

• manufacturers and wholesalers