Download TRUE/FALSE

1999 Introduction to Business
1. GDP per capita is found by dividing total GDP by the
total work force.
2. Recovery in the business cycle occurs after a period
of depression.
3. A copyright protects the creative work of authors,
composers and artists.
4. The first step in the MIS systems process is to
distribute reports for those who make decisions.
5. There are only 2 major types of industries: serviceproducing and goods-producing.
6. A venture business has no employees other than the
owner.
7. Retailers generally run 4 types of sales: promotional,
clearance, special purchase and holiday.
8. One of the main activities of the Office of Consumer
Affairs is to present one firm form using unfair practices to
force competing firms out of business.
9. A mutual savings bank is an example of a deposittype financial institution.
10. The main purpose of the Federal Reserve System is
to supervise and regulate member banks in order to help
service the public.
11. When preparing a bank reconciliation, an outstanding
check must be added to the bank statement balance.
12. Simple interest includes the total percentage cost of
credit on a yearly basis.
13. To compute the cost of credit, you need to know only
the principal and interest rate.
14. Yield refers to the ease with which an investment can
be turned into cash.
15. The assessed value is the amount used to calculate a
person's property taxes.
16. Whole life is permanent insurance that extends over
the lifetime of the insured.
17. HMO's emphasize preventive health care.
18. Discretionary income is income you spend on things
you want for pleasure, satisfaction and comfort.
19. A cash flow statement reports what a person or family
owns as well as owes.
20. Survivor planning involves the accumulation and
management of property during one's lifetime and the
distribution of one's property at death.
21. Social Security is paid only by employees.
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1999 Introduction to Business
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22. The Securities and Exchange Commission is a
watchdog agency that enforces federal laws pertaining to
the Stock Market.
23. A person in the business of buying and selling OTC
stocks is a stockbroker.
24. Technical analysis concentrates on charting stock
prices, trends in the market and patterns in the indices with
the averages.
25. A market that is going down is referred to as a bull
market.
26. The means through which goods and services are
produced are:
27. The person who pumps your gas is part of:
a. True
b. False
a. True
b. False
a. True
b. False
a. True
b. False
a. factors of
production
a. natural resources
b. natural resources
28. GDP is
a. the total value of
all goods produced in
a year.
29. When the effect of price changes is taken out of GDP,
we have
30. The business function that bridges the gap between
the producer and the consumer is
31. Workers most likely to work on retainer are:
32. A two-dollar broker:
a. inflated GDP
b. the total value of
all final goods and
services produced in
a year.
b. undervalued GDP
a. marketing
a. salepeople
a. handles trading in
particular stocks
33. The Consumer Price Index is used to:
a. monitor the rate
of inflation
34. The form of business that requires written permission
from the state in which it is organized and can have owners
is:
35. The person or group receiving permission from a
parent company to sell a product in a certain area in a
certain manner is the:
36. When a country imports more than it exports, it has a:
37. Which of the following is inappropriate during a job
interview:
38. Which of the following does not apply to small
businesses:
d. human resources
e. employment
e. business cycle
c. the total value of
all services produced
in a year
d. factors of
production
d. the total value of
all goods and services
produced in a year
c. real GDP
d. per capita GDP
b. producing
c. farming
d. extracting
e. Underinflated
GDP
e. financing
c. doctors
c. Are an alternative
to paying full-service
brokers
d. lawyers
d. Actually executes
and order
e. priests
e. Is licensed by
the SEC
c. is a scientific look
and the DJIA
c. sole proprietorship
d. forecasts economic
activity 6-9 months
down the road
d. corporation
e. is a private
corporation
a. cooperative
b. farmers
b. own their own
seats on the
exchange and make
their income from
fees.
b. measure the total
goods and services
produced in a year
b. partnership
a. franchisee
b. franchisor
c. operator
d. owner
e. developer
a. positive balance of
trade.
a. ask questions about
the position
a. usually has the
owner as manager
b. negative balance of
payments
b. dress appropriately
c. positive balance of
payments.
c. take notes
d. negative balance
of trade
d. be early
e. a deficit
b. is not dominant in
its field of operation
c. employs fewer
than 500 people
d. usually is local,
serving the nearby
community
b. human resources
c. production
materials
c. capital resources
e. none of the
above
e. municipality
e. talking too
much
e. is government
owned
1999 Introduction to Business
39. Stores that offer a wide variety of goods are called:
40. Small stores that carry a wide variety of products and
a narrow line:
41. Which of the following is not a consumer right:
42. Which of the following is not a consumer
responsibility:
43. Programs that assist people in problem solving on
technical topics.
44. A bank that offers a full range of services, sometimes
called a "financial department store"
45. Your honesty and willingness to pay debts is
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a. full-service stores
a. full-service store
b. specialty stores
b. specialty store
c. convenience stores
c. convenience store
d. warehouse markets
d. warehouse market
e. supermarkets
e. supermarket
a. the right to be
informed
a. be honest
b. the right to
confidentiality
b. complain
reasonably
b. artificial
intelligence
b. consumer finance
company
b. character
c. the right to choose
d. the right to be
heard
d. report unethical
practices
d. robots
e. the right to a
remedy
e. be
uninformed
e. SMART cards
d. Federal Reserve
System
d. curiosity
e. Credit union
c. credit
memorandum
c. the Lemon Law
a. expert systems
a. savings and loan
a. capacity
c. be involved
c. user friendly
software
c. commercial bank
c. capital
46. A record of your transactions during a billing period
is called a:
47. The law that requires the prompt correction of billing
errors after they have been reported to a creditor is:
48. The rate of return on an investment is also called:
a. statement of
account
a. the Fair Credit
Reporting Act
a. safety
b. receipt
49.
a. an unusually high
risk
b. a guaranteed rate
of return
c. low risk
a. compulsory
insurance laws
b. financial
responsibility laws
c. insurance laws
d. securities issued by
the federal
government
d. assigned-risk plans
a. owner's equity
a. fixed expenses
b. capital
b. variable expenses
c. assets
c. allowances
d. net worth
d. budgets
e. liabilities
e. liabilities
a. stock
b. bond
c. Roth
d. Traditional
e. 401 K
a. faxing
b. modem
c. telecommuting
d. commuting
e. e-mail
a. blue collar crime
b. white collar crime
c. hacking
d. piracy
e. virus
a. What to produce
b. How to produce it
a. career planning
b. career
c. For whom to
produce
c. job
e. None of the
above
e. mobility
a. scarcity
b. resources
c. drought
d. How much to
produce
d. tentative career
decision
d. needs
a. competition
b. freedom of choice
c. profit motive
d. business
A speculative investment usually involves:
50. Laws that require you to carry certain types of
automobile insurance before your car can be licensed are
called:
51. Items of value are:
52. Costs that occur regularly and are for the same
amount each time are:
53. An IRA that is used for educational purposes without
penalty is called:
54. The term used to describe the activities of a worker
using a computer to do a job at home is:
55. Illegal acts performed by office or professional
workers while at work:
56. Which of the following is not a key economic
question:
57. A goal in life that is fulfilled through a job or a series
of jobs:
58. The conflict between unlimited wants and limited
resources:
59. The desire to work for profit is the:
b. the Fair Credit
Billing Act
b. liquidity
c. yield
d. credit check
e. none of the
above
e. bank
reconciliation
e. the Fair Credit
Act
e. compound
interest
e. stocks and
bonds
d. the Truth-inLending Law
d. equity
e. collision
insurance
e. human
resources
e. private
enterprise system
1999 Introduction to Business
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60. Which of the following is not an economic role
played by you:
61. Which of the following is the correct cycle for
economic conditions:
a. consumer
b. worker
c. citizen
d. voter
a. prosperity,
depression, recession,
recovery
b. depression,
recession, prosperity,
recovery
c. prosperity,
recession,
depression, recovery
d. recession,
recovery, prosperity,
depression
62. This person takes the extractor's products or raw
materials and changes them into a form consumers can
use:
63. Which of the following is not a function of business:
64. Stopping the importing or exporting of a certain
product or service:
65. The negotiations that take place between an organized
body of workers and an employer which deal with wages
and working conditions are called:
66. A refusal to work until demands are met is called a:
67. The words, letters or symbols that are associated with
a specific company or product:
68. A situation that exists when the government spends
more than it collects:
69. A sales letter written for the purpose of getting a
personal interview:
70. Inspecting on wrench out of every 50 to make sure it
operates correctly is a form of:
71. If Patrick buys a radio on the installment plan from
Radio Hut for $102, what would be the interest cost of the
money is borrowed at 12 a year? Keep in mind that a down
payment of $12 was made at the time of purchase and $9
was paid at the end of each of the following 10 months.
The radio could have been purchased for $92 in cash.
72. SCORE represents:
a. manufacturer
b. wholesaler
c. extractee
d. marketer
a. planning
a. embargo
b. organizing
b. tariff
c. controlling
c. trade
d. leading
d. quotas
a. grievance
procedures
b. collective
bargaining
c. strikes
d. pickets
e. incorporating
e. export
violations
e. arbitrations
a. boycott
a. logo
b. strike
b. copyright
c. lockout
c. patent
d. picket
d. slogan
e. injunction
e. trademark
a. national debt
b. deficit
c. deflation
d. revenue
e. depression
a. personal data sheet
c. letter of
recommendation
c. quality control
d. application form
e. reference sheet
a. cost control
b. letter of
application
b. inventory control
d. asset control
a. $3.96
b. $2
c. $10
d. $4.98
e. management
control
e. $80
a. Service Corps of
Retired Executives
b. Service Corps of
Retired Employees
c. Service
Corporation of
Rescued Employees
d. Security Corps of
Retired Entertainers
73. Buying too rapidly without much thought:
a. comparison
shopping
a. guarantee
b. bargain shopping
c. impulse buying
d. smart shopping
b. implied warranty
c. express warranty
a. mainframe
b. microcomputer
c. minicomputer
d. certificate of
warranty
d. super computer
a. check
b. investment
c. time deposit
d. NOW account
74. A guarantee made orally or in writing that promises a
specific quality of performance.
75. A large computer system which can handle more
instructions and process data faster than smaller
computers.
76. Money put into a checking account.
e. none of the
above
e. recovery,
recession,
prosperity,
depression
e. producer
e. Security
Company of
Rigalto
Entertainment
e. none of the
above
e. manufacturer's
warranty
e. central
processing unit
e. Demand
deposit
1999 Introduction to Business
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77. A form attached to a check that keeps a record of the
checks written and any current deposit.
78. The owner of the checking account and the person
who signs the checks.
79. This type of endorsement consists of only the
endorser's name.
80. A form sold by a bank stating that money is to be paid
to the person or business named on the form.
81. Anyone who buys on credit or receives a loan is a:
82. Which of the following is the formula for computing
simple interest?
83. Calculate the simple interest of $1000 borrowed at 9
for 12 months.
84. Calculate the interest on a loan for $100 at 12 for 60
days.
85. How many months have 31 days?
86. This type of account pays a variable interest rate
based on rates paid to holders of short-term government
debt, namely US Treasury bills.
87. Which of the following is not true about EE series
savings bonds?
a. deposit slip
b. check register
c. checkbook
d. check stub
e. sharedraft
a. drawer
b. drawee
c. payee
d. endorser
e. joint owner
a. special
b. full
c. restrictive
d. multiple
e. blank
a. bank money
order
a. creditor
a. P=I*R*T
b. postal money order
b. debtor
b. I=P*R*T
c. express money
order
c. character
c. I*P=R*T
d. telegraphic money
order
d. loan officer
d. T=P*I/R
e. traveler's
check
e. trustee
e. R=P*I*T
a. $9,000
b. $900
c. $90
d. $9
e. .90
a. $7.20
b. $2
c. $20
d. $72.00
e. $6
a. 4
a. certificate of
deposit
b. 5
b. Super NOW
account
c. 6
c. IRA
d. 7
d. Mutual fund
e. 8
e. Money
market account
a. pay interest when
the bond is cashed
c. is bought at half its
face value
d. has no annual
purchase limit
e. matures in 10
years
88. Which of the following is not used to determine the
cost of automobile insurance?
a. your age
c. the value and type
of car
d. the community in
which you live
e. your gender
89. This term refers to the obligation of a business to
contribute to the well-being of its community.
90. Take home pay, or the amount of money remaining
after taxes are deducted from a paycheck, is called:
91. Which of the following is not income?
a. social
responsibility
a. gross income
b. come in
denominations from
$50 to $10,000
b. the purpose for
which you use your
car
b. ethics
c. business ethics
d. social ethics
e. morals
b. net income
c. profit
d. deductibles
e. investments
a. money earned from
babysitting
b. interest earned on a
savings account
c. interest paid on a
bank loan
d. a paycheck
92. The primary reason for the formation of unions was
to:
a. help generate profit
for business owners
c. restrict competition
93. Which of the following is not a feature of the US
market economy?
94. Evaluating choices is which step in the decision
making process?
95. The planned reduction in the number of employees
needed h a firm in order to reduce costs and make the
business more efficient.
96. An interview in which your employer asks how you
liked your wok and what improvements might be made.
a. private enterprise
b. meet the demands
of the Fair Labor
Law
b. private property
c. profit
d. give workers
greater control over
working conditions
d. property
e. change
received from a
store clerk
e. meet the
demands of
OSHA
e. personnel
a. 1
b. 2
c. 3
d. 4
e. 5
a. unemployment
b. downsizing
c. layoffs
d. human resources
reduction
e. promoting
a. initial interview
b. formal interview
c. exit interview
d. promotional
interview
e. none of the
above
1999 Introduction to Business
97. Which of the following does not belong to the goodsproducing industry?
98. Which of the following occupations has the greatest
growth potential from 1992-2005 according to the Bureau
of Labor Statistics?
99. This magazine publishes information about a variety
of careers, including job duties, working conditions
education and training requirements, earnings, and
employment outlook.
100. Change the common fraction of 4/100 to a
percentage.
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a. transportation
b. construction
c. manufacturing
d. mining
e. agriculture
a. service
b. technicians and
related support
c. marketing and
sales
d. production
e. professional
speciality
a. The Occupational
Outlook Handbook
b. The Encyclopedia
of Careers and
Vocational Guidance
c. Career World
d. Occupational
Quarterly
e. Guidance
Counselor
a. 40%
b. 4%
c. .4%
d. 25%
e. .04%