986111RR - BUSINESS CONNECTIONS1. The goal in networking with other business owners is toA. find new investors for your business.B. discover how you can help one another.C. find out what the competition is doing.D. try to see how people from different fields can help you.2. Trying to help your business and others with similar goals by trading information, including contacts andreferrals, is calledA. establishing.B. connecting.C. campaigning.D. networking.3. All of the following are good ways to follow up with a new business contact, exceptA. offering to help them with something.B. spending a lot of time at their place of business.C. inviting them to a social function such as a ballgame.D. referring someone to their business.4. A long-time expert in your field who will guide and advise you in your start-up phase is called a/anA. mentor.B. investment counselor.C. entrepreneur.D. contact.5. You, Joanne, and David have had a very valuable conversation and have exchanged business cards. Thenext thing you should do isA. make notes about the meeting on the backs of their business cards.B. move on quickly to meet the next person.C. make a few cell phone calls to offset your nervous energy.D. take a moment of silence to regain your composure.6. You've signed up for an exciting two-day workshop on small business Web design. What can you do inadvance that will help you network effectively at the meeting?A. Talk to your friends about the event, so you're energized when the day arrives.B. Do research on the instructors and panel members so you can talk to them about their work.C. Make sure your cassette recorder has batteries so you can record the sessions and listen to them later.D. Study up on the jargon so you'll sound informed.7. You've joined the American Emu Association and have arrived at its annual conference. You see a manstanding off to the side and decide to practice your networking skills on him. What is the best way to makecontact?A. Tell him the name of your business and ask for referrals.B. Strike up a conversation and tell him something about your business.C. Don't waste his time— just tell him how he can help you.D. Hand him your business card and introduce yourself.

8. A good way of remembering your newest contact's name is toA. repeat it silently in your head.B. repeat it at the end of every sentence as you speak to him or her.C. make up a jingle for it.D. write it on your hand.9. You've arrived at the Pecan Shellers conference—your first networking opportunity. Naturally, you'refeeling nervous, but to avoid seeming insecure or uncertain, you've decided toA. speak a little louder than you would normally.B. talk on your cell phone as you walk around.C. square your shoulders before entering the room.D. hold an empowered image of yourself in your mind.10. You've told Dan, a new contact, that you're looking for a qualified sales representative. Now you wantto find out if there's any way you can help his business. What's an effective way to approach the question?A. Ask him if he has any challenging problems in his business.B. Tell him you've heard his field has some major problems and offer to help.C. Hint that you might be willing to help him in return for referrals.D. Give him your business card and tell him to call if he ever needs anything.11. Trust, respect, and _______ are the building blocks of a good business relationship.A. networkingB. prior preparationC. connectionsD. mutual support12. A thank-you note with a business card enclosed or an e-mail saying how glad you were to meetsomeone are examples ofA. contact follow-up.B. collaboration.C. exchange of information.D. assessment.13. If you were at a neighborhood party, _______ would be very much like networking.A. interrogatingB. hostingC. minglingD. toasting14. At the business expo, you've introduced yourself to Andrea, a packaging supplier from your city. Thenext thing you should do isA. ask her for several referrals.B. ask for her phone number.C. find out quickly whether she has anything you need.D. describe your business using three or four lines you've prepared in advance.15. Estelle has 30 years of experience in your field, and has answered your questions, given you advice,and helped you make contacts. She is your

A. coach.B. notary.C. mentor.D. referral.16. When choosing to use the products or services of a business, most people place the highest value onA. branding.B. referrals from friends.C. extensive research.D. impressive advertising.17. You've just met Jim at a state convention for widget and sprocket manufacturers. Which of thefollowing would be the best topic for conversation?A. One or two things your business needsB. Your interesting family historyC. Your quick success, even if it's not quite trueD. How you disapprove of the competition18. The first phase of networking, in which you describe your business, is referred to asA. collaboration.B. exchange of information.C. assessment.D. follow-up.End of exam19. Which one of the following approaches would not make it easier to network with new business contactsat a social gathering?A. Keeping business cards handy in your pocketB. Talking only to those you think can help youC. Always introducing yourself in the same comfortable wayD. Keeping your drink in your left hand20. Small businesses account for approximately _______ percent of the gross domestic product in theUnited States.A. 70B. 30C. 60D. 15

Market Research 1. What is one of the drawbacks of an Internet-based survey?A. Only those interested in your field will respond.B. It has a slow turnaround for responses.C. The participants have no confidentiality.D. It doesn't reach a wide number of people.2. Adam Kane wants to sell office supplies to as many customers as possible, in as many markets aspossible. His plan isA. the best way to succeed.B. a time-consuming way to find his target market.C. a poor market strategy.D. a proven way to maximize his profit margin.3. Tailor your business to aim your product or service at a certain group of customers, who are called theA. focus group.B. demographic grouping.C. research base.D. primary target market.4. West Side Medical Supply is in trouble. In the past two years, Fred Schultz, the owner, suddenly lost 26percent of his business when two drugstores and a local hospital closed. He missed a big opportunity whenhis competitor got a contract at a new nursing home before Fred even knew it was being built. Fred needstoA. sell to the public instead of to other businesses.B. improve his overall customer service.C. do continuous research on demographic changes.D. better understand his customers' values.5. After collecting 217 completed questionnaires and reviewing the results, you find you're no closer todeciding on a location than you were before. Chances are it's because your marketing questionsA. did not reach a large enough sample.B. were too persuasive.C. did not provide clear, measurable choices.D. reached the wrong target group.6. When you ask a customer the average dollar amount he spends on clothing, how often he shops, orwhich stores he prefers, you're researchingA. customer values.B. buying behaviors.C. demographics.D. secondary statistics.7. John Chapelle wants to know if his video store customers are interested in a selection of classic, blackand-

white movies. How could John simplify his survey to get them to fill out his short questionnaire beforethey leave the store?A. Include only two questions, although they'd be long.B. Make short blank lines to fill in.C. Provide check boxes for each choice.D. Ask open-ended questions.8. One drawback of a personal marketing survey is thatA. the response time if rather long.B. respondents may misinterpret questions.C. answers may be influenced by the interviewer.D. it results in a low response rate.9. Once you've found your target market, your business is on track, and your customers seem satisfied,ongoing market research canA. be a waste of money.B. improve your product quality.C. defeat your business goals.D. inform you of coming trends.10. An effective way to encourage people to return a mail questionnaire quickly is toA. print a bold deadline at the top.B. offer a discount coupon to the first 100 who return it.C. connect it to some cause they're interested in.D. ask fewer than 20 questions.11. Gemma's music store is doing well, but her goal is to improve customer satisfaction. In order to do so,she shouldA. track her sales carefully.B. lower her prices.C. improve the quality of her products.D. understand her customers' values.12. Doing personal interviews with holiday shoppers at an indoor mall is an example of _______ research.A. secondaryB. interpersonalC. primaryD. professional13. Information regarding income levels, education, occupation, and ethnic groups in your target market iscalledA. demographics.B. product-based research.C. advertising information.D. secondary research.14. A business structure that operates on a pyramid scheme, making money from recruiting more and moredistributors, is known asA. primary researching.B. focus marketing.

C. multilevel marketing.D. professional marketing.15. Franchise statistics, national and local business growth rates, and other industry information specific toyour field is easily obtainable through aA. mail survey.B. marketing expert or agency.C. market research booklet.D. personal interview.16. Which of the following is an example of secondary research?A. Hiring a marketing firmB. Gathering statistics onlineC. Conducting trial-and-error testingD. Observing reactions to free samples17. Ross Bergen is considering a certain corner location for his sandwich shop. If he surveys people passingthe corner at lunchtime, which of the following questions will give him the most useful information?A. Would you be interested in a new place to eat lunch?B. Do you often walk by this corner?C. Wouldn't you prefer a fresh sandwich to fast food?D. Do you prefer turkey or ham on your sandwiches?18. One of the biggest problems with telephone surveys is thatA. people often refuse to participate.B. they're too impersonal.End of examC. it takes too long to collect the results.D. the cost is higher than other methods.19. Cheryl Adams is having trouble defining her target market for the bookstore she's opening in her town,which is home to a small college, a retirement community, and a year-round tourist industry. By deciding tohire a marketing firm to handle the research, Cheryl will probablyA. learn a lesson to go with her hunches.B. ruin her budget because of the expense.C. miss opportunities she might have taken a chance on.D. save more money than she spends on the professional research.20. Mansee Patel is doing research before opening a store specializing in traditional Indian clothing. In orderto locate her target market, she should studyA. fashion trends.B. demographics.C. overall buying behaviors.D. business values.

Basics Of Business Plan 1. The supporting document portion of your business plan should contain résumés of the owners, lettersfrom lenders, andA. letters of reference.B. staffing requirements.C. inventory information.D. operating processes.2. What helpful information can you find at a company's or distributor's Web site?A. What public image they're trying to displayB. How to research and design your own business.C. The facts are about how they operate their businessD. Which references you could ask about them3. Because of its importance in summarizing your strategy, the Introduction and Overview of your businessplan should beA. written before you begin your research.B. lengthy and detailed.C. repeated in a cover letter.D. written last.4. When should you write the introduction and overview portion of your business plan?A. Just before listing the business informationB. Well in advance of the rest of the planC. Last, so all of the most important points are includedD. In a very detailed, wordy style5. Lawrence Masters submitted his business plan to a potential investor, but was disappointed when he wasquickly turned down. Chances are, Lawrence failed to capture the investor's attention because of a poorlywrittenA. overview.B. business outline.C. profit projection.D. financial plan.6. When Jack Cooper started his excavating service, his business plan mentioned his only competitor as "akid with an old dump truck." Three years later, Jack was in financial trouble and the "kid" bought him out,proving the importance ofA. planning for bankruptcy.B. taking your competition seriously.C. forming a corporation.D. choosing the right location.7. Before you decide whether to use the cost plus model, it's important to thoroughly researchA. competitors' operating processes.

B. profit margins in neighboring states.C. your industry's going rate.D. buying behavior in similar industries.8. Lindsey Birch is planning a van service to transport large or unmanageable pets to their veterinarians. Inthe Business Information section of her business plan, she writes that she believes her service will succeedbecauseA. it's a creative idea.B. it will solve a problem.C. her competition is clueless.D. cats are generally difficult creatures.9. Whether you operate your business from a small office at home or in a large plant environment, it's stillreferred to as yourA. office building.B. market.C. regulatory requirement.D. operating plant.10. Calvin and Liz have summarized several lengthy research items for their business plan. In case aninvestor wants more details on the research, they've also includedA. a file of price quotes and survey results.B. autobiographies and résumés.C. their mission statement.D. their business goals.11. Local zoning laws, EPA regulations, and municipal permits or registrations are requirements to beresearched and listed in the _______ portion of your business plan.A. operating plantB. financialC. introductoryD. industry12. Information such as parking issues, choice of location, and specialized equipment should be included inthe _______ portion of your business plan.A. business informationB. overviewC. operating plantD. financial plan13. You've begun a Web search for information on several suppliers you're considering for your business.Which of the following do you expect will have the most accessible information for your research?A. A small, family-owned companyB. A publicly held companyC. A local businessD. A sole proprietorship

14. Business Plan/Legal Software, Plan Magic Business, and Ultimate Business Planner are softwareprograms designed to help youA. learn the basics of using a library.B. set up a pricing structure for your products.C. research your business plan.D. determine the basic structural elements of your business plan.15. Financial papers included with your business plan before your company is open for business are calledA. financial analyses.B. pro forma statements.C. mission statements.D. curriculum vitae.16. How should you consider the information you acquire through Internet chat rooms?A. It's helpful in discovering your competitor's edge.B. It's usually the most up-to-date information available.C. It's clear, unbiased, and specific to your business.D. It can give you leads to places where you can find reliable information.17. The main purpose of writing a business plan is toA. inform employees of your business philosophy.B. have a document to file with your incorporation papers.C. meet a state requirement for new businesses.D. prepare a "blueprint" for the development of your business.18. Before setting your prices, it's wise toA. subtract your profit margin from your costs.B. research industry standards.End of examC. memorize the formula for cost plus.D. ignore your competitors' prices.19. Sarah and Stephanie are determined to make their business plan look as professional as possible. Inorder to make sure it's organized and presented correctly, they've decided toA. hire a reliable attorney to look it over.B. focus on their anticipated profit margin.C. buy a software program made for the purpose.D. do extra research on their target market.20. Rachel plans to set up a beautifully furnished office for her interior decorating business. She willdescribe it in her business plan under the headingA. Inventory.B. Processes.C. Current Trends.D. Marketing Profile.

Exam 1 Economics 1. Which of the following statements about competition is true?A. Competition keeps producers from charging prices that are too high.B. Competition only works in a resource market, not a product market.C. Competition is based upon a surplus of goods and services.D. Competition guarantees a profit for each competitor.2. Buildings, machines, and tools are all examples ofA. wants.B. capital.C. services.D. opportunity.3. According to the circular flow model of the economy, a person's job in a shoe factory is within the_______ market.A. resourceB. serviceC. productD. consumer4. The basic economic problem we face isA. scarcity.B. management.C. profit.D. manufacturing.5. The key feature of a market system isA. competition.B. profit.C. supply.D. demand.6. Which of the following ideas did Karl Marx believe?A. Workers shouldn't use force to get what they wanted.B. Workers should run the factories to make their lives better.C. Workers and owners would cooperate for profit.D. Factory owners should have most of the wealth.7. Which of the following statements about socialism is false?A. The government owns some large industries such as health care and the railroads.B. People can own private property.C. People still make economic decisions.D. The government tells people where to work.8. The factors of production areA. goods, services, and capital.B. goods, labor, and services.C. land, labor, and capital.D. land, labor, and goods.9. Which of the following is a need?A. EyeglassesB. A magazineC. A loaf of bread

D. A haircut10. Which one of these basic economic activities would you expect in a shop that installs car mufflers?A. Assembling raw materialsB. Distributing resourcesC. Providing servicesD. Manufacturing11. At a price of $62.00, people are buying all of the microwave ovens produced at the MZ factory. In thiscase, $62.00 is called the _______ price.A. market clearingB. steady marketC. shortage marketD. fixed market12. What is the result of limited resources?A. Our wants are satisfied, but our needs aren't.B. Capital is more important than labor.C. We must make choices.D. There's no scarcity of things.13. The way a country answers the three basic economic questions determines itsA. economic system.B. exchange policy.C. factors of production.D. property factors.14. Your text explains that profit and competition work together becauseA. producers always gain from competition.B. without competition no one could make a profit.C. profit is another word for competition.D. producers compete with each other for higher profits.15. Which one of the following statements reflects a characteristic of socialism?A. Individuals control all of the businesses.B. Individuals who work hard can become very rich.C. People must work at the jobs to which they're assigned.D. Public ownership protects workers from bad working conditions.16. The means by which goods and services are bought and sold freely is known as aA. producer.B. shopping center.C. consumer.D. market.17. The main reason producers make things is toA. overcome shortages.B. make a profit on them.C. pay taxes.D. help the economy.18. The law of demand says that as the price of an item goes up,A. its producer will lose more money.B. its producer will make less money.

C. people will want more of it.D. people will buy less of it.19. Something a person must have in order to live is aA. want.B. theory.C. service.D. need.20. Which of the following statements is true for a capitalist economy?End of examA. Most of the businesses are owned by the government.B. It's not practiced in the United States.C. The factors of production are owned mostly by the people.D. The government controls most of the economy.

Exam 2 Economics 1. Which of the following statements about checks and checking accounts is correct?A. A check is an order to a bank for money.B. It's illegal to send checks through the mail.C. All checking accounts earn interest.D. A check is a receipt for money deposited somewhere.2. A market in which no one controls the prices is calledA. stability.B. durability.C. easy money.D. perfect competition.3. In the American free enterprise system, the government acts more or less like aA. judge.B. lawyer.C. referee.D. jury.4. What kind of business most often risks problems over who will do what kind of work and under whatcircumstances?A. Entrepreneurial enterpriseB. Sole proprietorshipC. CorporationD. Partnership5. Which of the following statements about banks is correct?A. Banks cannot charge for the things they do.B. Banks provide goods, not services, to their customers.C. Banks are a type of business.D. Banks are nonprofit organizations.6. The most common kind of business in the United States is theA. sole proprietorship.B. corporation.C. partnership.D. oligopoly.7. When the Fed wants people to spend more, it increases the money supply. A large money supply is

calledA. an open vault.B. reserve currency.C. tight money.D. easy money.8. The market system is said to be driven byA. self-interest.B. contracts.C. government controls.D. property ownership.9. One of the things that works to make sure consumers keep getting better products at better prices isA. discrimination.B. stock ownership.C. risk.D. competition.10. The seven individuals who run the Fed are called theA. national managers.B. loan officers.C. board of governors.D. Fed chairpersons.11. What was the most serious money problem faced by people in the early United States?A. There were several standards of value.B. Some things lacked portability.C. The money they used lacked stability.D. There was no single medium of exchange.12. If an employer gives you a job or denies you a job because of your race, religion, sex, or nationalorigin, this isA. a contract benefit.B. legal discrimination.C. a fringe benefit.D. illegal discrimination.13. The main job of the Federal Reserve System is toA. insure that depositors don't lose their money.B. lend money to its member banks.C. control the supply of money in the United States.D. act as a clearinghouse for checks.14. The money a bank pays depositors for the right to use their money is calledA. reserve.B. credit.C. investment.D. interest.15. The auto industry in the United States is an example ofA. an oligopoly.B. government control.C. a monopoly.D. public enterprise.16. To whom does the Fed lend money?

A. Individual citizensB. CorporationsC. Other banksD. Small businesses17. The amount of interest, how long payments will go on, and the total amount to be paid are importantthings to know when you'reA. opening a checking account.B. buying on credit.C. writing a check.D. investing.18. The first important labor union in the United States was called theA. Congress of Industrial Organizations.B. Knights of Labor.C. American Federation of Labor.D. United Coal Miners.19. Which one of the following is a characteristic of an oligopoly?A. Large number of businessesB. No control over pricesC. High start-up costsD. High level of competitionEnd of exam20. Which one of the following is not a necessary characteristic of proper money?A. DurabilityB. DivisibilityC. StabilityD. Interest

Exam 3 Economics

1. At which part of the business cycle is business at its best?A. ExpansionB. PeakC. TroughD. Recession2. The tax that pays for most fire and police protection, schools, and parks in the United States is the_______ tax.A. salesB. incomeC. luxuryD. property3. Increasing unhappiness among some workers, pollution of the environment, and the using up of naturalresources are allA. problems that don't affect the economy.

B. parts of the standard of living.C. disadvantages of a free enterprise system.D. costs of economic growth.4. What is the basic farm problem?A. There isn't enough land for farmers to use.B. There are too many farmers growing too many crops.C. There are no good schools that teach farming.D. Farm machinery is too expensive.5. Local governments receive most of their money from what two kinds of taxes?A. Income taxes and luxury taxesB. Sales taxes and property taxesC. Sales taxes and income taxesD. Luxury taxes and property taxes6. When a country can produce many things but chooses to produce one main thing, or just a few things,this country is said to beA. trade weak.B. economical.C. specializing.D. short on labor.7. What was one outcome of price supports for farmers?A. The government purchased surplus crops.B. Farmers grew fewer crops.C. The price of food for consumers went down.D. Farmers weren't paid enough for their crops.8. When you buy a United States savings bond, you'reA. loaning money to the government.B. buying a government check.C. changing the government fiscal policy.D. investing in government stocks.9. Why would the government provide money to people who can't pay for medical expenses?A. To be sure consumers are not cheatedB. To provide for the national defenseC. To promote the general welfareD. To create economic growth10. One indicator that helps to tell us when inflation may be coming is theA. Peak and Trough Report.B. Gross National Product.C. Equal Opportunity Summary.D. Consumer Price Index.11. How does the U.S. government promote fair competition among businesses in the United States?A. By setting quotas on what businesses can makeB. By providing necessary public goodsC. By setting a maximum wage that can be paidD. By setting rules businesses must follow12. A number of parents discover that young children can be harmed by chewing on certain kinds of

stuffed animals. The dye makes them sick. What government agency might investigate this problem?A. Department of LaborB. Federal Consumer Goods AgencyC. Consumer Product Safety CommissionD. Securities and Exchange Commission13. What did the Sherman Antitrust Act do?A. It made monopolies against the law.B. It made parks, schools, and police forces mandatory.C. It created the Consumer Product Safety Commission.D. It created the Federal Deposit Insurance Corporation.14. The main thing the government has done to try to help farmers is to provide money to them in the formofA. invention subsidies.B. price supports.C. field equities.D. storage fees.15. The difference between the value of a country's imports and its exports is known as itsA. balance of trade.B. import quota.C. free trade.D. export quota.16. What main idea is stated in the Sherman Antitrust Act?A. Prices must be low enough for poor people to pay.B. Workers must be paid fair wages.C. Oligopolies are forbidden.D. No business can limit competition.17. Some things—like roads, parks, and military forces—are too expensive for private businesses to buyand maintain. When the government supplies them, they're calledA. consumer benefits.B. fringe benefits.C. general welfare.D. public goods.18. The low point of the business cycle is called aA. peak.B. trough.C. remission.D. recession.19. Which one of the following is not a main source of tax revenue for the federal government?A. Interest on the national debtB. Taxes on business earningsEnd of examC. Taxes on personal incomeD. Social security taxes20. Demand, how people spend money, and the government's fiscal policy all have a part in determining

A. the business cycle.B. price supports.C. embargoes.D. specialization.