Economics, Ethics, Business Ownership, Management

The study of how society uses resources to produce and distribute goods and services is called:

C. Economics

In a free-market system, who decides what goods and services get produced?

The market (consumers and businesses)

The price where supply equals demand is the:

C. Equilibrium price

An economic system where individuals own and operate most businesses for profit is:

B. Capitalism

The study of how society uses resources to produce and distribute goods and services is called:

C. Economics

In a free-market system, who decides what goods and services get produced?

B. The market (consumers and businesses)

The price where supply equals demand is the:

C. Equilibrium price

An economic system where individuals own and operate most businesses for profit is:

B. Capitalism

Which of the following is a command economy?

A. Communism

A system in which the government owns some major industries but not all is:

B. Socialism

A combination of private enterprise and government decision-making is a:

C. Mixed economy

The total value of final goods and services produced in a country in one year is:

C. Gross Domestic Product (GDP)

Which indicator measures price changes for consumer goods and services?

B. Consumer Price Index (CPI)

When the economy slows but prices continue to rise, this is:

B. Stagflation

The percentage of civilians 16+ who are jobless and looking for work is called:

B. Unemployment rate

A severe recession that lasts a long time is a:

B. Depression

The U.S. government uses fiscal policy to:

B. Manage taxes and spending

Monetary policy refers to:

B. Money supply and interest rates controlled by the Federal Reserve

Ethics refers to:

B. Standards of moral behavior accepted as right or wrong

Which of the following is an example of ethical behavior?

C. Honesty and integrity in decision-making

A compliance-based ethics code focuses on:

B. Preventing illegal acts through rules and punishment

An integrity-based ethics code emphasizes:

A. Shared accountability and guiding values

Employees who report illegal or unethical acts are called:

B. Whistleblowers

Corporate Social Responsibility (CSR) means:

B. Caring about society’s welfare and ethical business behavior

Making false claims about being environmentally friendly is called:

A. Greenwashing

Corporate philanthropy involves:

B. Charitable donations

Which of the following is not a basic consumer right?

D. The right to low prices

Which form of business is owned by one person?

C. Sole proprietorship

The biggest disadvantage of a sole proprietorship is:

C. Unlimited personal liability

In a general partnership, all partners:

B. Share management and unlimited liability

A limited partnership includes:

B. At least one general partner and one limited partner

A corporation is best defined as:

B. A legal entity separate from its owners

Which is an advantage of the corporate form of ownership?

A. Limited liability for owners

The main advantage of an S Corporation is that it:

B. Avoids double taxation

A Limited Liability Company (LLC) combines:

A. Limited liability with flexible tax options

A horizontal merger occurs between:

A. Companies in the same industry

A vertical merger occurs between:

B. Companies at different production stages (supplier + manufacturer)

A conglomerate merger joins:

B. Firms in unrelated industries

Management is the process of:

B. Using resources to achieve organizational goals

The four functions of management are:

B. Plan, organize, lead, control

A vision statement describes:

B. Why the organization exists and where it’s headed

The mission statement includes:

B. Company purpose, philosophy, and customer focus

Broad, long-term results a company aims to achieve are:

A. Goals

Short-term, specific steps toward goals are:

B. Objectives

Which management level needs the most conceptual skills?

B. Top-level managers

Which management level uses mostly technical skills?

B. First-line managers

A manager who makes all decisions without input practices:

B. Autocratic leadership

A democratic (participative) leader:

B. Works with employees to make decisions

A free-rein leader:

B. Sets goals and lets employees decide how to achieve them

Giving employees authority and resources to make their own decisions is:

B. Empowerment

Presenting company facts clearly and openly to all stakeholders is:

B. Transparency

The function of management that monitors progress and takes corrective action is:

A. Controlling

Which planning type sets the company’s long-term direction?

C. Strategic planning

A contingency plan is:

B. A backup plan if the main plan fails

Organizing is best described as:

B. Designing a structure and systems for achieving goals

Leadership that inspires trust and emphasizes ethics is:

B. Integrity-based leadership

The business cycle includes which phases?

B. Boom, recession, depression, recovery

The U.S. economic system is best described as:

B. Mixed-market economy

A written code of conduct should be:

B. Supported by top management and enforced fairly

In management, controlling comes after which step?

A. Leading

The three levels of management (from top to bottom) are:

B. Top, middle, first-line

Socialism attempts to reduce:

B. Income inequality

A major disadvantage of corporations is:

B. Double taxation

Unlimited liability means:

A. Owners are personally responsible for all business debts