Final Test Answers

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1
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Which of the following can help you evaluate the performance of your ads and other marketing strategies?

A
Asking competitors what they think of your advertising strategy
B
Collecting secondary data about your target market
C
Asking customers how they found out about your company or product
D
Sending out a press release multiple times
2
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If your bank is a member of the FDIC, what does that mean for you?

A
The bank is not allowed to lend out your money.
B
You will get a better exchange rate than at other banks.
C
Your bank is allowed to print out currency for you.
D
Your money is protected by insurance up to a specific amount.
3

If you want to compare two different investments, what should you calculate?

A
The compound interest
B
The ROI percentages
C
The ROI dollar amounts
D
The capital gain
4

Which type of risk is most likely to be insurable?

A
Pure risk
B
Speculative risk
C
Equity risk
D
Investment risk
6

If you co-sign for a friend's credit card, what is the danger to you if your friend fails to pay?

A
You might get secured credit.
B
You might have to pay extra money in taxes.
C
Your credit score might go down.
D
Your credit score might go up.
7

In the accounting equation, assets are equal to which two things?

A
Debits + equity
B
Debits + accounts
C
Liabilities + equity
D
Liabilities + accounts
8

Which of the following business ownership structures offers the best liability protection but higher taxes?

A
A nonprofit corporation
B
A C corporation
C
A partnership
D
A sole proprietorship
10

The U.S. encourages domestic companies to export because _____________.

A
It increases inflation.
B
It increases the number of U.S. consumers who buy domestic products.
C
It increases the value of a U.S. dollar.
D
It improves the interest rate.
11

As a factor of production, how is capital created?

A
By adding land to entrepreneurship.
B
By adding human labor to land.
C
By removing land from services.
D
By using labor to create services.
12

If your company increases its market penetration, what is happening?

A
The target market is growing.
B
More people in the target market are buying the company's product.
C
The market saturation of the target market has decreased.
D
Competitors who offer similar products are entering the market.
13

Which of the following is a strategy for using credit wisely while improving your credit score?

A
Pay off your credit card in full each month.
B
Use as much of your total available credit as you can.
C
Pay exactly the minimum payment on your credit cards each month.
D
Avoid using your credit card.
14

Which of the following strategies can a country use to keep its products inexpensive for consumers in the U.S.?

A
Raising its interest rates
B
Keeping its interest rates low
C
Increasing its exports
D
Avoiding debt
15

How is the value of a product determined?

A
By the amount a consumer is willing to pay for it
B
By how much it cost the producer to make
C
By its variable costs
D
By the number of workers who were involved in making it
16

How does limiting a company's scope benefit the company?

A
It encourages the company to use division of labor.
B
It makes it easier to produce a high quality product.
C
It lowers the company's taxes.
D
It allows the company to hire more employees.
17

In a company's SWOT analysis, which of the following is an example of a strength?

A
A law is passed that decreases demand for the company's product.
B
A demographic trend increases demand for the company's product.
C
The company's employees are efficient and productive.
D
The company doesn't have many competitors.
18

A producer is _____________.

A
someone who makes a commodity available for sale or exchange
B
someone who buys or trades in order to receive a commodity
C
someone who is in the market for a commodity
D
someone who receives a commodity from a business
19

Which of the following types of advertising has the advantage of being especially affordable?

A
Magazine advertising
B
Infomercials
C
Internet advertising
D
Billboard advertising
20

Which of the following is a reason that your company might not want to increase its market share?

A
The market saturation for your product is low.
B
Many of your company's competitors have bad reputations.
C
Your company has a limited capacity for producing your product.
D
The price of your product is very competitive.

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