BUS 100 Introduction to Business Milestone 1 Test.
UNIT 1 — MILESTONE 1 Score You passed this Milestone 19 questions were answered correctly. 1 Martin started a custom frame shop after retiring as an engineer. He was a skilled craftsman and knew there was a market in his small town for this business. He focused on serving his customers and maintaining the daily operations of his business. Which of the following would Martin be considered? Entrepreneur Small business owner Business partner Corporate owner CONCEPT Small Business and the Entrepreneur 2 Jill owned a small business in California. The state passed new legislation that required all small businesses to use new measures to protect the personal, financial and health information of both customers and employees. Jill's business will be impacted by which external business environment below? Sophia :: Welcome 1 of 10 7/20/2020, 9:34 PMGlobal Sociocultural Political-legal Economic CONCEPT Business Environments 3 Henri owned a company that made gourmet cookies in New York. The chocolate he used was made in Belgium. The pecans he used were grown in Georgia and the Macadamia nuts were grown in Australia. The dried fruits he used were made in California. He used eggs and butter produced by local farmers. Select the item(s) below that had to be exported in order for Henri to use it in his recipes. Dried fruits Eggs and butter Chocolate Pecans CONCEPT Global Economy 4 In which of the following are investors most interested? They are concerned with the company paying employees a fair wage. Sophia :: Welcome 2 of 10 7/20/2020, 9:34 PMThey are concerned with the company safely increasing profitability. They are concerned with the company creating value for its customers. They are concerned with the company making environmentally friendly products. CONCEPT Models of Social Responsibility and Considering the Stakeholder 5 Which of the following best describes corporate governance? The structure of rights and processes for a corporation The leadership provided by officers and directors for a corporation The rights assigned to the stockholders of a corporation The input provided by stockholders of a corporation CONCEPT Types of Corporations 6 Sarah owned a small business that made custom handbags and totes for women, but her business failed. If Sarah was constantly shopping for supplies, stocking the work room and sewing bags—instead of overseeing business operations—her failure can be attributed to which type of mismanagement? Financial miscalculation Lack of focus Sophia :: Welcome 3 of 10 7/20/2020, 9:34 PMUncontrolled resources CONCEPT Small Business Success or Failure? 7 A business owner decides to only use products that do not test on animals. Which social responsibility stance below did the business owner demonstrate? Obstructionist Accommodating Defensive Proactive CONCEPT Stances to Social Responsibility Issues 8 The US government decided to enforce a trade restriction to no longer trade any goods with Mexico. Which of the following does this scenario describe? Embargo Foreign-exchange control Tariff Sophia :: Welcome 4 of 10 7/20/2020, 9:34 PMQuota CONCEPT Interactions within the Global Economy 9 Richard worked at a software company, and he learned many youth in the local community did not have access to technology to help them succeed in school. Richard told his supervisor he thought this might be a good way to give back to the community. Which step to creating a social responsibility program below does this illustrate? Need recognition Action Follow through Ongoing leadership CONCEPT Steps to Creating a Social Responsibility Program 10 Raul owned a small graphic design business. He used 3-D software and computers to create animations for his clients. Which factor of production do the computers represent? Information resource Physical resource Capital Sophia :: Welcome 5 of 10 7/20/2020, 9:34 PMHuman resource CONCEPT Economic Systems 11 A toy company created a new truck to offer to consumers. Based on the graph shown above, which of the following is the equilibrium quantity and price at which the company should sell the truck? 400 trucks at $4 per truck 200 trucks at $4 per truck 200 trucks at $8 per truck 400 trucks at $8 per truck 300 trucks at $6 per truck CONCEPT Sophia :: Welcome 6 of 10 7/20/2020, 9:34 PMSupply and Demand Economics 12 In which economy below are private owners most concerned with developing wealth? Communism Mixed market Socialism Capitalism CONCEPT Economic Systems 13 In addition to providing products and services, which of the following can a business often create? Quality of life for consumers Need for economic policy change More restrictions on consumer choices Increased need for government regulations CONCEPT What Is Business? 14 Max wanted to open a pizza and sub restaurant. He compared purchasing a well-known franchise to opening his own restaurant as a small business. Sophia :: Welcome 7 of 10 7/20/2020, 9:34 PMWhich of the following would be a disadvantage to the franchise option? Max will be able to use the business model provided by the franchise. Max will have to use the franchise's pizza sauce instead of his family recipe. Max will have to use his savings and borrow some money to start his business. Max will have many competitors that offer pizzas and similar Italian fast food. CONCEPT The Small Business Franchise 15 Which of the following best describes ethics? Making choices based on morality Adhering to societal norms Adhering to laws and statutes Making choices based on emotions CONCEPT Ethics as a Lifestyle 16 Which of the following would be included in the financial plan section of a business plan? Analysis of competitors in the marketplace Sophia :: Welcome 8 of 10 7/20/2020, 9:34 PMMethods for measuring if specified targets are met Projected profit and loss for the business Description of the target market for the business CONCEPT The 3 Part Business Plan 17 In which type of business below does the owner have the highest liability risk? Cooperative Partnership Sole proprietor Corporation CONCEPT Non-Corporate Business 18 Which of the following is the purpose of the World Bank? To loan businesses in different countries money To loan consumers in different countries money Sophia :: Welcome 9 of 10 7/20/2020, 9:34 PMTo support the development of all countries To support the development of poorer countries CONCEPT Global Markets 19 Penelope worked for several years at an art gallery after graduating college. She had always imagined she would own her own studio one day, where she could showcase her own works as well as provide private art lessons and classes. She had saved money toward this goal but had little experience running any type of business. Based on Penelope's situation, which of the following is a disadvantage to her becoming a sole proprietor? Penelope is worried about who will be responsible for making final business decisions. Penelope has few contacts she could use to obtain startup funding. Penelope may have difficulty managing all aspects of a small business alone. Penelope lacks significant expertise and experience in the art field. CONCEPT Non-Corporate Business © 2020 SOPHIA Learning, LLC. SOPHIA is a registered trademark of SOPHIA Learning, LLC.