Introduction to Business Unit 1 Practice Milestone 1,100% CORRECT

Which of the following is why a business should operate in a socially responsible manner? • Socially responsible efforts require little effort to implement. • Consequences from business decisions may have an impact o ...

Which of the following is why a business should operate in a socially responsible manner? • Socially responsible efforts require little effort to implement. • Consequences from business decisions may have an impact on society. • A socially responsible business will be more profitable. • Social responsibility is required by government regulations. 2 Sophie and Caroline co-owned a small restaurant. Sophie believed that she was supposed to handle relationships with all of their suppliers, but she found out that Caroline had hired a different supplier for their meat products. Which element of a partnership agreement should Sophie and Caroline have defined? • Profit and loss breakout • Investment amounts • Responsibilities • Liability factors 3 Which of the following best describes a franchise? • Karen started a business to sell a kitchen gadget she created. • Karen recruited salespeople to sell products as well as find more salespeople. • Karen was authorized to sell a specific brand-named experience in her store. • Karen sold products she made using the internet and social media. 4 Melody led a team in creating a recycling program for her sandwich shop business that encouraged employees and customers to recycle all paper products and plastic bottles used by the business. Match each step below to its corresponding description. Action Results A.Melody calculated the difference in the amount of trash produced and recycling collected. B.Melody changed the setup of the recycling bins to encourage more customer participation. C.Employees asked patrons to please use the new recycling bins once they finished their meals. 5 A corporation is owned differently than a sole proprietor or a partnership. Match each term below to its related description. Dividend Stock A.Purchased by someone to have partial ownership in a corporation B.Passed to someone to utilize voting rights as a shareholder C.Paid as earnings to a shareholder of a corporation 6 Which of the following is NOT a form of support that the World Bank provides to developing countries? • Technical assistance • Research and analysis • Financing • Policy advice 7 Which of the following illustrates the domestic business external environment? • A business considers using social media platforms to market a product. • A business evaluates changes in national demographics for a product it is developing. • A business evaluates the results of a new foreign official being elected into office. • A business considers changes in trade restrictions for a country to which it exports products. 8 Classify the following advantages and disadvantages as to whether each relates to a sole proprietor or a partnership. Sole Proprietor Partnership Has ultimate decision-making authority Has an increased skill set to utilize Has more difficulty hiring and retaining staff 9 Which of the following is the basis for ethical behavior? • Following legal guidelines • Using right and wrong to make choices • Applying religious principles • Applying scientific principles 10 A furniture company in the United States manufactured sofas using fabric made in South Korea, furniture frames made in Texas and cotton stuffing made in China. The company then sold the finished sofas in retail locations in Europe. Which of the following is an export for the US company in the scenario? • Cotton batting • Sofa • Frame • Fabric 11 A company in Scotland produces and exports cheese to the US at $75 per pound. The US government requires the company to pay the government an additional $15 to export the cheese. Which of the following trade restrictions is illustrated in this scenario? • Embargo • Tariff • Dumping fee • Quota 12 An automobile company had two new models becoming available for consumer purchase in the fall. The company needed to determine at what price point to sell each of the new models. In which of the economic markets below is the automobile company operating? • Monopolistic • Perfect • Oligopoly • Monopoly 13 Which of the following issues could contribute to the failure of a business? • The owner provided a business plan to potential investors. • The owner was adept at providing direction to employees. • The owner underestimated the costs related to high employee turnover. • The owner invested time and effort in researching target markets. 14 In which of the economic systems below are decisions about production and investment determined by supply and demand alone? • Mixed market • Socialism • Market • Communism 15 Jeremy hired a part time student on a temporary basis to help him move boxes of old documents and files from his law office to an off-site storage location. Which factor of production below does the student represent? • Capital • Entrepreneur • Human resource • Physical resource 16 Which of the following statements is true regarding small businesses? • Small businesses have little impact on large businesses. • Most small businesses survive at least five years. • Most small businesses are publicly owned. • A business is considered small if it employs fewer than 500 people. 17 Match each stance on social responsibility below to its corresponding example. Obstructionist Defensive A.A company makes every effort to ensure pollution does not occur at any of their facilities. B.A company produces waste but legally removes it rather than dumping it illegally. C.A company justifies making profit a priority even though it polluted a natural area. 18 During which of the instances below does a loss occur for business? • Business limits consumer choices. • Customer wants are not met. • Expenses are greater than revenues. • Sales exceed cost of performing business. 19 Select the two statements that are true regarding the sales forecast of a business plan. • Data provided in the sales forecast must be validated. • It summarizes the investments needed to be produced. • It explains the products or services the business will provide. • It describes specific plans for developing the customer base. • It analyzes how the business will compare to others offering similar products.