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Global Warming: A Major Concern

1. Return on sales is also known as: a. ☐Return on investment b. ☐Profit margin c. ☐Cost of goods sold d. ☐None of the above 2. One way for a business to raise the capital it needs to grow it finance with: a. ☐Earnings b. ☐Debt c. ☐Equity d. ☐All of the above 3. An example of a company where revenue is primarily from the production of a tangible product is: a. ☐Ford Motor Company b. ☐Ernst & Young c. ☐Massage Envy d. ☐Netflix 4. One disadvantage of corporations is that their profits are subject to double-taxation, taxed once on the corporate level and again when investors receive their share of profits. a. ☐True b. ☐False 5. Examples of variable costs include: a. ☐Commissions b. ☐Shipping c. ☐Cost for materials d. ☐All of the above 6. Payment of a percentage of the revenue generated by the sale of each unit is known as: a. ☐Royalty b. ☐Franchise c. ☐Diversification d. ☐Line extension 7. Which kind of company acts as a middleman, buying goods from a manufacturer and selling them on to a retailer? a. ☐Retail b. ☐Wholesale c. ☐Manufacturing d. ☐Service 8. A cash flow statement provides the same information as an income statement. a. ☐True b. ☐False 9. A company codifies its reason for existence in the form of a: a. ☐Performance objective b. ☐Mission statement c. ☐Profit statement d. ☐None of the above 10. What is the final step in the employee recruitment process? a. ☐Salary negotiation b. ☐Hiring c. ☐Orientation d. ☐None of the above 11. In 2013, Ken invested $20,000 in his company. In the same year, his net profits were $3,500. What was his annual ROI in 2013? a. ☐17.5% b. ☐5.7% c. ☐1.75% d. ☐57.1% 12. A free enterprise system is also known as: a. ☐Economics b. ☐Market system c. ☐Production economy d. ☐Free-trade system 13. The opposite of the skimming strategy of pricing is the: a. ☐Penetration strategy b. ☐Skimming strategy c. ☐Meet-or-beat the competition d. ☐Cost-plus 14. A reward for becoming an entrepreneur is: a. ☐Control over time b. ☐Control over compensation c. ☐Control over working conditions d. ☐All of the above 15. Lee has $255,000 in current assets and $175,000 in current liabilities. How much working capital does she have? a. ☐$85,000 b. ☐$430,000 c. ☐$80,000 d. ☐None of the above 16. How often should you rebalance your investment portfolio? a. ☐Monthly b. ☐Bi-annually c. ☐Annually d. ☐Every three years 17. Net worth is also known as owner’s equity. a. ☐True b. ☐False 18. Franchising and licensing are examples of what kind of strategies? a. ☐Harvest b. ☐Diversification c. ☐Replication d. ☐None of the above 19. Which of the following telephone behaviors is NOT a hallmark of a successful salesperson? a. ☐Waiting to offer solution or products until later in the call. b. ☐Letting the customer talk less than you do. c. ☐Asking the right questions. d. ☐None of the above. 20. Using orders as a unit of sale is most commonly associated with which kind of business? a. ☐Retail b. ☐Wholesale c. ☐Manufacturing d. ☐Service 21. The giving of resources to charities in an effort to help solve a social or environmental problem is known as: a. ☐Philosophy b. ☐Mission c. ☐Philanthropy d. ☐Vision Statement 22. If furniture store buys a sofa from the wholesaler for $600 and sells it for $2,500, what is the retailer’s gross profit per unit? a. ☐$3,100 b. ☐25% c. ☐$1,900 d. ☐4.16 23. Four out of five small firms fail in the first five years of operation. a. ☐True b. ☐False 24. According to the principle of compounding interest, if you invest $1.00 at 10 percent over five years, how much will you have at the end of those five years? a. ☐$1.50 b. ☐$1.61 c. ☐$1.51 d. ☐$1.10 25. Which one of the following is NOT one of the five roots of opportunity? a. ☐Problems b. ☐Inventions c. ☐Competition d. ☐None of the above

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