Sophia BUSN100 Unit 1 Milestone Latest 2022 September

BUSN100 Basics of Business

Unit 1 Milestone

1 Which of the following would cause a person starting a small business to choose a sole proprietorship over a partnership?

•The person lacks sufficient funding for business operations.

•The person wants to retain complete control over the entire business.

•The person has minimal experience managing a small business.

•The person is willing to share responsibilities for running the business.   

2Max wanted to open a pizza and sub restaurant. He compared purchasing a well-known franchise to opening his own restaurant as a small business.

Which of the following would be a disadvantage to the franchise option?

•Max will have to use the franchise's pizza sauce instead of his family recipe.

•Max will have many competitors that offer pizzas and similar Italian fast food.

•Max will have to use his savings and borrow some money to start his business.

•Max will be able to use the business model provided by the franchise.

3How is a business plan used by the management of a business?

•To list the responsibilities of managers and employees

• To evaluate the results of social responsibility programs

•To monitor and track performance goals for the business

•To define the current management structure of the business

4Selena wrote a popular blog for a well-known cooking magazine. She used the success of her blog to write her own series of books and create a companion line of food products.

Which factor of production below does Selena illustrate?

•Capital

•Entrepreneur

•Information resource

•Physical resource

5 A maker of soaps and lotions noticed a blind person having difficulty comparing products while shopping in one of her stores. She launched an initiative to include Braille on the packaging of all products her company produced.

Which social responsibility stance below did the business owner demonstrate?

•Defensive

•Proactive

•Obstructionist

•Accommodating

6 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?

•             Economic

•             Political-legal

•             Global

•             Sociocultural

7 Which of the following is true regarding a mixed market economy?

•             Central government authority owns and operates certain types of businesses.

•             Some pricing fluctuates while other pricing is controlled by the government

•             Prices and production of goods are based on supply and demand.

•             Prices and production of goods are determined by a central planning authority.

8 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?

•             200 trucks at $8 per truck

•             400 trucks at $4 per truck

•             300 trucks at $6 per truck

•             200 trucks at $4 per truck

•             400 trucks at $8 per truck

9In modern times, companies need to be socially responsible toward various stakeholders.

When a company ensures that its products will not cause personal injury when used, the company is demonstrating particular consideration to which stakeholder?

•             Environment

•             Employees

•             Investors

•             Customers

10Which of the following factors could contribute to the success of a small business venture?

•             A business owner put in long hours and took few days off.

•             A business owner paid himself a high salary.

•             A business owner had a business plan but no budget.

•             A business owner put off tasks he did not enjoy completing.

11A US based company manufactures and sells custom motor homes. All engine parts are made in Michigan, and the tires are made in Virginia. The computer system is made in China. The leather for all seating is made in Italy. The carpet and wood flooring are made in Pennsylvania.

Select the item below that is an import to the US.

•             Engine parts

•             Carpet and wood flooring

•             Tires

•             Computer system

12Penelope 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 lacks significant expertise and experience in the art field.

•             Penelope has few contacts she could use to obtain startup funding.

•             Penelope is worried about who will be responsible for making final business decisions.

•             Penelope may have difficulty managing all aspects of a small business alone.

13The US government limited the amount of raw sugar that could be brought into the country to three billion pounds.

Which of the following trade restrictions is illustrated in this scenario?

•             Import quota

•             Export quota

•             Embargo

•             Tariff

14 A country had a per capita income of $2,000.

Which of the following would the World Bank categorize this country as being?

•             A developing country

•             A lower-middle income country

•             A low-income country

•             A developed country

15 Which of the following is true about corporate ownership?

•             Stockholders are unable to share their voting rights with other people.

•             A corporation is owned by any person who purchases its stock.

•             All corporations are publicly owned through publicly traded shares.

•             Each US state has the same tax guidelines for creating corporations.

16 Kyle owned a small business that sold and repaired several styles of bicycles. Last month, Kyle had sales of $15,000 and the costs of operating his business were $12,300.

Which of the following is true about Kyle's business?

•             The business is not capitalizing on a need.

•             The business experienced a loss.

•             The business earned a profit.

•             The business should focus on expansion.

17Which of the following describes an entrepreneur rather than a small business owner?

•             More concerned with running day-to-day operations

•             More likely to develop innovations and business expansions

•             More focused on making decisions where the outcome is clear

•             More satisfied with a consistently profitable business

18 Sophie led a team developing a social responsibility program for her company. The team created a program to raise money for a local food bank charity.

Which of the following activities would NOT have been performed during the planning step for the program?

•             Determine the fundraising goals

•            

Gain support from upper management

•             Manage performance of the program team

•             Set the budget for marketing the program

19 Which of the following should guide ethical behavior in a business?

•             Personal goals

•             Moral judgments

•             Scientific theories

•             Cultural standards