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Agricultural Business Pre-test

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1 
Which is NOT an advantage of a Sole Proprietorship?
a
It is relatively easy to start.
b
You get to share decision making with others.
c
You’re entitled to all of the profits of the business.
d
Usually there are less taxes and less government regulation.
e
I don’t know
 

 2 
Which business type is characterized by having just one owner?
a
Sole Proprietorship
d
Cooperative Corporation
b
Partnership
e
I don’t know
c
Investor-Oriented Corporation
 

 3 
Which is NOT a disadvantage of a Investor-Oriented Corporation?
a
Limited liability for each owner
b
Difficult to set-up
c
More scrutinized by government regulation
d
Can be very complex, especially when dealing with accounting and record keeping
e
I don’t know
 

 4 
Which of the following is NOT an example of a good that has an excise tax as discussed in class?
a
gasoline
c
air travel
e
I don’t know
b
tobacco
d
food
 

 5 
Which of the following do NOT contribute to economic interdependence?
a
Producers
d
Consumers
b
Government
e
I don’t know
c
Distributors
 

 6 
Which of the following factors doesn’t normally affect consumer demand?
a
income
c
substitutes
e
consumer tastes
b
fads
d
production costs
f
I don’t know
 

 7 
Which is NOT a common objective of advertising?
a
Ads attract attention of prospective buyers.
b
Ads create a strong interest in the prospect in the product.
c
Ads create questions in the buyer’s mind.
d
Ads motivate the buying action.
e
I don’t know
 

 8 
Which is NOT an advantage of Direct Mail as a form of printed media?
a
has a direct annd personal appeal to one carefully selected group
b
is relatively inexpensive if special postal rates can be obtained
c
may be used to make immediate sales by enclosing an order blank
d
can be changed easily
e
I don’t know
 

 9 
Anyone who buys on credit or receives a loan is known as a......
a
debtor
c
character
e
I don’t know
b
creditor
d
credit references
 

 10 
Which is not considered to be one of the three ‘C’s’ of credit?
a
capacity
c
capital
e
I don’t know
b
character
d
compliancy
 

 11 
Credit is......
a
the money paid for the use of money.
b
a business or individual from whom you have received loans in the past.
c
the planned protection provided by sharing economic loss.
d
the privilege of using someone else’s money for a period of time.
e
I don’t know
 

 12 
Credit cards that can only be used at certain stores and are company specific are called....
a
bank charge cards
d
VISA & Mastercard
b
travel & entertainment cards
e
I don’t know
c
retail store cards
 

Multiple Response
Identify one or more choices that best complete the statement or answer the question.
 

 13 
A business plan is made up of which 3 components listed below?
 a
Business Description and Analysis
 e
Social Activities Plan
 b
Consumerism Plan
 f
Business Meeting Plan
 c
Organization and Marketing Plan
 g
I don’t know
 d
Financial Plan
 

 14 
Choose all that are correct.
Distributors....
 a
buy goods and services from producers.
 b
pay wages and benefits to consumers for labor used in production
 c
sell goods and services to consumers
 d
work for producers to earn wages and benefits
 e
turn economic resources into factors of production
 f
I don’t know
 

Completion
Complete each statement.
 

 15 
A legal agreement between two or more people to be responsible for a business is a _________________________.
 

 

 16 
A business which has the right or license to sell a company’s product or service at a designated location is known as _____________________.
 

 

 17 
Businesses targeting a ___________________ market generally sell to customers in one country.
 

 

 18 
There are two basic management structures used by most businesses. Most are either organized __________________________ (which is the traditional method) or Horizontally (which is rather new and can be complex).
 

 

 19 
___________________ is when the government sets strict rules affecting businesses within certain industries.
 

 

 20 
_________________ are special taxes placed on foreign goods sold in the United States.
 

 

 21 
Terms or phrases that describe the state of this Business Cycle are:
-decreased confidence in the economy
-reduction in spending
-increased unemployment
 

 

 22 
The abbreviation ‘S&L’ refers to what in the banking industry?
Type your answer in the following format capitalizing appropriately:
_________ ___ _________
 

 

 23 
Capable of meeting financial obligations is the definition for what term?
 

 

 24 
The amount paid for the use of money is the definition for.....
 

 

 25 
Of the two types of stock, ____________ stock is the one that is most often traded by investors.
 

 

 26 
A legal document giving the lender a claim against the property if the principal, interest or both are not paid as agreed is known as a ____________.
 

 

 27 
The difference between what your house and property are worth and the amount owned on the mortgage is know as your _________.
 

 

 28 
The different ways to get to people through advertising is known as ____________.
 

 

 29 
The federal government promotes economic growth by regulating the amount of money in the economy with the _________________  ________________  ________.
 

 

 30 
The federal government plays a role in business by protecting the natural environment. One way this was done was the establishment of the EPA in 1970. What does the acronym EPA stand for?
____________________  __________________  _____________________
 

 



 
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