1) Mr Long always knew he wantes to start his own business.

He was very passionate and

wanted to create something new.Mr Long’s prumary motivation for starting his own business is
A His entrepreneurial spirit
B His background with his family
C His desire to determine his own destiny
D His need for independence
E The lack of good jobs in other companies
2) Many smail firms seek to establish a particular niche in the market, realizing that they cannot
afford to operate on a larger scale without exposing themselves to considerable risk of retaliation
from larger business to recognize and accont for their influence on themarket. In this way, small
business are primarily
A Fostering competition
B Providing technical innovation
C Satisfying the needs of other businesses
D avoiding competition
E Creating jobs
3) For a business, stakeholders represent
A Suppliers that have extended cradit to the firm in search of profit for the firm
B employees who work for the firm
C Investors in the business
D All of the different people or groups who are affected by the business
E lenders that have provided loans
4) In the 1920s, producers had to shift to a new sales orientation which was characterized by all
of the following except.
A Determining what goods consumers wanted.
B taking orders and delivering goods
C Increasing advertising.
D Using occasional high-pressure selling techniques.
E enlarging sales force.
5) A invests money in the business but has no management responsibility.
A Stockbroker
B General partner
C nominal partner
D limited partner
E sole proprieto
6) You have been running a successful art, painting and framing shop for three years. You have
decided to allow others to use your business name, materials, and methods in operating their
own business for a fee. You are going to enter a
A small- business development center
B Framchise agreement
C join venture
D business contraction
E venture capitalist agreement
7) As a human resources specialist, you were asked to briefly summarize the disadvantages of
using internal recruiting. You have started your report by stating,” The main disadvantage of
internal recruiting is that
A Promotion leaves another position to be filled
B There may be resentment among employees
C it helps hold on to quality personnel.
D Job posting may be required.
E it brings in unfamiliar ideas and perspectives.
8) Which of the following statements is false?
A Productivity growth enables American business firms to compete more effectively whith other
nations in a competitive world
B Increased productivity can lead to higher manufacturing costs
C Increased productivity is a concern for nations throughout the world.
D One way to reduce costs is to increase productivity.
E Productivity is expected to improve as more economic activity is transferred to the internet
9) At a large book publishing company like alpha book publishing, we would expect human
resources management to be handled by_______. At a small local print shop, human resources
manangement would probably be_______.
A a specialist; assigned to the vice president for personnel management.
B A vice president; completely ignored
C the personnel manager; the responsibility of the owner.
D the owner; handled at the vice-presidential level
E Departmental secretary; completrly ignored.
10) All of the following are acceptable ways of stating the accoungting equation except
A Assets- liabilities= owners’ equity
B Owners’ equity= assets- liabilities
C owners’ equity-liabilities=assets
D assets= shareholders’ equity + liabilities
E assets = liabilities + owners’ equity
11) Services differ from manufactured goods in all of the following ways except
A Services are consumed immediately
B the creation of services is usually labor- intensive.
C Services can be stored, and manufactured goods cannot be stored.
D services are intangible, and it is therefore more diffivult to measure customer satisfaction
E When compared to manufactured goods, customers wiill not travel as far to purchase services.
12) Between the 1920s and the 1950s, business had a strong_____ orientation, in which
emphasis was placed on increased advertising, enlarged sales forces, and occasionally high-
pressure selling techniques.
A production
B organizational
C Marketing
D Sales
E Customer
13) if, in the midst of daily operating activities, MRs kim Chi finds that the office has run out of
paper for the copy machine, she quickly purchases more at the local office supply store,+. In this
case, she is a
A Specialty shopper
B Concenience shopper
C Business customer
D supply purchaser
E Personal consumer
14) The Vietnam National coal and Mineral Industries Group (Vinacomin) Recently dicovered
that she mine was contaminating the local drinking water. Cleaning up the mine and the
surrounding areas would probably bankrupt the mine, causing the loss of hundeds of local jobs,
but doing nothing would endanger the health of the community. The mine faces a serious_____
decision.
A Cost
B Environmental
C Social responsibility
D Ethical
E Business
15) Chinese, Taiwanese, & Japanese manufacturers are dumping toys in Vietnam. What will
happen to Vietnamese toy manufacturers if the Vietnamese government allows this dumping to
continue?
A they will try to dump their toys in other counties
B They will become more competitive
C They will be faced wirth the highest demand ever
D Their revenues will decrease, but their long-term success will not be affected
E They will be put out of business because they cannot compete with the prices
16) Business-to-business, markets inckude all of the following except______ markets.
A financial
B Producer
C Governmental
D reseller
E Institutional
17) Phil Johnson is the owner of a small firm that mannufactures customized oil-drilling
equipment. The company’s manufacturing is organized into a fabrication section, a heat
treatment section, a welding section, and a quality control section. This type of facility layout is
referred to as a(n) _____ layout.
A process
B Pooled manufacturing
C Group manufacturing
D assembly-line
E Product
18) Which of the following is an uargument for increased social responsibilities
A Individual businesses should not be expected to solve society’s problems
B Social issues are the responsibility of government officials.
C Corporate time and money should be used to maximinze profits
D Mangement must be concerned with providing a return on owners’ investments
E Because business os part of our society, it cannot ignore social issues.
19) After Mr Son Tung has gotten all the money he can from the bank and still cannot keep up
with his fast-growing business, what is he most likely to do next of he wants his company to
continue growing?
A obtain a partner or form a coporation to attract more money
B Hold a fundrasing campaifn
C Turn away potential new customers
D Hire more employees
E Continue to plead with the bank for more money.
20) When the owner of a sole proprietorship dies, what becomes of the business?
A it may continue existing but only under a new name.
B it ceases to exist unless the heirs take it over or sell it
C It ceases to exist, and no one way legally take it over
D The employees take over the business
E It is automatically auctioned to the highest bidder
21) Which of the following is not a major marketing mix element?
A Distribution
B Packaging
C Price
D Produce
E Promotion
22) Which of the following statement is true regarding the profitability of new businesses?
A It take several years for a new business to begin showing a profit.
B Profitability is not an important issue for new businesses.
C Most new businesses will turn a profit within the first year
D Most new businesses will turn a profitable when they first start
E If a company does not show a profit within the first year, it will fail
23) Mrs Phuong Thao, a former Air Force pilot, decides to operate a helicopter tour company to
provide customers with breathtaking views of the Fansipan. She obtains a loan and purchases
the necessary land, facilities, advertising, and five helicopters for her business. What important
factor of production has she overlooked in creating her business?
A Natural resources
B enterpreneurship
C Enquiment
D Capital
E Labour
24) when demand exceeds capacity, all of the following are resonabble options for the firm
except
A subcontracting part of the work to other producers
B turning away some long-time customers
C Expanding the capacity of the current facility
D starting a second or third shift
E operating overtime hours to meet the demand
25) Mr Lien wants to know his breakeven point. His selling price is $20 per unit, his fixed cost
are $6000, and the variable costs per unit are $5. What is his breakeven quantity?
A 430 units
B 428.6 units
C 50 units
D 400 units
E 425.6 units
26) Which of the following is false in regard to the unemployment rate?
A The unemployment rate is the percentage of a nation’s labor force not working at any one
time
B According to Bureau of Labor Statistics, the country loses goods and services that could have
been produced
C A nation benefits from unemployment due to lower level of wages requỉed to be paid by
employers.
D The purchasing power of unemployment workers is lost
E According to the Bureau of Labor Statistics, families lose wages due to unemployment
27) A prepaid expense would be classified as
A an expense
B cost of goods sold
C an unearned revenue
D an asset
E a liability
28) Usually, the human resources department administers a(n)___program to introduce new
employees to the organization
A Job rotation
B orientation
C employee training
D job selection
E on-the-job training
29) A business will usually choose to produce a new product in an existing facility if the cost is
less than the cost of building a new one and the
A type òi technology needed for the new product is the same as the technology used by the
existing products
B produce design is already completed
C human resources requirement for the new product and existing products can be satisfied with
the facility’s current employees
D new product is an extension of an existing product line already produced in the factory
E existing factory has enough capacity to handle demand for the new produced as well as the v
existing products.
30) A government-funded group of scientists is assigned to discover new knowledge and
scientific advances. These scientists are not required to consider the potential use of this
knowledge. This group is conducting
A academic research and development
B Applied research
C development and implementation
D research for product life cycles
E basic research
31) Which of the following is not a process commonly considered in making products or
delivering services?
A subcontracting
B Job shop
C Batch
D Continuous
E Repetitive
32) A local retailer calls its customers when it receives merchandise that they may be interested
in, provides individual service to each customer, provides forms and phone numbers for
complaints and comments, and has a 100 percent satisfaction guarantee. Which objective is this
business working hard to accomplish
A Keeping up with the current technology
B Achieving low employee turnover
C Increasing the owner’s wealth
D Satisfying the needs of its customers
E Making a profit
33) Thegiodidong employees who sell cellular phones and calling plans are evaluated based on
their total sales per hour worked. This is a(n)___appraisal method
A objective
B time-consuming
C performance-based
D subjective
E judgmental
34) The top governing body of a corporation is know as the
A Stockholders
B officers
C management
D board of directors
E incorporations
35) Which of the following is not a disadvantage of the corporate form of ownership?
A Lack of secrecy
B Expense of incorporation and selling stock
C Difficulty of formation
D Double taxation
E Limited liability
36) The strategy of setting a low price for new product to gain a large market share for the
product quickly is called
A penetration pricing
B Introductory pricing
C odd pricing
D sample pricing
E price skimming
37) A market segment toward which a company directs its marketing effort is called a
A marketing sample
B marketing group
C target market
D consumer market
E marketing median
38) What do franchisees typically have to pay to the franchisor?
A Approximately half of the franchise’s profit each month
B Nominal fee for business knowledge
C Monthly royalties based on sales
D One-time franchise fee
E One-time franchise fee and monthly royalties based on sales
39) An airplane that Vietnam Airlines owns and uses to deliver customer is a(n)___of Vietnam
Airlines.
A asset
B owners’equity
C liability
D expense
E revenue
40) At her interview, Ms An is asked to provide three work-related references. What is the
biggest drawback of this selection method?
A This method can help to verify background information, but it is extremely expensive to use
B This may give away information about Ms An’s previous salary, which will unjustly influence
the job offer
C Because Ms An provided these references, they are likely to make positive remarks about her
D The references are likely to be untruthful when contracted by Ms An’s prospective employer
E The references are unlikely to be able to verify her reasons for leaving her previous
employment.
41) A firm attempting to reduce the size of its workforce may use several approaches. The
approach most unlikely to be used is:
A Firing
B Early retirement
C attrition
D Layoff
E Hiring freeze
42) Of the following, which is not considered a basic management function necessary to be an
effective manager
A) Controlling
B) Planning
C) Leading and motivating
D) Organizing
E) Selling
43) What are the two types of costs associated with inventory?
A) Holding costs and selling costs
B) Shipping and handing costs and holding costs
C) Stock-out costs and holding costs
D) Holding costs and tracking costs
E) Overstock costs and stock-out costs
44) When medical research indicated that a high-fiber diet MIGHT help reduce one’s risk of
colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat
fiber cereal, you will not get cancer. This is an example of:
A) Unethical communications
B) A conflict of interest
C) Ethical persuasion
D) Social responsibility
E) An unethical organizational relationship
45) Consumer products can be divided into the following three categories:
A) Shopping, convenience, and specially
B) Convenience, shopping, and business
C) Shopping, component, and specially
D) Business, specially, and shopping
E) Convenience, component, and accessory
46) Which of the following is not generally considered to be a stage in the product life-cycle?
A Transition
B Growth
C Maturity
D Decline
E Introduction
47) If Nestle Group were to develop a replacement chart, the chart would show:
A The time between purchase and replacement of each Colgate product, such as toothpaste
B Key personnel along with possible replacements within the firm
C The skills and experience of key personnel
D Those key personnel who are scheduled to be replaced because of poor performance reviews
E The key items of capital equipment due for replacement within the fiscal year
48) Mr Quan has always wanted to operate his own fast-food restaurant, but he knows the high
failure rate of restaurants. To increase his chances of success, he should consider:
A Buying a franchise of a well-established restaurant
B Hiring only highly educated employees
C Saving money by selling low-quality food
D Getting a loan from the bank
E Not having a drive-through at his restaurant
49) Ginger decides to take her small company international. Which of the following would most
likely be Ginger’s and other small business owners’ first step in going global?
A She will open and run a new facility in the foreign country she wants to expand to
B She will grow her company into a multinational firm to compete around the world
C She will form a strategic alliance to create a competitive advantage worldwide
D She is likely to form a joint venture with a company in the foreign country she is interested in
E She will advertise her products on the Internet and export them worldwide
50) Which of following is an advantage of a sole proprietorship?
A The owner has unlimited liability
B There is a limit to the amount one person can borrow
C The business ceases to exist when the owner dies
D The owner enjoys lack ofcontinuty
E Profits are taxed as individual incomes
51) Ruin Company’s net sales for the period were $175,000. Its cost of goods sold was $85,000.
What is this firm’s gross profit on sale?
A $175,000
B $100,000
C $135,000
D $90,000
E $125,000
52) Ms Lan walked into ABC Holding Group to pick up an application for a secretarial job.
When she asked about the duties and working conditions, the busy receptionist handed her a
document that gave her a clear picture of the position. The receptionist gave Ms Lan a job
A Inventory
B Analysis
C Orientation
D Description
E Specification
53) All employers are required by law to provide certain benefits to their employees. An
example of such a benefit would be: workers compensation insurance
A Life insurance
B Pension programs
C Health insurance
D Reduced-price cafeterias
E Unemployment rate
54) Mai Shelly was hurt on the job last week. Her medical bills for this injury are covered under:
A Employee retirement income security
B Social Security
C Worker’s compensation
D Vacation time
E Life insurance
55) All of following would typical be considered consumer product expect a
A Container truck
B Iphone
C Prom dress
D 1.5-liter of Coke
E Bag of dog food
56) Which of the following is not a chracterization of a depression?
A General decrease on business activity
B General lack of confidence in the economy by members of the population
C Lower stock values
D Two of more consecutive six month periods of GDP decline
E High unemployment rate
57) Ed works in a position where there is very little supervision. In fact, although he considers
himself ethical, he figures he could go away for a week without anyone noticing. Which general
set of factors is most likely to influence Ed’s ethical behavior?
A Cicumstantial
B Moral
C Opportunity
D Individual
E Social
58) Ms Bao Tran wants to start a business, but she unsure of the legal from best for her. Short of
cash, she has decided to take the form that is the least expensive and most flexible in terms of
decision making and implementation. Which would you recommned?
A Cooperative
B Corporation
C Sole proprietorship
D Partnership
E Joint venture
59) Marketing organizations that link producer and consumer within a marketing channel are
called
A Distributorships
B Marketing intermediaries
C Shopping centers
D Supermarkets
E Warehousing groups
60) Technology that is characterized by high intial costs and low operating costs is termed:
A A quality circle
B Labor-intensive
C An industrial installation
D A process layout
E Capital-intensive