Competition and Business Exam
Multiple Choice: Choose the answer that best fits the question.
1. The most common form of business organization in the United States is the ___________.
a. sole proprietorship
b. limited partnership
c. department store
d. corporation
2. What is the main purpose of advertisements?
a. inform consumers about goods & services b. to provide jobs
c. to entertain people
d. to fill commercial time slots
3. The cheapest form of advertising is:
a. flyers
b. word of mouth
c. commercials
d. billboards
4. The purpose of _________ is to provide investors with full disclosure before they choose to invest.
a. insurance
b. insight
c. arbitration
d. transparency
5. Which of the following occurs when one business dominates the sale of a particular item?
a. monopoly
b. oligopoly
c. joint venture
d. monarchy
6. Which of the following is a description of a falling stock market?
a. bull market
b. bear market
c. baboon market
d. beetle market
7. Which of the following is the term used when a government encourages competition in the economy?
a. communism
b. capitalism
c. collectivism
d. socialism
8. Which of the following is the best description of NASDAQ?
a. the place where stocks are bought and sold
b. the largest corporation in the world
c. an indicator of the entire stock market
d. electronic stock exchange
9. When a company joins together with a company that it buys supplies from, it is called a:
a. conglomerate merger
b. horizontal merger
c. vertical merger
d. constructive merger
10. If two banks join together, what type of merger has occurred?
a. vertical
b. horizontal
c. technological
d. conglomerate
11. A business only owned by one person is a ______________________.
a. sole proprietorship
b. partnership
c. corporation
d. franchise
12. Which of the following is a description of a rising stock market?
a. bull market
b. bear market
c. baboon market
d. beetle market
13. A temporary merger to complete a job is defined as a:
a. franchise
b. partnership
c. joint venture
d. limited partnership
14. What is the best example of a partnership?
a. Smith’s family grocery store
b. McDonald’s
c. Danielle’s paint supplies
d. The law offices of Kulik and Associates
15. Which of the following is the best description of the NYSE?
a. a location where stocks are bought and sold
b. the largest corporation in the world
c. a conglomerate merger
d. electronic stock exchange
16. What is the DJIA?
a. average of the top 30 corporations in America
b. indication of how the entire stock market is doing
c. all of the above
d. none of the above
17. A corporation is owned by _______________.
a. the President of the company
b. the Board of Directors
c. Common people who own stock
d. the United States government
18. A corporation must register with the:
a. national government
b. state government
c. county government
d. city government
19. Which of the following is an attribute of an effective advertisement?
a. repetitive jingle
b. attractive women
c. humorous message
d. all of the above
20. Two ways people can make money off of stocks is by selling shares for more than they bought them for
and:
a. quorums
b. volumes
c. dividends
d. crackdowns
21. The best advice in investing in stock is:
a. buy high, sell low
b. only invest in Dow Jones stocks
c. concentrate on NASDAQ stocks
d. buy low, sell high
22. A franchisee is a person:
a. sells the name of a franchise
b. who is from France
c. begins a partnership with a sole-proprietor d. buys the name of a franchise
23. What is discrimination?
a. treating someone differently due to race, religion, gender, age, etc.
b. treating everyone fairly
c. treating someone for a terminal disease
d. treating someone as a god or goddess
24. Which of the following is an example of a business fulfilling their responsibility to the community?
a. using discrimination among the people who work there
b. donating a percentage of their profits to a local charity
c. creating safe and reliable products
d. providing transparency to stock holders
25. Competition has what effect on price?
a. increases price
b. no effect on price
c. keeps prices low
d. it destroys the market
Read the stock market page to answer questions 36-40.
52 week
High Low
Stock
Volume in
1000’s
High
Low
Last
Change
75.44
47.44
64.23
65.75
KO
McDnlds
Us Airways
FTU
25011
351870
509128
22573
55.75
44.19
26.44
40.06
54.81
43.69
27.63
39.50
55.38
44.06
27.37
39.96
+ .44
- .31
+ .63
+ 1.19
53.63
26.75
26.56
39.63
31. What is the daily low of KO?
32. What the closing price for FTU stock?
33. Which stock lost value?
34. What is the high for the year of McDnlds?
35. How many shares of US Airways stock were traded?
Extra Credit:
1. Who sings the song with the following lyrics?
I'm only pretty sure that I can't take anymore
Before you take a swing I wonder
What are we fighting for
When I say out loud I want to get out of this
2. What is the title of National Anthem of the United States?
3. Who wrote the National Anthem of the United States?