Introduction To Business Quiz 101: Part #4

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| By Byrnsmjr

Byrnsmjr

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Quizzes Created: 3 | Total Attempts: 2,927

Questions: 8 | Attempts: 184 | Updated: Dec 12, 2023

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Introduction To Business Quizzes & Trivia

Uncover essential business insights with our quiz tailored for beginners. The "Essential Business Insights Quiz" takes you through the core principles of business, from ethical considerations to financial literacy. Explore entrepreneurship, innovation, and marketing basics in a concise format designed to enhance your understanding of key business concepts.

Questions and Answers

1.

A company that does business in many countries and has facilities and offices in many countries is considered a:
- A.
  
  Foreign exchange market
- B.
  
  Free trade corporation
- C.
  
  Multinational corporation
- D.
  
  Export corporation
Correct Answer
C. Multinational corporation

Explanation
A company that does business in many countries and has facilities and offices in many countries is considered a multinational corporation. This is because a multinational corporation operates in multiple countries, conducting business and having a physical presence in each of these locations. It often has subsidiaries or branches in different countries, allowing it to engage in global trade and expand its operations internationally.

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2.

Products one country buys from another country:
- A.
  
  Export
- B.
  
  Import
- C.
  
  Trade surplus
- D.
  
  Trade deficity
Correct Answer
B. Import

Explanation
The correct answer is "import." Import refers to the products that one country buys from another country. It involves bringing goods or services into a country from abroad for sale or use. This term is commonly used in international trade to describe the flow of goods and services from one country to another.

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3.

A view that there should be limits on foreign trade in order to protect businesses at home:
- A.
  
  Protectionism
- B.
  
  Free trade
- C.
  
  Trade deficit
- D.
  
  Global market
Correct Answer
A. Protectionism

Explanation
Protectionism refers to the belief that there should be limits on foreign trade in order to protect businesses at home. This view advocates for the use of tariffs, quotas, and other trade barriers to shield domestic industries from foreign competition. The objective is to safeguard local jobs and industries from being overwhelmed by cheaper imports. Protectionism aims to create a level playing field for domestic businesses and promote economic growth within the country.

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4.

The difference in value between how much a country imports and how much it exports:
- A.
  
  Free trade
- B.
  
  Trade surplus
- C.
  
  Trade deficit
- D.
  
  Balance of trade
Correct Answer
D. Balance of trade

Explanation
Balance of trade refers to the difference in value between how much a country imports and how much it exports. It is a measure of the trade relationship between a country and its trading partners. A positive balance of trade indicates a trade surplus, which means that a country is exporting more than it is importing. On the other hand, a negative balance of trade indicates a trade deficit, which means that a country is importing more than it is exporting. Free trade, on the other hand, refers to the unrestricted flow of goods and services between countries.

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5.

What is the primary reason why businesses are setup?
- A.
  
  To provide jobs
- B.
  
  To provide goods and services
- C.
  
  To earn profits
- D.
  
  To develop a community
Correct Answer
C. To earn profits

Explanation
Businesses are primarily set up to earn profits. Profit is the financial gain that businesses aim to achieve by selling goods or services at a higher price than the cost of production. Profit is essential for the sustainability and growth of a business as it allows for reinvestment, expansion, and the ability to provide better goods and services. While businesses may also contribute to job creation, community development, and the provision of goods and services, the main driving force behind their establishment is to generate profits.

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6.

Which of the following persons are most likely to use accounting information?
- A.
  
  Business owners
- B.
  
  Lending institutions
- C.
  
  Both
- D.
  
  None
Correct Answer
C. Both

Explanation
Both business owners and lending institutions are most likely to use accounting information. Business owners use accounting information to track their financial performance, make informed business decisions, and comply with tax and regulatory requirements. Lending institutions, such as banks and financial institutions, use accounting information to assess the creditworthiness and financial stability of businesses before providing loans or extending credit. Therefore, both parties have a strong need for accounting information to effectively manage their financial activities.

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7.

The difference between the sale of an item and what it cost the get the item sold, is called:
- A.
  
  Gross profit
- B.
  
  Gross loss
- C.
  
  Trade surplus
- D.
  
  Trade deficit
Correct Answer(s)
A. Gross profit
B. Gross loss

Explanation
The correct answer is Gross profit, Gross loss. Gross profit is the positive difference between the sale price of an item and the cost to acquire or produce it. It represents the amount of money left after deducting the cost of goods sold. On the other hand, Gross loss refers to the negative difference between the sale price and the cost, indicating that the cost of goods sold exceeds the sale price. Both terms are used to measure the profitability of a business and are important indicators of its financial performance.

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Current Version
Dec 12, 2023

Quiz Edited by
ProProfs Editorial Team
Nov 06, 2012

Quiz Created by
Byrnsmjr

Introduction To Business Quiz 101: Part #4

A company that does business in many countries and has facilities and offices in many countries is considered a:

Products one country buys from another country:

A view that there should be limits on foreign trade in order to protect businesses at home:

The difference in value between how much a country imports and how much it exports:

What is the primary reason why businesses are setup?

Which of the following persons are most likely to use accounting information?

The difference between the sale of an item and what it cost the get the item sold, is called: