Career & Financial Management1

BUSINESS OWNERSHIP

  1. A ______is a grant or right to sell a parent company’s product or service within a given area or territory.
  2. franchise
  3. limited liability corporation
  4. sole proprietorship
  5. turn-key operation
  1. Which of the following is a disadvantage of a partnership?
  2. conflict between owners
  3. expensive to start
  4. limited liability
  5. unlimited liability
  1. A corporation is owned by ______.
  2. the Board of Directors
  3. many people
  4. two or more people
  5. stockholders
  1. Paul is an investor in a business from which he receives profits in the form of dividends. This business is most likely a ______.
  2. corporation
  3. partnership
  4. monopoly
  5. proprietorship
  1. A form of business ownership that sells stock to its prospective owners is a ______.
  2. proprietorship
  3. partnership
  4. corporation
  5. franchise
  1. Customers, employees, and investors are examples of ______.
  2. constituents
  3. stockholders
  4. stakeholders
  5. entities

CAREERS

  1. Which profession is likely to be regulated by a state licensing agency?
  2. teacher
  3. secretary
  4. writer
  5. store clerk
  1. A person who has an idea, takes risks, and combines resources to produce goods and services for profit is called a(n) ______.
  2. stockholder
  3. entrepreneur
  4. laborer
  5. supervisor
  1. Providing a clean, safe environment in the workplace is the responsibility of the ______.
  2. federal government
  3. state government
  4. employer
  5. consumer
  1. Which personal characteristic is shown by a willingness to work different schedules and fill in for coworkers?
  2. tact
  3. flexibility
  4. enthusiasm
  5. efficiency
  1. A person who has been fired from several jobs because she could not get along with her coworkers most likely lacks skills in which area?
  2. human relations
  3. time management
  4. creativity
  5. manual dexterity
  1. A job description typically includes ______.
  2. a list of the fringe benefits
  3. a job application form
  4. a list of companies that offer the job
  5. the job’s general and specific responsibilities
  1. To determine if a goal has been met, a person must ______.
  2. research alternatives
  3. set priorities
  4. evaluate progress
  5. work hard
  1. Which action by an employer is likely to reduce workers’ morale?
  2. opening a day-care center in the workplace
  3. building an additional employee parking lot
  4. lowering prices in the employees’ cafeteria
  5. decreasing the time allowed for breaks
  1. When a company asks a worker to leave temporarily due to a lack of work, it is called a ______.
  2. layoff
  3. promotion
  4. termination
  5. transfer

CONSUMERISM

  1. Which is NOT a decision consumers generally make when buying goods and services?
  2. where to buy
  3. when to buy
  4. what to buy
  5. why buy
  1. Which type of store sells well-known brand names at bargain prices?
  2. department stores
  3. outlet stores
  4. limited-line retailers
  5. superstores
  1. Which type of store might require customers to become a member to take advantage of benefits?
  2. discount store
  3. limited-line retailer
  4. warehouse store
  5. superstore
  1. Which phrase is an example of something you might read in rational advertising?
  2. “…your breath will be the freshest it can be.”
  3. “…it gets 23 miles per gallon.”
  4. “…all your friends will want one.”
  5. “…it gives you 20% more.”
  1. Which isan example of a clearance sale?
  2. end of summer sale of swimsuits
  3. President’s Day sale
  4. autumn sale on new skis
  5. day after Christmas sale
  1. Which term is used to describe a product advertised to sell at less than cost to bring customers into a store?
  2. discount
  3. bargain
  4. loss leader
  5. gimmick
  1. Which term refers to making unplanned purchases?
  2. smart shopping
  3. bargain hunting
  4. discounting
  5. impulse buying
  1. Which term is used to describe an attention getting promotion used to get people into a store?
  2. clearance sale
  3. sales gimmick
  4. loss leader
  5. impulse buying
  1. Which is NOT something consumers should do when preparing to shop?
  2. study advertisements
  3. read consumer publications
  4. look for sales gimmicks
  5. read labels and warranties
  1. Which term refers to a guarantee from the manufacturer?
  2. warranty
  3. contract
  4. sales receipt
  5. invoice
  1. Which right is NOT considered a consumer right?
  2. the right to be heard
  3. the right to privacy
  4. the right to choose
  5. the right to safety
  1. Which is NOT an example of how companies comply with a consumers’ right to be informed?
  2. clothing labels showing what fibers are used
  3. drug labels listing the contents of medicine
  4. food labels listing ingredients
  5. supermarkets showing how much more other products cost
  1. Which term refers to a legal responsibility of manufacturers?
  2. the right to be heard
  3. freedom of information
  4. product liability
  5. the right to privacy
  1. Which best explains the right to be heard?
  2. A store must have radio advertisements.
  3. Salespeople must always be polite.
  4. All stores must allow orders to be placed on the phone.
  5. If a customer is unsatisfied with a product, they can let the store know about it.
  1. Which is an example of a bait and switch tactic?
  2. selling a person one product and replacing it with another before they leave the store
  3. closing one store and opening another with the same name, but selling a different product
  4. advertising a bargain to attract customers, then pressuring them into buying a more expensive product
  5. publishing advertisements that promote false claims
  1. Which term refers to the contamination of air, water, and land?
  2. natural resources
  3. pollution
  4. green
  5. biodegradable
  1. Which term refers to a practice used to reduce waste?
  2. incineration
  3. right to safety
  4. polluting
  5. recycling
  1. Which term refers to refusing to purchase products or services because of an objection to a company’s policies?
  2. strike
  3. the right to be informed
  4. boycott
  5. recycling
  1. Which is NOT a good way to learn consumer skills?
  2. read information on labels
  3. compare prices at different stores
  4. read consumer information
  5. write letters to the manufacturer
  1. Which of the following would NOT help you resolve a problem with a defective product you have purchased?
  2. contacting the seller’s customer service department
  3. discarding receipts and warranties
  4. filing a claim in small claims court
  5. contacting a consumer advocacy organization
  1. Which government organization enforces federal antitrust and consumer protection laws?
  2. Federal Consumer Agency
  3. U.S. Department of Agriculture
  4. Federal Trade Commission
  5. Federal Citizen Information Center
  1. Which government organization inspects and grades foods?
  2. U.S. Department of Agriculture
  3. Food and Drug Administration
  4. U.S. Consumer Product Safety Commission
  5. Federal Citizen Information Center
  1. Which government organization oversees the safety of toys, cribs, power tools, electronics, and furniture?
  2. Federal Trade Commission
  3. Federal Citizen Information Center
  4. National Highway Traffic Safety Administration
  5. U.S. Consumer Product Safety Commission
  1. To which agency might you apply regarding a problem with health insurance?
  2. Food and Drug Administration
  3. U.S. Consumer Product Safety Commission
  4. Public Utilities Commission in your state
  5. Insurance Commission in your state
  1. Which agency collects and shares information about local businesses and handles complaints about them?
  2. Better Business Bureau
  3. Federal Citizen Information Center
  4. Federal Trade Commission
  5. Chamber of Commerce

ECONOMICS

  1. A country’s gross national product (GNP) or gross domestic product (GDP) is its yearly ______.
  2. value of all goods and services produced
  3. number of manufactured goods
  4. cost of living for the average worker
  5. value of products bought from other countries
  1. Demand for a product is based on the ______.
  2. supply of the product in the stores
  3. willingness of consumers to buy the product
  4. labor costs to manufacture the product
  5. number of factories making the product
  1. A series of points on a graph showing the relationship between price and quantity supplied is called a ______curve.
  2. equilibrium
  3. demand
  4. supply
  5. willingness
  1. A market in which there are no direct competitors, so that no one company controls the industry or market is called a(n) ______.
  2. oligopoly
  3. market control
  4. competitive market
  5. monopoly
  1. An economic condition in which prices rise steadily throughout the economy is called ______.
  2. inflation
  3. recession
  4. deflation
  5. stagnation
  1. Major high-priced purchases that last three or more years are called ______.
  2. consumables
  3. durable goods
  4. produce
  5. needs
  1. Which economic system is privately owned and operated for a profit?
  2. communism
  3. socialism
  4. federalism
  5. capitalism

ETHICS & SOCIAL RESPONSIBILTIY

  1. Which is NOT another word for ethics?
  2. principles
  3. honor
  4. recycling
  5. integrity
  1. Which might indicate that a company is run according to ethical standards?
  2. Employees are treated fairly.
  3. The cost of making products increases.
  4. The government investigates the company’s accounting practices.
  5. Environmental problems related to manufacturing are not addressed.
  1. Which is NOT necessarily characteristic of a sweatshop?
  2. long hours
  3. low wages
  4. production of clothes
  5. unhealthy or unsafe conditions
  1. Which is NOT a consequence of unethical business practices?
  2. losing repeat business
  3. having a well-trained employee
  4. being fined by the government
  5. losing employees
  1. How might an employer treat an employee fairly?
  2. provide good training
  3. offer less than average pay for the job
  4. encourage the employee to leave
  5. ask the employee to do another’s work
  1. Which is NOT a good way for employer to handle a decision that leads to conflict of interest?
  2. Consider the decision carefully and not rush to make a decision.
  3. Fix the problem as soon as the employer realizes the mistake.
  4. Apologize to any employees involved.
  5. Ignore or cover up the problem.
  1. Which is NOT an example of how you can be socially responsible?
  2. promote recycling in the workplace
  3. consider ethics only when necessary
  4. volunteer for a cause that interests you
  5. treat others well
  1. Who protects consumers from dangerous or falsely advertised goods?
  2. businesses
  3. Earth-friendly products
  4. other consumers
  5. Federal Trade Commission
  1. How are consumers affected when companies restrict competition?
  2. They have fewer choices in products and pricing.
  3. They pay less.
  4. They can determine the price.
  5. They can buy out the company.
  1. What kind of responsibility does a business have to its owners and creditors?
  2. ethical, but not financial
  3. financial, but not ethical
  4. financial and ethical
  5. neither ethical nor financial
  1. Why was the EPA formed?
  2. to enforce laws in society
  3. to protect the environment
  4. so that big businesses would be more truthful about finances
  5. to help corporations with their accounting

FINANCIAL INSTITUITONS

  1. Which best describes the difference between bartering and the monetary system?
  2. Bartering does not work in undeveloped countries, but the monetary system does.
  3. Monetary means trading money for money, bartering means trading goods for goods.
  4. Bartering means trading goods for other goods instead of using money as a standard of value.
  5. Bartering is never used in developing countries, and only rarely in undeveloped counties.
  1. Which is NOT considered money?
  2. coins
  3. currency
  4. checks
  5. services
  1. What is a financial institution?
  2. a bank account
  3. a firm that manages money
  4. a record of the amount of money a customer has
  5. a medium of exchange
  1. Which is best for storing money for a few days?
  2. checking account
  3. savings account
  4. electronic fund transfer
  5. direct deposit
  1. How do banks make most of their money?
  2. transferring money
  3. collecting collateral
  4. interest from loans
  5. fees from checking accounts
  1. What is NOT a type of bank loan?
  2. mortgage
  3. commercial loan
  4. line of credit
  5. safe-deposit box
  1. How is a credit union different from other financial institutions?
  2. Credit unions do not offer loans.
  3. Credit unions do not offer credit cards.
  4. Credit unions offer interest on their savings accounts.
  5. Credit unions do not make a profit.
  1. Which statement about the Federal Reserve is true?
  2. You can get a loan from the Federal Reserve.
  3. The Federal Reserve has always been part of the U.S. banking system.
  4. The Federal Reserve is a full-service bank.
  5. There are twelve regional Federal Reserve banks.
  1. The main mission of the Federal Reserve is to ______.
  2. monitor inflation
  3. provide the U.S. with a safe and stable monetary system
  4. determine the amount of money in circulation
  5. act as the government’s fiscal agent

INSURANCE

  1. Health insurance and pension plans are examples of ______.
  2. fringe benefits
  3. excise taxes
  4. working conditions
  5. fixed incomes
  1. Jasmine was injured at work and she could not work for three months. Jasmine was eligible to collect ______.
  2. unemployment compensation
  3. workers compensation
  4. life insurance
  5. Social Security
  1. Bonnie is involved in an automobile accident with damages totaling $1,200. She has to pay $500 toward the repairs. This is called a ______.
  2. premium
  3. receipt
  4. deductible
  5. dividend
  1. A young couple with two children is looking to buy life insurance. Which insurance would be the least expensive option?
  2. whole life
  3. comprehensive
  4. term
  5. straight life
  1. What possession is used as collateral for a mortgage loan?
  2. car
  3. house
  4. jewelry
  5. furniture
  1. The amount paid for insurance is known as the ______.
  2. premium
  3. deductible
  4. rider policy
  5. endowment

JOB SELECTION PROCESS

  1. One purpose of the follow-up letter in the job-seeking process is to ______.
  2. request an interview
  3. apply for a job
  4. thank an interviewer for his or her time
  5. ask for references to be sent to the interviewer
  1. A group of occupations that require similar abilities and skills is called a ______.
  2. job action
  3. career ladder
  4. job sequence
  5. career cluster
  1. Which career cluster includes jobs in mining, forestry, and wildlife management?
  2. public service
  3. hospitality and recreation
  4. natural resources and environment
  5. arts, humanities, and sciences
  1. A person who is learning to perform a building trade through the guidance of a skilled worker is called a(n) ______.
  2. apprentice
  3. manager
  4. customer
  5. proprietor
  1. Which career area would probably appeal most to a person who enjoys working alone on craft activities?
  2. teaching music
  3. retail sales
  4. jewelry repair
  5. coaching baseball
  1. Volunteering can be beneficial to an individual because it ______.
  2. gives them valuable work experience
  3. helps them pay their bills
  4. offers them fringe benefits
  5. offers overtime pay
  1. Which of the following is NOT a positive work attitude?
  2. getting along with co-workers
  3. being willing to listen
  4. pointing out problems in the work place
  5. overcoming bad habits
  1. Employees with a positive work attitude often affect their businesses by ______.
  2. decreasing morale
  3. decreasing competition
  4. increasing productivity
  5. increasing production costs
  1. Which degree typically requires four years of college?
  2. High school diploma
  3. Associate’s degree
  4. Bachelor’s degree
  5. Master’s degree
  1. Karen wants to know about the educational requirements for an occupation. Which resource would provide this information?
  2. Consumer Reports
  3. Occupational Outlook Handbook
  4. Federal Trade Commission
  5. Internal Revenue Service
  1. Paul volunteered to work at a soup kitchen for a local homeless shelter during his vacation. Which type of reward would Paul experience?
  2. fringe benefit
  3. monetary
  4. intrinsic
  5. professional
  1. Which occupational area would involve individual expression of creative or musical talent?
  2. arts
  3. clerical
  4. hotel management
  5. business management
  1. A major purpose of an employment agency is to ______.
  2. set up apprenticeship programs
  3. guarantee that businesses follow anti-discrimination laws
  4. advise people who are establishing their own business
  5. provide clients with information about job openings
  1. A resume should include information about a person’s ______.
  2. ethnic background
  3. marital status
  4. physical appearance
  5. work experience
  1. Which statement about resumes is FALSE?
  2. all information must be up-to-date and accurate
  3. all resumes must be typed
  4. white out may be used to make corrections
  5. references should be listed for employer’s convenience
  1. Which question CANNOT be legally asked of an applicant during a job interview?
  2. “Do you have any experience in this field?”
  3. “Are you a high school graduate?”
  4. “What is your religion?”
  5. “What is your ultimate career goal?”
  1. Nina is applying for a secretarial position with a law firm. Which would be an inappropriate topic for her to discuss in the interview?
  2. her long-term career goals
  3. her past work experience
  4. her educational and training background
  5. her family’s legal problems and how she advised them

PAYCHECKS

  1. Which payroll tax do both employer and employee pay equally?
  2. federal income tax
  3. FICA tax
  4. state unemployment tax
  5. state income tax
  1. The Social Security System is part of which level of government?
  2. county
  3. city
  4. state
  5. federal
  1. The form signed by an employee to indicate their number of personal exemptions is Form ______.
  2. W-4
  3. W-2
  4. 1040
  5. 1040EZ
  1. The endorsement “Allison Long” would be a ______endorsement.
  2. blank
  3. special
  4. restrictive
  5. qualified
  1. Which of the following taxes is only paid by the employer?
  2. FICA
  3. state disability
  4. federal income
  5. both a & b
  1. To be legally employed, a United States citizen must have a ______.
  2. green card
  3. Social Security number
  4. diploma
  5. driver’s license
  1. Which form is prepared by the employer and indicates the amount of income earned and the taxes withheld from an employee’s paycheck for one year?
  2. W-2
  3. W-4
  4. 1040
  5. 1040EZ

PERSONAL FINANCE

  1. Which type of investment charges a penalty for early withdrawal?
  2. mutual fund
  3. common stock
  4. certificate of deposit
  5. real estate
  1. In Alberto’s budget, the rent he pays for his apartment is considered ______.
  2. fixed income
  3. variable income
  4. a fixed expense
  5. a variable expense
  1. Monique keeps some of her savings in a certificate of deposit (CD). One advantage of this investment for Monique is that ______.
  2. she can write checks against the balance in the CD account
  3. she can withdraw the entire balance from the CD account whenever she wishes with no penalty
  4. no minimum dollar amount is required to open the account
  5. interest rates are usually higher than on a personal savings account
  1. Paul wants to deposit his paycheck into his checking account by mail. Which type of endorsement is best for Paul to use?
  2. blank
  3. restrictive
  4. full
  5. special
  1. While balancing his checkbook, Ken noticed that three checks were outstanding. These checks have been ______.
  2. written by Ken but not paid by the bank
  3. returned to Ken due to insufficient funds
  4. certified by the bank
  5. refused payment because of stop payment orders
  1. To reconcile a bank statement means to ______.
  2. repay an overdraft
  3. keep a running balance
  4. bring bank and checkbook balance into agreement
  5. maintain a minimum balance
  1. Which is an example of income that is NOT taxable?
  2. $1,000 monthly wage
  3. $50 birthday present
  4. $34.80 daily tips
  5. $10.80 interest on a savings account
  1. The use of credit to purchase a home is called a ______loan.
  2. personal
  3. vacation
  4. passbook
  5. mortgage
  1. On an installment plan, the difference between the cash price and the installment price is called ______.
  2. a finance charge
  3. sales tax
  4. compound interest
  5. a dividend
  1. Audrey bought a new car for $9,000. She made a down payment of $1,500 and financed the balance for two years. Her monthly payment is $345.31. What is the total amount Ashley would save if she paid cash for the car?
  2. $712.56
  3. $787.44
  4. $2,212.56
  5. $2,287.44

Taxes