POBM Semester Exam Review PDF

## POBM Semester Exam Review ### Multiple Choice Identify the choice that best completes the statement or answers the question. 1. is the term for all activities involved in developing and exchanging products. - A. Business - B. Entrepreneurship - C. Economics - D. Corporation 2...

## POBM Semester Exam Review ### Multiple Choice Identify the choice that best completes the statement or answers the question. 1. is the term for all activities involved in developing and exchanging products. - A. Business - B. Entrepreneurship - C. Economics - D. Corporation 2. The customer of a service business is often called a - A. customer - B. consumer - C. client - D. None of the above. 3. Anything that is bought or sold is called a(n) - A. item - B. service - C. business - D. product 4. Customers who purchase goods and services for their own use are called - A. individuals - B. consumers - C. purchasers - D. groups 5. is added when a business changes the form of a good or service to make it more useful. - A. Possession - B. Time - C. Form - D. Place 6. is anywhere buyers and sellers meet to buy and sell goods and services. - A. store - B. workplace - C. restaurant - D. market 7. The difference between the income earned and the expenses incurred by a business during a specific period of time is called - A. sales - B profit - C. expenses - D. costs 8. A science that examines how goods and services are produced, sold, and used is called - A economics - B. social studies - C. biology - D. chemistry 9. economy is one in which economic decisions are based on a society's values, culture, and customs. - A. command - B. market - C. traditional - D. mixed 10. The law of says that the price of a product is determined by the relationship of the supply of a product and the demand for the product. - A supply and demand - B. physics - C. consumer behavior - D. Standard of living 11. is the market value of all final products produced in a country during a specific time period. - A. Annual sales - B. Standard of living - C. Product value - D Gross domestic product 12. The four components of GDP are consumer spending, business investment, government spending, and - A. economic growth - B. net exports - C. net imports - D. inflation 13. The rate is the rate of change in prices calculated on a monthly or yearly basis. - A. inflation - B. deflation - C. interest - D. fixed income 14. A is a general decline in prices throughout an economy. - A. Inflation - B. Profitability - C. Stagnation - D. Deflation 15. The represents the cost of a loan and is expressed as a percent of the amount borrowed. - A. CPI - B. interest rate - C. principle - D. supply 16. competition is a competitive advantage based on factors other than price. - A. Price - B. Perfect - C. Nonprice - D. Monopolistic 17. The activities involved in buying and selling goods on a large scale is - A. business - B. commerce - C. economy - D. monetary policy 18. The total money circulating at any one time in a country is the - A money supply - B. monetary policy - C. commerce - D. Federal Reserve 19. Fiscal policy is the tax and spending decisions made by the president and - A. the Federal Reserve - B. the IRS - C. the Supreme Court - D. Congress 20. When two or more businesses work together to remove their competition, set prices, and control distribution, it is called - A. Sherman Antitrust Act - B. price fixing - C. collusion - D. fair competition 21. A outlines how company decisions are made. - A. rule book - B. policy - C. procedure - D. guide 22. The of a business identifies the hierarchy of the employees within a business. - A. roles - B. rules - C. standards - D. organizational structure 23. The authority structure of a company from the highest to the lowest levels is called the - A. hierarchy - B. positions - C. chain of command - D. organization chart 24. is the process of controlling and making decisions about a business. - A Management - B. Finance - C. Marketing - D. Production 25. plans are created for the long-term goals of an organization. - A. Tactical - B. Operational - C. Strategic - D. Contingency 26. The process of recruiting, hiring, training, evaluating, and compensating employees is called - A. managing - B. organizing - C. staffing - D. controlling 27. Theory managers believe that employees need close supervision at all times. - AX - B. Y - C. Z - D. None of the above. 28. The practice of organizing time and work tasks to increase personal efficiency is called - A. evaluating - B. interpersonal skills - C. leadership - D. time management 29. The ability to analyze a situation, interpret information, and make reasonable decisions involves - A. broad thinking - B) critical thinking skills - C. decision making - D. efficiencies 30. The interacting forces within a group are - A. group dynamics - B. teamwork - C. negotiation skills - D. parliamentary procedures 31. The variety of products and services offered to customers by financial institutions are called - A. loans - B. banking products and services - C. money managers - D. checking accounts 32. Purchasing a financial product or valuable item with the goal of increasing wealth over time is called - A. accounting - B. financing - C. investing - D. banking 33. A(n) is a record of checks, ATM transactions, deposits, and charges on an account. - A. credit report - B. account portfolio - C. bank statement - D. savings certificate 34. A collection of securities and other assets a person owns is called a(n) - A. investment portfolio - B. savings account - C. account portfolio - D. mutual fund 35. A(n) is a savings account that requires a deposit of a fixed amount of money for a fixed period of time or term. - A. mutual fund - B. certificate of deposit - C. high-yield savings account - D. interest-bearing savings account 36. A is an individual retirement account to which individuals contribute after-tax income and qualified withdrawals are not taxed. - A. traditional IRA - B. money market account - C. savings account - D. Roth IRA 37. An investment created by pooling the money of many people and investing it in a collection of securities is called a - A. savings account - B. mutual fund - C. personal investment plan - D. checking account 38. A strategy for using money to reach important goals and to advance financial security is called a(n) plan. - A. investment - B. security - C savings - D. checking 39. A(n) is a signature on the back of a check. - A. authorization - B. endorsement - C. payee - D. executor 40. is a service offered by some banks in which money is immediately transferred from one person to another. - A. mobile banking - B. ATM transactions - C. online banking - D. P2P payments ### Matching Match the following terms with their definitions. - A. product - B. customer - C. labor - D. capital - E. trade-off - F. competition - G. need - H. service - I. standard of living - J. capital goods - K. economic system - L. scarcity - M. capitalism - N. opportunity cost - O entrepreneurship 41. When an item is given up in order to gain something else. 42. Products businesses use to produce other goods. 43. Action or task that is performed, usually for a fee. 44. Anything that can be bought or sold. 45. Organized way in which a nation chooses to use its resources to create goods and services. 46. Actions taken by two or more businesses attempting to attract the same customers. 47. When demand is higher than the available resources. 48. Individual or group who buys products. 49. An economic system where the economic resources are privately owned by individuals rather than the government. ### Matching 50. Level of material comfort measures by the goods, services, and luxuries available. 51. Work performed by people in businesses, also called human resource. 52. Willingness and ability to start a new business. 53. All the tools, equipment, and machinery used to produce goods or provide services. 54. The value of the next best option that was not selected 55. Something a person must have to survive. Match the following terms with their definitions. - A. trough - B. specialization - C. business cycle - D. inflation rate - E. recession - F. antitrust laws - G. stock market - H. Federal Reserve System - I. oligopoly - J. money supply - K. commerce - L. perfect competition - M. consumer price index - N. labor force - O. productivity 56. All of the people in a nation who are capable of working and want to work. 57. US laws that promote fair trade and competition among businesses. 58. Market structure with a large number of businesses selling the same product at the same prices. 59. Period of significant decline in total output, income, employment, and trade in an economy. 60. Alternating periods of expansion and contraction in the economy. 61. Focusing on the production of specific goods so that more products can be produced with the same amount of labor. 62. The central bank of the United States that is responsible for the country's monetary system. 63. A measure of a worker's production in a specific amount of time. 64. The activities involved in buying and selling goods on a large scale. 65. System and marketplace for buying and selling stocks. 66. Rate of change in prices calculated on a monthly or yearly basis. 67. Market structure with a small number of businesses selling the same or similar products. 68. A measure of the average change in prices paid for typical consumer goods and services over time. ### Matching 69. Total money circulating at any one time in a country. 70. Lowest stage of a business cycle. Match the following terms with their definitions. - A. leading - B. negotiation - C. centralized organization - D. plan - E. first-line management - F. strategic plans - G. operational plans - H. collaboration skills - I. procedure - J. management - K. tactical plans - L. critical thinking skills - M. teamwork - N. mediation - O. interpersonal skills 71. All the authority within a business rest with top management. 72. Coordinates and supervises the activities and duties of employees. 73. When individuals involved in a conflict come together to discuss a compromise. 74. Designed to reach the day-to-day goals of a business. 75. Skills that enable individuals to work with others to achieve a common goal. 76. Outline of the actions needed to accomplish a goal. 77. Process of influencing others to work toward common goals. 78. Created for the long-term goals of an organization. 79. Ability to analyze a situation, interpret information, and make reasonable decisions. 80. Developed for the short-term goals of a company. 81. Cooperative efforts by individual team members to achieve a goal. 82. Skills that help people communicate and work well with each other. 83. Describes how tasks should be completed. 84. Negotiation that includes a neutral person. 85. Process of controlling and making decisions about a business. ### Matching Match the following terms with their definitions. - A. diversification - B. estate - C. overdraft - D. annuity - E. interest-bearing savings account - F. individual retirement account - G. payee - H. cashier's check - I. executor - J. money order - K. certificate of deposit - L. certified check - M. postdated check - N. reconcile - O. endorsement 86. An investment that provides regular income for a set period of time, usually for life. 87. Special type of check that the bank guarantees to pay. 88. The process of spreading risk by putting money in a variety of investments. 89. Signature on the back of a check. 90. Personal check certified by the bank to be genuine with enough money in the account to cover the check. 91. Consists of the assets and liabilities a person leaves when he or she dies. 92. A vehicle that holds chosen personal retirement investments. 93. Payment order for a specific amount of money payable to a specific payee. 94. Check written for an amount greater than the balance of the account. 95. Person appointed to carry out the terms outlined in a will. 96. Check written with a future date. 97. Person, business, or organization to whom a check is written. 98. Type of demand deposit account that pays interest and allows regular deposits and withdrawals. 99. Comparing the check register to a bank statement to balance the checking account. 100. Savings account that requires a fixed deposit amount for a fix period of time.