11.Which one of the following well-known national companies is PRIMARILY a merchandising firm?
a.General Motors
b.First National Bank
c.Wal-mart
d.United Airlines
12.Organizations that sell consumer goods that are produced by other companies are
a.merchandising
b.manufacturing
c.service
d.non-profit
13.Which of the following is PRIMARILY a service organization?
Law General
Firm Motors
a.Yes Yes
b.Yes No
c.No Yes
d.No No
14.Which of the following is an example of a merchandising company?
a.a hardware store
b.an automobile manufacturer
c.a petroleum refinery
d.a bank
15.An organization can best be described as
a.a corporation
b.employees and managers
c.a group of people who work together to develop, produce and distribute goods and services
d.one that makes a profit
16.The difference between the price a seller receives for its product and its costs of producing and selling its product is
a.investment
b.profit
c.surplus
d.dividends
17.Which of the following is the best description of profit?
a.the amount of cash received from selling a product
b.the amount left over after the cost of doing business is subtracted from the sales to customers
c.the amount of revenue earned from providing a service
d.the amount of cash left after paying employees and utilities
18.You are inspecting the profit statement of a company. It reports profit of $60,000. From this information, you can conclude that
a.the owners have a rather small investment in the firm
b.the company is a merchandising firm
c.there have been financing and investing activities during the period but no operating activities
d.the value of resources received from sales exceeds the value of resources consumed
19.Roger Company reports the following abbreviated profit statement at year-end:
Resources received from sales$65,250
Resources consumed51,500
Profit$13,750
What is the amount of value created by the company during the year?
Value Created
a.-0-
b.$13,750
c.$51,500
d.$65.250
20.Owners invest in businesses with a primary desire to
a.obtain money for other purposes
b.provide goods and services demanded by society
c.receive a return on their investments from profits earned by the business
d.sell more goods and services