FREE ENTERPRISE TEST


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1 FREE ENTERPRISE TEST Multiple choice. Select the best answer to the question. 1. What is an entrepreneur? A. Someone who invests time and money to start a business. B. Someone who makes a lot of money. C. Someone who takes a risk to make a profit. D. Both A & C. 2. Define Free Enterprise: A. A business taking a risk to make a profit. B. A program administered by the Government. C. People in business trying to make a profit. D. A business adventure or undertaking. 3. Capital is: A. Money available to invest. B. Prohibitive cost of entry. C. A guarantee that a company will be successful. D. A & B. 4. The following are included in a business plan A. Financial information, production plans, personnel policies. B. Goals of the business and how they will be achieved. C. A step by step plan for the success of your business. 5. Quality Control is defined as: A. How many & what types of people are shopping at a store. B. Tells you what the customer will buy C. Tells you how much the customer will pay for the product. 6. A market survey is important because it tells you: A. How many & what types of people are shopping at a store. B. Tells you what the customer will buy. C. Tells you how much the customer will pay for the product. 7. Making a purchase you had not planned is called: A. Consumer shopping. B. A warranty. C. Impulse buying. D. Comparison shopping. 8. Product planning tells you: A. Where you will produce your product. B. Cost to produce your product. C. Your Net profit D. Total revenues
2 9. Cost per serving means: A. How much it will cost to produce one recipe B. How much it will cost to produce what you sell in one day. C. How much it will cost to make One. D. How much it will cost to make one batch. 10. What makes a good advertisement? (Choose the best combination) A. Color, Attracts attention, ingredients in product. B. Name of product, price, location, attractive. C. Easy to read, price, color, location, why customers should buy it. D. Nutritional information, price, color, where to buy it, easy to read. 11. What things could you change to adjust your profit? A. Price. B. Number. C. Less expensive supply sources. Use the following price list to do the problems below (do not figure tax). Hot dog $0.75 Cheeseburger $0.95 Onions $0.10 Small fries $0.65 Small soft drink $0.60 Hamburger $0.85 Lettuce & tomato $0.30 Large fries $0.85 Large soft drink $0.80 Milkshakes $1.10 Figure out the total bill for each of the following problems. Then choose the best answer people ordered 1 hamburger with lettuce, tomato, onion, and a small drink. A. $1.85 B. $1.80 C. $18.50 D. $ The bus driver ordered 2 hot dogs, a small fry, and a milkshake. A. $3.00 B. $3.15 C. $3.20 D. $ Marcy ordered one cheeseburger, a large fry, a milkshake for herself and one for a friend. How much does she owe? A. $3.75 B. $2.90 C. $4.25 D. $4.00
3 15. When counting change back to a customer, you should always give the amount of coins possible. A. best B. least C. most D. correct 16. If a customer s bill totals $.65 and the customer gives you $1.00, the correct amount of change (according to our worksheet) would be: A. 3 dimes and 1 nickel B. 5 pennies and 3 dimes C. 1 quarter and 1 dime D. 1 quarter and 2 nickels 17. Gross profit is the B. Amount of money collected from selling products C. Amount of money your product costs to produce 18. Net profit is the: B. Amount of money collected from selling products. C. Amount of money your product costs to produce. 19. To figure the Gross Profit: B. Add up the ticket sales from selling day and subtract the cost of the ingredients C. Add up cost to produce the product and subtract the total sales. 20. To figure the Net Profit: B. Add up the ticket sales from selling day and subtract the cost of the ingredients. C. Add up cost to produc3 the product and subtract the total sales.
4 FREE ENTERPRISE TEST KEY Multiple choice. Select the best answer to the question. 1. What is an entrepreneur? A. Someone who invests time and money to start a business. B. Someone who makes a lot of money. C. Someone who takes a risk to make a profit. D. Both A & C. 2. Define Free Enterprise: A. A business taking a risk to make a profit. B. A program administered by the Government. C. People in business trying to make a profit. D. A business adventure or undertaking. 3. Capital is: A. Money available to invest. B. Prohibitive cost of entry. C. A guarantee that a company will be successful. D. A & B. 4. The following are included in a business plan A. Financial information, production plans, personnel policies. B. Goals of the business and how they will be achieved. C. A step by step plan for the success of your business. 5. Quality Control is defined as: A. Controlling the cost of the product. B. Controlling the number of pieces produced. C. Producing & monitoring products so they are acceptable to the consumer. D. Producing & monitoring products so they are acceptable to the workers. 6. A market survey is important because it tells you: A. How many & what types of people are shopping at a store. B. Tells you what the customer will buy. C. Tells you how much the customer will pay for the product. 7. Making a purchase you had not planned is called: A. Consumer shopping. B. A warranty. C. Impulse buying. D. Comparison shopping. 8. Product planning tells you: A. Where you will produce your product. B. Cost to produce your product. C. Your Net profit. D. Total revenues.
5 9. Cost per serving means: A. How much it will cost to produce one recipe. B. How much it will cost to produce what you sell in one day. C. How much it will cost to make One. D. How much it will cost to make one batch. 10. What makes a good advertisement? (Choose the best combination) A. Color, Attracts attention, ingredients in product. B. Name of product, price, location, attractive. C. Easy to read, price, color, location, why customers should buy it. D. Nutritional information, price, color, where to buy it, easy to read. 11. What things could you change to adjust your profit? A. Price. B. Number. C. Less expensive supply sources. Use the following price list to do the problems below (do not figure tax). Hot dog $0.75 Cheeseburger $0.95 Onions $0.10 Small fries $0.65 Small soft drink $0.60 Hamburger $0.85 Lettuce & tomato $0.30 Large fries $0.85 Large soft drink $0.80 Milkshakes $1.10 Figure out the total bill for each of the following problems. Then choose the best answer people ordered 1 hamburger with lettuce, tomato, onion, and a small drink. A. $1.85. B. $1.80. C. $ D. $ The bus driver ordered 2 hot dogs, a small fry, and a milkshake. A. $3.00. B. $3.15. C. $3.20. D. $ Marcy ordered one cheeseburger, a large fry, a milkshake for herself and one for a friend. How much does she owe? A. $3.75. B. $2.90. C. $4.25. D. $4.00.
6 15. When counting change back to a customer, you should always give the amount of coins possible. A. best. B. least. C. most. D. correct. 16. If a customer s bill totals $.65 and the customer gives you $1.00, the correct amount of change (according to our worksheet) would be: A. 3 dimes and 1 nickel. B. 5 pennies and 3 dimes. C. 1 quarter and 1 dime. D. 1 quarter and 2 nickels. 17. Gross profit is the B. Amount of money collected from selling products. C. Amount of money your product costs to produce. 18. Net profit is the: B. Amount of money collected from selling products. C. Amount of money your product costs to produce. 19. To figure the Gross Profit: B. Add up the ticket sales from selling day and subtract the cost of the ingredients. C. Add up cost to produce the product and subtract the total sales. 20. To figure the Net Profit: B. Add up the ticket sales from selling day and subtract the cost of the ingredients. C. Add up cost to produc3 the product and subtract the total sales.
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