Introduction to Business
So, are you ready to answer some questions and check how well you learned the material? The format of the test will be nice and familiar for most as it will be multiple-choice with only one correct answer. When you write your answer make sure to tap (or hover over) the question to give you the answer and an explanation.
WarningPlease do keep in mind that we can’t guarantee the accuracy of this quiz, so we do recommend you also run through a full-length practice exam. We’ll recommend some good options in the resources section at the bottom of this page.
Question 1: Which if the following statements is correct about productivity?
a) It measures the accomplishment of a task or a goal
b) It measures both the quantity and the quality of the accomplished work while taking into account the resources that were used for that task
c) It measures how costly the resources (used for the accomplished task) are
d) It is the measurement of how satisfied employees are with some specific accomplished task.
One of the most confusing questions students face. Option A is performance effectiveness, while option C is performance efficiency. Option D is done by HR or team manager for improvement purposes – not connected with the productivity definition. In simple terms, productivity is the ratio of inputs and outputs.
Question 2: Liabilities are:
a) what a company owns
b) what a company owes
c) a company’s receivables
d) a company’s equity capital
A very easy question to answer. The option A refers to assets and option C is about revenues that the company will get. Option D – equity capital – is invested money in the firm. So, the correct answer is B, as a liability is a company’s financial debt or obligations.
Question 3: Which of the following is not considered as part of a Corporate Social Responsibility:
a) Not doing or at least avoiding doing harm
b) Contributing the resources available to the well-being community
c) Fighting for fair wages
d) Conducting a market research
CSR now is considered as one of the most important parts of a business’s operations. Although many people confuse it with the strategy of a business or think it is as narrow as just doing a charity, CSR is defined as the actions of a company aiming to create positive impact through its activities on the environment, communities, and stakeholders (employees, customers, etc.). Conducting market research is a part of a company’s ordinary activities.
Question 4: The 4 main functions of the management are:
a) Planning, selling, suggesting, controlling
b) Planning, organizing, leading, controlling
c) Monitoring, selling, appraising, controlling
d) Organizing, leading, monitoring, controlling
A manager should do planning – setting performance objectives and deciding how to achieve them (key points – vision, mission, strategy, and goals). Next come organizing – arranging tasks, people, and other resources to accomplish the work. However, arrangements are not enough; a good manager should also be able to motivate employees to work towards the same goal. This one is leading. Finally, after all these steps a manager should control: tracking performance vs. goal and taking corrective measures when needed.
Question 5: Job enlargement is:
a) Horizontal job loading, giving employees more tasks to perform
b) Systematically transferring employees from one role to another
c) The structure and design of a job
d) Set of objectives of a job
If you are lucky enough to have a good and caring manager one day, you will definitely face a job enlargement! The main purpose of job enlargement is to give more tasks to an employee in order to decrease the boredom and motivate for further work. Option B is about job rotation. Options C and D refer to job design and goal setting.
Question 6: Which of the following is correct?
I. A security union in which only the union members can be hired is called a closed shop.
II. A security union in which the company can hire nonunion people, who must then join the union within a set period and pay dues, is defined as a union shop.
III. A security union in which only salespeople can work is called an agency shop.
IV. The employees who join an open shop must pay union dues.
a) I and II only
b) I, II and III only
c) I, II and IV only
d) All the options are correct
Labor unions (mostly referred as security unions) are groups of employees who join together to accomplish the same goal, which is improving the economic and social well-being of its members. In an agency shop, the employees, even if they do not belong to the union, will still have to pay union dues. The main idea behind it is that the actions of the union benefit all employees.
Question 7: An embargo is defined as:
a) The prohibition of any kind of import or export with another country
b) An area, throughout which the trade between nations is made without protective tariffs
c) Exporting and selling goods at prices lower than the home-market prices
d) A grant paid by a government to an enterprise
Trade barriers can take different forms. Option B is free trade, however, it only exists in theory. Option C is dumping, not really a pleasant thing to do to the competitors, although is legal under WTO if the government doesn’t set any regulations. Option D is a subsidy, which is given to some specific companies by the government in order to get some benefits and keep the operations going. So, the correct answer is A. Embargo is considered to be the most extreme trade barrier.
Question 8: Which of the following statements is not correct?
a) a person who is indifferent to risk is considered to be risk-neutral
b) a risk-averse individual is happy to pay more than the amount of expected loss in order to avoid risk
c) a risk-seeker is willing to pay more than the amount of expected gain, which will result in a risky situation
d) subjective risk measures both actual and expected loss of a certain outcome
The statement in D actually defines objective risk. Subjective risk, on the other hand, is the inner feeling or a mental state of an individual about a certain outcome.
Question 9: An example of a liquid asset is:
d) Equipment bought for production
The liquid asset is defined as an asset that can easily be exchanged for goods and services.
Question 10: What affects the cost of money?
II. Production opportunities
III. Business activities
Cost of money, a form of opportunity cost, is defined as the interest that could be earned if the amount invested in a business were instead invested in government bonds. All of the factors mentioned above can impact the value of the money invested.
More DSST Study Resources
Are you at the beginning of your study process, or just looking for a couple more practice questions to finish prepping for your exam? In either case, you can find some of my favorite resources below. Some of the links below are affiliate (Amazon for instance), which means they’ll pay us a few bucks for every purchase through the link. Feel free to use those links if you want to support the site, but you can also just Google the title or pick the book up at your local library.
Official DSST Practice Test: Ok, so the DSST website isn’t the most inviting, but it will give you the best approximation of the real exam experience. Also, the official practice test is quite affordable (currently just $5 per practice exam).
Pass Your Class – DSST Intro To Business: Textbooks are great as far as they go, but I’d generally recommend you opt for this exam guide instead. It tends to cut through the confusion and help you accelerate your learning process.
InstantCert Academy: Another website with a very dated design, but as ancient as it looks, this is actually an incredibly valuable resource. Basically, you get a massive set of flashcards that you can use to learn Intro To Business and to really solidify that knowledge so you’re ready for the exam.
Plenty of other resources exist – just do a quick internet search – but these are a fantastic start, and probably all you really need. I’ve personally done some exams with just InstantCert and the official practice test.