Week 1 Quiz

An illustrative ride-share driver's week brings in fares from riders and requires paying for fuel, insurance, and a brake repair. Which amount is the driver's profit for the week?

Select one.

• All of the fares riders paid during the week
• What is left after the fuel, insurance, and repair are subtracted from the fares
• The total of the fuel, insurance, and brake repair bills the driver paid that week
• The fares riders paid on the single busiest day of that week

An illustrative community food bank, run as a not-for-profit, ends the year with more donations, grants, and delivery fees coming in than it spent. Which statement about that surplus is accurate?

Select one.

• It broke the not-for-profit rules, because a not-for-profit cannot take in more than it spends
• It must pay the surplus out to its largest donors, who count as its owners
• It may keep the surplus but puts it back into its mission, such as buying a second truck
• It turns into a business the moment it ends a year with a surplus

A student says an illustrative neighborhood bike-repair shop has only one stakeholder: the owner who put in personal savings. Which reply is accurate?

Select one.

• Employees, customers, suppliers, lenders, the community, and government are stakeholders too
• The student is right, because stakeholders are the people who own shares in a business
• Only the people who work in the shop count, because they make the repairs
• Only the riders count, because their payments are the shop's revenue

On an illustrative family farm, the tractor and the barn belong to which factor of production?

Select one.

• Natural resources
• Labor
• Entrepreneurship
• Capital

In this course, capital as a factor of production means the money a business keeps in its bank account.

True or false.

• True
• False

In a PESTEL scan of an illustrative campus bookstore, prices rising across the whole economy, so that students have less to spend, is an example of which kind of force?

Select one.

• An economic force
• A social force
• A legal force
• A political force

In a PESTEL scan of an illustrative campus bookstore, where do online sellers that ship course materials to students' doors belong?

Select one.

• They are a strength of the bookstore, because they keep prices visible
• They are a legal force, because selling online is regulated
• They are competitors, which a scan considers alongside the six forces
• They are inside the bookstore, because the store can choose to match them

In the coffee cart SWOT (illustrative: a mobile coffee cart whose eight entries are low fixed costs; can move to where the customers are; one espresso machine; one person at the counter; an office building opening two blocks away; a weekend farmers' market looking for vendors; a chain café opening nearby; rising bean prices), which box does an office building opening two blocks away belong in?

Select one.

• Strength, because it is good news for the cart
• Opportunity, because it is outside the cart and could help it
• Weakness, because the cart cannot serve the whole building
• Threat, because it is outside the cart

In the coffee cart SWOT (illustrative: a mobile coffee cart whose eight entries are low fixed costs; can move to where the customers are; one espresso machine; one person at the counter; an office building opening two blocks away; a weekend farmers' market looking for vendors; a chain café opening nearby; rising bean prices), how many of the eight entries sit inside the cart?

Select one.

• 2
• 4
• 6
• 8

In the coffee cart SWOT (illustrative: a mobile coffee cart whose eight entries are low fixed costs; can move to where the customers are; one espresso machine; one person at the counter; an office building opening two blocks away; a weekend farmers' market looking for vendors; a chain café opening nearby; rising bean prices), which entry is a weakness?

Select one.

• Rising bean prices
• Low fixed costs
• A weekend farmers' market looking for vendors
• One person at the counter