Business Certifications Core Concepts & Fundamentals 5

Question 1

Which type of business ownership exposes owners to unlimited personal liability for business debts?

Accepted Answer

General partnership

Answer

General partners are personally and jointly liable for all partnership debts.

Question 2

In the product life cycle, which stage typically features slowing sales growth, intense competition, and price cuts?

Accepted Answer

Maturity

Answer

During maturity, sales plateau, competition is fierce, and firms often lower prices to defend share.

Question 3

A product sells for $80 and costs $50 to produce. What is its gross margin percentage?

Accepted Answer

37.5%

Answer

Gross margin is ($80 - $50) / $80 = 37.5%.

Question 4

Which economic indicator measures the total market value of all final goods and services produced within a country in a given period?

Accepted Answer

Gross Domestic Product

Answer

GDP measures the total value of final goods and services produced within a nation's borders.

Question 5

According to Herzberg's two-factor theory, which of the following is a hygiene factor rather than a motivator?

Accepted Answer

Salary

Answer

Herzberg classified salary as a hygiene factor that prevents dissatisfaction but does not itself motivate.

Business Certifications Practice Test