FBLA MCQ Knowledge 2 — Questions and Answers
Question 1: Which financial statement shows a company's revenues and expenses over a specific period?
- Balance sheet
- Income statement (Correct answer)
- Cash flow statement
- Statement of retained earnings
Correct answer: Income statement
The income statement (also called profit and loss statement) reports revenues, expenses, and net income over a reporting period.
Question 2: In parliamentary procedure, what is the minimum number of members required to conduct official business called?
- Majority
- Quorum (Correct answer)
- Plurality
- Consensus
Correct answer: Quorum
A quorum is the minimum number of voting members that must be present for an organization to conduct official business.
Question 3: Which type of business ownership offers limited liability protection while allowing pass-through taxation?
- Sole proprietorship
- General partnership
- Limited Liability Company (LLC) (Correct answer)
- C-Corporation
Correct answer: Limited Liability Company (LLC)
An LLC combines the limited liability protection of a corporation with the pass-through taxation benefits of a partnership.
Question 4: What does the acronym 'ROI' stand for in a business context?
- Rate of Income
- Return on Investment (Correct answer)
- Revenue over Income
- Risk of Inflation
Correct answer: Return on Investment
ROI (Return on Investment) measures the efficiency of an investment by comparing net profit to the cost of the investment.
Question 5: Which economic concept describes the additional benefit gained from consuming one more unit of a good or service?
- Total utility
- Average utility
- Marginal utility (Correct answer)
- Diminishing returns
Correct answer: Marginal utility
Marginal utility refers to the additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.
Question 6: In FBLA competitive events, what does 'parliamentary procedure' primarily govern?
- Financial auditing processes
- The conduct of meetings and group decision-making (Correct answer)
- Marketing campaign approvals
- Corporate governance structures
Correct answer: The conduct of meetings and group decision-making
Parliamentary procedure is a set of rules for conducting orderly meetings and making group decisions democratically and efficiently.
Question 7: What is 'gross profit' in accounting?
- Net income after all expenses
- Revenue minus cost of goods sold (Correct answer)
- Total revenue before any deductions
- Operating income minus taxes
Correct answer: Revenue minus cost of goods sold
Gross profit is calculated by subtracting the cost of goods sold (COGS) from total revenue, before deducting operating expenses.
FBLA MCQ Knowledge 2
Which financial statement shows a company's revenues and expenses over a specific period?