FBLA MCQ Knowledge 3 — Questions and Answers
Question 1: Which marketing concept focuses on understanding and meeting customer needs better than competitors?
- Production concept
- Selling concept
- Marketing concept (Correct answer)
- Societal concept
Correct answer: Marketing concept
The marketing concept holds that achieving organizational goals depends on knowing customer needs and satisfying them better than competitors do.
Question 2: What is the primary purpose of a business plan?
- To satisfy government regulatory requirements
- To serve as a roadmap for achieving business goals and attracting investors (Correct answer)
- To document past financial performance
- To outline employee benefits packages
Correct answer: To serve as a roadmap for achieving business goals and attracting investors
A business plan outlines goals, strategies, market analysis, and financial projections to guide the business and attract funding.
Question 3: Which leadership style involves making decisions without consulting team members?
- Democratic
- Laissez-faire
- Autocratic (Correct answer)
- Transformational
Correct answer: Autocratic
Autocratic (authoritarian) leadership involves the leader making decisions unilaterally without input from subordinates.
Question 4: What does 'accounts receivable' represent on a company's balance sheet?
- Money the company owes to suppliers
- Money owed TO the company by customers (Correct answer)
- Cash held in company bank accounts
- Long-term investments held by the company
Correct answer: Money owed TO the company by customers
Accounts receivable represents money that customers owe the company for goods or services already delivered but not yet paid for.
Question 5: In economics, what occurs when a market experiences 'price elasticity of demand'?
- Prices are fixed by government regulation
- Quantity demanded is sensitive to price changes (Correct answer)
- Supply increases regardless of price
- Consumer income determines all purchasing decisions
Correct answer: Quantity demanded is sensitive to price changes
Price elasticity of demand measures how much the quantity demanded changes in response to a change in price.
Question 6: What is 'depreciation' in accounting?
- A tax penalty for late payments
- The systematic allocation of an asset's cost over its useful life (Correct answer)
- A decrease in market value due to competition
- The interest expense on company debt
Correct answer: The systematic allocation of an asset's cost over its useful life
Depreciation is the accounting method of spreading the cost of a tangible asset over its expected useful life.
Question 7: Which of the following best describes 'supply chain management'?
- Managing employee compensation structures
- Overseeing the flow of goods from raw materials to end consumers (Correct answer)
- Controlling a company's investment portfolio
- Setting retail prices for finished products
Correct answer: Overseeing the flow of goods from raw materials to end consumers
Supply chain management oversees the entire process from sourcing raw materials through production to delivering the final product to customers.
FBLA MCQ Knowledge 3
Which marketing concept focuses on understanding and meeting customer needs better than competitors?