FBLA MCQ Knowledge 5 — Questions and Answers
Question 1: What does 'SWOT analysis' stand for in business strategy?
- Sales, Workflow, Output, Tactics
- Strengths, Weaknesses, Opportunities, Threats (Correct answer)
- Strategy, Work, Objectives, Timeline
- Systems, Workers, Operations, Technology
Correct answer: Strengths, Weaknesses, Opportunities, Threats
SWOT analysis is a strategic planning framework that evaluates internal Strengths and Weaknesses alongside external Opportunities and Threats.
Question 2: Which federal agency is primarily responsible for enforcing workplace safety regulations in the United States?
- SEC (Securities and Exchange Commission)
- OSHA (Occupational Safety and Health Administration) (Correct answer)
- EEOC (Equal Employment Opportunity Commission)
- FTC (Federal Trade Commission)
Correct answer: OSHA (Occupational Safety and Health Administration)
OSHA, part of the Department of Labor, sets and enforces standards to ensure safe and healthy working conditions for American workers.
Question 3: In accounting, what is the 'double-entry bookkeeping' system?
- Recording every transaction twice to check for errors
- A system where every transaction affects at least two accounts (Correct answer)
- Maintaining separate books for revenue and expenses
- Using two accountants to verify all financial entries
Correct answer: A system where every transaction affects at least two accounts
Double-entry bookkeeping requires that every transaction be recorded as both a debit in one account and a credit in another, keeping the accounting equation balanced.
Question 4: What is 'comparative advantage' in international trade?
- A country's ability to produce all goods more efficiently than others
- The ability to produce a good at a lower opportunity cost than trading partners (Correct answer)
- Having the largest share of global trade volume
- Imposing higher tariffs than competing nations
Correct answer: The ability to produce a good at a lower opportunity cost than trading partners
Comparative advantage means a country can produce a good at a lower opportunity cost than others, forming the basis for beneficial international trade.
Question 5: What is 'working capital' in business finance?
- Total assets minus total liabilities
- Current assets minus current liabilities (Correct answer)
- Long-term debt plus equity
- Annual revenue minus annual expenses
Correct answer: Current assets minus current liabilities
Working capital measures a company's short-term liquidity by subtracting current liabilities from current assets.
Question 6: Which type of market research collects new data specifically for the research purpose at hand?
- Secondary research
- Quantitative research
- Primary research (Correct answer)
- Archival research
Correct answer: Primary research
Primary research involves collecting original data directly from sources (e.g., surveys, interviews, focus groups) for a specific research purpose.
Question 7: What does 'fiscal policy' refer to in economics?
- Central bank decisions on interest rates and money supply
- Government decisions on taxation and spending to influence the economy (Correct answer)
- A company's internal budgeting and financial planning
- International monetary exchange rate agreements
Correct answer: Government decisions on taxation and spending to influence the economy
Fiscal policy involves government decisions about taxation and public spending to stabilize or stimulate the economy.
FBLA MCQ Knowledge 5
What does 'SWOT analysis' stand for in business strategy?