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MTEL Business Test Answer Key

1. B: Many people consider budgets a waste of time because they rarely reflect reality. But there has to be some kind of plan showing how funds are allocated. The budget determines what funds will be available and when, how they will be spent, by whom, and on what and who will authorize the expenditures.

2. C: Whatever decision-making process is used, an effective businessperson always considers the reason for the change, how people will be affected and the probable consequences of the action. To do anything less will impact the end results and ultimately affect the bottom line.

3. D: A contract is a legally binding promise that explains what each party (person) agrees to do, to provide or to act on in exchange for adequate consideration. Adequate consideration is the benefit(s) the person can reasonably expect to receive if he agrees to the contract. It may be a written document or a verbal agreement and a handshake.

4. A: Macroeconomics is the study of an entire national economy. It includes the value of goods and services produced, the total personal and business income earned, how many employable people are working at any one time and how and why prices change.  

5. D: Entrepreneurs see a need, organize human and financial resources, and combine passion, intelligence, knowledge and hard work to create a product or service that answers that need. They believe in capturing market opportunities, developing products and/or services and offering them to a well researched target market.