Free ILTS Business, Marketing, and Computer Education (216) Practice Questions

Sample Practice Questions

Try these 10 sample questions from the ILTS Business, Marketing, and Computer Education (216) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A retailer sets a five-year goal to enter two new regions and estimates the resources needed. Which type of planning is this?

   1. A.Operational planning
   2. B.Contingency planning
   3. C.Strategic planningCorrect answer: C
   4. D.Tactical planning

   Explanation: The source states: "Strategic planning involves creating long-range (one to five years), broad goals and determining the necessary resources to accomplish those goals." The long horizon and broad expansion goal identify strategic planning. Operational planning specifies procedures, contingency planning addresses unusual disruptions, and tactical planning supports strategy with shorter-term objectives.

   Reference: OpenStax Introduction to Business — Management — 6.2 Planning

2. 2A company reports assets of $180,000 and liabilities of $65,000. What is shareholders' equity?

   1. A.$65,000
   2. B.$115,000Correct answer: B
   3. C.$180,000
   4. D.$245,000

   Explanation: The source states: "ASSETS = LIABILITIES + SHAREHOLDERS' EQUITY" Equity = $180,000 − $65,000 = $115,000, with no rounding. $65,000 repeats debt; $180,000 ignores debt; $245,000 adds instead of subtracting liabilities.

   Reference: SEC — Beginners' Guide to Financial Statements — Balance Sheets

3. 3Holding other influences constant, a product's price rises. Under the law of demand, what happens to its quantity demanded?

   1. A.It increases
   2. B.It remains fixed
   3. C.It decreasesCorrect answer: C
   4. D.Its direction cannot be predicted

   Explanation: The source states: "a higher price leads to a lower quantity demanded" Holding other factors constant, quantity demanded decreases. An increase reverses the demand relationship, no change ignores it, and indeterminacy overlooks the stated ceteris paribus condition.

   Reference: OpenStax Principles of Economics 3e — Demand and Supply — Chapter 3 Key Terms — Law of demand

4. 4Which business approach most clearly reflects the marketing concept?

   1. A.Begin with production capacity and sell what is produced
   2. B.Begin with sales targets and intensify persuasion
   3. C.Begin with customer needs and satisfy them profitablyCorrect answer: C
   4. D.Begin with current products and minimize unit costs

   Explanation: The source states: "identifying consumer needs and wants and then producing products" The marketing concept begins with customer needs. The alternatives reflect production, selling or cost orientations without first identifying what customers value.

   Reference: OpenStax Introduction to Business — Marketing — 11.1 The Marketing Concept

5. 5A business student wants to compare typical duties, entry education, pay, and ten-year employment outlook across occupations. Which federal resource is designed for this comparison?

   1. A.Consumer Price Index
   2. B.Economic Census industry totals
   3. C.Occupational Outlook HandbookCorrect answer: C
   4. D.National Income and Product Accounts

   Explanation: The source states: "Each occupational profile describes the typical duties performed by the occupation, the work environment of that occupation, the typical education and training needed to enter the occupation, the median pay for workers in the occupation, and the job outlook over the coming decade for that occupation." The OOH organizes these career facts by occupation. CPI measures consumer prices, industry totals describe businesses, and national accounts measure aggregate economic activity.

   Reference: BLS — Occupational Information Included in the OOH — Introduction

6. 6Which computer component executes the instructions required for programs to run?

   1. A.SSD
   2. B.RAM module
   3. C.Power supply
   4. D.CPUCorrect answer: D

   Explanation: The source states: "the CPU is responsible for executing instructions that are required for programs to run" The CPU executes instructions. An SSD stores persistent data, RAM holds working data, and the power supply delivers electrical power.

   Reference: Intel — PC Parts and Setup Guide — PREP 3 — Central Processing Unit

7. 7A distributor develops an alternative delivery arrangement to use if its main warehouse becomes inaccessible. What kind of plan does this illustrate?

   1. A.Contingency planCorrect answer: A
   2. B.Strategic plan
   3. C.Operational budget
   4. D.Tactical sales plan

   Explanation: The source states: "Contingency plans identify alternative courses of action for very unusual or crisis situations." The alternative responds to a disruption. A strategic plan sets broad long-term goals; an operational budget allocates routine funds; a tactical sales plan implements shorter-term selling objectives.

   Reference: OpenStax Introduction to Business — Management — 6.2 Planning

8. 8Which statement provides a snapshot of a company's assets, liabilities, and owners' equity on the reporting date?

   1. A.Income statement
   2. B.Cash flow statement
   3. C.Equity changes statement
   4. D.Balance sheetCorrect answer: D

   Explanation: The source states: "A balance sheet shows a snapshot of a company’s assets, liabilities and shareholders’ equity at the end of the reporting period." The balance sheet reports a point-in-time position. The other statements report income, cash movements or equity changes across a period.

   Reference: SEC — Beginners' Guide to Financial Statements — Balance Sheets

9. 9At a posted price, buyers want 500 units but sellers offer 350 units. Which market condition exists?

   1. A.Shortage of 150 unitsCorrect answer: A
   2. B.Surplus of 150 units
   3. C.Equilibrium at 350 units
   4. D.Shortage of 850 units

   Explanation: The source states: "at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand" Excess demand = 500 − 350 = 150 units. A surplus reverses the imbalance; equilibrium requires equality; 850 adds the quantities.

   Reference: OpenStax Principles of Economics 3e — Demand and Supply — Chapter 3 Key Terms — Shortage

10. 10A fitness retailer groups customers by their interests, activities, and lifestyle. Which segmentation basis is it using?

    1. A.PsychographicCorrect answer: A
    2. B.Geographic
    3. C.Demographic
    4. D.Volume

    Explanation: The source states: "psychographic (personality or lifestyle)" Lifestyle identifies psychographic segmentation. Geography uses location, demographics use population traits, and volume uses purchase amount.

    Reference: OpenStax Introduction to Business — Marketing — 11.5 Market Segmentation