TEST BANK FOR Business in Action 8th Edition by Courtland Bovee ISBN:978-0134129952 COMPLETE GUIDE ALLL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!! NEW LATEST UPDATE!!!!!

1
Copyright © 2017 Pearson Education, Inc.

,Business In Action 8th Edition Courtland Bovee n% n% n% n% n% n%




Business in Action, 8e (Bovee) n% n% n% n%



Chapter 1 Developing a Business Mindset
n% n% n% n%




1) is money that an organization brings in through the sale of its goods and services.
n% n% n% n% n% n% n% n% n% n% n% n% n% n%



A) Competitive advantage n%



B) Revenue
C) Sales
D) Capital investment n%



E) Finance n



Answer:
% n%



B
Explanation: Revenue is the money a company brings in through the sale of goods and services. Diffi c
n % n% n% n% n% n% n% n% n% 1a n% n% n% n% n% n% n%



ulty: 1: Easy n % n%



AACSB: Application of knowledge n % n % n% n%



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busi
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



ne sses. n%




2) The risk and reward relationship
n% . n% n% n% n%



A) is a key aspect of social responsibility
n% n% n% n% n% n%



B) applies only to service-intensive businesses
n% n% n% n%



C) is essential to the counter-cyclical business model
n% n% n% n% n% n%



D) is fundamental to businesses in every modern economy
n% n% n% n% n% n% n%



E) is an outdated concept that's been replaced by corporate sustainabilit
n% n% n% n% n% n% n% n% n%



y Answer: D
n% n %



Explanation: A company needs to see some promise of reward before it will decide to accept t
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



he risks involved in creating and selling products. However, to ensure responsible behavior, the
n% n% n% n% n% n% n% n% n% n% n% n% n%



se ri sks need to stay attached to those decisions, meaning that if the decisions turn out bad, tha
n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



t comp any should suffer the consequences.
n% n% n% n% n% n%



Difficulty: 1: Easy n % n%



AACSB: Application of knowledge n % n % n% n%



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busi
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



ne sses. n%




3) A(n) is a framework of how a business intends to generate revenue.
n% n% n% n% n% n% n% n% n% n% n%



A) business model n%



B) strategic management tool n% n%



C) profitability analysis n%



D) competitiveadvantage
E) entrepreneurial mindset n% 1



Answer: A
n % n %



Explanation: A company's business model is a clear, simple outline of how the business intends
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n



t o generate revenue.
% n% n% n%



Difficulty: 1: Easy n % n%




2
Copyright © 2017 Pearson Education, Inc.

,AACSB: Analytical thinking
n % n%



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busi
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



ne sses.
n%




3
Copyright © 2017 Pearson Education, Inc.

, 4) is the term used to describe the difference between revenue and expenses.
n% n% n% n% n% n% n% n% n% n% n%



A) Revenue
B) Interest
C) Sales
D) Owner's equity n%



E) Profit A n%



nswer: E
n% n %



Explanation: Profit is the amount of money left over after all the costs involved in doing business
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



, have been deducted from revenue.
n% n% n% n% n%



Difficulty: 1: Easy
n% n % n%



AACSB: Application of knowledge n % n % n% n%



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busi
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



ne sses. n%




5) refers to some aspect of a product or company that makes it more appealing to
n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



t arget customers.
n% n%



A) Competitive advantage n%



B) Economies of scale n% n%



C) Horizontal integration n%



D) Vertical integration n%



E) Barrier toentry advantage n% n% n



%Answer: A n %



Explanation: Competitive advantage refers to some aspect of a product or company that makes it m
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n%



or e appealing to target customers.
n% n% n% n% n%



Difficulty: 2: Moderate n % n%



AACSB: Application of knowledge n % n % n% n%



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busi
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



ne sses. n%




6) An organization that seeks to operate efficiently and effectively to achieve its goals without
n% n% n% n% n% n% n% n% n% n% n% n% n% n%



f ocusing on profit as a motive is a
n% n% . n% n% n% n% n% n% n%



A) business intermediary n%



B) nonprofit organization n%



C) service business n%



D) government-owned corporation n%



E) goods-
producing business Answer: n% n%



B
Explanation: Not-for- n %



profit organizations (also known as nonprofit organizations) such as museums, most universities,
n% n% n% n% n% n% n% n% n% n% n% n



%and charities do not have a profit motive.
n% n% n% n% n% n% n%



Difficulty: 2: Moderate n % n%



AACSB: Application of knowledge n % n % n% n%



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busi
n % n% n% n% n% n% n% n% n% n% n% n% n% n% n% n% n%



ne sses. n%




4
Copyright © 2017 Pearson Education, Inc.