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!!!!!

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,BusinessInAction8thEdition CourtlandBovee h
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Business in Action, 8e (Bovee) ht ht ht ht



Chapter 1 Developing a Business Mindset ht ht ht ht




1) is money that an organization brings in through the sale of its goods and services.
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A) Competitiveadvantage ht



B) Revenue
C) Sales
D) Capital investment ht



E) Finance ht



Answer: B ht



Explanation: Revenue is the money a company brings in through the sale ofgoods and services. Diffi culty:
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1: Easy
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AACSB: Application of knowledge h t h t ht ht



LO: 1.1: Explain the concept ofadding value in a business, and identifythe major types of busine sse
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2) The risk and reward relationship
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A) is a keyaspect of social responsibility
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B) applies only to service-intensive businesses ht ht ht ht



C) is essential to the counter-cyclical business model
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D) is fundamentalto businesses in every modern economy
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E) is an outdated concept that's been replaced by corporate sustainability A
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nswer: D h t



Explanation: A company needs to see some promise ofreward before it willdecide to accept the ris
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ks involved in creating and selling products. However, to ensure responsible behavior, these ri sks n
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eed to stay attached to those decisions, meaning that if the decisions turn out bad, that comp any shou
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ld suffer the consequences.
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Difficulty: 1: Easy h t ht



AACSB: Application of knowledge h t h t ht ht



LO: 1.1: Explain the concept ofadding value in a business, and identifythe major types of busine sse
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s.

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



B) strategic management tool ht ht



C) profitability analysis ht



D) competitiveadvantage
E) entrepreneurial mindset ht 1



Answer: A
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Explanation: Acompany's business model is a clear, simple outline ofhow the business intends t o g
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enerate revenue. ht



Difficulty: 1: Easy h t ht




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,AACSB: Analyticalthinking
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LO: 1.1: Explain the concept ofadding value in a business, and identifythe major types of busine sse
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s.




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Copyright © 2017 Pearson Education, Inc.
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, 4) is the term used to describe the difference between revenue and expenses. ht ht ht ht ht ht ht ht ht ht ht



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



E) Profit A ht h



nswer: E
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Explanation: Profit is the amount of money left over after all the costs involved indoing business
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, have been deducted from revenue.
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Difficulty: 1: Easy h t ht



AACSB: Application of knowledge h t h t ht ht



LO: 1.1: Explain the concept ofadding value in a business, and identifythe major types of busine sse
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s.

5) refers to some aspect ofa product or company that makes it more appealing to t arg ht ht ht ht ht ht ht ht ht ht ht ht ht ht ht ht



et customers.
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A) Competitiveadvantage ht



B) Economies of scale ht ht



C) Horizontal integration ht



D) Vertical integration ht



E) Barriertoentryadvantage ht ht ht



Answer: A h t



Explanation: Competitive advantage refers to some aspect ofa product or companythat makes it mor e a
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ppealing to target customers. ht ht ht



Difficulty: 2: Moderate h t ht



AACSB: Application of knowledge h t h t ht ht



LO: 1.1: Explain the concept ofadding value in a business, and identifythe major types of busine sse
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s.

6) An organization that seeks to operate efficiently and effectivelyto achieve its goals without f ocu
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sing on profit as a motive is a
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A) business intermediary ht



B) nonprofit organization ht



C) service business ht



D) government-owned corporation ht



E) goods-
producing business Answer: ht ht



B
Explanation: Not-for- h t



profit organizations (also known as nonprofit organizations) such as museums, most universities, and
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charities do not have a profit motive.
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Difficulty: 2: Moderate h t ht



AACSB: Application of knowledge h t h t ht ht



LO: 1.1: Explain the concept ofadding value in a business, and identifythe major types of busine sse
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s.



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