UNDERSTANDING BUSINESS 12TH EDITION BY
NICKELS UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
◉ business.
Answer: Any activity that seeks to provide goods and services to
others while operating at a profit.
◉ goods.
Answer: Tangible products such as computers, food, clothing, cars,
and appliances.
◉ services.
Answer: Intangible products (i.e. products that con't be held in our
hand) such as education, health care, insurance, recreation, and
travel and tourism.
◉ entrepreneur.
Answer: A person who RISKS time and money to start and manage a
business.
◉ revenue.
,Answer: The total amount of money a business takes in during a
given period b selling goods and services.
◉ profit.
Answer: The amount of money a business earns above and beyond
what it spends for salaries and other expenses.
◉ loss.
Answer: When a business's expenses are more than its revenues.
◉ risk.
Answer: The chance an entrepreneur takes of losing time and money
on a business that may not prove profitable.
◉ standard of living.
Answer: The amount of goods and services people can buy with the
money they have.
◉ quality of life.
Answer: The general well-being of a society in terms of its political
freedom, natural environment, education, health care, safety,
amount of leisure, and rewards that add to the satisfaction and joy
that other goods and services provide.
, ◉ stakeholders.
Answer: All the people who stand to gain or loose by the policies and
activities of a business and whose concerns the business needs to
address.
◉ outsourcing.
Answer: Contracting with other companies (often in other
countries) to do some or all of the function of a firm, like its
production or accounting tasks.
◉ nonprofit organization.
Answer: An organization whose goals do not include making a
personal profit for its owners or organizers.
◉ factors of production.
Answer: The resources used to create wealth: land, labor, capital,
entrepreneurship, and knowledge.
◉ business environment.
Answer: The surrounding factors that either help or hinder the
development of business.
◉ technology.
NICKELS UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
◉ business.
Answer: Any activity that seeks to provide goods and services to
others while operating at a profit.
◉ goods.
Answer: Tangible products such as computers, food, clothing, cars,
and appliances.
◉ services.
Answer: Intangible products (i.e. products that con't be held in our
hand) such as education, health care, insurance, recreation, and
travel and tourism.
◉ entrepreneur.
Answer: A person who RISKS time and money to start and manage a
business.
◉ revenue.
,Answer: The total amount of money a business takes in during a
given period b selling goods and services.
◉ profit.
Answer: The amount of money a business earns above and beyond
what it spends for salaries and other expenses.
◉ loss.
Answer: When a business's expenses are more than its revenues.
◉ risk.
Answer: The chance an entrepreneur takes of losing time and money
on a business that may not prove profitable.
◉ standard of living.
Answer: The amount of goods and services people can buy with the
money they have.
◉ quality of life.
Answer: The general well-being of a society in terms of its political
freedom, natural environment, education, health care, safety,
amount of leisure, and rewards that add to the satisfaction and joy
that other goods and services provide.
, ◉ stakeholders.
Answer: All the people who stand to gain or loose by the policies and
activities of a business and whose concerns the business needs to
address.
◉ outsourcing.
Answer: Contracting with other companies (often in other
countries) to do some or all of the function of a firm, like its
production or accounting tasks.
◉ nonprofit organization.
Answer: An organization whose goals do not include making a
personal profit for its owners or organizers.
◉ factors of production.
Answer: The resources used to create wealth: land, labor, capital,
entrepreneurship, and knowledge.
◉ business environment.
Answer: The surrounding factors that either help or hinder the
development of business.
◉ technology.
