1
Copyright©2017PearsonEducation, Inc.
tj tj tj tj tj
,BusinessInAction15thEditionCourtlandBovee h
t h
t
Businessin Action, 8e (Bovee) tj tj tj tj
Chapter 1 Developing aBusiness Mindset tj t j t j tj jt tj
1) ismoneythat anorganization brings in through thesale ofitsgoodsand services. tj tj tj tj ht ht tj tj tj tj tj
A) Competitive advantage ht
B) Revenue
C) Sales
D) Capitalinvestment
E) Finance
Answer: B
tj tj
Explanation: Revenue isthemoneyacompanybringsin through thesaleofgoods andservices.Diffi culty: 1:
t j ht tj tj tj ht tj tj tj ht tj tj tj tj t
Easy
j
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
2) Therisk and reward relationship tj . tj ht tj tj
A) is akeyaspect ofsocialresponsibility
ht tj tj
B) appliesonlyto service-intensive businesses tj tj
C) isessential to the counter-cyclicalbusiness model
tj ht ht tj tj tj
D) is fundamentalto businesses ineverymodern economy ht tj tj ht
E) isanoutdatedconceptthat'sbeenreplaced bycorporatesustainability A ht tj tj
nswer: D t j
Explanation: Acompany needs to seesome promise ofreward before it willdecideto accept the ris k
t j tj tj tj ht tj tj tj tj tj ht tj tj
s involved in creating and selling products. However, to ensure responsible behavior, these ri sks n eed
tj ht ht ht ht tj tj tj tj tj tj tj tj tj tj tj ht
to stay attached to those decisions, meaning that if the decisions turn out bad, that comp any shou ld suff
ht tj tj tj tj tj ht tj tj ht tj tj tj tj ht tj tj tj ht
er the consequences.
tj tj
Difficulty: 1:Easy t j t j tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explainthe concept ofadding value inabusiness, and identifythe major types of busine sse s.
tj tj tj tj tj tj tj tj tj ht tj tj tj
3) A(n) isa frameworkofhowabusiness intendstogenerate revenue.
tj tj tj tj tj tj tj tj
A) business model tj
B) strategic management tool tj tj
C) profitability analysis tj
D) competitiveadvantage
E) entrepreneurialmindset tj tj
Answer: A t j
Explanation: A company's business modelisaclear,simple outlineofhowthebusinessintends t o g e
t j ht tj ht tj ht ht tj ht tj tj tj
nerate revenue. tj
Difficulty: 1:Easy tj
2
Copyright©2017PearsonEducation, Inc. tj tj tj tj tj
,AACSB: Analyticalthinking
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj tj ht tj tj tj
3
Copyright©2017PearsonEducation, Inc.
tj tj tj tj tj
, 4) is thetermused to describethedifferencebetweenrevenueand expenses. ht tj ht tj tj tj tj
A) Revenue
B) Interest
C) Sales
D) Owner's equity ht
E) ProfitA t
jnswer: E t j
Explanation: Profitis theamount ofmoneyleft overafterall thecostsinvolved in doing business
t j t j tj ht tj tj tj tj ht tj
,havebeen deductedfrom revenue.
tj ht tj ht tj
Difficulty: 1: Easy tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
5) referstosomeaspectofa productorcompanythat makesitmoreappealingtot arg et tj ht tj ht tj tj tj tj tj tj tj
customers.
A) Competitive advantage ht
B) Economiesofscale tj
C) Horizontal integration tj
D) Vertical integration tj
E) Barriertoentryadvantage tj
Answer: A t j
Explanation: Competitiveadvantagereferstosomeaspectof a productorcompanythatmakes itmor e a ppe
t j tj tj ht ht tj ht tj tj tj tj
aling to target customers.
tj tj tj
Difficulty: 2:Moderate tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
6) An organizationthatseeksto operate efficientlyand effectivelyto achieve itsgoalswithout f ocu s
ht ht ht ht tj tj tj tj tj tj
ing on profit as a motive is a
tj ht . ht tj ht tj tj tj
A) business intermediary tj
B) nonprofit organization tj
C) servicebusiness
D) government-owned corporation tj
E) goods-
producing business Answer: ht ht
B
Explanation: Not-for- t j t j
profit organizations(alsoknown asnonprofit organizations)suchasmuseums,mostuniversities, and
ht ht ht tj tj tj tj tj
charities do not have a profit motive. tj tj tj tj tj tj
Difficulty: 2:Moderate tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
4
Copyright©2017PearsonEducation, Inc.
tj tj tj tj tj
Copyright©2017PearsonEducation, Inc.
tj tj tj tj tj
,BusinessInAction15thEditionCourtlandBovee h
t h
t
Businessin Action, 8e (Bovee) tj tj tj tj
Chapter 1 Developing aBusiness Mindset tj t j t j tj jt tj
1) ismoneythat anorganization brings in through thesale ofitsgoodsand services. tj tj tj tj ht ht tj tj tj tj tj
A) Competitive advantage ht
B) Revenue
C) Sales
D) Capitalinvestment
E) Finance
Answer: B
tj tj
Explanation: Revenue isthemoneyacompanybringsin through thesaleofgoods andservices.Diffi culty: 1:
t j ht tj tj tj ht tj tj tj ht tj tj tj tj t
Easy
j
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
2) Therisk and reward relationship tj . tj ht tj tj
A) is akeyaspect ofsocialresponsibility
ht tj tj
B) appliesonlyto service-intensive businesses tj tj
C) isessential to the counter-cyclicalbusiness model
tj ht ht tj tj tj
D) is fundamentalto businesses ineverymodern economy ht tj tj ht
E) isanoutdatedconceptthat'sbeenreplaced bycorporatesustainability A ht tj tj
nswer: D t j
Explanation: Acompany needs to seesome promise ofreward before it willdecideto accept the ris k
t j tj tj tj ht tj tj tj tj tj ht tj tj
s involved in creating and selling products. However, to ensure responsible behavior, these ri sks n eed
tj ht ht ht ht tj tj tj tj tj tj tj tj tj tj tj ht
to stay attached to those decisions, meaning that if the decisions turn out bad, that comp any shou ld suff
ht tj tj tj tj tj ht tj tj ht tj tj tj tj ht tj tj tj ht
er the consequences.
tj tj
Difficulty: 1:Easy t j t j tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explainthe concept ofadding value inabusiness, and identifythe major types of busine sse s.
tj tj tj tj tj tj tj tj tj ht tj tj tj
3) A(n) isa frameworkofhowabusiness intendstogenerate revenue.
tj tj tj tj tj tj tj tj
A) business model tj
B) strategic management tool tj tj
C) profitability analysis tj
D) competitiveadvantage
E) entrepreneurialmindset tj tj
Answer: A t j
Explanation: A company's business modelisaclear,simple outlineofhowthebusinessintends t o g e
t j ht tj ht tj ht ht tj ht tj tj tj
nerate revenue. tj
Difficulty: 1:Easy tj
2
Copyright©2017PearsonEducation, Inc. tj tj tj tj tj
,AACSB: Analyticalthinking
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj tj ht tj tj tj
3
Copyright©2017PearsonEducation, Inc.
tj tj tj tj tj
, 4) is thetermused to describethedifferencebetweenrevenueand expenses. ht tj ht tj tj tj tj
A) Revenue
B) Interest
C) Sales
D) Owner's equity ht
E) ProfitA t
jnswer: E t j
Explanation: Profitis theamount ofmoneyleft overafterall thecostsinvolved in doing business
t j t j tj ht tj tj tj tj ht tj
,havebeen deductedfrom revenue.
tj ht tj ht tj
Difficulty: 1: Easy tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
5) referstosomeaspectofa productorcompanythat makesitmoreappealingtot arg et tj ht tj ht tj tj tj tj tj tj tj
customers.
A) Competitive advantage ht
B) Economiesofscale tj
C) Horizontal integration tj
D) Vertical integration tj
E) Barriertoentryadvantage tj
Answer: A t j
Explanation: Competitiveadvantagereferstosomeaspectof a productorcompanythatmakes itmor e a ppe
t j tj tj ht ht tj ht tj tj tj tj
aling to target customers.
tj tj tj
Difficulty: 2:Moderate tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
6) An organizationthatseeksto operate efficientlyand effectivelyto achieve itsgoalswithout f ocu s
ht ht ht ht tj tj tj tj tj tj
ing on profit as a motive is a
tj ht . ht tj ht tj tj tj
A) business intermediary tj
B) nonprofit organization tj
C) servicebusiness
D) government-owned corporation tj
E) goods-
producing business Answer: ht ht
B
Explanation: Not-for- t j t j
profit organizations(alsoknown asnonprofit organizations)suchasmuseums,mostuniversities, and
ht ht ht tj tj tj tj tj
charities do not have a profit motive. tj tj tj tj tj tj
Difficulty: 2:Moderate tj
AACSB: Applicationofknowledge t j t j tj
LO: 1.1:Explaintheconceptofaddingvalueinabusiness,andidentifythemajortypes ofbusine sse s.
t j tj tj tj tj tj tj tj tj ht tj tj tj
4
Copyright©2017PearsonEducation, Inc.
tj tj tj tj tj
