BUS 110 FINAL EXAM CHAPTERS 1–8 [2026] UPDATED
ACTUAL | Question and Answer | DETAILED SOLUTIONS
1. The ability to produce a specific product at a lower cost per unit than the cost at
which any other entity produces that good is called comparative advantage. -✓✓ True
2.The balance of trade is the total value of a country's exports less the total value of its
imports over some period of time. -✓✓ True
3.A policy of considering only nonminority applicants for job openings is called reverse
discrimination. -✓✓ False
4.Free enterprise is a system of business in which individuals decide what to produce
and how to produce it. -✓✓ True
5. Profit is the payment that business owners receive for assuming the considerable
risks of ownership. -✓✓ True
6. In a command economy the consumer decides (commands) what products will be
produced. -✓✓ False
7. The ultimate objective of every firm is to satisfy the needs of all stakeholders. -✓✓
False
8. Stockholders are all of the people who are affected by the policies and decisions
made by a company. -✓✓ False
9. An individual's income rate is a measure of economic performance. -✓✓ False
10. The Sarbanes-Oxley Act is a government act created to assist minority employees. -
✓✓ False
11. Taking an online course gives you ownership utility -✓✓ False
12. A niche is a narrowly defined group of potential customers with a fairly specific set of
needs. -✓✓ True
13. After identifying a group of potential customers your next step is to find out what
they think of your product idea. -✓✓ True
14. Fixed costs are those that vary in total as the quantity of goods sold changes but
stay constant on a per unit basis. -✓✓ False
, 15. A product concept describes what the product looks like and how it might work. -✓✓
True
16. To be protected from patent infringement in several countries outside of the U.S.
you have to apply for a U.S. patent as well as an international patent. -✓✓ False
17. Determining the quantity of products the company will produce is the first step in the
production process. -✓✓ True
18. Once you have forecasted the demand for a product you can calculate the capacity
requirements of your production facility. -✓✓ True
19. If a company is the only source of a particular product or it can make more of a
product using the same amount of or fewer resources than other counties we say that
the country has a comparative advantage in economic terms. -✓✓ False
20. With penetration pricing a company tries to cover its initial costs by setting the
highest price that interested customers will pay. -✓✓ False
21. The real beneficiary from an efficiently run supply chain is the customer. -✓✓ True
22. An integral part of TQM (total quality management) is marketing mix improvements
which can be characterized as the commitment to make constant improvements in
design production and delivery. -✓✓ False
23. A disadvantage of content marketing is that it is fairly expensive. -✓✓ False
24.Computer programs are used to analyze extremely large collections of data to reveal
future events. -✓✓ True
25. To control operations managers measure actual results and compare them with the
results that were laid out in the original plan. -✓✓ True
26. Psychographic segmentation classifies consumers on the basis of where they are
located. -✓✓ False
27.A performance appraisal is the evaluation of an employee's current and potential
levels of performance to allow managers to make objective human resource decisions. -
✓✓ True
28. Buying behavior may be defined as the decisions and actions of people involved in
buying and using products. -✓✓ True
1.Management functions occur according to a rigid preset timetable. -✓✓ False
ACTUAL | Question and Answer | DETAILED SOLUTIONS
1. The ability to produce a specific product at a lower cost per unit than the cost at
which any other entity produces that good is called comparative advantage. -✓✓ True
2.The balance of trade is the total value of a country's exports less the total value of its
imports over some period of time. -✓✓ True
3.A policy of considering only nonminority applicants for job openings is called reverse
discrimination. -✓✓ False
4.Free enterprise is a system of business in which individuals decide what to produce
and how to produce it. -✓✓ True
5. Profit is the payment that business owners receive for assuming the considerable
risks of ownership. -✓✓ True
6. In a command economy the consumer decides (commands) what products will be
produced. -✓✓ False
7. The ultimate objective of every firm is to satisfy the needs of all stakeholders. -✓✓
False
8. Stockholders are all of the people who are affected by the policies and decisions
made by a company. -✓✓ False
9. An individual's income rate is a measure of economic performance. -✓✓ False
10. The Sarbanes-Oxley Act is a government act created to assist minority employees. -
✓✓ False
11. Taking an online course gives you ownership utility -✓✓ False
12. A niche is a narrowly defined group of potential customers with a fairly specific set of
needs. -✓✓ True
13. After identifying a group of potential customers your next step is to find out what
they think of your product idea. -✓✓ True
14. Fixed costs are those that vary in total as the quantity of goods sold changes but
stay constant on a per unit basis. -✓✓ False
, 15. A product concept describes what the product looks like and how it might work. -✓✓
True
16. To be protected from patent infringement in several countries outside of the U.S.
you have to apply for a U.S. patent as well as an international patent. -✓✓ False
17. Determining the quantity of products the company will produce is the first step in the
production process. -✓✓ True
18. Once you have forecasted the demand for a product you can calculate the capacity
requirements of your production facility. -✓✓ True
19. If a company is the only source of a particular product or it can make more of a
product using the same amount of or fewer resources than other counties we say that
the country has a comparative advantage in economic terms. -✓✓ False
20. With penetration pricing a company tries to cover its initial costs by setting the
highest price that interested customers will pay. -✓✓ False
21. The real beneficiary from an efficiently run supply chain is the customer. -✓✓ True
22. An integral part of TQM (total quality management) is marketing mix improvements
which can be characterized as the commitment to make constant improvements in
design production and delivery. -✓✓ False
23. A disadvantage of content marketing is that it is fairly expensive. -✓✓ False
24.Computer programs are used to analyze extremely large collections of data to reveal
future events. -✓✓ True
25. To control operations managers measure actual results and compare them with the
results that were laid out in the original plan. -✓✓ True
26. Psychographic segmentation classifies consumers on the basis of where they are
located. -✓✓ False
27.A performance appraisal is the evaluation of an employee's current and potential
levels of performance to allow managers to make objective human resource decisions. -
✓✓ True
28. Buying behavior may be defined as the decisions and actions of people involved in
buying and using products. -✓✓ True
1.Management functions occur according to a rigid preset timetable. -✓✓ False
