Ch01
Student: ___________________________________________________________________________
1. Standard of living refers to the amount of goods and services people can buy with the money they
have.
True False
2. Return on investment is the money gained from taking on a business.
True False
3. Profit is the amount of money a business earns above and beyond what it spends for goods services,
salaries, and other expenses.
True False
4. Medium-sized enterprises employ between 50 and 500 individuals.
True False
5. Businesses that provide intangible products are in the manufacturing sector of the community.
True False
6. Businesses that provide service are said to be in the service sector of the community.
True False
7. An entrepreneur is a person who risks time and money to start and manage a business.
True False
8. The United States has long been known for having a high standard of living.
True False
9. Advances in technology have had little or no effect on businesses' ability to remain competitive.
True False
10. Global competition has affected the future employment and income level of businesses.
True False
11. Loss is when a business's revenues are more than its expenses.
True False
12. After the 1700s most people were self-sustaining and made their own clothing.
True False
13. The automotive industry is an example of an industry seeing the effects of global outsourcing.
True False
14. The business environment consists of the surrounding factors that either help or hinder the development
of business.
True False
15. Businesses may be classified according to their profit motive.
True False
16. Today there are more jobs in the manufacturing sector than in the service producing sector.
True False
17. A business is any person, partnership, or corporation that seeks to provide goods/and or services to others
at a profit.
True False
,18. Profit is the total amount of money a business takes in during a given period by selling goods and
services.
True False
19. Revenue occurs when a business's expenses are more than its revenues.
True False
20. A stakeholder is an owner of a company.
True False
21. Business provides good or services in the hopes of making a profit.
True False
22. Risk is the chance an individual organization takes of losing time and money on a business that may not
prove profitable.
True False
23. Examples of service include education, health care and insurance.
True False
24. Return on investment means the money gained from taking a business venture risk.
True False
25. Productivity is the amount of output you generate given the amount of input such as hours worked.
True False
26. Effectiveness means producing goods and services using the least amount of resources.
True False
27. E-commerce is the buying and selling of goods over the Internet.
True False
28. The B2B Internet market consists of selling goods and services to customers.
True False
29. Value refers to offering your customers both high-quality products and outstanding service at competitive
prices.
True False
30. Empowerment means giving frontline workers the ability to make decisions without consulting the
manager.
True False
31. An important change in the global environment has been the increase in free trade among nations.
True False
32. Factors of production include land, labor, capital, entrepreneurship, and knowledge.
True False
33. Small enterprises employ less than 50 individuals and are managed on a day to day basis by the owners
themselves.
True False
34. The Capitalist system is a system of government in which companies and businesses are generally owned
by citizens instead of the government.
True False
35. Non-profit organizations strive for financial gains but the gains are used to finance the social or
educational goals of the organization.
True False
,36. More than half of all small businesses today are micro businesses.
True False
37. A(n) ___________ is a person, partnership, or corporation that seeks to provide goods and services to
others at a profit.
________________________________________
38. __________ are tangible products such as cameras, food, computers and clothing.
________________________________________
39. __________ is the amount of money a business earns above and beyond what it pays out for salaries and
other expenses.
________________________________________
40. __________ are intangible products such as education, insurance and travel.
________________________________________
41. _________ is the total amount of money a business takes in during a given period as a result of selling its
good or services.
________________________________________
42. __________ are the costs of purchasing the goods and services that are needed to operate business.
________________________________________
43. __________ is the quality and quantity of products available to people and how these goods are
distributed over the population.
________________________________________
44. __________ are all the people who stand to gain or lose by the policies and activities of a business.
________________________________________
45. More than 96% of job openings in the U.S. were recently in the __________ industry.
________________________________________
46. Missy owns and operates her own Internet consulting firm. While she recognizes the risks involved in
operating a business, she is still willing to invest her time, effort, and money in hopes of earning a profit.
Missy is an example of a(n) __________.
________________________________________
47. __________ is assigning various functions, such as accounting, production, security, maintenance and
legal work, to organizations outside of the business.
________________________________________
48. Historically workers have moved from rural farm labor positions to the ____________ industry.
________________________________________
49. Workers moved to __________ industry jobs as technology and machination eliminated manufacturing
jobs.
________________________________________
50. __________ is the reduction of barriers to trade, such as elimination of tariffs on goods brought into
another country.
________________________________________
51. When classifying a business according to __________, the number of employees is a primary
criterion.
________________________________________
52. __________ played a significant role in farming as it increased efficiency and reduced the number of
laborers.
________________________________________
, 53. The __________ Internet market consists of selling goods and services to consumers.
________________________________________
54. An electronic storage file where information is kept is called a (n) __________.
________________________________________
55. An increase in __________ indicates that more can be produced in a given time period with the same
amount of resources.
________________________________________
56. __________ means producing goods using the least amount of resources.
________________________________________
57. __________ is the buying and selling of goods over the Internet.
________________________________________
58. The __________ of production include land, labor, capital, entrepreneurship, and knowledge.
________________________________________
59. Which one of the following is NOT a means by which businesses can be classified?
A. Size
B. Profit motive
C. Profit margin
D. Sector
60. Any person, partnership or corporation that seeks to provide goods and services to others at a profit is
known as a:
A. Manager
B. Corporation
C. Business
D. Service
61. The chance an individual or organization takes of losing time and money on a business that may not
prove profitable is called?
A. Loss
B. Risk
C. Luck
D. Initiative
62. A __________ is a person who owns and operates his or her own business.
A. Manager
B. Entrepreneur
C. Private Investor
D. Stakeholder
63. The practice of foreign companies setting up design and production facilities in the United States,
creating U.S. jobs is:
A. Outsourcing
B. Insourcing
C. Globalization
D. Management prerogative
64. __________ is the amount of money a business earns above and beyond what it pays out for salaries and
other expenses.
A. Profit
B. Revenue
C. Dividends
D. Interest
Student: ___________________________________________________________________________
1. Standard of living refers to the amount of goods and services people can buy with the money they
have.
True False
2. Return on investment is the money gained from taking on a business.
True False
3. Profit is the amount of money a business earns above and beyond what it spends for goods services,
salaries, and other expenses.
True False
4. Medium-sized enterprises employ between 50 and 500 individuals.
True False
5. Businesses that provide intangible products are in the manufacturing sector of the community.
True False
6. Businesses that provide service are said to be in the service sector of the community.
True False
7. An entrepreneur is a person who risks time and money to start and manage a business.
True False
8. The United States has long been known for having a high standard of living.
True False
9. Advances in technology have had little or no effect on businesses' ability to remain competitive.
True False
10. Global competition has affected the future employment and income level of businesses.
True False
11. Loss is when a business's revenues are more than its expenses.
True False
12. After the 1700s most people were self-sustaining and made their own clothing.
True False
13. The automotive industry is an example of an industry seeing the effects of global outsourcing.
True False
14. The business environment consists of the surrounding factors that either help or hinder the development
of business.
True False
15. Businesses may be classified according to their profit motive.
True False
16. Today there are more jobs in the manufacturing sector than in the service producing sector.
True False
17. A business is any person, partnership, or corporation that seeks to provide goods/and or services to others
at a profit.
True False
,18. Profit is the total amount of money a business takes in during a given period by selling goods and
services.
True False
19. Revenue occurs when a business's expenses are more than its revenues.
True False
20. A stakeholder is an owner of a company.
True False
21. Business provides good or services in the hopes of making a profit.
True False
22. Risk is the chance an individual organization takes of losing time and money on a business that may not
prove profitable.
True False
23. Examples of service include education, health care and insurance.
True False
24. Return on investment means the money gained from taking a business venture risk.
True False
25. Productivity is the amount of output you generate given the amount of input such as hours worked.
True False
26. Effectiveness means producing goods and services using the least amount of resources.
True False
27. E-commerce is the buying and selling of goods over the Internet.
True False
28. The B2B Internet market consists of selling goods and services to customers.
True False
29. Value refers to offering your customers both high-quality products and outstanding service at competitive
prices.
True False
30. Empowerment means giving frontline workers the ability to make decisions without consulting the
manager.
True False
31. An important change in the global environment has been the increase in free trade among nations.
True False
32. Factors of production include land, labor, capital, entrepreneurship, and knowledge.
True False
33. Small enterprises employ less than 50 individuals and are managed on a day to day basis by the owners
themselves.
True False
34. The Capitalist system is a system of government in which companies and businesses are generally owned
by citizens instead of the government.
True False
35. Non-profit organizations strive for financial gains but the gains are used to finance the social or
educational goals of the organization.
True False
,36. More than half of all small businesses today are micro businesses.
True False
37. A(n) ___________ is a person, partnership, or corporation that seeks to provide goods and services to
others at a profit.
________________________________________
38. __________ are tangible products such as cameras, food, computers and clothing.
________________________________________
39. __________ is the amount of money a business earns above and beyond what it pays out for salaries and
other expenses.
________________________________________
40. __________ are intangible products such as education, insurance and travel.
________________________________________
41. _________ is the total amount of money a business takes in during a given period as a result of selling its
good or services.
________________________________________
42. __________ are the costs of purchasing the goods and services that are needed to operate business.
________________________________________
43. __________ is the quality and quantity of products available to people and how these goods are
distributed over the population.
________________________________________
44. __________ are all the people who stand to gain or lose by the policies and activities of a business.
________________________________________
45. More than 96% of job openings in the U.S. were recently in the __________ industry.
________________________________________
46. Missy owns and operates her own Internet consulting firm. While she recognizes the risks involved in
operating a business, she is still willing to invest her time, effort, and money in hopes of earning a profit.
Missy is an example of a(n) __________.
________________________________________
47. __________ is assigning various functions, such as accounting, production, security, maintenance and
legal work, to organizations outside of the business.
________________________________________
48. Historically workers have moved from rural farm labor positions to the ____________ industry.
________________________________________
49. Workers moved to __________ industry jobs as technology and machination eliminated manufacturing
jobs.
________________________________________
50. __________ is the reduction of barriers to trade, such as elimination of tariffs on goods brought into
another country.
________________________________________
51. When classifying a business according to __________, the number of employees is a primary
criterion.
________________________________________
52. __________ played a significant role in farming as it increased efficiency and reduced the number of
laborers.
________________________________________
, 53. The __________ Internet market consists of selling goods and services to consumers.
________________________________________
54. An electronic storage file where information is kept is called a (n) __________.
________________________________________
55. An increase in __________ indicates that more can be produced in a given time period with the same
amount of resources.
________________________________________
56. __________ means producing goods using the least amount of resources.
________________________________________
57. __________ is the buying and selling of goods over the Internet.
________________________________________
58. The __________ of production include land, labor, capital, entrepreneurship, and knowledge.
________________________________________
59. Which one of the following is NOT a means by which businesses can be classified?
A. Size
B. Profit motive
C. Profit margin
D. Sector
60. Any person, partnership or corporation that seeks to provide goods and services to others at a profit is
known as a:
A. Manager
B. Corporation
C. Business
D. Service
61. The chance an individual or organization takes of losing time and money on a business that may not
prove profitable is called?
A. Loss
B. Risk
C. Luck
D. Initiative
62. A __________ is a person who owns and operates his or her own business.
A. Manager
B. Entrepreneur
C. Private Investor
D. Stakeholder
63. The practice of foreign companies setting up design and production facilities in the United States,
creating U.S. jobs is:
A. Outsourcing
B. Insourcing
C. Globalization
D. Management prerogative
64. __________ is the amount of money a business earns above and beyond what it pays out for salaries and
other expenses.
A. Profit
B. Revenue
C. Dividends
D. Interest
