,Test Bank For Foundations of Business, 6th Edition
Chapter 1. Exploring the World of Business and Economics
Chapter 1. Exploring the World of Business and Economics
1. As the founder of an American business firm, Peter Jenkins can,
As the founder of an American business firm, Peter Jenkins can, within
certain limits, produce and/or sell any product he chooses and sell it
at any price it sets.
*a. True
b. False
2. After getting her bachelor's degree in business, Br
After getting her bachelor's degree in business, Brit Jackson realized
she was much more productive at her job than she had been before.
Brit's degree helped her to become a better employee.
*a. True
b. False
3. Sony is most correctly classified as a marketing intermediary ty
Sony is most correctly classified as a marketing intermediary type of
business.
a. True
*b. False
4. How the price of homes affects the number of homes built and sol
How the price of homes affects the number of homes built and sold would
be an economic issue studied in a Macroeconomics course.
a. True
*b. False
5. When a business distributes profits to business owners, these pr
When a business distributes profits to business owners, these profits
become household income and are removed from the circular flow of the
economy.
a. True
*b. False
6. Real gross domestic product is an economic measure that has been
Real gross domestic product is an economic measure that has been
adjusted for price increases of goods and services during a given
period of time.
*a. True
b. False
1
,Test Bank For Foundations of Business, 6th Edition
Chapter 1. Exploring the World of Business and Economics
7. The consumer price index (CPI) and the producer price index (PPI
The consumer price index (CPI) and the producer price index (PPI)
actually measure the same economic factors.
a. True
*b. False
8. As the price of a product increases, the amount of the product t
As the price of a product increases, the amount of the product that a
producer is willing to supply increases.
*a. True
b. False
9. As the price of a product increases, the amount of the product 2
As the price of a product increases, the amount of the product that
consumers purchase increases.
a. True
*b. False
10. A copyright for printed materials in a book exists indefinitely.
A copyright for printed materials in a book exists indefinitely.
a. True
*b. False
11. A factory system of manufacturing involves the separation of a m
A factory system of manufacturing involves the separation of a
manufacturing process into separate tasks and the assignment of
different tasks to different employees.
a. True
*b. False
12. Specialization is meant to increase the efficiency and productiv
Specialization is meant to increase the efficiency and productivity of
industrial workers.
*a. True
b. False
13. During the Great Depression1930s, government became deeply invol
During the Great Depression, government became deeply involved in
business to stimulate the nation’s economy.
*a. True
b. False
2
, Test Bank For Foundations of Business, 6th Edition
Chapter 1. Exploring the World of Business and Economics
14. A person must own stock in a corporation to be considered a stak
A person must own stock in a corporation to be considered a
stakeholder.
a. True
*b. False
15. In our free-enterprise system, federal and state governments dec
In our free-enterprise system, federal and state governments decide
what products and services to provide.
a. True
*b. False
16. A working knowledge of our business system combined with technic
A working knowledge of our business system combined with technical
skills can give an applicant an advantage in looking for a job.
*a. True
b. False
17. Today, managers and employees are no longer concerned about cult
Today, managers and employees are no longer concerned about cultural
diversity.
a. True
*b. False
18. Because e-businesses use the Internet, there is no need to meet
Because e-businesses use the Internet, there is no need to meet the
needs of their customers.
a. True
*b. False
19. In order for a business to be successful, it must be organized,
In order for a business to be successful, it must be organized, it must
satisfy needs, and it must make a profit.
*a. True
b. False
20. The four resources that a business must use to operate successfu
The four resources that a business must use to operate successfully
include material resources, human resources, financial resources, and
operational resources.
a. True
3
Chapter 1. Exploring the World of Business and Economics
Chapter 1. Exploring the World of Business and Economics
1. As the founder of an American business firm, Peter Jenkins can,
As the founder of an American business firm, Peter Jenkins can, within
certain limits, produce and/or sell any product he chooses and sell it
at any price it sets.
*a. True
b. False
2. After getting her bachelor's degree in business, Br
After getting her bachelor's degree in business, Brit Jackson realized
she was much more productive at her job than she had been before.
Brit's degree helped her to become a better employee.
*a. True
b. False
3. Sony is most correctly classified as a marketing intermediary ty
Sony is most correctly classified as a marketing intermediary type of
business.
a. True
*b. False
4. How the price of homes affects the number of homes built and sol
How the price of homes affects the number of homes built and sold would
be an economic issue studied in a Macroeconomics course.
a. True
*b. False
5. When a business distributes profits to business owners, these pr
When a business distributes profits to business owners, these profits
become household income and are removed from the circular flow of the
economy.
a. True
*b. False
6. Real gross domestic product is an economic measure that has been
Real gross domestic product is an economic measure that has been
adjusted for price increases of goods and services during a given
period of time.
*a. True
b. False
1
,Test Bank For Foundations of Business, 6th Edition
Chapter 1. Exploring the World of Business and Economics
7. The consumer price index (CPI) and the producer price index (PPI
The consumer price index (CPI) and the producer price index (PPI)
actually measure the same economic factors.
a. True
*b. False
8. As the price of a product increases, the amount of the product t
As the price of a product increases, the amount of the product that a
producer is willing to supply increases.
*a. True
b. False
9. As the price of a product increases, the amount of the product 2
As the price of a product increases, the amount of the product that
consumers purchase increases.
a. True
*b. False
10. A copyright for printed materials in a book exists indefinitely.
A copyright for printed materials in a book exists indefinitely.
a. True
*b. False
11. A factory system of manufacturing involves the separation of a m
A factory system of manufacturing involves the separation of a
manufacturing process into separate tasks and the assignment of
different tasks to different employees.
a. True
*b. False
12. Specialization is meant to increase the efficiency and productiv
Specialization is meant to increase the efficiency and productivity of
industrial workers.
*a. True
b. False
13. During the Great Depression1930s, government became deeply invol
During the Great Depression, government became deeply involved in
business to stimulate the nation’s economy.
*a. True
b. False
2
, Test Bank For Foundations of Business, 6th Edition
Chapter 1. Exploring the World of Business and Economics
14. A person must own stock in a corporation to be considered a stak
A person must own stock in a corporation to be considered a
stakeholder.
a. True
*b. False
15. In our free-enterprise system, federal and state governments dec
In our free-enterprise system, federal and state governments decide
what products and services to provide.
a. True
*b. False
16. A working knowledge of our business system combined with technic
A working knowledge of our business system combined with technical
skills can give an applicant an advantage in looking for a job.
*a. True
b. False
17. Today, managers and employees are no longer concerned about cult
Today, managers and employees are no longer concerned about cultural
diversity.
a. True
*b. False
18. Because e-businesses use the Internet, there is no need to meet
Because e-businesses use the Internet, there is no need to meet the
needs of their customers.
a. True
*b. False
19. In order for a business to be successful, it must be organized,
In order for a business to be successful, it must be organized, it must
satisfy needs, and it must make a profit.
*a. True
b. False
20. The four resources that a business must use to operate successfu
The four resources that a business must use to operate successfully
include material resources, human resources, financial resources, and
operational resources.
a. True
3
