TEST BANK for Understanding Business, 13th Edition by William Nickels and McHugh, All Chapters 1-20

,TEST BANK FOR x x




Understanding Business, 13th Edition, William Nickels Chap
x x x x x x




ter 1-20 Answers are at the end of Each chapter Chapter 1
x x x x x x x x x x x




Student name: x




1) Describe three ways that governments can foster entrepreneurship and encourage the cr
x x x x x x x x x x x



eation of wealth
x x




2) Describe how businesses can use technology to be more responsive to customers.
x x x x x x x x x x x




3) Competition among businesses has never been greater. Identify and describe two ways th
x x x x x x x x x x x x



at businesses can become more competitive.
x x x x x




4) What is demography? Identify two demographic trends in the United States and discuss ho
x x x x x x x x x x x x x



w they will impactUnited States businesses.
x x x x x




5) Describe what we mean by greening and thinking green. List five ways that people and busi
x x x x x x x x x x x x x x x


nesses are participating in the green movement. List business opportunities that may emerge from t
x x x x x x x x x x x x x x



his movement.
x




6) Trace the evolution of American business. Identify the key trends, and discuss the i
x x x x x x x x x x x x x


mplications these trends have for the future.
x x x x x x

,7) An entity that seeks to earn a profit by providing a good or service is known as a(n)
x x x x x x x x x x x x x x x x x




A) industry.
B) corporation.
C) business.
D) service.




8) is the amount a business earns after deducting what it spends for salaries and ot
x x x x x x x x x x x x x x



her expenses.
x




A) Profit
B) Revenue
C) Interest
D) Dividends

9) A business incurs a
x x x x if its costs and expenses exceed its revenues.
x x x x x x x




A) loss
B) liability
C) debit
D) dividend

10) is the chance a business owner will lose the time and money invested in a bu
x x x x x x x x x x x x x x x


siness that proves to be unprofitable.
x x x x x




A) Depreciation
B) Risk
C) Opportunity
D) Redundancy


11) The total amount of money that businesses take in by selling goods and services is called
x x x x x x x x x x x x x x x

, A) profit.
B) revenue.
C) loss.
D) retained earnings. x




12) A(n) x is a person who assumes the risk of starting a business.
x x x x x x x x x x




A) manager
B) entrepreneur
C) employee
D) stakeholder

13) Starting a business always involves
x x x x




A) profit.
B) loss.
C) revenue.
D) risk



14) Often in business the greater the risk, the
x x x x x x x




A) greater the potential reward.x x x


B) lower the expected revenues.
x x x



C) lower the value provided to society.
x x x x x



D) greater the number of stakeholders.
x x x x




15) is a measure of the general well- x x x x x x



being and satisfaction derived from a variety of factors including political freedom, safety, e
x x x x x x x x x x x x x



ducation, and a clean environment.
x x x x




A) Standard of living x x



B) Quality of life x x



C) Gross national incomex x



D) Social satisfaction x