,
,
,
,Test Bank
Table of Contents
Introduction to Business published by OpenStax
PART 1 THE BUSINESS ENVIRONMENT
1 Understanding Economic Systems and Business
2 Making Ethical Decisions and Managing a Socially Responsible Business
3 Competing in the Global Marketplace
PART 2 BUSINESS OWNERSHIP
4 Forms of Business Ownership
5 Entrepreneurship: Starting and Managing Your Own Business
PART 3 MANAGING ORGANIZATIONS
6 Management and Leadership in Today’s Organizations
7 Designing Organizational Structures
8 Managing Human Resources and Labor Relations
9 Motivating Employees
10 Achieving World-class Operations Management
PART 4 MARKETING MANAGEMENT
11 Creating Products and Pricing Strategies to Meet Customers’ Needs
12 Distributing and Promoting Products and Services
PART 5 TECHNOLOGY AND INFORMATION
13 Using Technology to Manage Information
14 Using Financial Information and Accounting
PART 6 FINANCE
15 Understanding Money and Financial Institutions
16 Understanding Financial Management and Securities Markets
17 Your Career in Business
Appendix: Understanding the Legal and Tax Environment
, This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but must be
attributed to OpenStax, Rice University and any changes must be noted.
Chapter 1 UNDERSTANDING ECONOMIC SYSTEMS AND BUSINESS
TRUE-FALSE QUESTIONS
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
1. A business is an organization that strives for a profit by providing goods and services desired by its
customers.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: The major
difference is tangibility
2. The major difference between a good and a service is how the producer uses the factors of production
to create each.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: Not-for-profit
organizations exist to achieve some goal other than profit.
3. Not-for-profit organizations have the same goals as for-profit organizations.
a. True
b. False
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
4. Factors of production are common to all productive activities, regardless of the economic system.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: Labor is the
economic contribution of the people.
5. Labor, as a factor of production, relates only to the production of manufactured goods; services are not
included.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: Capital is all the
inputs used to produce goods and services and get them to the customer.
6. As a factor of production, capital includes money.
a. True
b. False
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
7. People who combine natural resources, labor, and capital in a profitable venture are called
entrepreneurs.
a. True
b. False
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
8. Many people consider knowledge to be a fifth factor of production.
,
,
,Test Bank
Table of Contents
Introduction to Business published by OpenStax
PART 1 THE BUSINESS ENVIRONMENT
1 Understanding Economic Systems and Business
2 Making Ethical Decisions and Managing a Socially Responsible Business
3 Competing in the Global Marketplace
PART 2 BUSINESS OWNERSHIP
4 Forms of Business Ownership
5 Entrepreneurship: Starting and Managing Your Own Business
PART 3 MANAGING ORGANIZATIONS
6 Management and Leadership in Today’s Organizations
7 Designing Organizational Structures
8 Managing Human Resources and Labor Relations
9 Motivating Employees
10 Achieving World-class Operations Management
PART 4 MARKETING MANAGEMENT
11 Creating Products and Pricing Strategies to Meet Customers’ Needs
12 Distributing and Promoting Products and Services
PART 5 TECHNOLOGY AND INFORMATION
13 Using Technology to Manage Information
14 Using Financial Information and Accounting
PART 6 FINANCE
15 Understanding Money and Financial Institutions
16 Understanding Financial Management and Securities Markets
17 Your Career in Business
Appendix: Understanding the Legal and Tax Environment
, This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but must be
attributed to OpenStax, Rice University and any changes must be noted.
Chapter 1 UNDERSTANDING ECONOMIC SYSTEMS AND BUSINESS
TRUE-FALSE QUESTIONS
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
1. A business is an organization that strives for a profit by providing goods and services desired by its
customers.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: The major
difference is tangibility
2. The major difference between a good and a service is how the producer uses the factors of production
to create each.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: Not-for-profit
organizations exist to achieve some goal other than profit.
3. Not-for-profit organizations have the same goals as for-profit organizations.
a. True
b. False
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
4. Factors of production are common to all productive activities, regardless of the economic system.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: Labor is the
economic contribution of the people.
5. Labor, as a factor of production, relates only to the production of manufactured goods; services are not
included.
a. True
b. False
Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1 RATIONALE: Capital is all the
inputs used to produce goods and services and get them to the customer.
6. As a factor of production, capital includes money.
a. True
b. False
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
7. People who combine natural resources, labor, and capital in a profitable venture are called
entrepreneurs.
a. True
b. False
Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
8. Many people consider knowledge to be a fifth factor of production.
