,Chapter 01 - The Dynamics of Business and Economics
Chapter 01
The Dynamics of Business and Economics
True / False Questions
1. Products have tangible attributes only.
True False
2. The primary goal of business activities is profit.
True False
3. Nonprofit organizations such as Habitat for Humanity do not engage in management,
marketing, or finance activities.
True False
4. Profit is what it costs to make and sell a product.
True False
5. Businesses have the right to keep and use their profits as they choose, without limitations.
True False
Multiple Choice Questions
6. ____ is the primary goal of business.
A. Growth
B. Profit
C. IPO
D. Marketing
E. Strategy
1-1
,Chapter 01 - The Dynamics of Business and Economics
7. Businesses differ from nonprofit organizations in that a business's focus is on
A. price.
B. goods.
C. profit.
D. organization.
E. plans.
8. ____ have both tangible and intangible characteristics.
A. Products
B. Services
C. Businesses
D. Stakeholders
E. Organizations
9. Profit is the reward for business in exchange for the ____ taken in providing products.
A. expenses
B. time
C. energy
D. risks
E. markets
10. When purchasing, a consumer is actually buying a product's anticipated benefits and
A. satisfaction.
B. price.
C. costs.
D. productivity.
E. form.
11. If a business is to be successful in the long run, it must produce quality products, operate
efficiently, and be
A. fun.
B. socially responsible.
C. hard-working.
D. egalitarian.
E. transparent.
1-2
, Chapter 01 - The Dynamics of Business and Economics
12. Which of the following is not a product?
A. A Dell personal computer
B. A veterinarian's treatment of a pet's injuries
C. A lawyer's advice in a divorce case
D. Business profit
E. A checkup by a doctor
13. The goal of business is to earn
A. respect.
B. resources.
C. a profit.
D. responsibility.
E. independence.
14. Customers, employees and investors are examples of:
A. constituents.
B. stockholders.
C. stakeholders.
D. entities.
E. organizations.
Essay Questions
15. Briefly describe the goals of a business, especially the primary goal.
1-3
Chapter 01
The Dynamics of Business and Economics
True / False Questions
1. Products have tangible attributes only.
True False
2. The primary goal of business activities is profit.
True False
3. Nonprofit organizations such as Habitat for Humanity do not engage in management,
marketing, or finance activities.
True False
4. Profit is what it costs to make and sell a product.
True False
5. Businesses have the right to keep and use their profits as they choose, without limitations.
True False
Multiple Choice Questions
6. ____ is the primary goal of business.
A. Growth
B. Profit
C. IPO
D. Marketing
E. Strategy
1-1
,Chapter 01 - The Dynamics of Business and Economics
7. Businesses differ from nonprofit organizations in that a business's focus is on
A. price.
B. goods.
C. profit.
D. organization.
E. plans.
8. ____ have both tangible and intangible characteristics.
A. Products
B. Services
C. Businesses
D. Stakeholders
E. Organizations
9. Profit is the reward for business in exchange for the ____ taken in providing products.
A. expenses
B. time
C. energy
D. risks
E. markets
10. When purchasing, a consumer is actually buying a product's anticipated benefits and
A. satisfaction.
B. price.
C. costs.
D. productivity.
E. form.
11. If a business is to be successful in the long run, it must produce quality products, operate
efficiently, and be
A. fun.
B. socially responsible.
C. hard-working.
D. egalitarian.
E. transparent.
1-2
, Chapter 01 - The Dynamics of Business and Economics
12. Which of the following is not a product?
A. A Dell personal computer
B. A veterinarian's treatment of a pet's injuries
C. A lawyer's advice in a divorce case
D. Business profit
E. A checkup by a doctor
13. The goal of business is to earn
A. respect.
B. resources.
C. a profit.
D. responsibility.
E. independence.
14. Customers, employees and investors are examples of:
A. constituents.
B. stockholders.
C. stakeholders.
D. entities.
E. organizations.
Essay Questions
15. Briefly describe the goals of a business, especially the primary goal.
1-3
