TEST BANK FOR Business in Action 8th Edition by Courtland Bovee ISBN:978-0134129952 COMPLETE GUIDE ALLL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!! NEW LATEST UPDATE!!!!!

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,Business In Action 8th Edition Courtland Bovee 1a 1a 1a 1a 1a 1a




Business in Action, 8e (Bovee) 1a 1a 1a 1a



Chapter 1 Developing a Business Mindset
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1) is money that an organization brings in through the sale of its goods and services.
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A) Competitive advantage 1a



B) Revenue
C) Sales
D) Capital investment 1a



E) Finance 1a



Answer: B 1 a



Explanation: Revenue is the money a company brings in through the sale of goods and services. Diffi
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culty: 1: Easy 1 a 1a



AACSB: Application of knowledge 1 a 1a 1a



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
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sses.

2) The risk and reward relationship
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A) is a key aspect of social responsibility
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B) applies only to service-intensive businesses
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C) is essential to the counter-cyclical business model
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D) is fundamental to businesses in every modern economy
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E) is an outdated concept that's been replaced by corporate sustainability
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Answer: D 1 a



Explanation: A company needs to see some promise of reward before it will decide to accept the
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risks involved in creating and selling products. However, to ensure responsible behavior, these ri
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sks need to stay attached to those decisions, meaning that if the decisions turn out bad, that comp
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any should suffer the consequences.
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Difficulty: 1: Easy 1 a 1a



AACSB: Application of knowledge 1 a 1a 1a



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
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sses.

3) A(n) is a framework of how a business intends to generate revenue.
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A) business model 1a



B) strategic management tool 1a 1a



C) profitability analysis 1a



D) competitive advantage 1a



E) entrepreneurial mindset 1a 1



Answer: A
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Explanation: A company's business model is a clear, simple outline of how the business intends t
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o generate revenue.
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Difficulty: 1: Easy 1 a 1a




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,AACSB: Analytical thinking
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LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
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sses.




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, 4) is the term used to describe the difference between revenue and expenses.
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A) Revenue
B) Interest
C) Sales
D) Owner's equity 1a



E) Profit A 1a



nswer: E 1 a



Explanation: Profit is the amount of money left over after all the costs involved in doing business
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, have been deducted from revenue.
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Difficulty: 1: Easy 1 a 1a



AACSB: Application of knowledge 1 a 1a 1a



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
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sses.

5) refers to some aspect of a product or company that makes it more appealing to t1a 1a 1a 1a 1a 1a 1a 1a 1a 1a 1a 1a 1a 1a 1a



arget customers.
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A) Competitive advantage 1a



B) Economies of scale 1a 1a



C) Horizontal integration 1a



D) Vertical integration 1a



E) Barrier to entry advantage 1a 1a 1a 1a



Answer: A 1 a



Explanation: Competitive advantage refers to some aspect of a product or company that makes it mor
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e appealing to target customers.
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Difficulty: 2: Moderate 1 a 1a



AACSB: Application of knowledge 1 a 1a 1a



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
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sses.

6) An organization that seeks to operate efficiently and effectively to achieve its goals without f
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ocusing on profit as a motive is a
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A) business intermediary 1a



B) nonprofit organization 1a



C) service business 1a



D) government-owned corporation 1a



E) goods-
producing business Answer: 1a 1a 1



aB
Explanation: Not-for- 1 a



profit organizations (also known as nonprofit organizations) such as museums, most universities,
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and charities do not have a profit motive.
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Difficulty: 2: Moderate 1 a 1a



AACSB: Application of knowledge 1 a 1a 1a



LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
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sses.



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