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

TEST BANK FOR
Understanding Business, 13th Edition, William Nickels

Chapter 1- jl




20 Answers are at the end of Each chapter Chapter 1
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Student name: jl




1) Describe three ways that governments can foster entrepreneurship and encourage the cr
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eation of wealth
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2) Describe how businesses can use technology to be more responsive to customers.
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3) Competition among businesses has never been greater. Identify and describe two ways th
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at businesses can become more competitive.
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4) What is demography? Identify two demographic trends in the United States and discuss ho
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w they will impactUnited States businesses.
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5) Describe what we mean by greening and thinking green. List five ways that people and bus
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inesses are participating in the green movement. List business opportunities that may emerge from t
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his movement.
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6) Trace the evolution of American business. Identify the key trends, and discuss the i
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mplications these trends have for the future.
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,7) An entity that seeks to earn a profit by providing a good or service is known as a(n)
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A) industry.
B) corporation.
C) business.
D) service.




8) is the amount a business earns after deducting what it spends for salaries and ot
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her expenses.
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A) Profit
B) Revenue
C) Interest
D) Dividends

9) A business incurs a
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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
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siness that proves to be unprofitable.
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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
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, A) profit.
B) revenue.
C) loss.
D) retained earnings. jl




12) A(n) jl is a person who assumes the risk of starting a business.
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A) manager
B) entrepreneur
C) employee
D) stakeholder

13) Starting a business always involves
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A) profit.
B) loss.
C) revenue.
D) risk



14) Often in business the greater the risk, the
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A) greater the potential reward. jl jl jl


B) lower the expected revenues.
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C) lower the value provided to society.
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D) greater the number of stakeholders.jl jl jl jl




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



being and satisfaction derived from a variety of factors including political freedom, safety, e
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ducation, and a clean environment.
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A) Standard of living jl jl


B) Quality of life jl jl



C) Gross national income jl jl



D) Social satisfaction jl

, 16) The amount of goods and services people can buy with the money they have is called th
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eir

A) nominal income. jl



B) consumer price index. jl jl



C) profit margin.
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D) standard of living. jl jl




17) The customers, employees, stockholders, suppliers, creditors, and others who stand to g
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ain or lose by the policies and activities of a business represent the firm's
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A) market makers. jl



B) economic environment. jl



C) stakeholders.
D) social environment.
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18) The most important difference between for-
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profit businesses and nonprofit organizations is that
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A) for-profit businesses do not benefit society.
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B) nonprofit organizations seek to make a profit for their owners and organizers.
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C) nonprofit organizations do not seek a profit for their owners or organizers.
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D) nonprofit organizations do not answer to stakeholders.
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19) A common characteristic of most entrepreneurs is that they
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A) accept the risks involved in starting and managing a business.
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B) have a high level of scientific and technical expertise.
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C) possess a great deal of personal wealth.
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D) have experience in running large, complex organizations.
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