Chapter 01
The Study of Business, Government and Society
True / False Questions
1. (p. 1) The U.S. Congress passed the Sherman Antitrust Act in 1890 in an attempt to prevent
monopoly in business.
TRUE
Difficulty: Medium
2. (p. 3) In the U.S., there are about 300 federal regulatory agencies.
FALSE
Difficulty: Easy
3. (p. 4) BCG is the study of business, government and society and its importance for
managers.
FALSE
Difficulty: Easy
4. (p. 4) The primary purpose of a business is to make a profit by providing products that
satisfy human needs.
TRUE
Difficulty: Easy
,5. (p. 4) The structures and processes in a society that make and apply policies and rules are
called business.
FALSE
Difficulty: Medium
,6. (p. 5) An enduring belief about which basic choices in a society are "correct" is called an
idea.
FALSE
Difficulty: Medium
7. (p. 5) A business uses society's resources to create new wealth.
TRUE
Difficulty: Easy
8. (p. 5) Institutions are formal patterns of relations that link people together to accomplish a
goal.
TRUE
Difficulty: Easy
9. (p. 7) A business needs to be responsive to its economic environment but not to its non-
economic environment.
FALSE
Difficulty: Medium
, 10. (p. 7) The broad duties of a business that are needed to obtain the support of society are
called its social contract.
TRUE
Difficulty: Medium
The Study of Business, Government and Society
True / False Questions
1. (p. 1) The U.S. Congress passed the Sherman Antitrust Act in 1890 in an attempt to prevent
monopoly in business.
TRUE
Difficulty: Medium
2. (p. 3) In the U.S., there are about 300 federal regulatory agencies.
FALSE
Difficulty: Easy
3. (p. 4) BCG is the study of business, government and society and its importance for
managers.
FALSE
Difficulty: Easy
4. (p. 4) The primary purpose of a business is to make a profit by providing products that
satisfy human needs.
TRUE
Difficulty: Easy
,5. (p. 4) The structures and processes in a society that make and apply policies and rules are
called business.
FALSE
Difficulty: Medium
,6. (p. 5) An enduring belief about which basic choices in a society are "correct" is called an
idea.
FALSE
Difficulty: Medium
7. (p. 5) A business uses society's resources to create new wealth.
TRUE
Difficulty: Easy
8. (p. 5) Institutions are formal patterns of relations that link people together to accomplish a
goal.
TRUE
Difficulty: Easy
9. (p. 7) A business needs to be responsive to its economic environment but not to its non-
economic environment.
FALSE
Difficulty: Medium
, 10. (p. 7) The broad duties of a business that are needed to obtain the support of society are
called its social contract.
TRUE
Difficulty: Medium
