Test Bank for Understanding Business, 13th Edition by William Nickels, Jim McHugh, Susan Mc||ISBN, 978-1260894851||Chapters 1-20||Complete Guide A+

,TEST BANK FOR fi fi




Understanding Business, 13th Edition, William Nickels Chap fi fi fi fi fi fi




ter 1-20 Answers are at the end of Each chapter Chapter 1
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Student name: fi




1) Describe three ways that governments can foster entrepreneurship and encourage the c
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reation of wealthfi fi




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 t
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hat businesses can become more competitive.
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4) What is demography? Identify two demographic trends in the United States and discuss h
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ow 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 bu
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sinesses are participating in the green movement. List business opportunities that may emerge fro
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m this 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 o
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ther expenses.
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A) Profit
B) Revenue
C) Interest
D) Dividends

9) A business incurs a
fi fi fi fi if its costs and expenses exceed its revenues.
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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 b
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usiness 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. fi




12) A(n) fi 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. fi fi fi


B) lower the expected revenues. fi fi fi



C) lower the value provided to society.
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D) greater the number of stakeholders. fi fi fi fi




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



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



B) Quality of life fi fi



C) Gross national income fi fi



D) Social satisfaction fi