Test Bank for Business in Action 10th Edition by Courtland L. Bovee and Thill Chapters 1-16 Covered

Test Bank
Business in Action 10th Edition
by Courtland L. Bovee and Thill
Chapters 1-16 Covered




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,TABLE OF CONTENTu u




PART 1: SETTING THE STAGE: THE BUSINESS OF BUSINESS
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1. Developing a Business Mindset u u u


2. Economics, Money, and Banking u u u


3. The Global Marketplace
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4. Business Ethics and Corporate Social Responsibility
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PART 2: BUILDING THE FRAMEWORK: BUSINESS OWNERSHIP AND ENTREPRENEU
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RSHIP

5. Forms of Ownership u u


6. Entrepreneurship and Small-Business Ownership u u u




PART 3: GUIDING THE ENTERPRISE: LEADERSHIP, ORGANIZATION, AND OPERATIO
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NS

7. Management Roles, Functions, and Skills u u u u


8. Organization and Teamwork u u


9. Production Systems u




PART 4: SUPPORTING THE WORKFORCE: MOTIVATION AND HUMAN RESOURCES
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10. Employee Motivation u


11. Human Resources Management
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PART 5: SATISFYING THE CUSTOMER: MARKETING, SALES, AND CUSTOMER SUPP
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ORT

12. The Art and Science of Marketing
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13. Product Management and Pricing Strategies
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14. Customer Communication and Product Distribution
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15. Financial Information and Accounting Concepts
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16. Financial Management and Financial Markets
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,BusinessuinuAction,u10eu(Bovee/Thill)uChapt
eru1 DevelopinguauBusinessuMindset

1) isumoneyuthatuanuorganizationubringsuinuthroughutheusaleuofuitsugoodsuanduservices.
A) Competitiveuadvantage
B) Revenue
C) Sales
D) Capitaluinvestmen
tuAnswer:u B
Explanation:u Revenueuisutheumoneyuaucompanyubringsuinuthroughutheusaleuofugoodsuanduservices.uDiffi
culty:u 1:uEasy
AACSB:u u Applicationuofuknowledge
LO:u 1.1:uExplainutheuconceptuofuaddinguvalueuinuaubusiness,uanduidentifyufouruusefuluwaysutoucategoriz
eubusinesses.

2) Whyuisutheulinkubetweenuriskuandurewarducriticaluforuaubusiness?
A) Ituisuaukeyuaspectuofusocialuresponsibility
B) Ituprovidesuopportunitiesuforunot-for-profituorganizationsutoustayuinubusiness
C) Ituisuessentialutoutheucounter-cyclicalubusinessumodel
D) Ituprovidesuincentiveutoutakeuonutheurisku
Answer:u D
Explanation:u Withoututheupromiseuofurewards,ubusinessesuwoulduhaveunouincentiveutoutakeuonutheu
risks.uAnduwithoutuentrepreneursuanducompaniesuwillingutouaccepturisk,ulittleuwouldugetudoneuinutheu
economy.
Difficulty:u u 2:uModerate
AACSB:u u Applicationuofuknowledge
LO:u 1.1:uExplainutheuconceptuofuaddinguvalueuinuaubusiness,uanduidentifyufouruusefuluwaysutouc
ategorizeubusinesses.

3) A(n)u isuauframeworkuofuhowuaubusinessuintendsutougenerateurevenue.
A) businessumodel
B) strategicumanagementutool
C) profitabilityuanalysis
D) competitiveuadvantag
euAnswer:u A
Explanation:u Aucompany'subusinessumodeluisuauclear,usimpleuoutlineuofuhowutheubusinessuintendsu
tougenerateurevenue.
Difficulty:u u 1:uEasy
AACSB:u u Analyticaluthinking
LO:u 1.1:uExplainutheuconceptuofuaddinguvalueuinuaubusiness,uanduidentifyufouruusefuluwaysutoucategoriz
eubusinesses.




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, 4) isutheutermuusedutoudescribeutheudifferenceubetweenurevenueuanduexpenses.
A) Profit
B) Interest
C) Sales
D) Owner'suequity
uAnswer:u A

Explanation:u u Profituisutheuamountuofumoneyuleftuoveruafteruallutheucostsuinvolveduinudoingubusiness,u
haveubeenudeductedufromurevenue.
Difficulty:u u 1:uEasy
AACSB:u u Applicationuofuknowledge
LO:u 1.1:uExplainutheuconceptuofuaddinguvalueuinuaubusiness,uanduidentifyufouruusefuluwaysutoucategoriz
eubusinesses.

5) refersutousomeuaspectuofuauproductuorucompanyuthatumakesuitumoreuappealingutoutarge
tucustomers.
A) Competitiveuadvantage
B) Economiesuofuscale
C) Horizontaluintegration
D) Verticaluintegrationu
Answer:u A
Explanation:u Competitiveuadvantageurefersutousomeuaspectuofuauproductuorucompanyuthatumakesuitum
oreuappealingutoutargetucustomers.
Difficulty:u u 2:uModerate
AACSB:u u Applicationuofuknowledge
LO:u 1.1:uExplainutheuconceptuofuaddinguvalueuinuaubusiness,uanduidentifyufouruusefuluwaysutoucategoriz
eubusinesses.

6) Whichutypeuofuorganizationuseeksutouoperateuefficientlyuandueffectivelyutouachieveuitsugoalsu
withoutufocusinguonuprofituasuaumotive?
A) Businessuintermediary
B) Nonprofituorganization
C) Serviceubusiness
D) Goods-
producingubusinessuAnswer:u
B
Explanation:u Not-for-
profituorganizationsu(alsouknownuasunonprofituorganizations)usuchuasumuseums,umostuuniversities,u
anducharitiesudounotuhaveuauprofitumotive.
Difficulty:u u 2:uModerate
AACSB:u u Applicationuofuknowledge
LO:u 1.1:uExplainutheuconceptuofuaddinguvalueuinuaubusiness,uanduidentifyufouruusefuluwaysutoucategoriz
eubusinesses.




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