TEST BANK
TEST BANK
,Foundations of Business 6th Edition Pride Test Bank
Name: Class: Date:
Chapter 01: Exploring the World of Business and Economics
True / False
1. As the founder of an American business firm, Peter Jenkins can, within certain limits, produce and/or sell any product
he chooses and sell it at any price it sets.
a. True
b. False
ANSWER: True
2. After getting her bachelor's degree in business, Brit Jackson realized she was much more productive at her job than she
had been before. Brit's degree helped her to become a better employee.
a. True
b. False
ANSWER: True
3. Sony is most correctly classified as a marketing intermediary type of business.
a. True
b. False
ANSWER: False
4. How the price of homes affects the number of homes built and sold would be an economic issue studied in a
Macroeconomics course.
a. True
b. False
ANSWER: False
5. When a business distributes profits to business owners, these profits become household income and are removed from
the circular flow of the economy.
a. True
b. False
ANSWER: False
6. Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services
during a given period of time.
a. True
b. False
ANSWER: True
7. The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.
a. True
b. False
ANSWER: False
8. As the price of a product increases, the amount of the product that a producer is willing to supply increases.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 1
Visit TestBankDeal.com to get complete for all chapters
,Name: Class: Date:
Chapter 01: Exploring the World of Business and Economics
ANSWER: True
9. As the price of a product increases, the amount of the product that consumers purchase increases.
a. True
b. False
ANSWER: False
10. A copyright of a product exists indefinitely.
a. True
b. False
ANSWER: False
11. A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the
assignment of different tasks to different employees.
a. True
b. False
ANSWER: False
12. Specialization is meant to increase the efficiency of industrial workers.
a. True
b. False
ANSWER: True
13. During the 1930s, government became deeply involved in business for the first time.
a. True
b. False
ANSWER: True
14. According to global experts, India is the fastest-growing economy in the world.
a. True
b. False
ANSWER: False
15. In our free-enterprise system, federal and state governments decide what products and services to provide.
a. True
b. False
ANSWER: False
16. A working knowledge of our business system combined with technical skills can give an applicant an advantage in
looking for a job.
a. True
b. False
ANSWER: True
17. Today, managers and employees are no longer concerned about cultural diversity.
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
Chapter 01: Exploring the World of Business and Economics
a. True
b. False
ANSWER: False
18. Because e-businesses use the Internet, there is no need to meet the needs of their customers.
a. True
b. False
ANSWER: False
19. In order for a business to be successful, it must be organized, it must satisfy needs, and it must make a profit.
a. True
b. False
ANSWER: True
20. The four resources that a business must use to operate successfully include material resources, human resources,
financial resources, and operational resources.
a. True
b. False
ANSWER: False
21. Generally there are three types of businesses: manufacturing businesses, service businesses, and marketing
intermediaries.
a. True
b. False
ANSWER: True
22. People buy goods and services simply to own them.
a. True
b. False
ANSWER: False
23. The ultimate goal of every business firm should be to satisfy the needs of its customers.
a. True
b. False
ANSWER: True
24. If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
a. True
b. False
ANSWER: True
25. Profit is the payment business owners receive for assuming the risks of ownership.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 3
TEST BANK
,Foundations of Business 6th Edition Pride Test Bank
Name: Class: Date:
Chapter 01: Exploring the World of Business and Economics
True / False
1. As the founder of an American business firm, Peter Jenkins can, within certain limits, produce and/or sell any product
he chooses and sell it at any price it sets.
a. True
b. False
ANSWER: True
2. After getting her bachelor's degree in business, Brit Jackson realized she was much more productive at her job than she
had been before. Brit's degree helped her to become a better employee.
a. True
b. False
ANSWER: True
3. Sony is most correctly classified as a marketing intermediary type of business.
a. True
b. False
ANSWER: False
4. How the price of homes affects the number of homes built and sold would be an economic issue studied in a
Macroeconomics course.
a. True
b. False
ANSWER: False
5. When a business distributes profits to business owners, these profits become household income and are removed from
the circular flow of the economy.
a. True
b. False
ANSWER: False
6. Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services
during a given period of time.
a. True
b. False
ANSWER: True
7. The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.
a. True
b. False
ANSWER: False
8. As the price of a product increases, the amount of the product that a producer is willing to supply increases.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 1
Visit TestBankDeal.com to get complete for all chapters
,Name: Class: Date:
Chapter 01: Exploring the World of Business and Economics
ANSWER: True
9. As the price of a product increases, the amount of the product that consumers purchase increases.
a. True
b. False
ANSWER: False
10. A copyright of a product exists indefinitely.
a. True
b. False
ANSWER: False
11. A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the
assignment of different tasks to different employees.
a. True
b. False
ANSWER: False
12. Specialization is meant to increase the efficiency of industrial workers.
a. True
b. False
ANSWER: True
13. During the 1930s, government became deeply involved in business for the first time.
a. True
b. False
ANSWER: True
14. According to global experts, India is the fastest-growing economy in the world.
a. True
b. False
ANSWER: False
15. In our free-enterprise system, federal and state governments decide what products and services to provide.
a. True
b. False
ANSWER: False
16. A working knowledge of our business system combined with technical skills can give an applicant an advantage in
looking for a job.
a. True
b. False
ANSWER: True
17. Today, managers and employees are no longer concerned about cultural diversity.
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
Chapter 01: Exploring the World of Business and Economics
a. True
b. False
ANSWER: False
18. Because e-businesses use the Internet, there is no need to meet the needs of their customers.
a. True
b. False
ANSWER: False
19. In order for a business to be successful, it must be organized, it must satisfy needs, and it must make a profit.
a. True
b. False
ANSWER: True
20. The four resources that a business must use to operate successfully include material resources, human resources,
financial resources, and operational resources.
a. True
b. False
ANSWER: False
21. Generally there are three types of businesses: manufacturing businesses, service businesses, and marketing
intermediaries.
a. True
b. False
ANSWER: True
22. People buy goods and services simply to own them.
a. True
b. False
ANSWER: False
23. The ultimate goal of every business firm should be to satisfy the needs of its customers.
a. True
b. False
ANSWER: True
24. If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
a. True
b. False
ANSWER: True
25. Profit is the payment business owners receive for assuming the risks of ownership.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 3
