Business Essentials – 13th Edition
ST
TEST BANK
UV
IA
_A
Ronald J. Ebert
Ricky W. Griffin
PP
RO
Comprehensive Test Bank for Instructors and
Students
VE
© Ronald J. Ebert & Ricky W. Griffin
D?
All rights reserved. Reproduction or distribution without permission is prohibited.
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©STUDYSTREAM
, Business Essentials, 13e (Ebert/Griffin)
Chapter 1 The U.S. Business Environment
ST
1) Which of the following best describes profit?
A) Total money taken in by a corporation
B) Increases in income from year to year
C) Increases in a corporation's stock price
D) Revenue generated by goods and services
UV
E) Difference between revenues and expenses
Answer: E
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Application
IA
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
2) Which of the following is defined as the environment where a firm conducts its operations and
_A
derives its revenues known as?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
PP
E) Political-legal environment
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
RO
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
3) Factors such as international trade agreements, economic conditions, and political unrest will
have the greatest impact on which type of business environment?
A) Global business environment
VE
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: A
D?
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
??
1
Copyright © 2022 Pearson Education, Inc.
, 4) Changes in which type of business environment can reduce or replace the need for traditional
working methods, physical equipment, and other platforms needed to conduct business?
A) Global business environment
ST
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: D
UV
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
IA
5) As a teenager, Melinda started cutting grass for her neighbor. She did a good job, and more
and more neighbors began to hire her. After saving money and investing in additional equipment,
Melinda began to earn an even greater profit. Which of the following did Melinda create when
_A
she began cutting her neighbor's yard and earning income?
A) Nonprofit
B) Corporate culture
C) Market economy
D) Monopolistic competition
PP
E) Business
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
Question Category: Concept
RO
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
6) In which way does consumer choice and demand affect the way a business operates?
A) Businesses must take into account what consumers want or need.
B) Businesses must produce most of the goods and services we consume.
VE
C) Businesses must find opportunity and develop a plan to capitalize on it.
D) Business must prepare to compete in the global marketplace.
E) Business must use technology to track changing demographics in the community.
Answer: A
Difficulty: Moderate
D?
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
??
2
Copyright © 2022 Pearson Education, Inc.
, 7) Which of the following consists of everything outside an organization's boundaries that might
affect how the business operates?
A) Opportunities and enterprise
ST
B) Corporate culture
C) External environment
D) Domestic business environment
E) Political-legal environment
Answer: C
UV
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
IA
8) Aimee wants to open her retail shop in her local community so that she can establish strong
relationships with suppliers and customers, and distinguish herself and her shop from the
competition. In which environment does Aimee wish to do business?
_A
A) Global
B) Political-legal
C) Domestic
D) Economic
E) Technological
PP
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
RO
and discuss how these environments affect the success or failure of organizations.
9) The Basic Broom Company orders much of its raw material from overseas markets, even
though the product is made locally. Which of the following business environments might prevent
The Basic Broom Company from being able to get its supply of raw material when they need it?
A) Changes in the global business environment
VE
B) Changes in the technological environment
C) Changes in the economic environment
D) Changes in the factors of production
E) Changes in the labor force
Answer: A
D?
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
??
3
Copyright © 2022 Pearson Education, Inc.
ST
TEST BANK
UV
IA
_A
Ronald J. Ebert
Ricky W. Griffin
PP
RO
Comprehensive Test Bank for Instructors and
Students
VE
© Ronald J. Ebert & Ricky W. Griffin
D?
All rights reserved. Reproduction or distribution without permission is prohibited.
??
©STUDYSTREAM
, Business Essentials, 13e (Ebert/Griffin)
Chapter 1 The U.S. Business Environment
ST
1) Which of the following best describes profit?
A) Total money taken in by a corporation
B) Increases in income from year to year
C) Increases in a corporation's stock price
D) Revenue generated by goods and services
UV
E) Difference between revenues and expenses
Answer: E
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Application
IA
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
2) Which of the following is defined as the environment where a firm conducts its operations and
_A
derives its revenues known as?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
PP
E) Political-legal environment
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
RO
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
3) Factors such as international trade agreements, economic conditions, and political unrest will
have the greatest impact on which type of business environment?
A) Global business environment
VE
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: A
D?
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
??
1
Copyright © 2022 Pearson Education, Inc.
, 4) Changes in which type of business environment can reduce or replace the need for traditional
working methods, physical equipment, and other platforms needed to conduct business?
A) Global business environment
ST
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: D
UV
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
IA
5) As a teenager, Melinda started cutting grass for her neighbor. She did a good job, and more
and more neighbors began to hire her. After saving money and investing in additional equipment,
Melinda began to earn an even greater profit. Which of the following did Melinda create when
_A
she began cutting her neighbor's yard and earning income?
A) Nonprofit
B) Corporate culture
C) Market economy
D) Monopolistic competition
PP
E) Business
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
Question Category: Concept
RO
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
6) In which way does consumer choice and demand affect the way a business operates?
A) Businesses must take into account what consumers want or need.
B) Businesses must produce most of the goods and services we consume.
VE
C) Businesses must find opportunity and develop a plan to capitalize on it.
D) Business must prepare to compete in the global marketplace.
E) Business must use technology to track changing demographics in the community.
Answer: A
Difficulty: Moderate
D?
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
??
2
Copyright © 2022 Pearson Education, Inc.
, 7) Which of the following consists of everything outside an organization's boundaries that might
affect how the business operates?
A) Opportunities and enterprise
ST
B) Corporate culture
C) External environment
D) Domestic business environment
E) Political-legal environment
Answer: C
UV
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
IA
8) Aimee wants to open her retail shop in her local community so that she can establish strong
relationships with suppliers and customers, and distinguish herself and her shop from the
competition. In which environment does Aimee wish to do business?
_A
A) Global
B) Political-legal
C) Domestic
D) Economic
E) Technological
PP
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
RO
and discuss how these environments affect the success or failure of organizations.
9) The Basic Broom Company orders much of its raw material from overseas markets, even
though the product is made locally. Which of the following business environments might prevent
The Basic Broom Company from being able to get its supply of raw material when they need it?
A) Changes in the global business environment
VE
B) Changes in the technological environment
C) Changes in the economic environment
D) Changes in the factors of production
E) Changes in the labor force
Answer: A
D?
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
??
3
Copyright © 2022 Pearson Education, Inc.
