Test Bank for Understanding Business, 13th Edition by William Nickels, Jim McHugh, Susan Mc

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Understanding Business,13th Edition, William Nickels v v v v v




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




1) Describe three ways that governments can foster entrepreneurship and encourage the
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creation of wealth
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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 that
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businesses can become more competitive.
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4) What is demography? Identify two demographic trends in the United States and discuss how
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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
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businesses are participating in the green movement. List business opportunities that may emerge
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from this movement.
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6) Trace the evolution of American business. Identify the key trends, and discuss the
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implications 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
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other expenses.
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A) Profit
B) Revenue
C) Interest
D) Dividends

9) A business incurs a
v v v v 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
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business 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. v




12) A(n) v 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.
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B) lower the expected revenues.
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C) lower the value provided to society.
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D) greater the number of stakeholders.
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15) is a measure of the general well-being and satisfaction derived from a
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variety of factors including political freedom, safety, education, and a clean environment.
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A) Standard of living v v




B) Quality of life v v




C) Gross national income
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D) Social satisfaction v

, 16) The amount of goods and services people can buy with the money they have is called their
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A) nominal income. v




B) consumer price index. v v




C) profit margin.v




D) standard of living. v v




17) The customers, employees, stockholders, suppliers, creditors, and others who stand to
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gain or lose by the policies and activities of a business represent the firm's
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A) market makers. v




B) economic environment. v




C) stakeholders.
D) social environment.
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18) The most important difference between for-profit businesses and nonprofit organizations is
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that
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A) for-profit businesses do not benefit society. v v v v v




B) nonprofit organizations seek to make a profit for their owners and organizers.
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C) nonprofit organizations do not seek a profit for their owners or organizers.
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D) nonprofit organizations do not answer to stakeholders.
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19) A common characteristic of most entrepreneurs is that they
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A) accept the risks involved in starting and managing a business.
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B) have a high level of scientific and technical expertise.
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C) possess a great deal of personal wealth.
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D) have experience in running large, complex organizations.
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