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

Test Bank for
X X




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




Chapter 1-20 Answers are at the end of Each
X X




chapter Chapter 1
X X




Student name:__________
X




DescribeXthreeXwaysXthatXgovernmentsXcanXfosterXentrepreneurshipXandXencourageXtheXc
reationXofXwealth




DescribeXhowXbusinessesXcanXuseXtechnologyXtoXbeXmoreXresponsiveXtoXcustomers.




CompetitionXamongXbusinessesXhasXneverXbeenXgreater.XIdentifyXandXdescribeXtwoXwaysXt
hatXbusinessesXcanXbecomeXmoreXcompetitive.




WhatXisXdemography?XIdentifyXtwoXdemographicXtrendsXinXtheXUnitedXStatesXandXdiscussXh
owXtheyXwillXimpactUnitedXStatesXbusinesses.




DescribeXwhatXweXmeanXbyXgreeningXandXthinkingXgreen.XListXfiveXwaysXthatXpeopleXandXbu
sinessesXareXparticipatingXinXtheXgreenXmovement.XListXbusinessXopportunitiesXthatXmayXemergeX
fromXthisXmovement.




TraceXtheXevolutionXofXAmericanXbusiness.XIdentifyXtheXkeyXtrends,XandXdiscussXtheXi
mplicationsXtheseXtrendsXhaveXforXtheXfuture.

, AnXentityXthatXseeksXtoXearnXaXprofitXbyXprovidingXaXgoodXorXserviceXisXknownXasXa(n)

industry.
corporation.
business.
service.




__________XisXtheXamountXaXbusinessXearnsXafterXdeductingXwhatXitXspendsXforXsalariesXa
ndXotherXexpenses.

Profit
Revenue
Interest
Dividends

AXbusinessXincursXaX__________XifXitsXcostsXandXexpensesXexceedXitsXrevenues.

loss
liability
debit
dividend

__________XisXtheXchanceXaXbusinessXownerXwillXloseXtheXtimeXandXmoneyXinvestedXin
XaXbusinessXthatXprovesXtoXbeXunprofitable.




Depreciation
Risk
Opportunity
Redundancy


TheXtotalXamountXofXmoneyXthatXbusinessesXtakeXinXbyXsellingXgoodsXandXservicesXisXcalle
d

, profit.
revenue.
loss.
retainedXearnings.




A(n)X__________XisXaXpersonXwhoXassumesXtheXriskXofXstartingXaXbusiness.

manager
entrepreneur
employee
stakeholder

StartingXaXbusinessXalwaysXinvolves

profit.
loss.
revenue.
risk



OftenXinXbusinessXtheXgreaterXtheXrisk,Xthe

greaterXtheXpotentialXreward.
lowerXtheXexpectedXrevenues.
lowerXtheXvalueXprovidedXtoXsociety.
greaterXtheXnumberXofXstakeholders.

__________XisXaXmeasureXofXtheXgeneralXwell-
beingXandXsatisfactionXderivedXfromXaXvarietyXofXfactorsXincludingXpoliticalXfreedom,Xsafety,X
education,XandXaXcleanXenvironment.

StandardXofXliving
QualityXofXlife
GrossXnationalXincome
SocialXsatisfaction

, TheXamountXofXgoodsXandXservicesXpeopleXcanXbuyXwithXtheXmoneyXtheyXhaveXisXcalled
their

nominalXincome.
consumerXpriceXindex.
profitXmargin.
standardXofXliving.




TheXcustomers,Xemployees,Xstockholders,Xsuppliers,Xcreditors,XandXothersXwhoXstandXtoXgain
XorXloseXbyXtheXpoliciesXandXactivitiesXofXaXbusinessXrepresentXtheXfirm's




marketXmakers.
economicXenvironment.
stakeholders.
socialXenvironment.




TheXmostXimportantXdifferenceXbetweenXfor-profitXbusinessesXandXnonprofitXorganizations
isXthat

for-profitXbusinessesXdoXnotXbenefitXsociety.
nonprofitXorganizationsXseekXtoXmakeXaXprofitXforXtheirXownersXandXorganizers.
nonprofitXorganizationsXdoXnotXseekXaXprofitXforXtheirXownersXorXorganizers.
nonprofitXorganizationsXdoXnotXanswerXtoXstakeholders.




AXcommonXcharacteristicXofXmostXentrepreneursXisXthatXthey

acceptXtheXrisksXinvolvedXinXstartingXandXmanagingXaXbusiness.
haveXaXhighXlevelXofXscientificXandXtechnicalXexpertise.
possessXaXgreatXdealXofXpersonalXwealth.
haveXexperienceXinXrunningXlarge,XcomplexXorganizations.