TEST BANK
Understanding Business
,TABLE OF CONTENTS
CHAPTER 1: Taking Risks And Making Profits Within The Dynamic Business Environment
CHAPTER 2: Understanding Economics And How It Affects Business
CHAPTER 3: Doing Business In Global Markets
CHAPTER 4: Demanding Ethical And Socially Responsible Behavior
CHAPTER 5: How To Form A Business
CHAPTER 6: Entrepreneurship And Starting A Small Business
CHAPTER 7: Management And Leadership
CHAPTER 8: Structuring Organizations For Today’s Challenges
CHAPTER 9: Production And Operations Management
CHAPTER 10: Motivating Employees
CHAPTER 11: Human Resource Management: Finding And Keeping The Best Employees
CHAPTER 12: Dealing With Employee–Management Issues
CHAPTER 13: Marketing: Helping Buyers Buy
CHAPTER 14: Developing And Pricing Goods And Services
CHAPTER 15: Distributing Products
CHAPTER 16: Using Effective Promotions
CHAPTER 17: Understanding Accounting And Financial Information
CHAPTER 18: Financial Management
CHAPTER 19: Using Securities Markets For Financing And Investing Opportunities
CHAPTER 20: Money, Financial Institutions, And The Federal Reserve
,Answers Are At The End Of Each Chapter
Chapter 1: Taking Risks And Making Profits Within The Dynamic Business
Environment
Student Name:
Describe Three Ways That Governments Can Foster Entrepreneurship And Encourage The
Creation Of Wealth
Describe How Businesses Can Use Technology To Be More Responsive To Customers.
Competition Among Businesses Has Never Been Greater. Identify And Describe Two Ways That
Businesses Can Become More Competitive.
What Is Demography? Identify Two Demographic Trends In The United States And Discuss How
They Will Impactunited States Businesses.
Describe What We Mean By Greening And Thinking Green. List Five Ways That People And B
Usinesses Are Participating In The Green Movement. List Business Opportunities That May
Emerge From This Movement.
Trace The Evolution Of American Business. Identify The Key Trends, And Discuss The I
Mplications These Trends Have For The Future.
,An Entity That Seeks To Earn A Profit By Providing A Good Or Service Is Known As A(N)
Industry.
Corporation.
Business.
Service.
Is The Amount A Business Earns After Deducting What It Spends For Salaries An D Other
Expenses.
Profit
Revenue
Interest
Dividends
A Business Incurs A If Its Costs And Expenses Exceed Its Revenues.
Loss
Liability
Debit
Dividend
Is The Chance A Business Owner Will Lose The Time And Money Invested In A Business
That Proves To Be Unprofitable.
Depreciation
Risk
Opportunity
Redundancy
The Total Amount Of Money That Businesses Take In By Selling Goods And Services Is Called
, Profit.
Revenue.
Loss.
Retained Earnings.
A(N) Is A Person Who Assumes The Risk Of Starting A Business.
Manager
Entrepreneur
Employee
Stakeholder
Starting A Business Always Involves
Profit.
Loss.
Revenue.
Risk
Often In Business The Greater The Risk, The
Greater The Potential Reward.
Lower The Expected Revenues.
Lower The Value Provided To Society.
Greater The Number Of Stakeholders.
Is A Measure Of The General Well-
Being And Satisfaction Derived From A Variety Of Factors Including Political Freedom,
Safety, Education, And A Clean Environment.
Standard Of Living
Quality Of Life
Gross National Income
Social Satisfaction
,The Amount Of Goods And Services People Can Buy With The Money They Have Is Called
Their
Nominal Income.
Consumer Price Index.
Profit Margin.
Standard Of Living.
The Customers, Employees, Stockholders, Suppliers, Creditors, And Others Who Stand To Gain
Or Lose By The Policies And Activities Of A Business Represent The Firm's
Market Makers.
Economic Environment.
Stakeholders.
Social Environment.
The Most Important Difference Between For- Profit
Businesses And Nonprofit Organizations Is That
For-Profit Businesses Do Not Benefit Society.
Nonprofit Organizations Seek To Make A Profit For Their Owners And Organizers.
Nonprofit Organizations Do Not Seek A Profit For Their Owners Or Organizers.
Nonprofit Organizations Do Not Answer To Stakeholders.
A Common Characteristic Of Most Entrepreneurs Is That They
Accept The Risks Involved In Starting And Managing A Business.
Have A High Level Of Scientific And Technical Expertise.
Possess A Great Deal Of Personal Wealth.
Have Experience In Running Large, Complex Organizations.
,What Is The Best Example Of A Business Whose Goal Is To Earn A Profit?
A Community College
American Red Cross
League Of Women Voters
Amazon
In Order To Make An Intelligent Investment Decision, Entrepreneurs Should
Limit Their Options To Those Business Investments That Are Backed By The U.S.
Government.
Invest In Businesses That Have Generated A Stable Rate Of Profit For At Least The Past 10
Years.
Invest Only In Business Opportunities Where It Is Possible To Take An Active Role In
Management.
Compare The Risks Of Potential Investments To Their Expected Profits And Find The Right
Balance Between Profit And Risk.
Honda And Hyundai Have Insourced For Years To Design And Manufacture Cars In The
United States. What Statement Is Accurate About This Practice?
Insourcing Helps Offset The Number Of Jobs Being Outsourced.
Insourcing Increases The Number Of Jobs Being Outsourced.
Insourcing Damages The United States Economy.
Insourcing Causes Jobs To Be Lost To Overseas Competitors.
Public Schools, Charities, Andzgovernment Agencies Generally
, Have The Same Goals As For-Profit Businesses.
Do Not Seek To Earn A Profit.
Provide Goods Rather Than Services.
Do Not Have Any Stakeholders.
For-Profit Businesses And Nonprofit Organizations Are Similar In That They Both
Contribute To The Welfare Of Society.
Seek To Earn A Profit.
Have A Limited Life.
Must Be Controlled By A Board Of Directors.
The Standard Of Living For A Nation's People Depends Mainly On
The Quality Of The Natural Environment.
How Much Political Freedom They Have.
Their Income And The Prices Of The Goods And Services They Can Buy.
The Amount Of Labor And Capital Available Employed In The Manufacturing Sector.
Today’s Businesses Attempt Tozmeet The Needs Of
Their Customers, Even If It Comes At The Expense Of Employees And Other Stakeholders.
Their Employees, Even If It Means Shortchanging Customers By Charging Higher Prices.
All Stakeholders.
Exclusively Their Owners, Since They Are Ultimately The Ones Who Pay The Bills.
Whatzis The Most Accurate Statement About The Impact Ofzbusiness On Society?
, When Businesses Earn A Profit For Their Owners, They Usually Do So At The Expense Of
The Rest Of Society, Which Proves It Is Never A Win-Win Situation.
While Businesses Often Improve The Standard Of Living Within A Society, They Can Dozl
Ittle To Improve The Quality Of Life.
Businesses Often Improve The Quality Of Life, But Can Do Little Tozimprove The Standard
Of Living For Most People.
Businesses Can Have A Positive Impact On Both The Standard Of Living And The Quality
Of Life Within A Society.
Last Year, Jensen Consulting Reported Revenues Of $34 Million While Its Total Expenses
Were $10 Million. Based On This Information, Jensen Reported
Profits Of $24 Million.
Profits Of $34 Million.
Losses Of $24 Million.
Losses Of $34 Million.
Taylor Recently Started Selling Her Invention: A Bed That Looks Like It Floats In Mid- Air.
The Bed Is Actually Suspended By Magnetic Forces. Taylor Is A(N)
Arbitrageur.
Entrepreneur.
Speculator.
Account Manager.
Roman Wants To Invest Some Money That He Just Inherited. His Friend Jon Wants Him To In
Vest In His New Food Truck Business, Promising Roman A Better Return On His Investment Than
A Tr Aditional Savings Account. Roman Should Keep In Mind That To Earn A Higher Return On
His Mone Y He
, Will Have To Invest Overseas.
Should Only Invest In A Long-Standing Business.
Will Probably Have To Accept A Higher Level Of Risk.
Will Probably Have To Engage In Illegal Activities.
Though The Prices Of Things She Buys Have Gone Up, Maya's Income Has Remained Stable
Over The Past Few Years. Nevertheless, Maya Feels Better Off Because The Environment Is
Cleaner, The Crime Rate Has Dropped, She Has More Relaxation Time, And The Quality Of
Medical Care Has I Mproved. If Maya's Experience Is Typical, We Can Assume That The
Standard Of Living Has
Increased, But The Quality Of Life Has Decreased.
Increased, And So Has The Quality Of Life.
Declined, But The Quality Of Life Has Increased.
Declined, And So Has The Quality Of Life.
Hyun And Her Three College Friends Enjoy Perfumes. As A Special Gift To Each Of Them Last
Holiday Season, Hyun Found A Way To Make Scented Candles With Each Friend's Favorite
Perfume Scent. The Three Friends Loved Her Gift Idea And Encouraged Hyun To Create More
And Sell Them O Nline. Recently, She Is Filling Orders From Her Website, And Turning A Profit.
Hyun Is Proof That
Personalized Products Will Always Be Successful.
When You Successfully Fill A Market Need, You Can Make Money.
The Internet Is A Way To Distribute Just About Anything.
The Cost Of Supplies To Make Candles Is Relatively Cheap.
Miranda Wants To Operate A Small Catering Business Out Of Her Home, Located In A Quiet R
Esidential Neighborhood. She Asks For Input From Her Neighbors, The Homeowner's
Association, H Er Suppliers, And The Zoning Commission About Issues Including Parking, Noise,
Safety Concerns, A Nd Operating Hours. Before Officially Opening, Miranda Adjusts Her
Business Plan Based On The Fe Edback She Received. Miranda Has Discovered That
Understanding Business
,TABLE OF CONTENTS
CHAPTER 1: Taking Risks And Making Profits Within The Dynamic Business Environment
CHAPTER 2: Understanding Economics And How It Affects Business
CHAPTER 3: Doing Business In Global Markets
CHAPTER 4: Demanding Ethical And Socially Responsible Behavior
CHAPTER 5: How To Form A Business
CHAPTER 6: Entrepreneurship And Starting A Small Business
CHAPTER 7: Management And Leadership
CHAPTER 8: Structuring Organizations For Today’s Challenges
CHAPTER 9: Production And Operations Management
CHAPTER 10: Motivating Employees
CHAPTER 11: Human Resource Management: Finding And Keeping The Best Employees
CHAPTER 12: Dealing With Employee–Management Issues
CHAPTER 13: Marketing: Helping Buyers Buy
CHAPTER 14: Developing And Pricing Goods And Services
CHAPTER 15: Distributing Products
CHAPTER 16: Using Effective Promotions
CHAPTER 17: Understanding Accounting And Financial Information
CHAPTER 18: Financial Management
CHAPTER 19: Using Securities Markets For Financing And Investing Opportunities
CHAPTER 20: Money, Financial Institutions, And The Federal Reserve
,Answers Are At The End Of Each Chapter
Chapter 1: Taking Risks And Making Profits Within The Dynamic Business
Environment
Student Name:
Describe Three Ways That Governments Can Foster Entrepreneurship And Encourage The
Creation Of Wealth
Describe How Businesses Can Use Technology To Be More Responsive To Customers.
Competition Among Businesses Has Never Been Greater. Identify And Describe Two Ways That
Businesses Can Become More Competitive.
What Is Demography? Identify Two Demographic Trends In The United States And Discuss How
They Will Impactunited States Businesses.
Describe What We Mean By Greening And Thinking Green. List Five Ways That People And B
Usinesses Are Participating In The Green Movement. List Business Opportunities That May
Emerge From This Movement.
Trace The Evolution Of American Business. Identify The Key Trends, And Discuss The I
Mplications These Trends Have For The Future.
,An Entity That Seeks To Earn A Profit By Providing A Good Or Service Is Known As A(N)
Industry.
Corporation.
Business.
Service.
Is The Amount A Business Earns After Deducting What It Spends For Salaries An D Other
Expenses.
Profit
Revenue
Interest
Dividends
A Business Incurs A If Its Costs And Expenses Exceed Its Revenues.
Loss
Liability
Debit
Dividend
Is The Chance A Business Owner Will Lose The Time And Money Invested In A Business
That Proves To Be Unprofitable.
Depreciation
Risk
Opportunity
Redundancy
The Total Amount Of Money That Businesses Take In By Selling Goods And Services Is Called
, Profit.
Revenue.
Loss.
Retained Earnings.
A(N) Is A Person Who Assumes The Risk Of Starting A Business.
Manager
Entrepreneur
Employee
Stakeholder
Starting A Business Always Involves
Profit.
Loss.
Revenue.
Risk
Often In Business The Greater The Risk, The
Greater The Potential Reward.
Lower The Expected Revenues.
Lower The Value Provided To Society.
Greater The Number Of Stakeholders.
Is A Measure Of The General Well-
Being And Satisfaction Derived From A Variety Of Factors Including Political Freedom,
Safety, Education, And A Clean Environment.
Standard Of Living
Quality Of Life
Gross National Income
Social Satisfaction
,The Amount Of Goods And Services People Can Buy With The Money They Have Is Called
Their
Nominal Income.
Consumer Price Index.
Profit Margin.
Standard Of Living.
The Customers, Employees, Stockholders, Suppliers, Creditors, And Others Who Stand To Gain
Or Lose By The Policies And Activities Of A Business Represent The Firm's
Market Makers.
Economic Environment.
Stakeholders.
Social Environment.
The Most Important Difference Between For- Profit
Businesses And Nonprofit Organizations Is That
For-Profit Businesses Do Not Benefit Society.
Nonprofit Organizations Seek To Make A Profit For Their Owners And Organizers.
Nonprofit Organizations Do Not Seek A Profit For Their Owners Or Organizers.
Nonprofit Organizations Do Not Answer To Stakeholders.
A Common Characteristic Of Most Entrepreneurs Is That They
Accept The Risks Involved In Starting And Managing A Business.
Have A High Level Of Scientific And Technical Expertise.
Possess A Great Deal Of Personal Wealth.
Have Experience In Running Large, Complex Organizations.
,What Is The Best Example Of A Business Whose Goal Is To Earn A Profit?
A Community College
American Red Cross
League Of Women Voters
Amazon
In Order To Make An Intelligent Investment Decision, Entrepreneurs Should
Limit Their Options To Those Business Investments That Are Backed By The U.S.
Government.
Invest In Businesses That Have Generated A Stable Rate Of Profit For At Least The Past 10
Years.
Invest Only In Business Opportunities Where It Is Possible To Take An Active Role In
Management.
Compare The Risks Of Potential Investments To Their Expected Profits And Find The Right
Balance Between Profit And Risk.
Honda And Hyundai Have Insourced For Years To Design And Manufacture Cars In The
United States. What Statement Is Accurate About This Practice?
Insourcing Helps Offset The Number Of Jobs Being Outsourced.
Insourcing Increases The Number Of Jobs Being Outsourced.
Insourcing Damages The United States Economy.
Insourcing Causes Jobs To Be Lost To Overseas Competitors.
Public Schools, Charities, Andzgovernment Agencies Generally
, Have The Same Goals As For-Profit Businesses.
Do Not Seek To Earn A Profit.
Provide Goods Rather Than Services.
Do Not Have Any Stakeholders.
For-Profit Businesses And Nonprofit Organizations Are Similar In That They Both
Contribute To The Welfare Of Society.
Seek To Earn A Profit.
Have A Limited Life.
Must Be Controlled By A Board Of Directors.
The Standard Of Living For A Nation's People Depends Mainly On
The Quality Of The Natural Environment.
How Much Political Freedom They Have.
Their Income And The Prices Of The Goods And Services They Can Buy.
The Amount Of Labor And Capital Available Employed In The Manufacturing Sector.
Today’s Businesses Attempt Tozmeet The Needs Of
Their Customers, Even If It Comes At The Expense Of Employees And Other Stakeholders.
Their Employees, Even If It Means Shortchanging Customers By Charging Higher Prices.
All Stakeholders.
Exclusively Their Owners, Since They Are Ultimately The Ones Who Pay The Bills.
Whatzis The Most Accurate Statement About The Impact Ofzbusiness On Society?
, When Businesses Earn A Profit For Their Owners, They Usually Do So At The Expense Of
The Rest Of Society, Which Proves It Is Never A Win-Win Situation.
While Businesses Often Improve The Standard Of Living Within A Society, They Can Dozl
Ittle To Improve The Quality Of Life.
Businesses Often Improve The Quality Of Life, But Can Do Little Tozimprove The Standard
Of Living For Most People.
Businesses Can Have A Positive Impact On Both The Standard Of Living And The Quality
Of Life Within A Society.
Last Year, Jensen Consulting Reported Revenues Of $34 Million While Its Total Expenses
Were $10 Million. Based On This Information, Jensen Reported
Profits Of $24 Million.
Profits Of $34 Million.
Losses Of $24 Million.
Losses Of $34 Million.
Taylor Recently Started Selling Her Invention: A Bed That Looks Like It Floats In Mid- Air.
The Bed Is Actually Suspended By Magnetic Forces. Taylor Is A(N)
Arbitrageur.
Entrepreneur.
Speculator.
Account Manager.
Roman Wants To Invest Some Money That He Just Inherited. His Friend Jon Wants Him To In
Vest In His New Food Truck Business, Promising Roman A Better Return On His Investment Than
A Tr Aditional Savings Account. Roman Should Keep In Mind That To Earn A Higher Return On
His Mone Y He
, Will Have To Invest Overseas.
Should Only Invest In A Long-Standing Business.
Will Probably Have To Accept A Higher Level Of Risk.
Will Probably Have To Engage In Illegal Activities.
Though The Prices Of Things She Buys Have Gone Up, Maya's Income Has Remained Stable
Over The Past Few Years. Nevertheless, Maya Feels Better Off Because The Environment Is
Cleaner, The Crime Rate Has Dropped, She Has More Relaxation Time, And The Quality Of
Medical Care Has I Mproved. If Maya's Experience Is Typical, We Can Assume That The
Standard Of Living Has
Increased, But The Quality Of Life Has Decreased.
Increased, And So Has The Quality Of Life.
Declined, But The Quality Of Life Has Increased.
Declined, And So Has The Quality Of Life.
Hyun And Her Three College Friends Enjoy Perfumes. As A Special Gift To Each Of Them Last
Holiday Season, Hyun Found A Way To Make Scented Candles With Each Friend's Favorite
Perfume Scent. The Three Friends Loved Her Gift Idea And Encouraged Hyun To Create More
And Sell Them O Nline. Recently, She Is Filling Orders From Her Website, And Turning A Profit.
Hyun Is Proof That
Personalized Products Will Always Be Successful.
When You Successfully Fill A Market Need, You Can Make Money.
The Internet Is A Way To Distribute Just About Anything.
The Cost Of Supplies To Make Candles Is Relatively Cheap.
Miranda Wants To Operate A Small Catering Business Out Of Her Home, Located In A Quiet R
Esidential Neighborhood. She Asks For Input From Her Neighbors, The Homeowner's
Association, H Er Suppliers, And The Zoning Commission About Issues Including Parking, Noise,
Safety Concerns, A Nd Operating Hours. Before Officially Opening, Miranda Adjusts Her
Business Plan Based On The Fe Edback She Received. Miranda Has Discovered That
