,TESTBANKFOR
f f f
Understanding Business, 13th Edition, William Nickels Chapt
f f f f f f
er 1-20 Answers are at the end of Each chapter Chapter 1
f f f f f f f f f f f
Student name: f
1) Describe three ways that governments can foster entrepreneurship and encourage the cre
f f f f f f f f f f f
ation of wealth
f f
2) Describe how businesses can use technology to be more responsive to customers.
f f f f f f f f f f f
3) Competition among businesses has never been greater. Identify and describe two ways that
f f f f f f f f f f f f
businesses can become more competitive.
f f f f f
4) What is demography? Identify two demographic trends in the United States and discuss how
f f f f f f f f f f f f f
they will impactUnited States businesses.
f f f f f
5) Describe what we mean by greening and thinking green. List five ways that people and busin
f f f f f f f f f f f f f f f
esses are participating in the green movement. List business opportunities that may emerge from this
f f f f f f f f f f f f f f f
movement.
6) Trace the evolution of American business. Identify the key trends, and discuss the imp
f f f f f f f f f f f f f
lications these trends have for the future.
f f f f f f
,7) An entity that seeks to earn a profit by providing a good or service is known as a(n)
f f f f f f f f f f f f f f f f f
A) industry.
B) corporation.
C) business.
D) service.
8) is the amount a business earns after deducting what it spends for salaries and othe
f f f f f f f f f f f f f f
r expenses.
f
A) Profit
B) Revenue
C) Interest
D) Dividends
9) A business incurs a
f f f f if its costs and expenses exceed its revenues.
f f f f f f f
A) loss
B) liability
C) debit
D) dividend
10) is the chance a business owner will lose the time and money invested in a busi
f f f f f f f f f f f f f f f
ness that proves to be unprofitable.
f f f f f
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
f f f f f f f f f f f f f f f
, A) profit.
B) revenue.
C) loss.
D) retained earnings. f
12) A(n) f is a person who assumes the risk of starting a business.
f f f f f f f f f f
A) manager
B) entrepreneur
C) employee
D) stakeholder
13) Starting a business always involves
f f f f
A) profit.
B) loss.
C) revenue.
D) risk
14) Often in business the greater the risk, the
f f f f f f f
A) greater the potential reward.
f f f
B) lower the expected revenues.
f f f
C) lower the value provided to society.
f f f f f
D) greater the number of stakeholders.
f f f f
15) is a measure of the general well- f f f f f f
being and satisfaction derived from a variety of factors including political freedom, safety, edu
f f f f f f f f f f f f f
cation, and a clean environment.
f f f f
A) Standard of living f f
B) Quality of life f f
C) Gross national income
f f
D) Social satisfaction f
f f f
Understanding Business, 13th Edition, William Nickels Chapt
f f f f f f
er 1-20 Answers are at the end of Each chapter Chapter 1
f f f f f f f f f f f
Student name: f
1) Describe three ways that governments can foster entrepreneurship and encourage the cre
f f f f f f f f f f f
ation of wealth
f f
2) Describe how businesses can use technology to be more responsive to customers.
f f f f f f f f f f f
3) Competition among businesses has never been greater. Identify and describe two ways that
f f f f f f f f f f f f
businesses can become more competitive.
f f f f f
4) What is demography? Identify two demographic trends in the United States and discuss how
f f f f f f f f f f f f f
they will impactUnited States businesses.
f f f f f
5) Describe what we mean by greening and thinking green. List five ways that people and busin
f f f f f f f f f f f f f f f
esses are participating in the green movement. List business opportunities that may emerge from this
f f f f f f f f f f f f f f f
movement.
6) Trace the evolution of American business. Identify the key trends, and discuss the imp
f f f f f f f f f f f f f
lications these trends have for the future.
f f f f f f
,7) An entity that seeks to earn a profit by providing a good or service is known as a(n)
f f f f f f f f f f f f f f f f f
A) industry.
B) corporation.
C) business.
D) service.
8) is the amount a business earns after deducting what it spends for salaries and othe
f f f f f f f f f f f f f f
r expenses.
f
A) Profit
B) Revenue
C) Interest
D) Dividends
9) A business incurs a
f f f f if its costs and expenses exceed its revenues.
f f f f f f f
A) loss
B) liability
C) debit
D) dividend
10) is the chance a business owner will lose the time and money invested in a busi
f f f f f f f f f f f f f f f
ness that proves to be unprofitable.
f f f f f
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
f f f f f f f f f f f f f f f
, A) profit.
B) revenue.
C) loss.
D) retained earnings. f
12) A(n) f is a person who assumes the risk of starting a business.
f f f f f f f f f f
A) manager
B) entrepreneur
C) employee
D) stakeholder
13) Starting a business always involves
f f f f
A) profit.
B) loss.
C) revenue.
D) risk
14) Often in business the greater the risk, the
f f f f f f f
A) greater the potential reward.
f f f
B) lower the expected revenues.
f f f
C) lower the value provided to society.
f f f f f
D) greater the number of stakeholders.
f f f f
15) is a measure of the general well- f f f f f f
being and satisfaction derived from a variety of factors including political freedom, safety, edu
f f f f f f f f f f f f f
cation, and a clean environment.
f f f f
A) Standard of living f f
B) Quality of life f f
C) Gross national income
f f
D) Social satisfaction f
