TEST BANK FOR BUSINESS IN ACTION 8E BY
COURTLAND
1
Copyright © 2017 Pearson Education, Inc.
BV BV BV BV BV
,FULL TEST BANK FOR BV BV BV
Business In Action 8th Edition Courtland Bovee BV BV BV BV BV BV
Business in Action, 8e (Bovee) BV BV BV BV
Chapter 1 Developing a Business Mindset BV B V B V BV BV BV
1) is money that an organization brings in through the sale of its goods and services.
BV BV BV BV BV BV BV BV BV BV BV BV BV BV
A) Competitive advantage BV
B) Revenue
C) Sales
D) Capital investment BV
E) Finance BV
Answer: B B V
Explanation: Revenue is the money a company brings in through the sale of goods and services. Diffi
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
culty: 1: Easy B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
2) The risk and reward relationship
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A) is a key aspect of social responsibility
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B) applies only to service-intensive businesses BV BV BV BV
C) is essential to the counter-cyclical business model
BV BV BV BV BV BV
D) is fundamental to businesses in every modern economy
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E) is an outdated concept that's been replaced by corporate sustainability
BV BV BV BV BV BV BV BV BV BV
Answer: D B V
Explanation: A company needs to see some promise of reward before it will decide to accept the r
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
isks involved in creating and selling products. However, to ensure responsible behavior, these ris
BV BV BV BV BV BV BV BV BV BV BV BV BV
ks need to stay attached to those decisions, meaning that if the decisions turn out bad, that compa
BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
ny should suffer the consequences.
BV BV BV BV
Difficulty: 1: Easy B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
3) A(n) is a framework of how a business intends to generate revenue.
BV BV BV BV BV BV BV BV BV BV BV
A) business model BV
B) strategic management tool BV BV
C) profitability analysis BV
D) competitive advantage BV
E) entrepreneurial mindset BV B
Answer: A
V B V
Explanation: A company's business model is a clear, simple outline of how the business intends t
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV
o generate revenue.
BV BV
Difficulty: 1: Easy B V BV
2
Copyright © 2017 Pearson Education, Inc. BV BV BV BV BV
,AACSB: Analytical thinking
B V BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
3
Copyright © 2017 Pearson Education, Inc.
BV BV BV BV BV
, 4) is the term used to describe the difference between revenue and expenses.
BV BV BV BV BV BV BV BV BV BV BV
A) Revenue
B) Interest
C) Sales
D) Owner's equity BV
E) Profit A BV
nswer: E B V
Explanation: Profit is the amount of money left over after all the costs involved in doing business
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
, have been deducted from revenue.
BV BV BV BV BV
Difficulty: 1: Easy B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
5) refers to some aspect of a product or company that makes it more appealing to t BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
arget customers.
BV
A) Competitive advantage BV
B) Economies of scale BV BV
C) Horizontal integration BV
D) Vertical integration BV
E) Barrier to entry advantage BV BV BV BV
Answer: A B V
Explanation: Competitive advantage refers to some aspect of a product or company that makes it mor
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV
e appealing to target customers.
BV BV BV BV
Difficulty: 2: Moderate B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
6) An organization that seeks to operate efficiently and effectively to achieve its goals without f
BV BV BV BV BV BV BV BV BV BV BV BV BV BV
ocusing on profit as a motive is a
BV . BV BV BV BV BV BV BV
A) business intermediary BV
B) nonprofit organization BV
C) service business BV
D) government-owned corporation BV
E) goods-
producing business Answer: BV BV B
VB
Explanation: Not-for- B V
profit organizations (also known as nonprofit organizations) such as museums, most universities,
BV BV BV BV BV BV BV BV BV BV BV BV
and charities do not have a profit motive.
BV BV BV BV BV BV BV
Difficulty: 2: Moderate B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
4
Copyright © 2017 Pearson Education, Inc. BV BV BV BV BV
COURTLAND
1
Copyright © 2017 Pearson Education, Inc.
BV BV BV BV BV
,FULL TEST BANK FOR BV BV BV
Business In Action 8th Edition Courtland Bovee BV BV BV BV BV BV
Business in Action, 8e (Bovee) BV BV BV BV
Chapter 1 Developing a Business Mindset BV B V B V BV BV BV
1) is money that an organization brings in through the sale of its goods and services.
BV BV BV BV BV BV BV BV BV BV BV BV BV BV
A) Competitive advantage BV
B) Revenue
C) Sales
D) Capital investment BV
E) Finance BV
Answer: B B V
Explanation: Revenue is the money a company brings in through the sale of goods and services. Diffi
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
culty: 1: Easy B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
2) The risk and reward relationship
BV . BV BV BV BV
A) is a key aspect of social responsibility
BV BV BV BV BV BV
B) applies only to service-intensive businesses BV BV BV BV
C) is essential to the counter-cyclical business model
BV BV BV BV BV BV
D) is fundamental to businesses in every modern economy
BV BV BV BV BV BV BV
E) is an outdated concept that's been replaced by corporate sustainability
BV BV BV BV BV BV BV BV BV BV
Answer: D B V
Explanation: A company needs to see some promise of reward before it will decide to accept the r
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
isks involved in creating and selling products. However, to ensure responsible behavior, these ris
BV BV BV BV BV BV BV BV BV BV BV BV BV
ks need to stay attached to those decisions, meaning that if the decisions turn out bad, that compa
BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
ny should suffer the consequences.
BV BV BV BV
Difficulty: 1: Easy B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
3) A(n) is a framework of how a business intends to generate revenue.
BV BV BV BV BV BV BV BV BV BV BV
A) business model BV
B) strategic management tool BV BV
C) profitability analysis BV
D) competitive advantage BV
E) entrepreneurial mindset BV B
Answer: A
V B V
Explanation: A company's business model is a clear, simple outline of how the business intends t
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV
o generate revenue.
BV BV
Difficulty: 1: Easy B V BV
2
Copyright © 2017 Pearson Education, Inc. BV BV BV BV BV
,AACSB: Analytical thinking
B V BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
3
Copyright © 2017 Pearson Education, Inc.
BV BV BV BV BV
, 4) is the term used to describe the difference between revenue and expenses.
BV BV BV BV BV BV BV BV BV BV BV
A) Revenue
B) Interest
C) Sales
D) Owner's equity BV
E) Profit A BV
nswer: E B V
Explanation: Profit is the amount of money left over after all the costs involved in doing business
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
, have been deducted from revenue.
BV BV BV BV BV
Difficulty: 1: Easy B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
5) refers to some aspect of a product or company that makes it more appealing to t BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
arget customers.
BV
A) Competitive advantage BV
B) Economies of scale BV BV
C) Horizontal integration BV
D) Vertical integration BV
E) Barrier to entry advantage BV BV BV BV
Answer: A B V
Explanation: Competitive advantage refers to some aspect of a product or company that makes it mor
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV
e appealing to target customers.
BV BV BV BV
Difficulty: 2: Moderate B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
6) An organization that seeks to operate efficiently and effectively to achieve its goals without f
BV BV BV BV BV BV BV BV BV BV BV BV BV BV
ocusing on profit as a motive is a
BV . BV BV BV BV BV BV BV
A) business intermediary BV
B) nonprofit organization BV
C) service business BV
D) government-owned corporation BV
E) goods-
producing business Answer: BV BV B
VB
Explanation: Not-for- B V
profit organizations (also known as nonprofit organizations) such as museums, most universities,
BV BV BV BV BV BV BV BV BV BV BV BV
and charities do not have a profit motive.
BV BV BV BV BV BV BV
Difficulty: 2: Moderate B V BV
AACSB: Application of knowledge B V BV BV
LO: 1.1: Explain the concept of adding value in a business, and identify the major types of busine
B V BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV BV
sses.
4
Copyright © 2017 Pearson Education, Inc. BV BV BV BV BV
