TEST BANK
All Chapters Included
1
,BUSINESS IN ACTION 10TH EDITION
TABLE OF CONTENT
PART 1: SETTING THE STAGE: THE BUSINESS OF BUSINESS
1. Developing a Business Mindset
2. Economics, Money, and Banking
3. The Global Marketplace
4. Business Ethics and Corporate Social Responsibility
PART 2: BUILDING THE FRAMEWORK: BUSINESS OWNERSHIP AND
ENTREPRENEURSHIP
5. Forms of Ownership
6. Entrepreneurship and Small-Business Ownership
PART 3: GUIDING THE ENTERPRISE: LEADERSHIP, ORGANIZATION, AND OPERATIONS
7. Management Roles, Functions, and Skills
8. Organization and Teamwork
9. Production Systems
PART 4: SUPPORTING THE WORKFORCE: MOTIVATION AND HUMAN RESOURCES
10. Employee Motivation
11. Human Resources Management
PART 5: SATISFYING THE CUSTOMER: MARKETING, SALES, AND CUSTOMER SUPPORT
12. The Art and Science of Marketing
13. Product Management and Pricing Strategies
14. Customer Communication and Product Distribution
15. Financial Information and Accounting Concepts
16. Financial Management and Financial Markets
2
,Business in Action, 10e (Bovee/Thill)
Chapter 1 Developing a Business
Mindset
1) is money that an organization brings in through the sale of its goods and services.
A) Competitive advantage
B) Revenue
C) Sales
D) Capital
investment
ANSWER: B
Explanation: Revenue is the money a company brings in through the sale of goods and
services. Difficulty: 1: Easy
AACSB: Application of knowledge
LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to
categorize businesses.
2) Why is the link between risk and reward critical for a business?
A) It is a key aspect of social responsibility
B) It provides opportunities for not-for-profit organizations to stay in business
C) It is essential to the counter-cyclical business model
D) It provides incentive to take on the
risk ANSWER: D
Explanation: Without the promise of rewards, businesses would have no incentive to take
on the risks. And without entrepreneurs and companies willing to accept risk, little would
get done in the economy.
Difficulty: 2: Moderate
AACSB: Application of knowledge
LO: 1.1: Explain the concept of adding value in a business, and identify four useful
ways to categorize businesses.
3) A(n) is a framework of how a business intends to generate revenue.
A) business model
3
, B) strategic management tool
C) profitability analysis
D) competitive
advantage ANSWER: A
Explanation: A company's business model is a clear, simple outline of how the business
intends to generate revenue.
Difficulty: 1: Easy
AACSB: Analytical thinking
LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to
categorize businesses.
4
All Chapters Included
1
,BUSINESS IN ACTION 10TH EDITION
TABLE OF CONTENT
PART 1: SETTING THE STAGE: THE BUSINESS OF BUSINESS
1. Developing a Business Mindset
2. Economics, Money, and Banking
3. The Global Marketplace
4. Business Ethics and Corporate Social Responsibility
PART 2: BUILDING THE FRAMEWORK: BUSINESS OWNERSHIP AND
ENTREPRENEURSHIP
5. Forms of Ownership
6. Entrepreneurship and Small-Business Ownership
PART 3: GUIDING THE ENTERPRISE: LEADERSHIP, ORGANIZATION, AND OPERATIONS
7. Management Roles, Functions, and Skills
8. Organization and Teamwork
9. Production Systems
PART 4: SUPPORTING THE WORKFORCE: MOTIVATION AND HUMAN RESOURCES
10. Employee Motivation
11. Human Resources Management
PART 5: SATISFYING THE CUSTOMER: MARKETING, SALES, AND CUSTOMER SUPPORT
12. The Art and Science of Marketing
13. Product Management and Pricing Strategies
14. Customer Communication and Product Distribution
15. Financial Information and Accounting Concepts
16. Financial Management and Financial Markets
2
,Business in Action, 10e (Bovee/Thill)
Chapter 1 Developing a Business
Mindset
1) is money that an organization brings in through the sale of its goods and services.
A) Competitive advantage
B) Revenue
C) Sales
D) Capital
investment
ANSWER: B
Explanation: Revenue is the money a company brings in through the sale of goods and
services. Difficulty: 1: Easy
AACSB: Application of knowledge
LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to
categorize businesses.
2) Why is the link between risk and reward critical for a business?
A) It is a key aspect of social responsibility
B) It provides opportunities for not-for-profit organizations to stay in business
C) It is essential to the counter-cyclical business model
D) It provides incentive to take on the
risk ANSWER: D
Explanation: Without the promise of rewards, businesses would have no incentive to take
on the risks. And without entrepreneurs and companies willing to accept risk, little would
get done in the economy.
Difficulty: 2: Moderate
AACSB: Application of knowledge
LO: 1.1: Explain the concept of adding value in a business, and identify four useful
ways to categorize businesses.
3) A(n) is a framework of how a business intends to generate revenue.
A) business model
3
, B) strategic management tool
C) profitability analysis
D) competitive
advantage ANSWER: A
Explanation: A company's business model is a clear, simple outline of how the business
intends to generate revenue.
Difficulty: 1: Easy
AACSB: Analytical thinking
LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to
categorize businesses.
4
