Test Bank for Business: A Changing World (8th Canadian Edition – Ferrell, Hirt, Ferrell, Iskander & Mombourquette)

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ACCESS Test Bank for Business Changing World 8th Canadian Edition
Ferrell
Business Changing World Edition 8 by Ferrell
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Products have tangible attributes only.
⊚ true
⊚ false

2) When you take your clothes to the dry cleaner to be cleaned or go to the spa to get a massage,
you are not receiving a product because you have not received anything tangible in return.
⊚ true
⊚ false

3) The goal of business activities is to earn a profit.
⊚ true
⊚ false

4) Non-profit organizations, such as the Canadian Red Cross, do not have to engage in
management, marketing, or finance activities.
⊚ true
⊚ false

5) Organizations such as the United Way and World Vision have two fundamental purposes: to
earn a profit and to accomplish social objectives.
⊚ true
⊚ false

6) Profit refers to the costs required to make and sell a product.
⊚ true
⊚ false

7) Businesses have the right to keep and use their profits as they choose, without limitations.
⊚ true
⊚ false

8) Earning profits contributes to society by providing employment, which in turn provides
money that is reinvested in the economy.
⊚ true
⊚ false

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ACCESS Test Bank for Business Changing World 8th Canadian Edition
Ferrell
Business Changing World Edition 8 by Ferrell
9) Finance is concerned with obtaining money and using it effectively.
⊚ true
⊚ false

10) Owners have little responsibility to provide funds for the operation of the business.
⊚ true
⊚ false

11) Managers coordinate resources to achieve organizational objectives.
⊚ true
⊚ false

12) The focus of all marketing activities is the successful transformation of resources into goods
and services.
⊚ true
⊚ false

13) Owners always manage their businesses themselves.
⊚ true
⊚ false

14) Studying business will help you develop skills to employ in a future career, if that career
takes place in the country where you studied business topics.
⊚ true
⊚ false

15) Natural resources include land, minerals, water, and other gifts of nature which are not made
by humans.
⊚ true
⊚ false

16) Human resources refer only to the mental abilities of people used to produce goods and
services, it is synonymous with knowledge.
⊚ true
⊚ false

17) All economic systems must address three important issues, one of which is how the goods
and services will be produced.
⊚ true
⊚ false

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ACCESS Test Bank for Business Changing World 8th Canadian Edition
Ferrell
Business Changing World Edition 8 by Ferrell
18) Capitalism is an economic system in which the government owns and operates basic
industries while individuals own most other businesses.
⊚ true
⊚ false

19) China is an example of a communist economy that exists today which satisfies Karl Marx's
ideal of communism.
⊚ true
⊚ false

20) Many nations have turned away from communism and toward economic systems governed
by supply and demand rather than by central planning.
⊚ true
⊚ false

21) Most socialist nations are democratic.
⊚ true
⊚ false

22) In a free-market system, the government regulates business.
⊚ true
⊚ false

23) Free-market capitalism and laissez-faire capitalism are essentially the same thing.
⊚ true
⊚ false

24) If free enterprise is going to be successful, individuals must have the right to choose what
career to pursue, where to live, what goods and services to purchase, and more.
⊚ true
⊚ false

25) Demand is the quantity of goods and services that consumers are willing to buy at different
prices at a specific time.
⊚ true
⊚ false

26) The demand curve is upward sloping.
⊚ true
⊚ false