Test Bank for Understanding Business 2024 Release By William Nickels, Jim McHugh and Susan McHugh Chapter 1-20 Answers Are at the End of Each Chapter Chapter 1 Student name: 1) Describe three ways that governments can foster entrepreneurship and encourage the creation of wealth.
2)
Describe how businesses can use technology to be more responsive to customers.
3) Competition among businesses has never been greater. Identify and describe two ways that businesses can become more competitive.
4) What is demography? Identify two demographic trends in the United States and discuss how they will impactUnited States businesses.
5) Describe what we mean by greening and thinking green. List five ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement.
6) Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.
7)
An entity that seeks to earn a profit by providing a good or service is known as a(n) A) B) C) D)
industry. corporation. business. service.
8) other expenses. A) B) C) D)
is the amount a business earns after deducting what it spends for salaries and
Profit Revenue Interest Dividends
9)
A business incurs a A) B) C) D)
if its costs and expenses exceed its revenues.
loss liability debit dividend
10) is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable. A) B) C) D)
11)
The total amount of money that businesses take in by selling goods and services is called A) B) C) D)
12)
Depreciation Risk Opportunity Redundancy
profit. revenue. loss. retained earnings.
A(n) A) manager B) entrepreneur C) employee D) stakeholder
is a person who assumes the risk of starting a business.
13)
Starting a business always involves A) B) C) D)
14)
profit. loss. revenue. risk.
Often in business the greater the risk, the A) B) C) D)
greater the potential reward. lower the expected revenues. lower the value provided to society. greater the number of stakeholders.
15) 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. A) B) C) D)
16) their
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
A) B) C) D)
nominal income. consumer price index. profit margin. standard of living.
17) 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 A) B) C) D)
market makers. economic environment. stakeholders. social environment.
18) The most important difference between for-profit businesses and nonprofit organizations is that A) B) C) D)
19)
A common characteristic of most entrepreneurs is that they A) B) C) D)
20)
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.
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) B) C) D)
a community college American Red Cross League of Women Voters Amazon