Question 1

Finance refers to all activities concerned with obtaining money and using it effectively.

Accepted Answer

Financial resources must be managed effectively if the business will succeed.

Question 2

Owners always manage their businesses.

Accepted Answer

Owners can manage the business themselves or hire employees to accomplish this task.

Question 3

Profit is what it costs to make and sell a product.

Accepted Answer

Profit is the difference between what it costs to make and sell a product and what a customer pays for it.

Question 4

When purchasing,a consumer is actually buying a product's anticipated benefits and
A) satisfaction.
B) price.
C) costs.
D) productivity.
E) form.

Accepted Answer

Consumers buy products to satisfy a perceived need,such as buying a Big Mac to satisfy hunger.

Question 5

Briefly describe the goals of a business,especially the primary goal.

Accepted Answer

The answer of Briefly describe the goals of a business,especially...

Question 6

Owners have little responsibility to provide funds for the operation of the business.

Accepted Answer

The primary responsibility of the owners is to provide financial resources of the business.

Question 7

Which of the following is not a product?
A) A Dell personal computer
B) A veterinarian's treatment of a pet's injuries
C) A lawyer's advice in a divorce case
D) A business profit
E) A checkup by a doctor

Accepted Answer

Business profit is a financial result rather than a product.

Question 8

If a business is to be successful in the long run,it must produce quality products,operate efficiently,and be
A) fun.
B) socially responsible.
C) hard working.
D) egalitarian.
E) transparent.

Accepted Answer

Stakeholders have a stake in the success and outcomes of businesses;therefore a business should act with social responsibility toward its stakeholders.

Question 9

Products have tangible attributes only.

Accepted Answer

Products have both tangible and intangible attributes.A service,which has intangible attributes,is also a product.

Question 10

Customers,employees,and investors are examples of
A) entrepreneurs.
B) stockholders.
C) stakeholders.
D) entities.
E) organizations.

Accepted Answer

Stakeholders-including customers,employees,and investors-have a stake in the success and/or outcomes of a business.

Question 11

Managers coordinate resources to achieve the firm's goals.

Accepted Answer

Managers coordinate,organize,and motivate employees to achieve the business's goals.

Question 12

According to the text,profit is the reward for business in exchange for the ____ taken in providing products.
A) expenses
B) time
C) energy
D) risks
E) markets

Accepted Answer

Businesses assume risks in providing products and are entitled to the reward of profit.

Question 13

The primary goal of business activities is profit.

Accepted Answer

Without profit,businesses will go out of business.

Question 14

Nonprofit organizations such as Habitat for Humanity do not engage in management,marketing,or finance activities.

Accepted Answer

Nonprofit organizations do not accumulate profits but they do engage in business activities in order to provide goods and services.

Question 15

____ is the primary goal of business.
A) Growth
B) Profit
C) IPO
D) Marketing
E) Strategy

Accepted Answer

The primary goal of all businesses is to earn a profit.

Question 16

____ have both tangible and intangible characteristics.
A) Products
B) Services
C) Businesses
D) Stakeholders
E) Organizations

Accepted Answer

A product can be a tangible good,a service of value to a customer,or even an idea.

Question 17

Businesses differ from nonprofit organizations in that a business's focus is on
A) price.
B) goods.
C) profit.
D) organization.
E) plans.

Accepted Answer

Businesses strive to earn profits;nonprofit organizations do not.

Question 18

Businesses have the right to keep and use their profits as they choose,without limitations.

Accepted Answer

Within legal limitations,businesses have the right to keep and use their profits as they choose.

Question 19

The focus of all marketing activities is customer satisfaction.

Accepted Answer

Marketing includes all the activities designed to provide goods and services that satisfy customers' needs and wants.

Question 20

The goal of business is to earn
A) respect.
B) resources.
C) profits.
D) responsibility.
E) independence.

Accepted Answer

If a business does not earn a profit,it will go out of business.

Quiz 1: The Dynamics of Business and Economics

Finance refers to all activities concerned with obtaining money and using it effectively.

Owners always manage their businesses.

Profit is what it costs to make and sell a product.

When purchasing,a consumer is actually buying a product's anticipated benefits and

Briefly describe the goals of a business,especially the primary goal.

Owners have little responsibility to provide funds for the operation of the business.

Which of the following is not a product?

If a business is to be successful in the long run,it must produce quality products,operate efficiently,and be

Products have tangible attributes only.

Customers,employees,and investors are examples of

Managers coordinate resources to achieve the firm's goals.

According to the text,profit is the reward for business in exchange for the ____ taken in providing products.

The primary goal of business activities is profit.

Nonprofit organizations such as Habitat for Humanity do not engage in management,marketing,or finance activities.

____ is the primary goal of business.

____ have both tangible and intangible characteristics.

Businesses differ from nonprofit organizations in that a business's focus is on

Businesses have the right to keep and use their profits as they choose,without limitations.

The focus of all marketing activities is customer satisfaction.

The goal of business is to earn