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Chapter 03 - Business in a Borderless World True / False Questions 1. Exporting is the purchase of products from another nation. FALSE Exporting is the selling of goods and services to foreign markets. Blooms: Remember Difficulty: Easy Learning Objective: 03-01 Explore some of the factors wi...

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  • 28 september 2023
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Voorbeeld van de inhoud

,Chapter 01 - The Dynamics of Business and Economics


Chapter 01
The Dynamics of Business and Economics




True / False Questions

1. Products have tangible attributes only.
FALSE

Products can also be a service, which has intangible attributes.


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-02 The Nature of Business



2. The goal of business activities is to earn a profit.
TRUE

Without profit, businesses will go out of business.


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business



3. Non-profit organizations, such as the Canadian Red Cross, do not have to engage in management, marketing,
or finance activities.
FALSE

Non-profit organizations do not accumulate profits, but they do provide goods and services to consumers.


Blooms: Understand
Difficulty: Medium
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business




1-1

,Chapter 01 - The Dynamics of Business and Economics



4. Organizations such as the Special Olympics have two fundamental purposes: to earn a profit and to
accomplish social objectives.
FALSE

Non-profit organizations, such as the Canadian Red Cross, Special Olympics, and other charities and social causes, do not
have the fundamental purpose of earning profits, although they may provide goods or services and engage in fundraising.


Blooms: Apply
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business



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

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


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business



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

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


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business



7. Earning profits contributes to society by providing employment, which in turn provides money that is
reinvested in the economy.
TRUE

In addition, profits must be earned in a responsible manner.


Blooms: Understand
Difficulty: Medium
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business




1-2

, Chapter 01 - The Dynamics of Business and Economics



8. Finance is concerned with obtaining money and using it effectively.
TRUE

Financial resources must be managed effectively for the business to succeed.


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Identify the main participants and activities of business and explain why studying business is important.
Topic: 01-04 The People and Activities of Business



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

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


Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Identify the main participants and activities of business and explain why studying business is important.
Topic: 01-04 The People and Activities of Business



10. Managers coordinate resources to achieve organizational objectives.
TRUE

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


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Identify the main participants and activities of business and explain why studying business is important.
Topic: 01-04 The People and Activities of Business



11. The focus of all marketing activities is customer satisfaction.
TRUE

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


Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Identify the main participants and activities of business and explain why studying business is important.
Topic: 01-04 The People and Activities of Business




1-3

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