Chapter 01 - The Dynamics of Business and Economics
True / False Questions
1. Products have tangible attributes only.
FALSE
Chapter 01 The Dynamics of Business and Economics
Products can also be a service, which has intangible attributes.
Blooms: Remember
Difficulty: Easy
Learning Objectiv...
,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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $33.01. You're not tied to anything after your purchase.
