,Test Bank For
Business Foundations A Changing World 13e O. C. Ferrell, Geoffrey Hirt and Linda Ferrell
Chapter 1-16 with Bonus chapter and Appendix
Answers are at the End of Each Chapter
Chapter 1
Student name:__________
1) When you pay for your clothes to be dry cleaned or to receive a massage at the spa, you are
not receiving a product in return for your purchase.
⊚ true
⊚ false
2) The issuance of stocks and bonds is a marketing activity for a company.
⊚ true
⊚ false
3) The focus of all marketing activities is the successful transformation of resources into goods
and services.
⊚ true
⊚ false
4) Learning about business can help you become a well-informed consumer and member of
society.
⊚ true
⊚ false
5) All economic systems must address three important issues, one of which is how the goods
and services will be produced.
⊚ true
⊚ false
,6) Countries such as China and Russia have used state capitalism to advance the economy.
⊚ true
⊚ false
7) Manu lives in Australia, where business owners can determine how to operate their own
businesses. There is some regulation, but overall Manu has the freedom to make his own
choices. Manu’s government operates as a free-enterprise system.
⊚ true
⊚ false
8) The equilibrium price is represented by the point where a product’s supply and demand
curves intersect.
⊚ true
⊚ false
9) The current national debt is around $5 trillion.
⊚ true
⊚ false
10) While ethical behavior can enhance a company’s reputation, it often has a negative effect on
the company’s financial performance.
⊚ true
⊚ false
11) ________ is the primary goal of business.
A) Service
B) Profit
C) Innovation
D) Quality
E) Strategy
, 12) Businesses differ from nonprofit organizations in that a business's focus is on
A) profit.
B) goods.
C) price.
D) charity.
E) fund-raising.
13) Which of these is an intangible product?
A) a movie DVD
B) a kitten
C) perfume
D) a music concert
E) jewelry
14) Vidor hired an attorney to help him draft a purchase and sale agreement for his new home.
The home is an example of a product that is a(n)
A) idea.
B) service.
C) tangible item.
D) process.
E) intangible good.
15) Which of these is a tangible product?
A) an automobile
B) a movie viewing
C) a haircut
D) a music concert
E) a business conference
Which statement about businesses and profits is accurate?
F) Profit-making is a business activity that seldom requires risk taking.
G) U.S. businesses do not have the right to use their profits the way they choose.
H) Profit-making businesses often weaken the economy of a country.
I) Earning profits contributes to society by creating resources that support social
institutions and government.
J) Ignoring the interests of stakeholders is the best way for a business to be profitable.
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 Succeed. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $27.49. You're not tied to anything after your purchase.
