Business: A Changing World Canadian 6th Edition by O.C. Ferrell – Test Bank PDF

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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) Products have tangible attributes only.
Answer: True False

2) The goal of business activities is to earn a profit.
Answer: True False

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

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

5) Profit is what it costs to make and sell a product.
Answer: True False

6) Businesses have the right to keep and use their profits as they choose, without limitations.
Answer: True False

7) Earning profits contributes to society by providing employment, which in turn provides money that
is reinvested in the economy.
Answer: True False

8) Finance is concerned with obtaining money and using it effectively.
Answer: True False

9) Owners have little responsibility to provide funds for the operation of the business.
Answer: True False

10) Managers coordinate resources to achieve organizational objectives.
Answer: True False

11) The focus of all marketing activities is customer satisfaction.
Answer: True False

12) Owners always manage their businesses themselves.
Answer: True False

13) Studying business will help you develop skills to employ in a future career, if that career takes place
in the country where you studied business topics.
Answer: True False




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14) One of the best-known Canadian marketing initiatives of all time is Tim Hortons' "Roll Up the Rim
to Win" campaign.
Answer: True False

15) A central issue of economics is how to fulfill consumers' unlimited demand for goods and services
in a world with limited resources.
Answer: True False

16) Naturalresources include land, minerals, water, and other gifts of nature which are not made by
humans.
Answer: True False

17) As the baby boomers, who make up roughly one-third of Canada's population, retire, Canada may
face a labour shortage in some sectors.
Answer: True False

18) Capitalism is an economic system in which the government owns and operates basic industries
while individuals own most other businesses.
Answer: True False

19) China
is an example of a communist economy that exists today which satisfies Karl Marx's ideal of
communism.
Answer: True False

20) Russia,Poland, Hungary, and other Eastern European nations have turned away from communism
and toward economic systems governed by supply and demand rather than by central planning.
Answer: True False

21) The Chinese state is the largest shareholder among China's largest companies and influences
thousands of other businesses.
Answer: True False

22) Most socialist nations are democratic.
Answer: True False

23) Human resources refer only to the mental abilities of people used to produce goods and services; it
is synonymous with knowledge.
Answer: True False

24) Iffree enterprise is going to be successful, individuals must have the right to choose what career to
pursue, where to live, what goods and services to purchase, and more.
Answer: True False

25) Demand is the quantity of goods and services that consumers are willing to buy at different prices at
a specific time.
Answer: True False

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26) The demand curve is upward sloping.
Answer: True False

27) The equilibrium price is represented by the point where a product's supply and demand curves
intersect.
Answer: True False

28) Monopolistic competition exists when there is only one producer of a product in a given market.
Answer: True False

29) An oligopoly exists when there are many small businesses selling one standardized product.
Answer: True False

30) Government-granted monopolies are not subject to government-regulated prices.
Answer: True False

31) A product's equilibrium price is constantly changing in response to changes in economic conditions,
availability of resources, and degree of competition.
Answer: True False

32) Economic expansion occurs when an economy is growing and people are spending more money.
Answer: True False

33) The standard of living rises because people have less money to spend.
Answer: True False

34) Inflation is a condition characterized by falling prices.
Answer: True False

35) A severe recession may turn into a depression.
Answer: True False

36) During a recession, unemployment is unusually low.
Answer: True False

37) Gross domestic product is the sum of all goods and services produced in a country during a year.
Answer: True False

38) Since 1997, it has been common policy for the government of Canada to run large budget deficits.
Answer: True False

39) Canada has had a positive trade balance for much of the last decade.
Answer: True False

40) When a nation collects more from taxes than it spends, it has a budget deficit.
Answer: True False


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