Test Bank for Introduction to Business – OpenStax | True False, MCQs & Fill in the Blank Questions

TEST BANK
Introduction to Business by OpenStax




Book Details:
ISBN: 9781947172548
Publisher: OpenStax
Format: PDF Digital Download

Included in this Test Bank:

• TRUE/FALSE Questions
• MULTIPLE-CHOICE Questions
• FILL-IN-THE-BLANK Questions
• Chapter-by-Chapter Practice Material
• Instructor Testing Resources
• Exam Preparation Support

Table of Contents
1. Understanding Economic Systems and Business
2. Making Ethical Decisions and Managing a Socially Responsible Business

,3. Competing in the Global Marketplace
4. Forms of Business Ownership
5. Entrepreneurship: Starting and Managing Your Own Business
6. Management and Leadership in Today’s Organizations
7. Designing Organizational Structures
8. Managing Human Resources and Labor Relations
9. Motivating Employees
10. Achieving World-class Operations Management
11. Creating Products and Pricing Strategies to Meet Customers’ Needs
12. Distributing and Promoting Products and Services
13. Using Technology to Manage Information
14. Using Financial Information and Accounting
15. Understanding Money and Financial Institutions
16. Understanding Financial Management and Securities Markets
17. Your Career in Business

CHAPTER NO. 01: UNDERSTANDING ECONOMIC SYSTEMS AND
BUSINESS

TRUE-FALSE QUESTION ANSWERS

Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
1. A business is an organization that strives for a profit by providing goods and services
desired by its customers.
a. True
b. False

Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1
RATIONALE: The major difference is tangibility
2. The major difference between a good and a service is how the producer uses the
factors of production to create each.
a. True
b. False

Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1
RATIONALE: Not-for-profit organizations exist to achieve some goal other than profit.
3. Not-for-profit organizations have the same goals as for-profit organizations.
a. True
b. False

Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
4. Factors of production are common to all productive activities, regardless of the
economic system.
a. True
b. False

Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1
RATIONALE: Labor is the economic contribution of the people.

,5. Labor, as a factor of production, relates only to the production of manufactured goods;
services are not included.
a. True
b. False

Title: ANSWER: F REFERENCE: The Nature of Business LEARNING OUTCOME: 1
RATIONALE: Capital is all the inputs used to produce goods and services and get them
to the customer.
6. As a factor of production, capital includes money.
a. True
b. False

Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
7. People who combine natural resources, labor, and capital in a profitable venture are
called entrepreneurs.
a. True
b. False

Title: ANSWER: T REFERENCE: The Nature of Business LEARNING OUTCOME: 1
8. Many people consider knowledge to be a fifth factor of production.
a. True
b. False

Title: ANSWER: T REFERENCE: Understanding the Business Environment
LEARNING OUTCOME: 2
9. Business owners and managers have a great deal of control over the internal
environment of business, which covers the day-to-day business decisions.
a. True
b. False

Title: ANSWER: F REFERENCE: Understanding the Business Environment
LEARNING OUTCOME: 2
RATIONALE: No one business is large enough or powerful enough to create major
changes in the external environment.
10. Some global corporations are large enough to create major changes in the external
environment.
a. True
b. False

Title: ANSWER: F REFERENCE: Demographic Factors LEARNING OUTCOME: 2
RATIONALE: Demography is the study of people's vital statistics.
11. Demography is the study of how people use their free time, how people integrate their
hobbies and their vocations, and how people make their purchase decisions.
a. True
b. False

, Title: ANSWER: T REFERENCE: Demographic Factors LEARNING OUTCOME: 2
12. The term Generation X refers to people born between 1965 and 1980.
a. True
b. False

Title: ANSWER: T REFERENCE: Demographic Factors LEARNING OUTCOME: 2
RATIONALE: Baby boomers are Americans that are retiring or near-retirement age.
Most are vital contributors to the U.S.'s economy.
13. Baby boomers are Americans that are retiring or near-retirement age.
a. True
b. False

Title: ANSWER: T REFERENCE: Social Factors LEARNING OUTCOME: 2
14. Social factors influence what, how, where, and when to purchase products or services.
a. True
b. False

Title: ANSWER: F REFERENCE: How Business and Economies Work LEARNING
OUTCOME: 3 RATIONALE: Economics is the study of how a society uses scarce
resources to produce and distribute goods and services.
15. Economics is the study of a society’s financial institutions.
a. True
b. False

Title: ANSWER: F REFERENCE: Microeconomics and Macroeconomics LEARNING
OUTCOME: 3
RATIONALE: Microeconomics focuses on individual parts of the economy.
16. When Raoul Welsh is evaluating the construction industry in terms of interest rates,
employment cycles, and the rate of new home building nationwide, he is looking at
microeconomics.
a. True
b. False

Title: ANSWER: F REFERENCE: Striving for Economic Growth LEARNING
OUTCOME: 4 RATIONALE: A decline in GDP that lasts for at least two consecutive
quarters is a recession.
17. It takes four consecutive quarters of decline in the GDP for economists to consider
the economy to be in a recession.
a. True
b. False

Title: ANSWER: T REFERENCE: Keeping People on the Job LEARNING OUTCOME:
4
18. Full employment means 94-96 percent of the working force is employed.
a. True
b. False