,TESTBANK for BUSN , 12th Edition Marcella Kelly
Notes
1- All Chapters are step by step.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
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You can contact us at every time, we can
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Chapter 01: Business Now: Change Is the Only Constant
Multiple Choice
1. Which of the following statements is true of successful firms?
a. They overlook the overall sense of well-being experienced by their customers.
b. They focus on the price of a good rather than on the benefits offered.
c. They deliver unsurpassed value to their customers.
d. Their core goal is to generate short-term profits.
ANSWER: c
2. Which of the following is a difference between the millennial generation and Generation Z?
a. Unlike the millennial generation, Generation Z is comprised of people born between 1980 and 1995.
b. Unlike the millennial generation, Generation Z tends to be extremely tolerant and inclusive.
c. Unlike the millennial generation, Generation Z approaches adulthood planning to work for success.
d. Unlike the millennial generation, Generation Z feels entitled to a great job after college graduation.
ANSWER: c
3. Which of the following can be considered a business?
a. Bane’s, a state-funded firm that specializes in providing free consultations for at-risk children
b. Maddox, a private charity organization that donates clothes and canned goods to the homeless
c. Divas, an online store that offers discounted prices on designer shoes
d. Dalila, a federal agency that establishes and enforces environmental regulations
ANSWER: c
4. McNair and Nelly run a pawnshop in their neighborhood. They offer loans to individuals in exchange for items of equal
or higher value, which are used as collateral. If an individual is unable to repay the loan, McNair and Nelly then sell these
items at higher rates. In this scenario, McNair and Nelly's pawnshop is an example of a _______.
a. subsidy
b. nonprofit organization
c. business
d. charity
ANSWER: c
5. Which of the following statements is true of profit in a business?
a. It is the difference in the number of customers served between two financial years.
b. It is the financial reward that comes from starting and running a business.
c. It is the difference between the stock at the start and end of an inventory reporting period.
d. It is estimated by calculating the total interest amount due when a business has availed multiple loans.
ANSWER: b
6. What occurs when a business brings in less money than it needs to cover expenses?
a. Deferral
b. Loss
c. Depreciation
d. Bondage
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Chapter 01: Business Now: Change Is the Only Constant
ANSWER: b
7. Which of the following is a characteristic of entrepreneurs?
a. They believe in creating wealth for the underprivileged rather than for themselves.
b. They start a business so that no form of loss is incurred.
c. They have little or no impact on other people in society.
d. They risk their time, money, and other resources to start and manage their business.
ANSWER: d
8. Dai, along with Maddy and Rafe, have decided to start a new jewelry business. Dai invests her time, money, and efforts
in the project, and she directly manages the business development process. In this scenario, Dai is most likely a(n)
_______.
a. franchisor
b. entrepreneur
c. client
d. fundraiser
ANSWER: b
9. In the context of the history of American business, which of the following statements is true of the industrial
revolution?
a. Firms aimed at building long-term relationships with their customers.
b. There was a loss of personal pride in the production process.
c. Production efficiency was at its lowest.
d. There was a creation of individual ownership in the production process.
ANSWER: b
10. Terrence, a glassblower, used to own a workshop in the 1750s where he made hand-blown glass bottles of high
quality. However, due to technological advances, glass bottles started being mass-produced in factories, and Terrence’s
business began to decline. Given this information, it can be assumed that Terrence belonged to the _______.
a. relationship era
b. production era
c. digital revolution era
d. industrial revolution era
ANSWER: d
11. In the context of the history of American business, the _______ emerged in the second half of the 1800s, building on
the foundation of the industrial revolution.
a. entrepreneurship era
b. relationship era
c. marketing era
d. production era
ANSWER: a
12. In the context of the history of American business, which of the following occurred during the entrepreneurship era?
a. The balance of power shifted away from producers and toward consumers.
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,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
b. The internet and other digital resources were used to gather detailed information about customers to serve
them better.
c. Industrial titans created enormous wealth that raised the overall standard of living across the country.
d. The introduction of specialized jobs increased productivity, resulting in lowered costs.
ANSWER: c
13. In the context of the history of American business, during the entrepreneurship era, _______.
a. many industrial titans forced out their competitors
b. large-scale entrepreneurs failed to dominate their markets
c. the overall standard of living across the country declined rapidly
d. the balance of power shifted from producers and toward consumers
ANSWER: a
14. In the context of the history of American business, which of the following statements is true of the entrepreneurship
era?
a. Industrial titans exploited workers and decimated the environment.
b. Large-scale entrepreneurs failed to dominate their markets.
c. The overall standard of living across the country declined rapidly.
d. The balance of power shifted from producers and toward consumers.
ANSWER: a
15. Joseph Green, the owner of an oil company in the 1860s, started gaining more influence and money as his business
started to flourish, to a point where he began controlling the entire southeastern half of the U.S. oil services. He followed a
ruthless and cunning business strategy that involved exploiting workers and decimating the environment. In the context of
the history of American business, Joseph Green most likely belonged to the _______.
a. entrepreneurship era
b. production era
c. marketing era
d. relationship era
ANSWER: a
16. In the context of the history of American business, during the _______, jobs became more specialized, increasing
productivity and lowering costs and prices.
a. entrepreneurship era
b. production era
c. marketing era
d. relationship era
ANSWER: b
17. In the context of the history of American business, which of the following statements is true of the production era?
a. Major businesses focused on shifting the balance of power from producers and toward consumers.
b. The method of hard sell was eliminated.
c. The assembly line became standard across major manufacturing industries.
d. Leading-edge firms looked beyond each immediate transaction with a customer and aimed at building a long-
term relationship.
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,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
ANSWER: c
18. Jackson Motors, an automobile manufacturing company, was founded in 1914. The company primarily focused on
creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase
its output and lower the prices of its products. As a result, automobiles became an affordable commodity. In the context of
the history of American business, Jackson Motors was most likely founded during the _______.
a. digital information era
b. entrepreneurship era
c. marketing era
d. production era
ANSWER: d
19. In the context of the history of American business, which of the following statements is true of the marketing era?
a. Skilled artisan workshops were replaced by huge factories.
b. Major businesses focused on refining the production process and creating greater efficiencies.
c. Large-scale entrepreneurs dominated the market and raised the standard of living across the country.
d. The balance of power shifted away from producers and toward customers.
ANSWER: d
20. In the context of the history of American business, during the _______, businesses began to develop distinctive
identities to help customers understand the differences among various products.
a. industrial revolution
b. entrepreneurship era
c. marketing era
d. relationship era
ANSWER: c
21. Cal’s Hardware, a home and hardware company, was established post-World War II with the aim of catering to the
demands of consumers looking for access to the best quality tools for any job. To differentiate itself from its competitors,
the company developed a distinctive identity as the producer of quality tools. In the context of the history of American
business, Cal’s Hardware was most likely established during the _______.
a. production era
b. marketing era
c. industrial revolution era
d. entrepreneurship era
ANSWER: b
22. Which of the following approaches, which emerged during the marketing era, continues to influence business
decisions today as global competition heats up to unprecedented heights?
a. A consumer focus that permeates successful companies in every department, at every level
b. A focus on aggressive persuasion designed to separate consumers from their cash
c. A narrow focus on using digital resources to gather customer information
d. A focus on increasing profits that results in a high standard of living for people across the country
ANSWER: a
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,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
23. In the _______, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-
term ties.
a. marketing era
b. entrepreneurship era
c. relationship era
d. production era
ANSWER: c
24. White Slopes Retreat is a ski resort in Colorado. The members of the marketing department of the resort work hard to
develop long-term associations with the resort's customers. At the end of their stay, they survey customers about their stay
and offer free ski gear rentals on their next visit. In the context of the history of American business, the marketing
department is most likely using concepts that were popularized during the _______.
a. entrepreneurship era
b. production era
c. relationship era
d. technology era
ANSWER: c
25. A small-scale start-up in England is struggling financially because it is unable to generate enough capital to run its
business transactions. To generate capital, the firm decides to use online websites, social media, and other digital
resources to build long-term associations with current customers and to reach out to new customers. In this scenario, the
firm is using concepts that primarily originated in the _______ of American business history.
a. entrepreneurship era
b. relationship era
c. production era
d. industrial era
ANSWER: b
26. Valentino, a chain of jewelry stores, uses social media for advertising purposes. It also maintains a dedicated
interactive website where customers write reviews and discuss their experiences shopping at the store. In the context of
the history of American business, Valentino most likely belongs to the _______.
a. relationship era
b. entrepreneurship era
c. production era
d. industrial revolution era
ANSWER: a
27. In the context of the relationship era, leading-edge firms believe that _______.
a. seeking new customers is more profitable than cultivating current customers
b. closely focusing on each immediate transaction with a customer is more likely to be profitable than building
long-term relationships
c. satisfied customers can promote their business with more speed than promotional campaigns
d. using digital resources to gather customer data can hinder their quality of service
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
28. Which of the following is a business-like establishment that employs people and produces goods and services with the
fundamental goal of contributing to the community rather than generating financial gain?
a. Charity
b. Corporation
c. Nonprofit
d. Political organization
ANSWER: c
29. Which of the following statements is true of nonprofit organizations?
a. They are usually in the business of financial gains.
b. They employ people and take in revenue.
c. They do not produce goods and services.
d. They are not business-like establishments.
ANSWER: b
30. Nonprofit organizations _______.
a. are usually in the business of financial gain
b. do not contribute to a region's economic stability and growth
c. account for more paid workers than the entire construction industry
d. are not business-like establishments
ANSWER: c
31. Which of the following is an example of a nonprofit organization?
a. Alwins, a regional grocery store that sells locally sourced, organic food
b. Nage, a community museum that is funded by a trust and is free for public use
c. Raven, a home goods magazine publication that sells magazines at low prices and issues free subscriptions to
consumers who are yearly subscribers
d. Baba, a local bookstore that sells a collection of books in the STEM field
ANSWER: b
32. Jadyn’s House of Java is a coffee shop that specializes in preparing delicious coffee blends. The company donates
most of its earnings to local animal shelters and keeps just enough to buy raw materials. The primary goal of the company
is to contribute to the care and treatment of animals needing protection. In this scenario, Jadyn’s House of Java would
most likely be classified as a _______.
a. political organization
b. paper organization
c. nonprofit organization
d. corporation
ANSWER: c
33. In the context of the factors of production, which of the following is a natural resource?
a. A piece of equipment
b. Land
c. An investment
d. Information
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Chapter 01: Business Now: Change Is the Only Constant
ANSWER: b
34. Purple Gems sells ornate jewelry made from rare jewels. The store is most famous for its use of the Tanzanite
gemstones from northern Tanzania. In this scenario, the gemstones obtained by Purple Gems can be classified as
_______.
a. human resources
b. capital resources
c. natural resources
d. manmade resources
ANSWER: c
35. Macia, a lumber company, imports lumber from Gaiwan lumber mill in Canada. In this scenario, the lumber obtained
by Macia can be classified as _______.
a. natural resources
b. manmade resources
c. human resources
d. capital resources
ANSWER: a
36. Five Metals is a manufacturer of bronze sculptures. It obtains copper ore from Bingham Canyon in Utah. In this
scenario, the copper ore obtained by Five Metals can be classified as _______.
a. human resources
b. capital resources
c. natural resources
d. manmade resources
ANSWER: c
37. Rahul & Co. sells premium quality wine. The company owns 400 acres of land on which it has established a vineyard
with a winery. In this scenario, the land owned by Rahul & Co. can be classified as _______.
a. manmade resources
b. capital resources
c. human resources
d. natural resources
ANSWER: d
38. Which of the following is an example of capital?
a. Copper used to make wiring for an electrical company
b. A truck used to transfer tools from one place to another for a construction company
c. Cotton used to make fabric for a clothing company
d. An accountant who analyses financial accounts for a marketing firm
ANSWER: b
39. In the context of the factors of production, which of the following statements is true of natural resources?
a. They are also referred to as manmade resources.
b. They do not require extraction, purification, or harnessing.
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Chapter 01: Business Now: Change Is the Only Constant
c. Cereal crops are an example of natural resources.
d. The value of all natural resources tends to rise with high demand.
ANSWER: d
40. In the context of the factors of production, the value of all natural resources tends to _______.
a. rise with high demand, low supply, or both
b. fall when the demand is high, irrespective of the rate of supply
c. fall when the supply is low, irrespective of the rate of demand
d. rise with low demand, high supply, or both
ANSWER: a
41. In the context of the factors of production, the synthetic resources that a business needs to produce goods or services
are referred to as _______.
a. nonprofits
b. the hard sell
c. capital
d. depositories
ANSWER: c
42. In the context of the factors of production, which of the following statements is true of capital?
a. It includes all inputs that offer value in their natural state.
b. It does not include money.
c. It involves the creative contributions of people working within an economy.
d. It is not a fundamental resource for nonprofits.
ANSWER: b
43. A university has contracted a construction company to build a dining hall for its new campus. In the context of the
factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred
to as _______.
a. equity
b. human resources
c. natural resources
d. capital
ANSWER: d
44. Golden Ore Bank has 400 automated teller machines (ATMs) across the country. Customers can use these machines to
perform several actions like withdrawing money, depositing money, checking their account balances, and transferring
money to other accounts. These machines enable Golden Ore Bank to carry out some of its operations smoothly. In the
given scenario, the ATMs of Golden Ore Bank can be classified as _______.
a. natural resources
b. capital
c. human resources
d. equity
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 8
Notes
1- All Chapters are step by step.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
Multiple Choice
1. Which of the following statements is true of successful firms?
a. They overlook the overall sense of well-being experienced by their customers.
b. They focus on the price of a good rather than on the benefits offered.
c. They deliver unsurpassed value to their customers.
d. Their core goal is to generate short-term profits.
ANSWER: c
2. Which of the following is a difference between the millennial generation and Generation Z?
a. Unlike the millennial generation, Generation Z is comprised of people born between 1980 and 1995.
b. Unlike the millennial generation, Generation Z tends to be extremely tolerant and inclusive.
c. Unlike the millennial generation, Generation Z approaches adulthood planning to work for success.
d. Unlike the millennial generation, Generation Z feels entitled to a great job after college graduation.
ANSWER: c
3. Which of the following can be considered a business?
a. Bane’s, a state-funded firm that specializes in providing free consultations for at-risk children
b. Maddox, a private charity organization that donates clothes and canned goods to the homeless
c. Divas, an online store that offers discounted prices on designer shoes
d. Dalila, a federal agency that establishes and enforces environmental regulations
ANSWER: c
4. McNair and Nelly run a pawnshop in their neighborhood. They offer loans to individuals in exchange for items of equal
or higher value, which are used as collateral. If an individual is unable to repay the loan, McNair and Nelly then sell these
items at higher rates. In this scenario, McNair and Nelly's pawnshop is an example of a _______.
a. subsidy
b. nonprofit organization
c. business
d. charity
ANSWER: c
5. Which of the following statements is true of profit in a business?
a. It is the difference in the number of customers served between two financial years.
b. It is the financial reward that comes from starting and running a business.
c. It is the difference between the stock at the start and end of an inventory reporting period.
d. It is estimated by calculating the total interest amount due when a business has availed multiple loans.
ANSWER: b
6. What occurs when a business brings in less money than it needs to cover expenses?
a. Deferral
b. Loss
c. Depreciation
d. Bondage
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
ANSWER: b
7. Which of the following is a characteristic of entrepreneurs?
a. They believe in creating wealth for the underprivileged rather than for themselves.
b. They start a business so that no form of loss is incurred.
c. They have little or no impact on other people in society.
d. They risk their time, money, and other resources to start and manage their business.
ANSWER: d
8. Dai, along with Maddy and Rafe, have decided to start a new jewelry business. Dai invests her time, money, and efforts
in the project, and she directly manages the business development process. In this scenario, Dai is most likely a(n)
_______.
a. franchisor
b. entrepreneur
c. client
d. fundraiser
ANSWER: b
9. In the context of the history of American business, which of the following statements is true of the industrial
revolution?
a. Firms aimed at building long-term relationships with their customers.
b. There was a loss of personal pride in the production process.
c. Production efficiency was at its lowest.
d. There was a creation of individual ownership in the production process.
ANSWER: b
10. Terrence, a glassblower, used to own a workshop in the 1750s where he made hand-blown glass bottles of high
quality. However, due to technological advances, glass bottles started being mass-produced in factories, and Terrence’s
business began to decline. Given this information, it can be assumed that Terrence belonged to the _______.
a. relationship era
b. production era
c. digital revolution era
d. industrial revolution era
ANSWER: d
11. In the context of the history of American business, the _______ emerged in the second half of the 1800s, building on
the foundation of the industrial revolution.
a. entrepreneurship era
b. relationship era
c. marketing era
d. production era
ANSWER: a
12. In the context of the history of American business, which of the following occurred during the entrepreneurship era?
a. The balance of power shifted away from producers and toward consumers.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
b. The internet and other digital resources were used to gather detailed information about customers to serve
them better.
c. Industrial titans created enormous wealth that raised the overall standard of living across the country.
d. The introduction of specialized jobs increased productivity, resulting in lowered costs.
ANSWER: c
13. In the context of the history of American business, during the entrepreneurship era, _______.
a. many industrial titans forced out their competitors
b. large-scale entrepreneurs failed to dominate their markets
c. the overall standard of living across the country declined rapidly
d. the balance of power shifted from producers and toward consumers
ANSWER: a
14. In the context of the history of American business, which of the following statements is true of the entrepreneurship
era?
a. Industrial titans exploited workers and decimated the environment.
b. Large-scale entrepreneurs failed to dominate their markets.
c. The overall standard of living across the country declined rapidly.
d. The balance of power shifted from producers and toward consumers.
ANSWER: a
15. Joseph Green, the owner of an oil company in the 1860s, started gaining more influence and money as his business
started to flourish, to a point where he began controlling the entire southeastern half of the U.S. oil services. He followed a
ruthless and cunning business strategy that involved exploiting workers and decimating the environment. In the context of
the history of American business, Joseph Green most likely belonged to the _______.
a. entrepreneurship era
b. production era
c. marketing era
d. relationship era
ANSWER: a
16. In the context of the history of American business, during the _______, jobs became more specialized, increasing
productivity and lowering costs and prices.
a. entrepreneurship era
b. production era
c. marketing era
d. relationship era
ANSWER: b
17. In the context of the history of American business, which of the following statements is true of the production era?
a. Major businesses focused on shifting the balance of power from producers and toward consumers.
b. The method of hard sell was eliminated.
c. The assembly line became standard across major manufacturing industries.
d. Leading-edge firms looked beyond each immediate transaction with a customer and aimed at building a long-
term relationship.
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
ANSWER: c
18. Jackson Motors, an automobile manufacturing company, was founded in 1914. The company primarily focused on
creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase
its output and lower the prices of its products. As a result, automobiles became an affordable commodity. In the context of
the history of American business, Jackson Motors was most likely founded during the _______.
a. digital information era
b. entrepreneurship era
c. marketing era
d. production era
ANSWER: d
19. In the context of the history of American business, which of the following statements is true of the marketing era?
a. Skilled artisan workshops were replaced by huge factories.
b. Major businesses focused on refining the production process and creating greater efficiencies.
c. Large-scale entrepreneurs dominated the market and raised the standard of living across the country.
d. The balance of power shifted away from producers and toward customers.
ANSWER: d
20. In the context of the history of American business, during the _______, businesses began to develop distinctive
identities to help customers understand the differences among various products.
a. industrial revolution
b. entrepreneurship era
c. marketing era
d. relationship era
ANSWER: c
21. Cal’s Hardware, a home and hardware company, was established post-World War II with the aim of catering to the
demands of consumers looking for access to the best quality tools for any job. To differentiate itself from its competitors,
the company developed a distinctive identity as the producer of quality tools. In the context of the history of American
business, Cal’s Hardware was most likely established during the _______.
a. production era
b. marketing era
c. industrial revolution era
d. entrepreneurship era
ANSWER: b
22. Which of the following approaches, which emerged during the marketing era, continues to influence business
decisions today as global competition heats up to unprecedented heights?
a. A consumer focus that permeates successful companies in every department, at every level
b. A focus on aggressive persuasion designed to separate consumers from their cash
c. A narrow focus on using digital resources to gather customer information
d. A focus on increasing profits that results in a high standard of living for people across the country
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
23. In the _______, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-
term ties.
a. marketing era
b. entrepreneurship era
c. relationship era
d. production era
ANSWER: c
24. White Slopes Retreat is a ski resort in Colorado. The members of the marketing department of the resort work hard to
develop long-term associations with the resort's customers. At the end of their stay, they survey customers about their stay
and offer free ski gear rentals on their next visit. In the context of the history of American business, the marketing
department is most likely using concepts that were popularized during the _______.
a. entrepreneurship era
b. production era
c. relationship era
d. technology era
ANSWER: c
25. A small-scale start-up in England is struggling financially because it is unable to generate enough capital to run its
business transactions. To generate capital, the firm decides to use online websites, social media, and other digital
resources to build long-term associations with current customers and to reach out to new customers. In this scenario, the
firm is using concepts that primarily originated in the _______ of American business history.
a. entrepreneurship era
b. relationship era
c. production era
d. industrial era
ANSWER: b
26. Valentino, a chain of jewelry stores, uses social media for advertising purposes. It also maintains a dedicated
interactive website where customers write reviews and discuss their experiences shopping at the store. In the context of
the history of American business, Valentino most likely belongs to the _______.
a. relationship era
b. entrepreneurship era
c. production era
d. industrial revolution era
ANSWER: a
27. In the context of the relationship era, leading-edge firms believe that _______.
a. seeking new customers is more profitable than cultivating current customers
b. closely focusing on each immediate transaction with a customer is more likely to be profitable than building
long-term relationships
c. satisfied customers can promote their business with more speed than promotional campaigns
d. using digital resources to gather customer data can hinder their quality of service
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
28. Which of the following is a business-like establishment that employs people and produces goods and services with the
fundamental goal of contributing to the community rather than generating financial gain?
a. Charity
b. Corporation
c. Nonprofit
d. Political organization
ANSWER: c
29. Which of the following statements is true of nonprofit organizations?
a. They are usually in the business of financial gains.
b. They employ people and take in revenue.
c. They do not produce goods and services.
d. They are not business-like establishments.
ANSWER: b
30. Nonprofit organizations _______.
a. are usually in the business of financial gain
b. do not contribute to a region's economic stability and growth
c. account for more paid workers than the entire construction industry
d. are not business-like establishments
ANSWER: c
31. Which of the following is an example of a nonprofit organization?
a. Alwins, a regional grocery store that sells locally sourced, organic food
b. Nage, a community museum that is funded by a trust and is free for public use
c. Raven, a home goods magazine publication that sells magazines at low prices and issues free subscriptions to
consumers who are yearly subscribers
d. Baba, a local bookstore that sells a collection of books in the STEM field
ANSWER: b
32. Jadyn’s House of Java is a coffee shop that specializes in preparing delicious coffee blends. The company donates
most of its earnings to local animal shelters and keeps just enough to buy raw materials. The primary goal of the company
is to contribute to the care and treatment of animals needing protection. In this scenario, Jadyn’s House of Java would
most likely be classified as a _______.
a. political organization
b. paper organization
c. nonprofit organization
d. corporation
ANSWER: c
33. In the context of the factors of production, which of the following is a natural resource?
a. A piece of equipment
b. Land
c. An investment
d. Information
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Business Now: Change Is the Only Constant
ANSWER: b
34. Purple Gems sells ornate jewelry made from rare jewels. The store is most famous for its use of the Tanzanite
gemstones from northern Tanzania. In this scenario, the gemstones obtained by Purple Gems can be classified as
_______.
a. human resources
b. capital resources
c. natural resources
d. manmade resources
ANSWER: c
35. Macia, a lumber company, imports lumber from Gaiwan lumber mill in Canada. In this scenario, the lumber obtained
by Macia can be classified as _______.
a. natural resources
b. manmade resources
c. human resources
d. capital resources
ANSWER: a
36. Five Metals is a manufacturer of bronze sculptures. It obtains copper ore from Bingham Canyon in Utah. In this
scenario, the copper ore obtained by Five Metals can be classified as _______.
a. human resources
b. capital resources
c. natural resources
d. manmade resources
ANSWER: c
37. Rahul & Co. sells premium quality wine. The company owns 400 acres of land on which it has established a vineyard
with a winery. In this scenario, the land owned by Rahul & Co. can be classified as _______.
a. manmade resources
b. capital resources
c. human resources
d. natural resources
ANSWER: d
38. Which of the following is an example of capital?
a. Copper used to make wiring for an electrical company
b. A truck used to transfer tools from one place to another for a construction company
c. Cotton used to make fabric for a clothing company
d. An accountant who analyses financial accounts for a marketing firm
ANSWER: b
39. In the context of the factors of production, which of the following statements is true of natural resources?
a. They are also referred to as manmade resources.
b. They do not require extraction, purification, or harnessing.
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c. Cereal crops are an example of natural resources.
d. The value of all natural resources tends to rise with high demand.
ANSWER: d
40. In the context of the factors of production, the value of all natural resources tends to _______.
a. rise with high demand, low supply, or both
b. fall when the demand is high, irrespective of the rate of supply
c. fall when the supply is low, irrespective of the rate of demand
d. rise with low demand, high supply, or both
ANSWER: a
41. In the context of the factors of production, the synthetic resources that a business needs to produce goods or services
are referred to as _______.
a. nonprofits
b. the hard sell
c. capital
d. depositories
ANSWER: c
42. In the context of the factors of production, which of the following statements is true of capital?
a. It includes all inputs that offer value in their natural state.
b. It does not include money.
c. It involves the creative contributions of people working within an economy.
d. It is not a fundamental resource for nonprofits.
ANSWER: b
43. A university has contracted a construction company to build a dining hall for its new campus. In the context of the
factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred
to as _______.
a. equity
b. human resources
c. natural resources
d. capital
ANSWER: d
44. Golden Ore Bank has 400 automated teller machines (ATMs) across the country. Customers can use these machines to
perform several actions like withdrawing money, depositing money, checking their account balances, and transferring
money to other accounts. These machines enable Golden Ore Bank to carry out some of its operations smoothly. In the
given scenario, the ATMs of Golden Ore Bank can be classified as _______.
a. natural resources
b. capital
c. human resources
d. equity
ANSWER: b
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