,TESTBANK FOR Contemporary Business 20e Boone
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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:
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Package Title: Chapter 1, Testbank
Course Title: Boone, Contemporary Business, 20th Edition
Chapter Number: 1
Question type: Multiple Choice
1) _____ are businesslike establishments that have primary objectives other than returning profits
to their owners.
a) Entrepreneurs
b) Strategic alliances
c) Brands
d) Not-for-profit organizations
Answer: d) Not-for-profit organizations
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
2) Accountants think of profits as:
a) the overall sales of a company in comparison with its top competitor.
b) the difference between a firm’s revenues and the expenses incurred in generating them.
c) the value of the products or services sold during a financial year.
d) the difference between the capital and revenue obtained through selling stocks.
Answer: b) the difference between a firm’s revenues and the expenses incurred in generating
them.
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
3) For successful companies, which of the following statements is true?
a) They often adapt to changes in customer tastes.
b) They spend less time on technology-related projects.
c) They refrain from all kinds of competition.
d) They strive to reduce the standards of living of their respective countries.
Answer: a) They often adapt to changes in customer tastes.
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
4) All of these statements are true regarding businesses EXCEPT:
a) Some businesses are not motivated by profit growth.
b) Businesses provide goods and services necessary to an economic system.
c) Businesses are the economic pulse of a nation.
d) Businesses are nonprofit organizations that provide services to the public.
Answer: d) Businesses are nonprofit organizations that provide services to the public.
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
5) Jason is an accountant. When he is looking at clients’ books, for him, profits are _____.
a) the difference between revenues and expenses
b) the sum of commissions earned and receipts
c) the difference between sales and expenses
d) the sum of sales and expenses
Answer: a) the difference between revenues and expenses
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
6) In the U.S. economy, _____ are considered the reward for the risk of entering a business.
a) revenues
b) concessions
c) profits
d) sales
Answer: c) profits
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
7) Which of these are essential because it serves as a primary incentive for people to start com-
panies, expand them, and provide consistently high-quality competitive goods and services?
a) Coupons
b) Profits
c) Discounts
d) Rebates
Answer: b) Profits
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
8) Which of the following is NOT typically a part of the not-for-profit sector?
a) Labor unions
b) Religious organizations
c) Hotels
d) Museums
Answer: c) Hotels
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
9) Which of the following is a public sector, not-for-profit organization?
a) Library
b) Museum
c) Charitable group
d) Labor union
Answer: d) Labor union
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
10) The Allegany County Library provides a wide variety of library services to its neighborhood.
It also provides free online support to its members, and any fee collected from its members goes
directly to charity. The library is an example of a(n) _____.
a) not-for-profit organization
b) corporate organization
c) offshore unit
d) business conglomerate
Answer: a) not-for-profit organization
Difficulty: Medium
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Application
11) Stewart is a small business owner who runs a local coffee shop and a bakery. For Stewart,
_____ represents an earned reward for taking the risks of running the business.
a) government intervention
b) concessions
c) profits
d) long hours
Answer: c) profits
Difficulty: Medium
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Application
12) A tax law provision granted to not-for-profits by the Internal Revenue Service is called
_______.
a) strategic alliance
b) concession
c) consumer orientation
d) section 501(c)(3)
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: d) section 501(c)(3)
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
13) Why is flexibility and innovation crucial for long-term business success?
a) To maintain static business models
b) To avoid changes in consumer behavior
c) To adapt to global changes and technological advancements
d) To ensure constant production efficiency
Answer: c) To adapt to global changes and technological advancements
Difficulty: Hard
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What Is Business?
AACSB: Analytic
Bloom code: Analysis
14) _____ refers to technology, tools, information, and physical facilities.
a) Outsourcing
b) Capital
c) Factors of production
d) Brand
Answer: b) Capital
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
15) A person who sees a profitable opportunity and then devises a plan to achieve that profit is
called a(n) _____.
a) entrepreneur
b) competitive differentiator
c) visionary
d) brand expert
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: a) entrepreneur
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
16) To operate effectively, certain inputs called _____ are required for all economic systems.
a) competitive differentiation
b) capital
c) vision
d) factors of production
Answer: d) factors of production
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
17) Which of the following represent the factors of production in an economic system?
a) Land, rent, capital, and human resources
b) Capital, perseverance, natural resources, and human resources
c) Rent, wages, interest, and profit
d) Land, labor, capital, entrepreneurship, and knowledge
Answer: d) Land, labor, capital, entrepreneurship, and knowledge
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
18) Timbers Are Us, a lumber company, utilizes _____ as its primary production factor.
a) human resources
b) entrepreneurship
c) capital
d) natural resources
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: d) natural resources
Difficulty: Medium
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Application
19) Technology, tools, information, and physical facilities for the operation of a business are ex-
amples of _____.
a) profits
b) wages
c) capital
d) liability
Answer: c) capital
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
20) A company that values employees as sources of ideas and innovation is utilizing its _____.
a) entrepreneurship
b) natural resources
c) capital
d) labor
Answer: d) labor
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
21) The labor of a firm refers to _____.
a) household consumers
b) everyone who works for the business
c) full-time employees
d) top management executives
Copyright © 2025 John Wiley & Sons, Inc.
, Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: b) everyone who works for the business
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
22) ABC Mining Inc. is a small-scale mining company that started its business in 2011. By the
year 2018, the firm had to close its operations. The company had been continuously laying off its
employees since 2016, which led to the further downsizing of the firm. The decline in the avail-
ability of minerals in its operating region since 2014 has contributed vastly to its downfall and
also reduced the need to inject new capital since then. Which of the following factors of produc-
tion has primarily caused the firm to end its operations?
a) Natural resources
b) Capital
c) Human resources
d) Entrepreneurship
Answer: a) Natural resources
Difficulty: Medium
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Application
23) Samantha, a former middle manager from Gaylord Manufacturing, owns and operates a 7-
Eleven franchise. Samantha is demonstrating _____.
a) social responsibility
b) socialism
c) entrepreneurship
d) pure competition
Answer: c) entrepreneurship
Difficulty: Medium
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Application
24) Which of the following represent corresponding factor payments for labor and capital?
Copyright © 2025 John Wiley & Sons, Inc.
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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:
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Package Title: Chapter 1, Testbank
Course Title: Boone, Contemporary Business, 20th Edition
Chapter Number: 1
Question type: Multiple Choice
1) _____ are businesslike establishments that have primary objectives other than returning profits
to their owners.
a) Entrepreneurs
b) Strategic alliances
c) Brands
d) Not-for-profit organizations
Answer: d) Not-for-profit organizations
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
2) Accountants think of profits as:
a) the overall sales of a company in comparison with its top competitor.
b) the difference between a firm’s revenues and the expenses incurred in generating them.
c) the value of the products or services sold during a financial year.
d) the difference between the capital and revenue obtained through selling stocks.
Answer: b) the difference between a firm’s revenues and the expenses incurred in generating
them.
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
3) For successful companies, which of the following statements is true?
a) They often adapt to changes in customer tastes.
b) They spend less time on technology-related projects.
c) They refrain from all kinds of competition.
d) They strive to reduce the standards of living of their respective countries.
Answer: a) They often adapt to changes in customer tastes.
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
4) All of these statements are true regarding businesses EXCEPT:
a) Some businesses are not motivated by profit growth.
b) Businesses provide goods and services necessary to an economic system.
c) Businesses are the economic pulse of a nation.
d) Businesses are nonprofit organizations that provide services to the public.
Answer: d) Businesses are nonprofit organizations that provide services to the public.
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
5) Jason is an accountant. When he is looking at clients’ books, for him, profits are _____.
a) the difference between revenues and expenses
b) the sum of commissions earned and receipts
c) the difference between sales and expenses
d) the sum of sales and expenses
Answer: a) the difference between revenues and expenses
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
6) In the U.S. economy, _____ are considered the reward for the risk of entering a business.
a) revenues
b) concessions
c) profits
d) sales
Answer: c) profits
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
7) Which of these are essential because it serves as a primary incentive for people to start com-
panies, expand them, and provide consistently high-quality competitive goods and services?
a) Coupons
b) Profits
c) Discounts
d) Rebates
Answer: b) Profits
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Comprehension
8) Which of the following is NOT typically a part of the not-for-profit sector?
a) Labor unions
b) Religious organizations
c) Hotels
d) Museums
Answer: c) Hotels
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
9) Which of the following is a public sector, not-for-profit organization?
a) Library
b) Museum
c) Charitable group
d) Labor union
Answer: d) Labor union
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
10) The Allegany County Library provides a wide variety of library services to its neighborhood.
It also provides free online support to its members, and any fee collected from its members goes
directly to charity. The library is an example of a(n) _____.
a) not-for-profit organization
b) corporate organization
c) offshore unit
d) business conglomerate
Answer: a) not-for-profit organization
Difficulty: Medium
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Application
11) Stewart is a small business owner who runs a local coffee shop and a bakery. For Stewart,
_____ represents an earned reward for taking the risks of running the business.
a) government intervention
b) concessions
c) profits
d) long hours
Answer: c) profits
Difficulty: Medium
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Application
12) A tax law provision granted to not-for-profits by the Internal Revenue Service is called
_______.
a) strategic alliance
b) concession
c) consumer orientation
d) section 501(c)(3)
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: d) section 501(c)(3)
Difficulty: Easy
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What is Business?
AACSB: Analytic
Bloom code: Knowledge
13) Why is flexibility and innovation crucial for long-term business success?
a) To maintain static business models
b) To avoid changes in consumer behavior
c) To adapt to global changes and technological advancements
d) To ensure constant production efficiency
Answer: c) To adapt to global changes and technological advancements
Difficulty: Hard
Learning Objective: LO 1.1 Define business.
Section Reference: 1.1 What Is Business?
AACSB: Analytic
Bloom code: Analysis
14) _____ refers to technology, tools, information, and physical facilities.
a) Outsourcing
b) Capital
c) Factors of production
d) Brand
Answer: b) Capital
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
15) A person who sees a profitable opportunity and then devises a plan to achieve that profit is
called a(n) _____.
a) entrepreneur
b) competitive differentiator
c) visionary
d) brand expert
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: a) entrepreneur
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
16) To operate effectively, certain inputs called _____ are required for all economic systems.
a) competitive differentiation
b) capital
c) vision
d) factors of production
Answer: d) factors of production
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
17) Which of the following represent the factors of production in an economic system?
a) Land, rent, capital, and human resources
b) Capital, perseverance, natural resources, and human resources
c) Rent, wages, interest, and profit
d) Land, labor, capital, entrepreneurship, and knowledge
Answer: d) Land, labor, capital, entrepreneurship, and knowledge
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
18) Timbers Are Us, a lumber company, utilizes _____ as its primary production factor.
a) human resources
b) entrepreneurship
c) capital
d) natural resources
Copyright © 2025 John Wiley & Sons, Inc.
,Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: d) natural resources
Difficulty: Medium
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Application
19) Technology, tools, information, and physical facilities for the operation of a business are ex-
amples of _____.
a) profits
b) wages
c) capital
d) liability
Answer: c) capital
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
20) A company that values employees as sources of ideas and innovation is utilizing its _____.
a) entrepreneurship
b) natural resources
c) capital
d) labor
Answer: d) labor
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
21) The labor of a firm refers to _____.
a) household consumers
b) everyone who works for the business
c) full-time employees
d) top management executives
Copyright © 2025 John Wiley & Sons, Inc.
, Test Bank to accompany Boone, Contemporary Business, 20th Edition
Answer: b) everyone who works for the business
Difficulty: Easy
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Knowledge
22) ABC Mining Inc. is a small-scale mining company that started its business in 2011. By the
year 2018, the firm had to close its operations. The company had been continuously laying off its
employees since 2016, which led to the further downsizing of the firm. The decline in the avail-
ability of minerals in its operating region since 2014 has contributed vastly to its downfall and
also reduced the need to inject new capital since then. Which of the following factors of produc-
tion has primarily caused the firm to end its operations?
a) Natural resources
b) Capital
c) Human resources
d) Entrepreneurship
Answer: a) Natural resources
Difficulty: Medium
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Application
23) Samantha, a former middle manager from Gaylord Manufacturing, owns and operates a 7-
Eleven franchise. Samantha is demonstrating _____.
a) social responsibility
b) socialism
c) entrepreneurship
d) pure competition
Answer: c) entrepreneurship
Difficulty: Medium
Learning Objective: LO 1.2 Identify and describe the economic factors of production.
Section Reference: 1.2 Economic Factors of Production
AACSB: Analytic
Bloom code: Application
24) Which of the following represent corresponding factor payments for labor and capital?
Copyright © 2025 John Wiley & Sons, Inc.
