Test Bank for
Contemporary
Business, 2nd
Canadian Edition, 2e
Louis Boone, David
Kurtz, Michael
Khan, Brahm Canzer
(All Chapters
Download link at the
end of this file)
,Part 1 Business in a Global Environment
CHAPTER 1
THE CHANGING FACE OF BUSINESS
TRUE-FALSE STATEMENTS
1. Large corporations are defined as businesses, whereas small companies are more of an
investment.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Reflective Thinking
2. Companies are NOT required to be ethical to succeed in the long run.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Ethics
3. In order to remain viable, not-for-profit organizations need to focus on profits even more than
the public service they provide.
Answer: False
Bloomcode: Application
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Ethics
4. Not-for-profit organizations are commonly exempt from federal, provincial, and local taxes.
Answer: True
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
, The Changing Face of Business 1-2
Section Reference: What Is Business?
AACSB: Analytic
5. Just as with a for-profit business, the first priority for a not-for-profit organization is making a
profit.
Answer: False
Bloomcode: Application
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Reflective Thinking
6. An accountant’s view of profit is the difference between revenue and the cost incurred in
generating the revenue. This view is shared by all business owners and the general public.
Answer: False
Bloomcode: Knowledge
Difficulty: Hard
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Analytic
7. Employees and founders of not-for-profit organizations do NOT usually earn any income from
their operations.
Answer: False
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Analytic
8. All factors of production are found in equal amounts in all businesses.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Analytic
, 1-3 Test Bank for Contemporary Business, Second Canadian Edition
9. Capital includes money, machines, tools, buildings, and human resources.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Analytic
10. Natural resources are essential for certain companies but are NOT required for all economic
systems.
Answer: False
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Analytic
11. Technology is considered to be capital.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Technology
12. High-end technology, such as the Global Positioning Satellite System offered in some new
cars, is considered a capital resource.
Answer: True
Bloomcode: Application
Difficulty: Medium
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Technology
13. When farmers rent land in order to increase crop production, they are acquiring capital.
Answer: False
Bloomcode: Application
Contemporary
Business, 2nd
Canadian Edition, 2e
Louis Boone, David
Kurtz, Michael
Khan, Brahm Canzer
(All Chapters
Download link at the
end of this file)
,Part 1 Business in a Global Environment
CHAPTER 1
THE CHANGING FACE OF BUSINESS
TRUE-FALSE STATEMENTS
1. Large corporations are defined as businesses, whereas small companies are more of an
investment.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Reflective Thinking
2. Companies are NOT required to be ethical to succeed in the long run.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Ethics
3. In order to remain viable, not-for-profit organizations need to focus on profits even more than
the public service they provide.
Answer: False
Bloomcode: Application
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Ethics
4. Not-for-profit organizations are commonly exempt from federal, provincial, and local taxes.
Answer: True
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
, The Changing Face of Business 1-2
Section Reference: What Is Business?
AACSB: Analytic
5. Just as with a for-profit business, the first priority for a not-for-profit organization is making a
profit.
Answer: False
Bloomcode: Application
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Reflective Thinking
6. An accountant’s view of profit is the difference between revenue and the cost incurred in
generating the revenue. This view is shared by all business owners and the general public.
Answer: False
Bloomcode: Knowledge
Difficulty: Hard
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Analytic
7. Employees and founders of not-for-profit organizations do NOT usually earn any income from
their operations.
Answer: False
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Analytic
8. All factors of production are found in equal amounts in all businesses.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Distinguish between business and not‐for‐profit organizations.
Section Reference: What Is Business?
AACSB: Analytic
, 1-3 Test Bank for Contemporary Business, Second Canadian Edition
9. Capital includes money, machines, tools, buildings, and human resources.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Analytic
10. Natural resources are essential for certain companies but are NOT required for all economic
systems.
Answer: False
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Analytic
11. Technology is considered to be capital.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Technology
12. High-end technology, such as the Global Positioning Satellite System offered in some new
cars, is considered a capital resource.
Answer: True
Bloomcode: Application
Difficulty: Medium
Learning Objective: Identify and describe the factors of production.
Section Reference: Factors of Production
AACSB: Technology
13. When farmers rent land in order to increase crop production, they are acquiring capital.
Answer: False
Bloomcode: Application
