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Test Bank For A Changing World 6Th Canadian
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Home Business test bank & Solution Manual Test Bank For A Changing World 6Th Canadian Edition By O. C. Ferrell
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Test Bank For A Changing World 6Th Canadian Edition By O. C. Ferrell

$25.00

Edition: 6th Edition

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Test Bank For A Changing World 6Th Canadian Edition By O. C. Ferrell

Chapter 01

The Dynamics of Business and Economics

True / False Questions

1. Products have tangible attributes only.
FALSE

Products can also be a service, which has intangible attributes.

Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-02 The Nature of Business

2. The goal of business activities is to earn a profit.
TRUE

Without profit, businesses will go out of business.

Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business

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

Non-profit organizations do not accumulate profits, but they do provide goods and services to consumers.

Blooms: Understand
Difficulty: Medium
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business

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

Non-profit organizations, such as the Canadian Red Cross, Special Olympics, and other charities and social causes, do not have the fundamental purpose of earning profits, although they may provide goods or services and engage in fundraising.

Blooms: Apply
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business

5. Profit is what it costs to make and sell a product.
FALSE

Profit is the difference between what it costs to make and sell a product and what a customer pays for it.

Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Business

6. Businesses have the right to keep and use their profits as they choose, without limitations.
FALSE

Within legal limitations, businesses have the right to keep and use their profits as they choose.

Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit.
Topic: 01-03 The Goal of Busines

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