Business 201, Chp. 1, True or False

For a business to be organized, it must combine four types of resources: workers, natural resources, capital, and ownership

False

The majority of small business firms are successful at the end of ten years

False

Adam Smith is the father of communism and advocated a classless society

false

Fiscal policy determines the level of interest rates.

false

Under communism, individual consumers determine what will be produced

false

A business cycle consists of four states: peak, recession, trough, and recovery

true

Hewlett-Packard Corporation and Dell Computer use product differentiation in the marketplace

true

If a firm's sales revenues exceed its expenses, the firm has earned a profit

true

The equilibrium price means that the supply and demand for a product are in balance

true

The ultimate objective of business firms should be to satisfy the needs of their customers.

true