Chapter 1 Practice Quiz

True professionals avoid committing ethical lapses. True or False

True

Businesses add value by transforming lower-value inputs (like paper and ink) into higher-value outputs (like textbooks). True or False

True

A business that relies on human resources more than on buildings, machinery, material resources, and land would be a ________ business.

labor intensive

Assets refer to the tangible economic resources owned by a firm. True or False

False

In a free-market economy, companies generally have limited autonomy in deciding which customers they want to focus on and how they want to compete. True or False

False

In the USA, the service sector now accounts for roughly 45 percent of the nation's economic output and 50 percent of all jobs in the country. True or False

False

Profit refers to the money the company brings in through the sale of goods and services. True or False

False

A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful. True or False

True

A company has competitive advantage when its products are more appealing to its chosen customers. True or false

True

Companies that sell shares of stock to the public are required to have their financial records audited by an outside accounting firm. True or False

True

Dependability includes meeting your commitments, such as staying on schedule and within budgets. True or False

True

A/an ________ is a framework of how a business intends to generate revenue.

business model

Businesses that need very large amounts of money, equipment, land and other material resources in order to get started and continue to operate are ________ businesses.

capital-intensive

An HR specialist is most likely to be responsible for which activities?

design, implement, and maintain information systems

Creating branding and advertising strategies to communicate with potential customers, and setting prices would fall under the ________ function of a business.

marketing