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