BF Chapter 2 TEST

Front

Financial decisions of businesses and consumers are influenced as much by the state of the economy as by any other factors. True, False, Sometimes true, Never true

Back

True

Front

Scarcity means deciding which wants and needs will be satisfied and which will go unsatisfied.

Back

False

Front

The government has the primary influence on economic decisions in a command economy.

Back

True

Front

In a market economy anyone can start and operate a business if they have the resources and ability.

Back

True

Front

The two primary ways governments are involved in the organization of businesses are in legal requirements and taxation. True, False, Sometimes true, Never true

Back

True

Front

The type of ownership structure that will have the greatest difficulty in obtaining financing is the corporation.

Back

False

Front

Stock markets, bond markets, commodity markets, and currency markets are all examples of financial markets.

Back

True

Front

Capital markets are used to finance short-term debt of less than a year.

Back

False

Front

Most businesses operating in the U.S. today are largely unaffected by the global environment.

Back

False

Front

An exchange rate is the value of one currency in terms of another.

Back

True