Chapter 3 Review

An economic impact is the effect produced by decisions made by consumers and businesses.

• True

• False

When a business does not make enough revenue to cover expenses, it operates at a profit.

• True

• False

The study of how goods and services are produced, distributed, and consumed is called marketing.

• True

• False

Building a company without outside assistance is often referred to as crowdsourcing.

• True

• False

Venture capital is financing provided to start a company in return for owning part of the company.

• True

• False

Risk cannot be controlled and must always be covered by purchasing insurance.

• True

• False

Because people have limited time and money to spend on entertainment, they must make decisions about how to spend their limited resources.

• True

• False

When the physical characteristics of a product or service are improved, it is called possession utility.

• True

• False

Risks can be classified as controllable, insurable, and involving gain or loss.

• True

• False

A perception exists among the general public that sports and entertainment celebrities no longer value ethics.

• True

• False