MGT 1143 CHAPTER 1: INTRODUCTION TO BUSINESS ENVIRONMENT

A good definition of a business is an organization that provides goods or services in order to earn profits.

• TRUE

• FALSE

The difference between a business's revenues and its expenses is called "sales."

• TRUE

• FALSE

A planned economy relies on a centralized government to control all or most of the factors of production and to make all or most production and allocation decisions.

• TRUE

• FALSE

As a rule, the products in perfect competition are very similar.

• TRUE

• FALSE

There are many sellers in an oligopoly.

 

• TRUE

• FALSE

A disadvantage of the corporate form of business ownership is lack of continuity

• TRUE

• FALSE

In a licensing arrangement, firms choose foreign organizations to manufacture their products in another country in return for a fee plus royalties.

• TRUE

• FALSE

Which of the following is NOT a factor of production?

• labor

• capital

• entrepreneurs

• government

A(n)                  is an individual who accepts the risks and opportunities entailed by creating and operating a new business.

• director

• proprietor

• entrepreneur

• partner

A                economy has characteristics of both planned and market economies.

• mixed market

• privatized

• capitalist

• hybrid