Business and Marketing Quiz - Chapter 1

Someone who starts, manages, and owns a business is called an entrepreneur.

• True

• False

Profit is the difference between earned income and costs.

• True

• False

Business owners must be well-informed about the production and marketing activities rather than the financial activities of a business.

• True

• False

The success of a business depends greatly on managerial effectiveness.

• True

• False

More managers are usually needed when workers are empowered.

• True

• False

The number of manufacturing firms far exceeds the number of service firms.

• True

• False

The term "domestic goods" refers to products made by firms in other countries.

• True

• False

Commercial businesses engage in producing things.

• True

• False

An example of an underground economy occurs when a parent give a child $3 for doing a household chore.

• True

• False

Knowing what customers want is critical to achieving effectiveness rather than efficiency.

• True

• False