Chapter 1: Check for Understanding

A company or organization that makes, sells, or provides products in exchange for money

• Profit

• Business

• Manufacturer

• Economy

Which of the following is a role that businesses play in society?

• Provides products

• Creates markets

• Increases economic benefit

• All of these

The ultimate goal of every business is to

• Earn a profit

• Pay taxes

• Create jobs

• Serve the community

What kind of business activities involve the input and output of money?

• Operational activities

• Investment activities

• Financial activities

What kind of business activities involve using money to create more wealth over time?

• Operational

• Investment

• Financial

What kind of business activities make up the majority of the daily tasks and help you build a higher net worth?

• Operational

• Investment

• Financial

Purchasing buildings and buying stock are examples of:

• Operational activities

• Investment activities

• Financial activities

Hiring and training employees, customer service, and selling products or services are examples of

• Operational activities

• Investment activities

• Financial activities

Paying for company expenses and counting money are examples of

• Operational activities

• Investment activities

• Financial activities

Economic resources are the goods and services businesses use to meet customer wants and needs.

• True

• False