MGMT1 Midterm Review

Working as an entrepreneur is the only way to succeed in business.

• True

• False

Businesses provide goods, jobs, and services to others. To remain competitive in today's market, firms must produce a quality product and offer outstanding service at a reasonable price.

• True

• False

The most important difference between for-profit businesses and nonprofit organizations is that:

• nonprofit organizations do not seek a profit for their owners or organizers

• for-profit businesses do not benefit society

• nonprofit organizations do not answer to stakeholders

• nonprofit organizations seek to make a profit for their owners and organizers.

Efficiency means the amount of output you generate given the amount of input. The buying and selling of goods using the most amount of resources is producing the desired result. Which is considered a factor of production?

• knowledge

• service

• bonds

• competition

Companies that sell goods to consumers online are engaging in ______ transactions.

• Y2K

• B2C

• B2B

Technology helped the manufacturing industry to become more productive.

• True

• False

The external and internal circumstances that surround the business are referred to as:

• the business disciplines

• the business environment

• the stakeholders

• the factors of production

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

• True

• False

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.

• True

• False

Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy.

• True

• False