Vasquez ENT I Fall 24 Semester Exam: Characteristics of Business

Profit is the difference between earned income and costs.

• True

• False

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

• True

• False

The demand for a product refers to the number of similar products that will be offered for sale at a particular time and at a particular price.

• True

• False

Commercial businesses engage in producing things.

• True

• False

Wholesalers and retailers are classified as industrial types of businesses.

• True

• False

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

• True

• False

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

• True

• False

With mass production, the cost of goods manufactured increases for each product made.

• True

• False

The most challenging way to obtain increased efficiency is through reorganization.

• True

• False

More managers are usually needed when workers are empowered.

• True

• False