WorksheetsCHAPTER 1 (INTRODUCTION TO BUSINESS ENVIRONMENT)
Total questions: 33
Worksheet time: 17mins
A good definition of a business is an organization that provides goods or services in order to earn profits.
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false
The difference between a business's revenues and its expenses is called "sales"
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The legitimate right to pursue profits distinguishes a business from organization such as universities, hospitals, and government agencies.
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A factor of production is a nation's system for allocating resources among its citizens.
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Advertising is one of the factors of production in an advanced nation such as the United States.
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Land, labor, capital, and entreprenuership are the four traditional factors of production.
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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 decision.
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In general, firms operate in their input market or output market, but not both.
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In socialist economy, the government owns and operates selected major industries.
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The law of demand states that buyer will purchase more of the product as its price drops and less of the products as its price increases.
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As a rule, in perfect competition there will be very few sellers.
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As a rule, the products in perfect competition are very similar.
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There is significant product differentiation in monopolistic competition.
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The market for clothing is best characterized as monopolistic competition.
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There are many sellers in an oligopoly.
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Standard of living tends to decrease with growth in economy
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Ethical behaviour is behavior that individual beliefs and social norms, define as being wrong or bad.
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Because ethics are based on both individual beliefs and social concepts, they do not vary from person to person.
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Social responsibility must start at the top of the organization.
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The most striking advantage of a general partnership is its their ability to grow with the addition of new talent and money.
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The biggest advantage of regular corporation is unlimited liability.
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Many large firms began international operations as exporters.
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In licensing agreement, firms choose foreign organizations to manufacture their products in another country in return for a fee plus royalties.
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The ultimate forms of quota is tariff.
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A tariff is a tax on imported products.
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What is profits?
total money taken in by a corporation.
difference between revenues and expenses
increases in a corporation's stock price
increases in income from year to year.
The funds needed to create an operate business enterprise can be referred as ...
physical resources
the money supply
capital
information resources
A(n) ...... is an individual who accepts the risks and opportunities entailed by creating and operating a new business.
director
entrepreneur
proprietor
partner
Tangible goods that organizations use in conducting their business can be referred as .....
physical resources
the money supply
capital
information resources
Which of the following is NOT the characteristics of a perfect competition?
Many firms in industry
Very difficult for a firm to enter or leave the market
Great similarity among products offered by different firms
firms are small
The funds needed to create an operate business enterprise can be referred as ...
physical resources
the money supply
capital
information resources
The way in which a business tries to balance its commitments to groups and individuals in its social environment is called .....
business ethics
socialization
social responsibility
corporate responsibility
Organizational stakeholders can best be defines as ............
individual and business that own stock in a company
individual and groups that are directly affected by the practices of an organization
the officers and key employees of an organization
government regulators who oversee an industry
