Chapter 01 Taking Risks and Making Profits within the Dynamic Business

TEST
PLANNING TABLE FOR CHAPTER 1

Learning Goal

LL:1
Knows
Basic Terms and Facts

LL:2
Understands
Concepts and Principles

LL:3
Applies
Principles

1.
Describe
the relationship between profit and risk and show how businesses and
nonprofit organizations can raise the standard of living for all.

1,2,3,4,5,6,7,8,9,10,
11,12,13,14,15,16,17
18,19,20,21,22,23,24,
176,177,178,179,180,181,182,183,184,185,186,187

25,26,27,28,29,30,31,
32,33,
188,189,190,191,192,193,194,195,196,197

34,35,36,37,38,39,
40,41,42,43,
198,199,200,201,
202,203,204,
221, 326, 330

2.
Compare
and contrast being an entrepreneur and working for others.

44,45,46,47,48,49,50,51,52,53,54,55,
205,206,207,208,
209,210,211,212

57,58,59,
213,214,215,216,217,
218

60,61,62,
219,220,222,
223,224~,

3.
Analyze
the affect of the economic environment and taxes on businesses.

56,63,64,65,66,67,68,69,70,71,72,
225,226,227,228,229,230

73,74,
231,232,233,234

75,76,
235,236,237,238~,
320,
329*

4.
Describe
the effect of technology on business.

77,78,79,80,81,82,83,84,85,86,87,88,89,90,
91,92,93,94,
239,240,241,242,243,244,245,246,247,248,249,250,251,252

95,96,97,98,
253,254,255

99,100,101,102,103,104,
256,257,258,259,
260,261,262,263,
321

5.
Demonstrate
how businesses can meet and beat competition.

105,106,107,108,109,110,111,112,113,
264,265,266,267

114,115,116,
268,269,270

117,118,
271,272,273,274,
322,
327*

6.
Analyze
the social changes affecting business.

119,120,121,122,123,124,125,126,127,128,129,130,
275,276,277,278,279,280,281,282,283

131,132,133,134,135,137
284,285,286,287

136,138,
288,289,290,
323,
328*

7.
Identify what
businesses must do to meet the global challenge, which includes war and
terrorism.

139,140,141,142,143,144,145,146,147,148,149,150,
291,292,293,294,295,296,

151,152,153,154,
297,298,299,300,

155,156,157,158,
301,302,303,304,305,324,

8.
Review how past
trends are being repeated in the present and what those trends will mean for
tomorrow’s college graduate.

159,160,161,162,163,164,165,166,167,168,169,170,
306,307,308,309,310,311,312

171,172,173,
313,314,315

174,175,
316,317,318,319,
325

Total number of
test items: 330

True/false questions
are in plain text.
Multiple choicequestions are in bold
text.
Questions on boxed material
are in bold text with a tilde~.
Essayquestions are in bold
underlined text.
Minicase questions
are in bold with an asterisk*.

True / False Questions

1. Businesses provide goods, jobs, and services to
others.
True False

2. Businesses seek to earn a profit by providing goods
and services to others.
True False

3. Revenue is the amount a business earns above and
beyond what it spends for expenses and costs.
True False

4. Profit is the amount of money a business earns
above and beyond what it spends for salaries and other expenses.
True False

5. Since all businesses make a profit, starting a
business is not risky.
True False

6. An entrepreneur risks time and money to start and
manage a business.
True False

7. If a business’s costs and expenses are greater than
its revenue, it will suffer a loss.
True False

8. Profits of a business include the salaries paid to
its employees.
True False

9. Revenue is the total amount of money a business
takes in during a given period by selling goods and services.
True False

10. Risk is the chance an entrepreneur takes of losing
time and money on a business that may not prove profitable.
True False

11. The United States has one of the highest standards
of living in the world.
True False

12. The term “standard of living” refers to
the amount of debt people can incur on a given income.
True False

13. Health care availability, a clean environment, and
good schools all contribute to a high quality of life.
True False

14. Maintaining a high quality of life requires the
combined efforts of businesses, nonprofit organizations, and government
agencies.
True False

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

16. Stakeholders include customers, employees,
stockholders, suppliers, dealers, bankers, government officials and
environmentalists.
True False

17. Often the needs of a firm’s various stakeholders
will conflict.
True False

18. Outsourcing means selling goods and services to
people in other countries.
True False

19. Outsourcing has caused many complications in many
states where jobs have been lost to overseas companies.
True False

20. “Insourcing” refers to the practice of
global companies setting up design and production facilities in the United
States.
True False