Question 1

A key element of business success is a business plan.

Accepted Answer

A) True 
 B)False

Question 2

When consumers calculate the value of a product,they:

Accepted Answer

A)   subtract cost of production from market price.
B)   eliminate all nontangible elements that might affect their perception of the product.
C)   look at the benefits the product provides then subtract the cost.
D)   identify the variable and the fixed components of the product's benefits.E) A) and D)
F) A) and C)

Question 3

The Buckmaker Corporation generated total revenues of $30 million dollars while incurring expenses of $17 million.During the year Buckmaker earned a profit of $13 million.

Accepted Answer

A) True 
 B)False

Question 4

What is a business?

Accepted Answer

A Business can most easily be thought of...

Question 5

"I Can't Believe That It's Medicine" is an advertising slogan for a new antacid.The manufacturer claims that their antacid works faster and tastes better than any competing brand.These claims are part of the firm's strategy to achieve:

Accepted Answer

A)   deceptive marketing recognition.
B)   the creation of knockoff products.
C)   new product development.
D)   product differentiation.E) A) and B)
F) All of the above

Question 6

To remain competitive in today's market,firms must produce a quality product and offer outstanding service at a reasonable price.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following does NOT make up a business?

Accepted Answer

A)   A system of integrated actions
B)   develops and grows a market for its goods and/or services
C)   creates organizational value (wealth)  on behalf of its stakeholders
D)   develops wealth for its employees
E)   delivers the right solution to the right customerF) A) and B)
G) A) and C)

Question 8

The total amount of money that businesses earn by selling goods and services is called ________.

Accepted Answer

A)   profit
B)   revenue
C)   loss
D)   retained earningsE) A) and C)
F) C) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The purpose of __________ is to create real or perceived product differences.

Accepted Answer

A)   niche marketing
B)   product differentiation
C)   product mixing
D)   target marketingE) B) and D)
F) B) and C)

Question 11

Low prices can help retailers create an attractive total product offer.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the best example of a business?

Accepted Answer

A)   A community college
B)   The Salvation Army
C)   The Girl Guides of Canada
D)   Wal-MartE) B) and C)
F) All of the above

Question 13

All of the following would allow a firm to utilize product differentiation :

Accepted Answer

A)   pricing differences.
B)   increased production.
C)   elaborate packaging.
D)   intensive advertising.E) B) and C)
F) B) and D)

Question 14

Today,managers have to make allocation decisions around the use of which scarce resources,

Accepted Answer

A)   financial
B)   human
C)   natural
D)   all resourcesE) A) and B)
F) A) and C)

Question 15

Today's progressive managers:

Accepted Answer

A)   usually prefer to use the autocratic style of leadership.
B)   tend to emphasize teamwork and cooperation rather than discipline and order-giving.
C)   face fewer challenges and problems than managers in the past.
D)   can rely on a much higher level of worker loyalty to the organization than in the past.E) A) and D)
F) All of the above

Question 16

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

Accepted Answer

A)   Profit
B)   Revenue
C)   Interest
D)   Dividends
E)   AssetsF) B) and E)
G) A) and E)

Question 17

Which of the following is NOT part of the process called The Business Planning Cycle?

Accepted Answer

A)   Management team understands its strategic opportunities and its capabilities, competencies and overall capacity
B)   Management team develops a business plan via a process which outlines its focus and methodology for using its resources
C)   Management team capitalizes on its identified strategic opportunities
D)   Management team creates valuable products and services
E)   Management team creates a unique position in the marketplace built around a competitive advantage.F) All of the above
G) A) and C)

Question 18

The goal of business activities is profit.

Accepted Answer

A) True 
 B)False

Question 19

Profit is what it costs to make and sell a product.

Accepted Answer

A) True 
 B)False

Question 20

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

Accepted Answer

A)   Profit
B)   Revenue
C)   Interest
D)   DividendsE) A) and B)
F) A) and C)

Exam 1: What Is Business

The total amount of money that businesses earn by selling goods and services is called ________.

Correct AnswerverifiedShow Answer

Which of the following is NOT part of the process called The Business Planning Cycle?

Correct AnswerverifiedShow Answer

The Buckmaker Corporation generated total revenues of $30 million dollars while incurring expenses of $17 million.During the year Buckmaker earned a profit of $13 million.

Correct AnswerverifiedShow Answer

Profit is what it costs to make and sell a product.

Correct AnswerverifiedShow Answer

A key element of business success is a business plan.

Correct AnswerverifiedShow Answer

Which of the following is the best example of a business?

Correct AnswerverifiedShow Answer

Today's progressive managers:

Correct AnswerverifiedShow Answer

Today,managers have to make allocation decisions around the use of which scarce resources,

Correct AnswerverifiedShow Answer

Which of the following does NOT make up a business?

Correct AnswerverifiedShow Answer

All of the following would allow a firm to utilize product differentiation :

Correct AnswerverifiedShow Answer

Low prices can help retailers create an attractive total product offer.

Correct AnswerverifiedShow Answer

"I Can't Believe That It's Medicine" is an advertising slogan for a new antacid.The manufacturer claims that their antacid works faster and tastes better than any competing brand.These claims are part of the firm's strategy to achieve:

Correct AnswerverifiedShow Answer

What is a business?

Correct AnswerverifiedA Business can most easily be thought of...View AnswerShow Answer

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

Correct AnswerverifiedShow Answer

The goal of business activities is profit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To remain competitive in today's market,firms must produce a quality product and offer outstanding service at a reasonable price.

Correct AnswerverifiedShow Answer

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

Correct AnswerverifiedShow Answer

The purpose of __________ is to create real or perceived product differences.

Correct AnswerverifiedShow Answer

When consumers calculate the value of a product,they:

Correct AnswerverifiedShow Answer

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A Business can most easily be thought of...
View Answer

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