95 test bank for m business 4th edition by ferrell

fewer goods and services are produced than consumer demand.. maximum retail price _____ relates to the number of goods and services that consumers are willing to buy at different prices

95 Test Bank for M Business 4th Edition by Ferrell

25 Test Bank True – False Questions

20 Test Bank Free Text Questions

50 Free Multiple Choice Questions

All the groups that have an interest in an organization's success and outcomes are known as the organization's

When a business fails or does not make a profit, _ have the most to lose in terms of finances

1 Profit making is a business activity that seldom requires risk taking.

2 Businesses do not have the right to use their profits the way they choose.

3 Profit-making businesses often weaken the economy of a country.

4 Earning profits contributes to society by providing employment.

5 Businesses have found that the best way to make profits is by ignoring the interests of stakeholders.

Economic expansion occurs when:

1 fewer goods and services are produced than consumer demand.

2 an economy is growing and people are spending more money.

3 a nation's standard of living drops dramatically.

4 employment levels decline over time.

5 prices begin to rise and incomes begin to fall.

As U.S consumers get busier and earn more money, they hire others to do tasks such as house cleaning, laundry, and landscaping, resulting in the development of a(n) _

economy focused on making life easier for busy consumers

5 Sports utility vehicles

is often called the father of capitalism

_ refers to all activities concerned with obtaining and managing money and using it effectively

5 maximum retail price

_ relates to the number of goods and services that

consumers are willing to buy at different prices at a specific time

In a capitalist economic system:

1 the government owns and operates all businesses.

2 there is little scope for competition.

3 consumers have a limited choice of goods and services.

4 the majority of people possesses government jobs.

5 prices of goods and services are determined by demand and supply.

The market for corn in Brazil has a large number of sellers, and there is no difference in the products sold by each

seller As there are also a large number of buyers for the corn, the actions of a single seller or buyer cannot affect the price The market for corn can be described as

_ indicates the income level of "average" Americans It

is useful in determining how much "average" consumers spend and how much money Americans are earning

1 Per capita income

2 GDP

3 Budget deficit

4 Consumer price index

5 Worker productivity

A budget deficit occurs when a nation:

1 reduces its expenditures.

2 receives excess taxes.

3 has no national debts.

4 spends more than it takes in from taxes.

5 balances taxes and expenditures.

Following a bad harvest, the prices of agricultural

commodities in Urbania have increased dramatically, as have the prices of products manufactured from agricultural commodities Government intervention has failed to arrest the rising prices Based on this information, Urbania is undergoing

Egalitarianism refers to the:

1 exemption of taxes for successful businesses.

2 restrictions on taking up non-government jobs.

3 equal distribution of income and social services.

4 concept of the rich getting richer and the poor getting poorer.

5 restriction of competition in small businesses by government regulations.

Increased unemployment can reduce consumer demand for goods and services, leading to:

1 Ethical conduct and corporate social responsibility are linked to increased profits.

2 Businesses do not need to consider social values in the contemporary scenario.

3 Investors and retired employees remain unaffected in case of scandals.

4 Businesses' reputations depend solely on their profits.

5 Business misconduct is likely to be widely excused if it enhances firms' profits.

In the history of the American economy, the period following the Industrial Revolution was known for an increasing

1 It does not include the services produced in a country.

2 It measures only those goods and services made within a country.

3 It includes profits from companies' overseas operations.

4 It does not include profits earned by foreign companies within the country being measured.

5 It essentially takes into account the concept of GDP in relation to population.

Which of the following is NOT a product?

1 A Dell personal computer

2 A veterinarian's treatment of a pet's injuries

3 A lawyer's advice in a divorce case

4 A checkup by a doctor

5 A business profit

The entrepreneur has been primarily associated with

willingness to:

1 change employers frequently.

2 work under authority.

When there is only one business providing a product in a given market, there exists:

1 It is characterized by the government owning and operating most businesses.

2 It relies on supply and demand to make decisions about pricing and production of goods.

3 It encourages private ownership of the means of production.

4 It encourages free market and competition.

5 It provides scope for the production of a large variety of goods and services.

_ gather information and conduct research to determine what customers want They also plan and develop products and make decisions about how much to charge for their products and when and where to make them available

Businesses differ from nonprofit organizations in that a

business's focus is on:

Generally, when a retailer announces a discount sale on all its products:

1 consumers will not demand more than normal.

2 the store will not supply more products than it normally does.

3 consumers will demand more products.

4 the manufacturer will halt production.

5 consumers will demand fewer products than normal.

Which of the following is a change that occurred in the U.S during the Industrial Revolution?

1 Farm production decreased as industrial production increased.

2 As work became more localized, productivity decreased.

3 Trade within the country decreased as regions became self-sufficient.

4 Farmers began to move to cities to find jobs in factories.

5 Fewer goods were available, and prices of goods increased.

Which of the following is true of the responsibilities of the people involved in a business?

1 Finance is concerned with acquiring, developing, and using human effectively and efficiently.

2 Marketing refers to all activities concerned with obtaining money for the firm and using it effectively.

3 Nonprofit organizations include all the functions that businesses do, except for the marketing function.

4 Management is not involved in the day-to-day functions of production and

manufacturing.

5 It is the primary responsibility of the owners to provide financial resources for the operation of the business.

The functions of organizing, staffing, planning, and

controlling are most closely associated with:

Advertising, personal selling, coupons, and sweepstakes are forms of the _ aspect of marketing activities

In a socialist economic system:

1 individuals own and operate all businesses.

2 very few people work for government organizations.

3 competition is restricted in major industries.

4 there is no concept of small businesses owned by individuals.

5 demand and supply have no role to play in the pricing of products and services.

A condition characterized by continuing rise in prices over a period of time refers to:

1 Both do not have to abide by government regulations.

2 Both are unaffected by political or social change.

3 Both of them engage in management and finance activities.

4 Both of them do not need to adapt to technological changes.

5 Both aim to maximize financial returns for their owners.

Before the Industrial Revolution, the economy of North America under the colonists was characterized by:

1 hunting and gathering instead of agriculture.

2 the export of manufactured goods to England.

3 a scarcity of natural resources.

4 dependence on England for everyday goods.

5 the domestic system of manufacture of goods.

Which of the following is an example of an intangible product?

1 A movie DVD

2 A sandwich

3 A sports car

4 A music concert

5 Jewelry

25 Free Test Bank for M Business 4th Edition by

Ferrell True - False Questions

Owners have little responsibility to provide funds for the operation of the business

Free-market capitalism and laissez-faire capitalism are

essentially the same thing

A product's equilibrium price is constantly changing in

response to changes in economic conditions, availability of resources, and degree of competition

1 True

2 False

Demand is the quantity of goods and services that

consumers are willing to buy at different prices at a specific time

Managers coordinate resources to achieve the firm's goals

In a free-market system, the government regulates business

2 False

20 Free Test Bank for M Business 4th Edition by

Ferrell Free Text Questions

What impact did the Industrial Revolution in the nineteenth century have on the American economy?

Answer Given

The nineteenth century and the Industrial Revolution brought the development of new technology and factories The factory brought together all the resources needed to make a product—materials, machines, and workers Work in factories became specialized as workers focused on one or two tasks As work became more efficient, productivity increased, making more goods available at lower prices Railroads brought major changes, allowing farmers to send their surplus crops and goods all over the nation for barter or for sale Rising productivity also permitted many farmers to move to the cities to find higher-paying factory jobs

Why are entrepreneurs important to the economy?

Answer Given

Entrepreneurs are important to the economy because they are willing to take the risks necessary to bring ideas for new goods, services, and business practices into the marketplace They bring together all the factors of production to produce new products

Define supply, demand, and equilibrium price, and explain their relationship with each other.

Answer Given

Supply is the quantity of goods or services that businesses are willing to sell at different prices at a specific time Demand is the quantity of goods or services that consumers are willing to buy at different prices at a specific time Both can be shown graphically with supply and demand curves Where the supply and demandcurves intersect is the equilibrium price, the price at which the quantity of productsbusinesses are willing to supply equals the quantity of products consumers are willing to buy at a specific point in time If economic conditions, resource

availability, degree of competition, or some other factor changes either supply or demand, a new equilibrium price will be established.

What are the people and activities of business? Define each group.

Answer Given

The people of business are owners, employees, and customers Owners have to put up resources—money or credit—to start a business Employees-including managers—are responsible for the work that goes on within a business Owners can manage the business themselves or hire employees to accomplish this task

A business's most important role is to satisfy the customers who buy its goods or services The major activities of business are management, marketing and

regulation, the philosophy in countries like the United States and Australia is to permit maximum freedom within a set of rules of fairness; Individuals must have the right to choose what career to pursue, where to live, what goods and services

to purchase, and more Businesses must have the right to choose where to locate,what goods and services to produce, what resources to use in the production process, and so on

How is Gross Domestic Product (GDP) used as a measure of

a nation's economic health?

Answer Given

One commonly used economic measure is gross domestic product (GDP)—the sum of all goods and services produced in a country during a year GDP

measures only those goods and services made within a country and therefore does not include profits from companies' overseas operations; it does include profits earned by foreign companies within the country being measured However,

it does not take into account the concept of GDP in relation to population (GDP per capita)

Differentiate between communist and capitalist economic systems.

Answer Given

Karl Marx (1818-1883) first described communism as a society in which the

people, without regard to class, own all the nation's resources In his ideal

political-economic system, everyone contributes according to ability and receives benefits according to need In a communist economy, the people (through the government) own and operate all businesses and factors of production Central government planning determines what goods and services satisfy citizens' needs, how the goods and services are produced, and how they are distributed

Capitalism, or free enterprise, is an economic system in which individuals own andoperate the majority of businesses that provide goods and services Competition, supply, and demand determine which goods and services are produced, how they are produced, and how they are distributed

Define economic expansion What factors are responsible for it?

Answer Given

Economies are not stagnant; they expand and contract Economic expansion occurs when an economy is growing and people are spending more money Their purchases stimulate the production of goods and services, which in turn stimulatesemployment The standard of living rises because more people are employed and have money to spend Rapid expansions of the economy, however, may result in inflation, a continuing rise in prices

Describe the role of ethics and social responsibility in

business today

Answer Given

In the past few years, a number of scandals in large corporations have

undermined consumers' faith in businesses These scandals have increased consumer focus on the ethics of large companies Society is increasingly

demanding that businesspeople behave ethically and socially responsibly toward not only their customers but also their employees, investors, government

regulators, communities, and the natural environment While one view is that ethics and social responsibility are a good supplement to business activities, there

is an alternative viewpoint Research has shown that ethical behavior can not onlyenhance a company's reputation but can also drive profits There is growing recognition that the long-term value of conducting business in an ethical and socially responsible manner that considers the interests of all stakeholders createssuperior financial performance

What are nonprofit organizations? Differentiate between nonprofit organizations and businesses.

Answer Given

Nonprofit organizations are organizations that may provide goods or services but

do not have the fundamental purpose of earning profits Nonprofit organizations, such as the Red Cross, Special Olympics, and other charities and social causes,

do not have the fundamental purpose of earning profits, although they may

provide goods or services and engage in fund raising Businesses, on the other hand, try to earn a profit by providing products that satisfy people's needs

Describe the role of government in the United States'

economy.

Answer Given

The economic system of the United States is best described as modified

capitalism because the government regulates business to preserve competition and protect consumers and employees Federal, state, and local governments intervene in the economy with laws and regulations designed to promote

competition and to protect consumers, employees, and the environment