Businesses

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Student: _______________________________________________________________________________________

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

21. The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups. True False

22. Businesses and nonprofit organizations often strive to accomplish the same objectives. True False

23. Nonprofit organizations use financial gains to meet stated social or educational goals of the organization rather than personal profit. True False

24. Social entrepreneurs are people who start and manage organizations that are not-for-profit. Their mission is to help others improve their quality of life. True False

25. The only real purpose of a business is to make money for entrepreneurs. True False

26. The only way a firm can increase its profits is to increase its sales revenue. True False

27. The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues. True False

28. Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society. True False

29. Unlike businesses, employees of nonprofit organizations are not required to learn the business skills of information management, marketing, or financial management. True False

30. Business decisions should consider the interests of customers, employees, suppliers, government leaders, and stockholders. True False

31. By balancing the demands of customers and stockholders, businesses satisfy the demands of all stakeholders. True False

32. An effort to please one group of stakeholders eventually pleases all stakeholders. True False

33. Insourcing creates new jobs, and helps offset the number of...
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