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 tomorrows 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
