1) The total amount of money that a business takes in by selling goods or services is called ______________.

profit

retained earnings

loss

revenue

2) A(n) _____________________ is a person who assumes the risk of starting abusiness.

entrepreneur

manager

private investor

stakeholder

3) Starting a business always invovles ____________.

profit

loss

revenue

risk

4)Often in business the greater the risk, the _______________.

lower the expected revenue

greater the number of stakeholders

lower the value provided to society

greater the potential reward

5) is a measure of the general well-being and satisfaction derived from a variety of factors including, safety, education, political freedom and clean environment

Standard of living

Quality of life

Gross national income

Social satisfaction index

6) The amount of goods and services people can buy with the money they have is called their ____________.

nominal income

consumer price index

profit margin

standard of living

7)Jane's income has remained stable over the past few years while the prices of the things she buys have gone up. Nevertheless, Jane feels better off because the environment is cleaner, the crime rate fallen, she has more leisure time, and the access to medical care has improved. For Jane we can conclude that her standard of living has _______________.

increased, but the quality of life has decreased

increased, and so has the quality of life

8) The resources or inputs that contribute to the creation of wealth and success of business are called ________________.

the factors of profitability

production coefficients

production aggregates

9) Which of the following is a benefit of owning your own business?

Government provided health insurance

Freedom to keep the profits (after taxes) from your business

More camaraderie with your employees

Shorter work hours

factors of production

declined, but the quality of life has increased

declined and so has the quality of life.

10) is the study of how a society employs its limited resources to produce goods and services and how it distributes them among competing groups and individuals.

Socialism

Marketing

Economics

Capitalism

11) studies the operation of a nation's economy as a whole.

Macroeconomcs

Socioeconomics

Econometrics

12 When managers disregard ethical concerns, the likely result is ___________.

a reduction in employee turnover

an improvement in management morale

an increase in mistrust between workers and management

a reduction in lawsuits against the company

13-Which of the following actions would most likely raise ethical concerns?

Improving working conditions

Forecasting sales for the next year

Developing a marketing plan

Overstating an expense report.

14 A company removes a profitable product from the market because they find it might be dangerous. This company is demnonstrating ___________.

ethical behavior

short-run thinking

how not to run a business

anti-competitive behavior

15-All else held equal, socially responsible companies _____________.

are viewed more favorably by consumers

have higher turnover among employees

often experience customer loyalty problems

fail to earn sufficient profits for their owners

16-corporate charitable donations to non-profit organizations are referred to as ______________.

corporate bonding

corporate philanthropy

corporate commitment

corporate coddling

17-Insider trading involves ______________.

an Internet activity that establishes barter exchange systems between businesses

investors using private company information to further their own fortunes

the exchange of assets between companies in the same industry

a payment or reward for socially conscious behavior

18-Which of the following is an advantage of offshore outsourcing?

Companies can create efficiencies by hiring lower wage employees

Wages increase in the home country

Product quality improves permitting the company to charge more for their products

Communication between the company and its customer improves

19-Language will never be a barrier to trade.

True

False