Test Bank For Business A Changing World Canadian 6th Edition by Ferrell

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) Products have tangible attributes only.
Answer: True False
2) The goal of business activities is to earn a profit.
Answer: True False
3) Non-profit organizations, such as the Canadian Red Cross, do not have to engage in management,
marketing, or finance activities.
Answer: True False
4) Organizations such as the Special Olympics have two fundamental purposes: to earn a profit and to
accomplish social objectives.
Answer: True False
5) Profit is what it costs to make and sell a product.
Answer: True False
6) Businesses have the right to keep and use their profits as they choose, without limitations.
Answer: True False
7) Earning profits contributes to society by providing employment, which in turn provides money that
is reinvested in the economy.
Answer: True False
8) Finance is concerned with obtaining money and using it effectively.
Answer: True False
9) Owners have little responsibility to provide funds for the operation of the business.
Answer: True False
10) Managers coordinate resources to achieve organizational objectives.
Answer: True False