Test Bank For Business A Practical Introduction By Williams

ISBN-10: 0132334291, ISBN-13: 978-0132334297

Chapter 1  Starting Out

1) A nonprofit organization is a business.

Answer:  FALSE

Explanation:  A business is an organization focused on earning profits, so a nonprofit organization does not fit the definition of a business.

Page Ref: 4

Difficulty:  Easy

Objective:  1.1 What is business, and how are profits made?

Classification:  Concept

2) Global outsourcing is the practice of using suppliers outside the United States to provide labor, goods, or services for an American business.

Answer:  TRUE

Explanation:  Global outsourcing is also known as offshoring, and has contributed to the decline in American manufacturing.

Page Ref: 6

Difficulty:  Easy

Objective:  1.1 What is business, and how are profits made?

Classification:  Concept

AACSB:  Dynamics of the Global Economy

3) Only nonprofit organizations provide benefits to society.

Answer:  FALSE

Explanation:  Business organizations offer many societal benefits, including an improved quality of life and financial support for government services.

Page Ref: 7

Difficulty:  Easy

Objective:  1.2 How can business benefit society?

Classification:  Concept

4) Innovation is one factor used to measure a society’s quality of life.

Answer:  TRUE

Explanation:  Quality of life is measured by standard of living, health care, education, freedom, happiness, art, environmental health, and innovation.

Page Ref: 7

Difficulty:  Easy

Objective:  1.2 How can business benefit society?

Classification:  Concept

5) Taxes paid to the government by both a business and its employees provide an important social benefit.

Answer:  TRUE

Explanation:  Local, state, and federal governments use tax revenues to pay for important public services such as education, safety, and health.

Page Ref: 8

Difficulty:  Easy

Objective:  1.2 How can business benefit society?

Classification:  Concept