A Changing World 6Th Canadian Edition By O. C. Ferrell -Test Bank

Chapter 01 The Dynamics of Business and Economics

True / False Questions

1. Products have tangible attributes only.

FALSE

Products can also be a service, which has intangible attributes.

Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit. Topic: 01-02 The Nature of Business

2. The goal of business activities is to earn a profit.

TRUE

Without profit, businesses will go out of business.

Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define basic concepts such as business, product, and profit. Topic: 01-03 The Goal of Business

3. Non-profit organizations, such as the Canadian Red Cross, do not have to engage in management, marketing, or finance activities.
FALSE

Non-profit organizations do not accumulate profits, but they do provide goods and services to consumers.

Blooms: Understand
Difficulty: Medium
Learning Objective: 01-01 Define basic concepts such as business, product, and profit. Topic: 01-03 The Goal of Business