Test Bank For Business in Action, 10th edition Courtland L. Bovee, John V. Thill Chapter 1-16
Chapter 1
Developing a Business Mindset
1) ________ is money that an organization brings in through the sale of its goods and services. A) Competitive advantage B) Revenue C) Sales D) Capital investment Answer: B Explanation: Revenue is the money a company brings in through the sale of goods and services. Difficulty: 1: Easy AACSB: Application of knowledge LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to categorize businesses. 2) Why is the link between risk and reward critical for a business? A) It is a key aspect of social responsibility B) It provides opportunities for not-for-profit organizations to stay in business C) It is essential to the counter-cyclical business model D) It provides incentive to take on the risk Answer: D Explanation: Without the promise of rewards, businesses would have no incentive to take on the risks. And without entrepreneurs and companies willing to accept risk, little would get done in the economy. Difficulty: 2: Moderate AACSB: Application of knowledge LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to categorize businesses. 3) A(n) ________ is a framework of how a business intends to generate revenue. A) business model B) strategic management tool C) profitability analysis D) competitive advantage Answer: A Explanation: A company's business model is a clear, simple outline of how the business intends to generate revenue. Difficulty: 1: Easy AACSB: Analytical thinking LO: 1.1: Explain the concept of adding value in a business, and identify four useful ways to categorize businesses. 1 Copyright © 2024 Pearson Education, Inc.