Chapt 1 - Chapter 1Business: 2005 and Beyond COMPLETION...

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Chapter 1—Business: 2005 and Beyond COMPLETION Completion 1 Directions : Complete the following using these terms: A. profits B. private enterprise C. entrepreneur D. human resources E. productivity F. capital G. vision H. factors of production I. brand J. relationship management K. customer satisfaction L. value 1. To operate effectively, certain inputs called ________ systems are required for all economic systems. ANS: H DIF: 1 REF: p. 7 OBJ: TYPE: KN 2. _________ refers to technology, tools, information, and physical facilities. ANS: F DIF: 1 REF: p. 8 OBJ: TYPE: KN 3. _________ are the difference between revenues and expenses. ANS: A DIF: 1 REF: p. 6 OBJ: TYPE: KN 4. Gains in ________ will result in higher living standards. ANS: E DIF: 2 REF: p. 22 OBJ: TYPE: KN
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5. A person who seeks a profitable opportunity and then devises a plan to achieve that profit is called a(n) ____________. ANS: C DIF: 1 REF: p. 12 OBJ: TYPE: KN 6. The ability to perceive marketplace needs and what an organization can do to satisfy them is referred to as ___________. ANS: G DIF: 1 REF: p. 26 OBJ: TYPE: KN 7. A ________ is a name, terms, sign, symbol, design, or combination that identifies the products of one firm. ANS: I DIF: 1 REF: p. 15 OBJ: TYPE: KN 8. _________________ is a collection of activities that build and maintain ongoing, mutually beneficial ties between a business and its customers and other parties. ANS: J DIF: 1 REF: p. 18 OBJ: TYPE: KN 9. A customer's perception of the balance between a product's positive traits and its price is called _____________. ANS: L DIF: 1 REF: p. 19 OBJ: TYPE: KN 10. _____________ is the ability of a product to meet or exceed a buyer's needs and expectations. ANS: K DIF: 1 REF: p. 20 OBJ: TYPE: KN ESSAY 1. Define profit. Explain why you agree or disagree with the following statement: "The success of a business is measured only by the profit it earns." 1-2
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ANS: Profit is defined as the difference between a company's revenues and its expenses. It is the financial re- ward received by successful businesspeople who take the risks involved in creating and operating a business. In order to be successful in a private enterprise system, a business must earn a satisfactory profit; otherwise, the owners and investors will turn to more attractive opportunities. However, busi- nesses today are expected to do more than earn a satisfactory profit-they also have social and ethical responsibilities. In other words, businesses must behave responsibly in their dealings with employees, customers, suppliers, the general public, and even with their competitors. DIF: 3 REF: p. 6 OBJ: TYPE: AP 2. List the four factors of production and the corresponding factor payments. ANS:
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