Test Bank for Business in Action Revised by Susan Schanne Business in Action Ninth Edition Courtland L. Bovee John V. Thill (Complete And Verified Study material) (528pages) LEARNEXAMS

Business in Action, 9e (Bovee/Thill) 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 E) Finance 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) The risk and reward relationship ________. A) is a key aspect of social responsibility B) applies only to service-intensive businesses C) is essential to the counter-cyclical business model D) is fundamental to businesses in every modern economy E) is an outdated concept that's been replaced by corporate sustainability Answer: D Explanation: A company needs to see some promise of reward before it will decide to accept the risks involved in creating and selling products. However, to ensure responsible behavior, these risks need to stay attached to those decisions, meaning that if the decisions turn out bad, that company should suffer the consequences. 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. 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 E) entrepreneurial mindset 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.