Page 36 - Business Principles and Management

C HAPTER 1 A SSESSMENT

DETERMINE THE BEST ANSWER

15. The difference between earned income and costs is
a. finance
b. start-up costs
c. profit
d. revenue
16. Coal-mining and construction companies are examples of
a. industrial businesses
b. commercial businesses
c. service businesses
d. domestic businesses
17. When Apple Computer built a personal computer it was an
example of
a. global competition
b. a new-product franchise
c. a marketing activity
d. an innovation
18. A result of global competition on the U.S. auto industry was that
a. laws were passed to prevent foreign auto sales in America
b. U.S. manufacturers improved quality and efficiency
c. consumers preferred U.S. brands over foreign brands of cars
d. no companies were able to make a profit
19. A company that is committed to total quality management
a. hires managers with college degrees
b. asks employees to emphasize efficiency rather than effective-
ness
c. uses teamwork and improved work procedures
d. all of the answers are correct
20. Efficiency can be achieved in all of the following ways except
a. specialization of effort
b. setting a lower price than competitors
c. using better technology and innovation
d. reorganizing work activities
21. The gross domestic product (GDP) of the United States is approxi-
mately equal to that of
a. China
b. all of the countries in the European Union
c. England and France
d. the rest of the world
22. An important measure of individual well-being is
a. the poverty rate
b. average family income
c. the standard of living
d. all of the answers are correct

23