Chapter 01 – The Dynamics of Business and Economics
Chapter 01
The Dynamics of Business and Economics
True / False Questions
1. Businesses have the right to keep and use their profits as they choose, without limitations.
2. Finance refers to all activities concerned with obtaining money and using it effectively.
Chapter 01 – The Dynamics of Business and Economics
3. Owners have little responsibility to provide funds for the operation of the business.
4. A central issue of economics is how to fulfill an unlimited demand for goods and services
in a world with limited resources.
Chapter 01 – The Dynamics of Business and Economics
5. The equilibrium price is represented by the point where a product’s supply and demand
curves intersect.
Multiple Choice Questions
6. _____ is the primary goal of business.
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12. Which of the following is a similarity between businesses and nonprofit organizations?
A. Both do not have to abide by government regulations.
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31. _____ are the funds used to acquire the natural and human resources needed to provide
products.
32. Which of the following is a factor of production for a firm?
