Test Bank For Business in Action, 9th Edition by Philip Kotler, John T. Bowen, Seyhmus Baloglu Chap

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E) is an outdated concept that's been replaced by corporate sustainability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.