MGT028 - Chapter 1

A business is primarily concerned with providing goods and services for free.

• TRUE

• FALSE

Profit is the amount of money a business earns after all expenses have been deducted from sales revenue.

• TRUE

• FALSE

A business's mission explains how it will fulfil its purpose.

• TRUE

• FALSE

Intermediate goals are typically set by higher-level management and may take over 10 years to accomplish.

• TRUE

• FALSE

The primary function of a business is only to provide goods and services to society.

• TRUE

• FALSE

Capital refers to both fixed and working resources used in production, such as machines and raw materials.

• TRUE

• FALSE

Labour, as a factor of production, refers only to physical work, not mental work.

• TRUE

• FALSE

Entrepreneurship refers to the ability to organize other factors of production and take risks to run a business.

• TRUE

• FALSE

In a free economic system, the government controls most aspects of production and distribution.

• TRUE

• FALSE

In a mixed economy, the government regulates certain industries, especially those deemed essential.

• TRUE

• FALSE