TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE

ABDM1183 INTRODUCTION TO BUSINESS

: TUTORIAL 1
TOPIC 1 INTRODUCTION TO BUSINESS ORGANISATION

Section A: Multiple-choice question

1) ________ is the primary goal of business.

A) Service

B) Profit

C) Innovation

D) Quality

E) Strategy

2) Businesses differ from nonprofit organizations in that a business's focus is on _____________.

A) profit.

B) goods.

C) price.

D) charity.

E) fund-raising.

3) Which of the following is an example of an intangible product?

A) a movie DVD

B) a kitten

C) perfume

D) a music concert

E) jewelry

4) Amit hired an attorney to help him draft a purchase and sale agreement for his new home. The
home is an example of a product that is a(n) __________.

A) idea.

B) service.
 C) tangible item.

D) process.

E) intangible good.

5) Which statement is true about businesses and profits?

A) Profit making is a business activity that seldom requires risk taking.

B) Businesses do not have the right to use their profits the way they choose.

C) Profit-making businesses often weaken the economy of a country.

D) Earning profits contributes to society by creating resources that support social institutions
and government.

E) Ignoring the interests of stakeholders is the best way for a business to be profitable.

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6) Which of the following is NOT an accurate statement regarding nonprofit organizations?

A) They may provide goods and services.

B) They engage in fund-raising.

C) They have the fundamental goal of earning profits.

D) They utilize skills related to management, marketing, and finance.

E) They include charities and social causes.

7) All the groups that have an interest in an organization's success and outcomes are known as the
organization's ______________.

A) agencies.

B) stakeholders.

C) owners.

D) investors.

E) shareholders.

8) Among the major activities of business, which of the following is an element of management?

A) obtain financing

B) conduct product research

C) engage in personal selling

D) promote sales

E) acquire resources

9) Ronan works for a custom furniture manufacturer. His job is to oversee the process of taking
raw materials—lumber, fabric, and metal components—and ensure that they are transformed to
the customer's exact specifications. Ronan's job falls under the business activity known as
_____.

A) operations.

B) advertising.

C) sales promotion.

D) finance.

E) marketing.
10) The principles and standards that determine acceptable conduct in business organizations
are referred to as ___________.
A) social responsibility.
B) business strategies.
C) business ethics.
D) business stances.
E) corporate citizenship.

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11) Which statement is true regarding business ethics and social responsibility?
A) All actions deemed unethical by society are also illegal.
B) The concerns of what is legal and ethical do not change over time.
C) The terms social responsibility and ethics should be used interchangeably.
D) Companies can be both profitable and socially responsible.
E) Businesses whose sole objective is to earn profit are also likely to consider their social
responsibility.

12) A local landscaping company donates and plants a tree in the community for every new
client that uses its landscaping design services. This exhibits the company's _______.
A) business ethics.
B) profitability.
C) business responsibility.
D) irresponsibility.
E) social responsibility.

13) The term ________ refers to a business's obligation to maximize its positive impact and
minimize its negative impact on society.
A) social citizenship
B) social strategy
C) social ethics
D) social responsibility
E) social philanthropy

14) Lindsay, a manager, makes decisions that benefit her financially at the expense of her
firm. This is an example of which ethical issue in business?
A) bullying
B) bribery
C) conflict of interest
D) intimidating behavior
E) misuse of company time

15) The fact that businesspersons are expected not to harm customers, clients, and
competitors knowingly through deception, misrepresentation, coercion, or discrimination is
part of the practice of ________.
A) business relationships.
B) communications.
C) conflict of interest.
D) fairness and honesty.
E) consumerism.
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16) Being profitable relates to the ________ dimension of social responsibility.
A) corporate citizenship
B) voluntary
C) ethical
D) legal
E) economic

17) Obeying the law is a business's ___________.

A) right.
B) choice.
C) economic responsibility.
D) legal responsibility.
E) ethical responsibility.

18) Businesses must first be responsible to their ________, who are primarily concerned with
earning a profit.
A) clients
B) vendors
C) top managers
D) owners
E) employees

19) Pollution of water and soil from activities such as oil and gas drilling is primarily related
to ___________.
A) consumer relations.
B) sustainability issues.
C) community relations.
D) employee relations.
E) relations with stockholders.

20) The most common way that businesses exercise community responsibility is through
_____.
A) establishing codes of ethics.
B) submission of environmental reports.
C) obeying the law.
D) recycling.
E) donations to charitable organizations.
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Section B: Essay Questions

1) What is the primary goal of all businesses? Does a nonprofit organization fit within this
goal?

2) Define basic concepts such as business, product, and profit.

3) Define the term ‘business ethics’. Who determines whether a business activity is ethical?

4) Explain the 4 macro-environmental factos that affect business,

5) Differentiate between ethics and social responsibility.

6) Name at least 3 benefits of studying business.

7.) What responsibilities does a business have toward its employees?

8 )What are a business’s responsibilities toward the community in which it operates?