True or false: the nature of business

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Business involves the production or exchange of goods and services.

2. Statement is true

   Yes

   Statement

   A business carries risk and uncertainty of return.

3. Statement is true

   No

   Statement

   A single isolated transaction makes someone a businessperson.

4. Statement is true

   Yes

   Statement

   Earning profit is a central motive of business activity.

Instructions

Decide whether each statement about business is true or false.

Explanation