Chapter 1

Introduction to Business

Section 1

Name_____________________________________
Date_____________________________________

Directions: Read each statement and decide whether it is TRUE (T) or FALSE (F), and then
circle the corresponding letter. If the statement is false, correct it in the space
provided.
1. Private wants are widely shared by many people.

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2. If you pay a bike shop to repair your bike, you are buying goods.
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3. Money is a resource.
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4. The first step in the decision-making process is listing the alternatives.
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5. Resources limit the number of needs and wants people can satisfy.
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Directions: Match each step of The Decision-Making Process with its description. Place the
letter of your answer in the space provided.

A. Consider your values and goals when

determining the advantages and
disadvantages of each alternative.
B. Once your decision is put into effect,
ask yourself whether you achieved the
results you expected.
C. Take time to think through the
situation so you can clearly identify and
consider all the important alternatives.
D. Whether the problem is one that
occurs daily or comes up only a few
times in a lifetime, it must be
acknowledged.
E. Use the information that you gathered
to rank the alternatives, and then
choose one.

Step 1: Identify the situation

1.________

Step 2: Identify possible

courses of action

2.________

Step 3: Determine your pros

and cons

3.________

Step 4: Make a decision

4.________

Step 5: Evaluate your decision 5.________

Chapter 1

Introduction to Business

Section 1

Directions: Give an example of how you balanced your unlimited wants with your limited
resources during the past month. What did you do? How did you arrive at your
decision? Make sure to incorporate The Decision-Making Process in your answer.
Write your answer in the space provided.
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