Question 1

Businesses use demographic studies to understand where people live,their lifestyles,and what they are likely to buy.

Accepted Answer

A) True 
 B)False

Question 2

Technology can help businesses become more efficient and productive.

Accepted Answer

A) True 
 B)False

Question 3

Maintaining a competitive advantage is very important to the success of today's businesses.All of the following strategies will help a firm remain competitive,except:

Accepted Answer

A) Ignoring competitor movements,including new products and services offered by the competition. 
B) Restructuring internal processes,including the elimination of some jobs. 
C) Spending funds on customer service training for front-line employees. 
D) Adhering to a vision of employee empowerment and striving to exceed customer expectations. 
A) Ignoring competitor movements,including new products and services offered by the competition. 
B) Restructuring internal processes,including the elimination of some jobs. 
C) Spending funds on customer service training for front-line employees. 
D) Adhering to a vision of employee empowerment and striving to exceed customer expectations.

Question 4

The amount of goods and services people can buy with the money they have is called their:

Accepted Answer

A) nominal income. 
B) consumer price index. 
C) profit margin. 
D) standard of living. 
A) nominal income. 
B) consumer price index. 
C) profit margin. 
D) standard of living.

Question 5

Opportunities and advancements in the technological environment during the past 20 years have opened the doors for a number of Internet and telecommunications products that enhance the lives of consumers.Identity theft and other forms of cybercrime are also by-products of these technological advancements.Which of the following statements describes a form of identity theft?

Accepted Answer

A) Cell phone applications that permit the consumer to price compare by scanning the barcode of a product,such as a DVD. 
B) Hacking into a business's database to obtain customer credit card numbers,and then selling those numbers to others for use. 
C) Navigation technology that permits you to find the exact location of a person,by entering that person's cell phone number into your application. 
D) The application of "cookies" to a consumer's computer system that identifies his/her purchasing patterns. 
A) Cell phone applications that permit the consumer to price compare by scanning the barcode of a product,such as a DVD. 
B) Hacking into a business's database to obtain customer credit card numbers,and then selling those numbers to others for use. 
C) Navigation technology that permits you to find the exact location of a person,by entering that person's cell phone number into your application. 
D) The application of "cookies" to a consumer's computer system that identifies his/her purchasing patterns.

Question 6

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves.Such things they are likely to pass-up on are:

Accepted Answer

A) the freedom to make their own decisions. 
B) local government benefits such as enterprise zone tax credits. 
C) employer paid benefits such as paid vacation and health insurance. 
D) tickets to sporting events that trading partners may provide. 
A) the freedom to make their own decisions. 
B) local government benefits such as enterprise zone tax credits. 
C) employer paid benefits such as paid vacation and health insurance. 
D) tickets to sporting events that trading partners may provide.

Question 7

Empowerment requires that managers focus more on __________ lower-level employees.

Accepted Answer

A) directly supervising 
B) training 
C) simplifying the jobs of 
D) controlling and correcting 
A) directly supervising 
B) training 
C) simplifying the jobs of 
D) controlling and correcting

Question 8

Airline companies around the world are experiencing increased costs in part due to ___________.

Accepted Answer

A) decreases in the cost of fuel 
B) decreasing world trade 
C) the threat of terrorism 
D) lack of interest in flying 
A) decreases in the cost of fuel 
B) decreasing world trade 
C) the threat of terrorism 
D) lack of interest in flying

Question 9

Two of his friends approached Sergio with a proposal to start a language school.Sergio is fluent in English and Spanish,and also has an education degree.Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services.He learns that an important demographic trend is:

Accepted Answer

A) the service sector is likely to decline in significance in the next few years. 
B) the number of young children in the U.S.will decrease significantly over the next few years as the population of the country levels off. 
C) the number of immigrants from South and Central America is increasing steadily in his area,and across the nation.Professionals in hospitals and schools need to know how to speak Spanish.Immigrants need to know how to speak English. 
D) the number of retirees is decreasing,making way for a younger generation. 
A) the service sector is likely to decline in significance in the next few years. 
B) the number of young children in the U.S.will decrease significantly over the next few years as the population of the country levels off. 
C) the number of immigrants from South and Central America is increasing steadily in his area,and across the nation.Professionals in hospitals and schools need to know how to speak Spanish.Immigrants need to know how to speak English. 
D) the number of retirees is decreasing,making way for a younger generation.

Question 10

Xavier,a recent college graduate,is thinking of investing in a home health care business.He believes this will be a profitable venture because of the increasing number of people in the U.S.that will be over 60 in the near future and more likely to need this type of service.This accurately describes a demographic trend that will affect his business choice.

Accepted Answer

A) True 
 B)False

Question 11

Retired people will be draining the U.S.economy of wealth.This is due to:

Accepted Answer

A) The fact that most have smoked all their lives and now are unwilling to pay for healthcare in order to stay alive. 
B) The fact there are not enough workers in subsequent generations to support the ongoing drain of older persons into the social security system. 
C) Their lack of interest in supporting restaurants,resorts,educational institutions,and service-intensive companies. 
D) The fact that they refuse to use current information technology to improve efficiency. 
A) The fact that most have smoked all their lives and now are unwilling to pay for healthcare in order to stay alive. 
B) The fact there are not enough workers in subsequent generations to support the ongoing drain of older persons into the social security system. 
C) Their lack of interest in supporting restaurants,resorts,educational institutions,and service-intensive companies. 
D) The fact that they refuse to use current information technology to improve efficiency.

Question 12

After several years of study as a part-time student,Alex recently earned a degree in marketing at a local college.The growth in global markets may increase Alex's job opportunities,but it will also require him to continually update his skills or seek further education.

Accepted Answer

A) True 
 B)False

Question 13

An activity which seeks to earn a profit by providing a good or service is known as an):

Accepted Answer

A) industry. 
B) corporation. 
C) business. 
D) service. 
A) industry. 
B) corporation. 
C) business. 
D) service.

Question 14

The threat of terrorism more often __________ the cost of operating a business.

Accepted Answer

A) increases 
B) decreases 
C) stabilize 
D) destabilizes 
A) increases 
B) decreases 
C) stabilize 
D) destabilizes

Question 15

The rise of Internet marketing has become particularly important in doing business in the B2B markets.

Accepted Answer

A) True 
 B)False

Question 16

One factor that has had a major effect on businesses is the growth of single-parent families.

Accepted Answer

A) True 
 B)False

Question 17

One of the best things the governments of developing countries can do to increase wealth is to minimize interference with the free exchange of goods and services.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following entails the greatest amount of risk?

Accepted Answer

A) Working for the government 
B) Working for a large business 
C) Working for a small business 
D) Starting a business 
A) Working for the government 
B) Working for a large business 
C) Working for a small business 
D) Starting a business

Question 19

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S.business community.

Accepted Answer

A) True 
 B)False

Question 20

Companies that outsource research and development and design jobs:

Accepted Answer

A) have always made a wise decision. 
B) will be more profitable in the long run. 
C) run the risk of overseas companies using the information to produce competitive products. 
D) always invest in the overseas companies that take on these jobs. 
A) have always made a wise decision. 
B) will be more profitable in the long run. 
C) run the risk of overseas companies using the information to produce competitive products. 
D) always invest in the overseas companies that take on these jobs.

Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

Businesses use demographic studies to understand where people live,their lifestyles,and what they are likely to buy.

Technology can help businesses become more efficient and productive.

Maintaining a competitive advantage is very important to the success of today's businesses.All of the following strategies will help a firm remain competitive,except:

The amount of goods and services people can buy with the money they have is called their:

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves.Such things they are likely to pass-up on are:

Empowerment requires that managers focus more on __________ lower-level employees.

Airline companies around the world are experiencing increased costs in part due to ___________.

Retired people will be draining the U.S.economy of wealth.This is due to:

After several years of study as a part-time student,Alex recently earned a degree in marketing at a local college.The growth in global markets may increase Alex's job opportunities,but it will also require him to continually update his skills or seek further education.

An activity which seeks to earn a profit by providing a good or service is known as an):

The threat of terrorism more often __________ the cost of operating a business.

The rise of Internet marketing has become particularly important in doing business in the B2B markets.

One factor that has had a major effect on businesses is the growth of single-parent families.

One of the best things the governments of developing countries can do to increase wealth is to minimize interference with the free exchange of goods and services.

Which of the following entails the greatest amount of risk?

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S.business community.

Companies that outsource research and development and design jobs:

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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