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

Backstreet Books,an eclectic bookstore on a large college campus generated total revenues of $15 million while incurring expenses of $12 million.During the year Backstreet Books earned a profit of $3 million.

Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society.

Bar codes are a form of technology that has enhanced a company's ability to be responsive to consumer needs.

A charitable organization,such as the American Red Cross or Salvation Army,is classified as a for-profit organization.

Honda and Toyota have used insourcing for years to produce cars in the United States.Insourcing:

Ross wants to invest some money that he just inherited.He found that his bank offers a savings account paying a guaranteed 3% rate of return.However,he would like to earn a higher return.Ross should keep in mind that to earn a higher return on his money he:

Technological innovation has a ripple effect.With the advent of the Internet,Tyler Hanley,a certified tech-nerd,is being courted by companies to write the next generation of antivirus software.He tells us its big business!

Increases in productivity have allowed fewer farmers to feed more and more people.

Unlike businesses,employees of nonprofit organizations are not required to learn the business skills of information management,marketing,or financial management.

Information in a database allows firms to carry only the products that the local population wants.

Though it has received a lot of attention,the development of the Internet has had less of an impact on the way businesses operate than many other technological changes.

Eve and her three college friends enjoy perfumes.As a special gift to each of them last holiday season,Eve found a way to make scented candles with each friend's favorite perfume scent.The three friends loved her gift idea and encouraged Eve to create more and sell them on the Internet.Recently,she is filling orders from her website,and turning a profit.Eve is proof that:

Historically jobs lost in one sector of the economy have been replaced by increased employment opportunities in other sectors.

One way for a government to actively promote entrepreneurship is to establish a currency that's tradable in world markets so that you can buy and sell goods anywhere in the world using that currency.

Jing is a recent U.S.college graduate who is interested in starting an import tea business.If she follows through with her plans,she will be a pioneer,because only a handful of women choose to start businesses in the U.S.

China is a nation with a vast amount of land and a very large population.Another characteristic of this nation is its people's affinity for saving money.Referring to the five factors of production,the government of China has made significant progress in building its business environment by focusing on factors that needed improvement.Its strategy was to:

The statistical study of human population to learn its size,density,and characteristics is called:

Health care,insurance,recreation and other intangible products are provided by the:

After losing her manufacturing job in the U.S.automobile industry,Juanita has found that well paid service sector jobs require retraining and further education.

Businesses that produce and sell tangible products such as steel and machines are part of the: