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

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

Taxes and government regulations are part of the economic and legal environment in which businesses operate.

Niki has joined with several other investors to form a new company that sells foot care products to consumers over the Internet.Niki has invested in a B2C e-commerce company.

There is less risk involved in starting an e-commerce only business than there is in trying to add e-commerce to a traditional bricks-and-mortar)store.

Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses.

There are more high-paying jobs in the service sector than in the goods-producing sector.

Paid vacations and health care insurance are among the benefits provided by the government to entrepreneurs.

The war on terrorism will:

Jenna Leigh is an information savvy,20-something person who is trying to select between two marketing job offers.She can either join a company that makes small hammers and screwdrivers for the do-it-yourself hardware store business,or she can join a company developing the fourth generation cell phone service.She is quite impressed that the hardware business is growing quite nicely in China,Mexico,and India where people are starting to expand their living spaces.She is also aware of:

The global environment,

Adam Ripley sells custom bicycles.Adam buys several bike parts including wheels and tires from the Good Treads Company.Although several government-supported regulations help Adam in his business,regulations that make it easy for Adam's business to enjoy good vendor relationships are:

The business-to-business segment of e-commerce is of less importance than the business-to-consumer segment of e-commerce.

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

Which of the following is a factor of production?

Describe how businesses can use technology to be more responsive to customers.

St.Claire Hospital is considering a program that would allow some of its workers to use flextime.One group of workers who would probably benefit from flextime is:

Which of the following industries will benefit from an aging population?

Nolivia is a small and poor nation,but its current president has a genuine desire to create more wealth for Nolivia citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Nolivia?

Diversity management would not be an issue if firms would treat all of their employees the same.

Revenue is the amount a business earns above and beyond what it spends for expenses and costs.