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

Which of the following entails the greatest amount of risk?

The new era of business is likely to be dominated by the

Which of the following policies would tend to foster entrepreneurship?

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the ______ sector.

The Social Security system:

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

The service industry represents about ________ of the value of the U.S. economy.

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.

Natalie has joined several other investors to form a new company that sells cosmetics products to consumers online. Natalie has invested in a B2C e-commerce company.

A New York Times article about Bernie Madoff and his illegal Ponzi scheme stated, "When money goes global, fraud does too." Although the goal of investors who trusted Madoff's investment company was to earn the highest return possible on their investments, they turned a blind eye toward the fact that some of those returns were too good to be true. Individual investors, companies, and even charities lost large sums of money by investing with Madoff's company. Which of the following statements relates to this story?

If you were to discuss and analyze the social changes affecting the future of business, which of the following statements should be part of that conversation?

Profits of a business include the salaries paid to its employees.

The most important difference between for-profit businesses and nonprofit organizations is that:

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

New orders are coming in quickly for SmartTech, and management is confident that new contracts will take them through the next couple of years. The company has started investing again, but not in people. The number of employees is the same as when the company and its competitors faced the Great Recession. Most likely due to ________, the company is producing more product and services with less people.

Casey is looking into opening a day care in her community. She is aware of many single-parent families that need a place for their children to stay while they work, but she is concerned about the long-term prospects for such a business. Casey thinks the future of her day care will depend on whether birth rates and the number of single-parent families keep growing. These concerns illustrate how businesses can be affected by ________ trends.

Efficiency means:

In recent years, almost all new job creation in the U.S. has occurred in the ________ sector.