Question 1

Which of the following statements describes a recurring theme about today's ecological environment?

Accepted Answer

A)  Most people agree that there is strong evidence that the temperature of the planet is going down. 
B)  Smart businesses know that green business is currently a trend and they should proceed with caution because most green initiatives are more costly than wars and terrorism. 
C)  There is a strong push by customers for businesses to develop products and services that clearly save energy. 
D)  Clearly, the greening issue is an American trend that has not captured the attention of the international business community. 
A)  Most people agree that there is strong evidence that the temperature of the planet is going down. 
B)  Smart businesses know that green business is currently a trend and they should proceed with caution because most green initiatives are more costly than wars and terrorism. 
C)  There is a strong push by customers for businesses to develop products and services that clearly save energy. 
D)  Clearly, the greening issue is an American trend that has not captured the attention of the international business community.

Question 2

Starting a business is a riskier path toward business success than working your way up the ranks of a large business.

Accepted Answer

A) True 
 B)False

Question 3

World-class businesses attempt to meet the needs of:

Accepted Answer

A)  their customers, even if it comes at the expense of employees and other stakeholders in the business. 
B)  their employees, even if it means shortchanging customers by charging higher prices. 
C)  all stakeholders. 
D)  exclusively their owners, since they are ultimately the ones who pay the bills. 
A)  their customers, even if it comes at the expense of employees and other stakeholders in the business. 
B)  their employees, even if it means shortchanging customers by charging higher prices. 
C)  all stakeholders. 
D)  exclusively their owners, since they are ultimately the ones who pay the bills.

Question 4

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials, and environmentalists.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

Accepted Answer

A)  firms have been trying to weaken unions by reducing their reliance on labor. 
B)  workers in the U.S. have become less productive and are no longer able to compete in the global economy. 
C)  firms in many industries have become so efficient that they need fewer workers. 
D)  the economy has been in a prolonged depression that has lasted more than a decade. 
A)  firms have been trying to weaken unions by reducing their reliance on labor. 
B)  workers in the U.S. have become less productive and are no longer able to compete in the global economy. 
C)  firms in many industries have become so efficient that they need fewer workers. 
D)  the economy has been in a prolonged depression that has lasted more than a decade.

Question 7

Mini-Case
Eli Moneybags works for Second Commercial Bank, one of the largest banks in the Southwestern U.S. He is a loan officer, specializing in mortgages. Tio Jaime, Eli's favorite (and wealthiest) uncle, passed away last month and left him a sizable amount of money. Eli is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Eli is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. He is also a bit bored and looking for a new challenge. He thinks he might get a lot of satisfaction from owning his own business. Eli has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-As he starts his research, Eli notices that some opportunities appear to be riskier than others. When considering various opportunities, Eli should keep in mind that

Accepted Answer

A)  he will be better off picking a low-risk business opportunity, since the safest ones are usually the most profitable as well. 
B)  even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another. 
C)  high-risk business opportunities often have the potential for high returns as well. 
D)  government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk. 
A)  he will be better off picking a low-risk business opportunity, since the safest ones are usually the most profitable as well. 
B)  even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another. 
C)  high-risk business opportunities often have the potential for high returns as well. 
D)  government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk.

Question 8

Last year, Archer Electronics reported revenues of $34 million while its total expenses were $10 million. Based on this information, Archer reported

Accepted Answer

A)  profits of $24 million. 
B)  profits of $34 million. 
C)  losses of $24 million. 
D)  losses off $34 million. 
A)  profits of $24 million. 
B)  profits of $34 million. 
C)  losses of $24 million. 
D)  losses off $34 million.

Question 9

One advantage of a database is it

Accepted Answer

A)  permits a retail store to directly gather information on the customers who do business with its competitors, so it can target promotional materials to those people. 
B)  creates efficiency in that the store can quickly replenish items that are purchased. 
C)  prevents identity theft. 
D)  prevents stores from exchanging customer information with each other. 
A)  permits a retail store to directly gather information on the customers who do business with its competitors, so it can target promotional materials to those people. 
B)  creates efficiency in that the store can quickly replenish items that are purchased. 
C)  prevents identity theft. 
D)  prevents stores from exchanging customer information with each other.

Question 10

Bart Broekelman recently returned from Afghanistan where he was a member of the highly skilled special operations forces. He is now back home in the United States where he uses the G.I. Bill in order to go to school. This is one example of

Accepted Answer

A)  how an event such as a war educates young people about conditions abroad. 
B)  the cost of war. 
C)  the benefits of war on education. 
D)  a squeeze on employer benefits. 
A)  how an event such as a war educates young people about conditions abroad. 
B)  the cost of war. 
C)  the benefits of war on education. 
D)  a squeeze on employer benefits.

Question 11

The immigrant population (both legal and illegal) is having the most dramatic effect on

Accepted Answer

A)  car and truck makers. 
B)  mining and minerals industry. 
C)  schools, hospitals, and other services industries. 
D)  ice cream and confection industry. 
A)  car and truck makers. 
B)  mining and minerals industry. 
C)  schools, hospitals, and other services industries. 
D)  ice cream and confection industry.

Question 12

The only way a firm can increase its profits is to increase its sales revenue.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively online. 
B)  Traditional brick-and-mortar firms will enter the e-commerce market by creating their own websites. 
C)  E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets. 
D)  Brick-and-mortar businesses will cease to exist within 20 years. 
A)  E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively online. 
B)  Traditional brick-and-mortar firms will enter the e-commerce market by creating their own websites. 
C)  E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets. 
D)  Brick-and-mortar businesses will cease to exist within 20 years.

Question 14

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

Accepted Answer

A)  empowered with the authority to respond quickly to the unmet needs of customers 
B)  closely supervised to reduce the risk of product liability and discrimination lawsuits 
C)  eliminated and replaced with automated equipment whenever possible 
D)  relieved of any burden to make a customer decision 
A)  empowered with the authority to respond quickly to the unmet needs of customers 
B)  closely supervised to reduce the risk of product liability and discrimination lawsuits 
C)  eliminated and replaced with automated equipment whenever possible 
D)  relieved of any burden to make a customer decision

Question 15

According to the box, "Services Expand the Circular Economy," technology is helping turn products into services by

Accepted Answer

A)  restricting what customers can and cannot buy for personal use. 
B)  producing items that are designed to reach obsolescence quickly. 
C)  offering new ways to access items like movies or music and by adding sensors to allow companies to develop new business models. 
D)  developing more disposable items. 
A)  restricting what customers can and cannot buy for personal use. 
B)  producing items that are designed to reach obsolescence quickly. 
C)  offering new ways to access items like movies or music and by adding sensors to allow companies to develop new business models. 
D)  developing more disposable items.

Question 16

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Accepted Answer

A) True 
 B)False

Question 17

Christina quit her job in Chicago to take a less stressful position in a small town located in a scenic area. She now earns less money and has had to cut back on her purchases of material goods, but she has more free time and really enjoys the clean air and scenic beauty of her new home. Christina has accepted a lower standard of living in order to enjoy a higher quality of life.

Accepted Answer

A) True 
 B)False

Question 18

Lacey owns a bakery in Dallas. She read online that the homeland security threat level has been increased due to anticipated terrorist activities, especially in large cities in the U.S. She will likely not be able to get insurance to cover any losses her business may suffer should an attack occur in Dallas.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following government policies would be least likely to encourage entrepreneurship?

Accepted Answer

A)  Passage of laws that enable businesspeople to write enforceable contracts 
B)  Establishment of a currency that is tradable in world markets 
C)  Establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability 
D)  Passage of laws that eliminate corruption in government and business 
A)  Passage of laws that enable businesspeople to write enforceable contracts 
B)  Establishment of a currency that is tradable in world markets 
C)  Establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability 
D)  Passage of laws that eliminate corruption in government and business

Question 20

Efforts are under way to serve the needs of a diverse population. Diversity means:

Accepted Answer

A)  selling products to immigrants. 
B)  dealing sensitively with workers and cultures around the world. 
C)  providing government programs such as free health care for illegal and legal immigrants. 
D)  meeting employment quotas so that diverse groups are always represented in your workforce. 
A)  selling products to immigrants. 
B)  dealing sensitively with workers and cultures around the world. 
C)  providing government programs such as free health care for illegal and legal immigrants. 
D)  meeting employment quotas so that diverse groups are always represented in your workforce.

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

Which of the following statements describes a recurring theme about today's ecological environment?

Starting a business is a riskier path toward business success than working your way up the ranks of a large business.

World-class businesses attempt to meet the needs of:

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials, and environmentalists.

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

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

Last year, Archer Electronics reported revenues of $34 million while its total expenses were $10 million. Based on this information, Archer reported

One advantage of a database is it

Bart Broekelman recently returned from Afghanistan where he was a member of the highly skilled special operations forces. He is now back home in the United States where he uses the G.I. Bill in order to go to school. This is one example of

The immigrant population (both legal and illegal) is having the most dramatic effect on

The only way a firm can increase its profits is to increase its sales revenue.

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

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

According to the box, "Services Expand the Circular Economy," technology is helping turn products into services by

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Which of the following government policies would be least likely to encourage entrepreneurship?

Efforts are under way to serve the needs of a diverse population. Diversity means:

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 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

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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