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

Though the prices of things she buys have gone up, Jin's income has remained stable over the past few years . Nevertheless, Jin feels better off because the environment is cleaner, the crime rate has dropped, she has more relaxation time, and the quality of medical care has improved. If Jin's experience is typical, we can assume that the standard of living has

The emergence of an information-based economy are important parts of the ________ environment in which businesses operate.

Almost all of the growth in employment opportunities since the mid-1980s has been generated by the service sector.

Certain industries of the U.S. economy, such as farming and heavy equipment manufacturing, have experienced a significant decline in employment. Which of the following best explains this job loss?

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.

D) Always match the promotions of our competitors; price is the only thing customers care about. Answer: B Explanation: Businesses must be customer-driven. While consumers demand high quality, they also have come to expect reasonable prices and exceptional service. In today's highly competitive business environment, providing a quality product is no longer enough. Consumers and industrial buyers now expect more. Difficulty: 3 Hard Topic: Competition Learning Objective: 01-05 Demonstrate how businesses can meet and beat competition. Bloom's: Apply AACSB: Knowledge Application Accessibility: Keyboard Navigation -Tabitha called in a food order to feed her office team. When she arrived to pick up, it was not what she ordered. The store associate quickly made it right, and offered an extra dozen bagels to make up for the mistake. There was no need to check with the supervisor, as the employee was ________ to make decisions that translate into good customer service.

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

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

Demographic trends suggest that businesses will benefit from offering flexible work schedules, elder care, and child care to help employees balance the demands of job and family.

An increase in productivity indicates that more can be produced in a given time period with the same amount of resources.

Businesses seek to earn a profit by providing goods and services to others.

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

As a factor of production, the term capital includes:

An important environmental change in the global environment is the growth of international competition.

Productivity is the amount of output you generate given the amount of input such as hours worked.

Workers in the island nation of Rainland have enjoyed an increase in the number of holidays and a reduction in the average length of the workday. This has reduced the total number of hours they work each year. However, the output per worker is higher now than it was before the reduction in hours. These facts imply that productivity on the island has increased.

Pete is a recent finance graduate who has two passions: music and finance. Upon graduation, he was offered an opportunity to join a struggling rock band with a lot of potential, or a job at a large well-established financial services company. By joining the band, he will forego which of the following?

Most business experts agree that entrepreneurship and the effective use of knowledge are the most important contributors to the creation of wealth.

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

Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.