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

Several years ago, the government of the small nation of Allegro owned the nation's telephone company and landlines. This relatively poor government relied on taxes to develop this industry and provide service to its citizens. If the government desired to rapidly improve people's access to phone service, its best course of action would involve selling the telephone company to private investors.

Nick 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?

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

Identity theft is when individuals or firms access people's personal information and then use it for illegal purposes and activities.

A nation progresses socially when it has good schools, clean air and water, and more. Which of the following statements addresses conditions for social progress?

Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking-out to the wrong hands is:

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Questionable business practices such as those followed by many mortgage lending companies in the past few years:

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

Technology affects people in:

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

The standard of living for a nation's people depends mainly on:

The amount of goods and services people can buy with the money they have is called their:

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

The threat of terrorism more often the cost of operating a business.

Robin has started her own Internet consulting firm. While she recognizes the risks involved in operating a business, she is still willing to invest her time, effort, and money in hopes of earning a profit. Robin is an example of an entrepreneur.

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

In recent years, manufacturing firms in the United States have laid off workers. The best explanation of this trend is that:

Diversity is more than recruiting and keeping minorities and women. Diversity means appreciating and understanding other differences in our customers and in our workforce. The statement that best describes this differences is:

Social entrepreneurs are people who start and manage organizations that are not-for-profit. Their mission is to help others improve their quality of life.