Question 1

Which of the following is an advantage of utilizing technology?

Accepted Answer

A) Technology increases the cost of production. 
B)  Technology reduces the need for a marketing plan. 
C) Productivity increases. 
D) Management becomes isolated from the demands of stakeholders. 
A) Technology increases the cost of production. 
B)  Technology reduces the need for a marketing plan. 
C) Productivity increases. 
D) Management becomes isolated from the demands of stakeholders.

Question 2

Money is one of the five factors of production that contribute to the creation of wealth.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be 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 over the Internet. 
B) Traditional brick-and-mortar firms will enter the e-commerce market by creating their own web sites. 
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 twenty years. 
A) E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively over the Internet. 
B) Traditional brick-and-mortar firms will enter the e-commerce market by creating their own web sites. 
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 twenty years.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the best example of a business whose goal is to earn a profit?

Accepted Answer

A) A community college 
B)  The Salvation Army 
C)  Boy Scouts of America 
D) Best Buy, Inc. 
A) A community college 
B)  The Salvation Army 
C)  Boy Scouts of America 
D) Best Buy, Inc.

Question 6

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio 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, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio 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!
-Two of his friends approached Sergio with a proposal to start a language school. Sergio is fluent in English and Spanish, and also has an education degree. Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services. He learns that an important demographic trend is:

Accepted Answer

A)  the service sector is likely to decline in significance in the next few years. 
B)  the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off. 
C)  the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals in
hospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English. 
D)  the number of retirees is decreasing, making way for a younger generation 
A)  the service sector is likely to decline in significance in the next few years. 
B)  the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off. 
C)  the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals in
hospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English. 
D)  the number of retirees is decreasing, making way for a younger generation

Question 7

Traditional businesses have a managerial focus rather than a customer focus.

Accepted Answer

A) True 
 B)False

Question 8

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Accepted Answer

A) True 
 B)False

Question 9

The only real purpose of a business is to make money for entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 10

Jing is a recent U.S. college graduate who is interested in starting an import tea business. If she follows through with her plans, she will be a pioneer, because only a handful of women choose to start businesses in the U.S.

Accepted Answer

A) True 
 B)False

Question 11

The growth of Hispanic owned businesses:

Accepted Answer

A) remained relatively constant during the past decade. 
B)  slowly increased during the past decade. 
C) increased dramatically in recent years. 
D) decreased slightly compared to other minority groups who have stared businesses. 
A) remained relatively constant during the past decade. 
B)  slowly increased during the past decade. 
C) increased dramatically in recent years. 
D) decreased slightly compared to other minority groups who have stared businesses.

Question 12

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

Accepted Answer

A) True 
 B)False

Question 13

Ben and Chris combined their love of hockey with a business venture. They purchased a small portable cart and began selling hockey memorabilia outside of the hometown hockey arena. Their first year went well, but this past year has been a real struggle. Due to poor economic conditions including a loss of jobs, ticket sales at the arena are down, which has significantly hurt their sales as well. As a recent business school graduate, you explain to Ben and Chris:

Accepted Answer

A) this type of business is always high risk because it is seasonal. 
B)  the business does not fill a sufficient need for most people. 
C) environmental circumstances are dynamic and tough to control. 
D) social entrepreneurs are currently getting most of the attention. 
A) this type of business is always high risk because it is seasonal. 
B)  the business does not fill a sufficient need for most people. 
C) environmental circumstances are dynamic and tough to control. 
D) social entrepreneurs are currently getting most of the attention.

Question 14

The goal of empowerment in the work environment is to prevent mistakes. Mistakes can be prevented by giving management more control over the actions of lower-level workers.

Accepted Answer

A) True 
 B)False

Question 15

An increase in global trade will:

Accepted Answer

A) increase prices. 
B)  decrease jobs. 
C)  increase political instability. 
D) increase global competition. 
A) increase prices. 
B)  decrease jobs. 
C)  increase political instability. 
D) increase global competition.

Question 16

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Accepted Answer

A) True 
 B)False

Question 17

Zero defects means that there is a company goal of no mistakes in making products.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Employers provide tools and technology for their employees in order to:

Accepted Answer

A) increase the cost of production and profitability. 
B) improve their efficiency and productivity. 
C)  reduce corruption in business and eliminate scandals. 
D) encourage the private ownership of businesses. 
A) increase the cost of production and profitability. 
B) improve their efficiency and productivity. 
C)  reduce corruption in business and eliminate scandals. 
D) encourage the private ownership of businesses.

Question 20

The number of businesses owned by Hispanics and Asians has:

Accepted Answer

A) has decreased after the 9-11 terrorist attack. 
B)  slowly increased. 
C) significantly increased. 
D) remained relatively constant. 
A) has decreased after the 9-11 terrorist attack. 
B)  slowly increased. 
C) significantly increased. 
D) remained relatively constant.

Which of the following is an advantage of utilizing technology?

Money is one of the five factors of production that contribute to the creation of wealth.

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

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

Which of the following is the best example of a business whose goal is to earn a profit?

Traditional businesses have a managerial focus rather than a customer focus.

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

The only real purpose of a business is to make money for entrepreneurs.

Jing is a recent U.S. college graduate who is interested in starting an import tea business. If she follows through with her plans, she will be a pioneer, because only a handful of women choose to start businesses in the U.S.

The growth of Hispanic owned businesses:

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

The goal of empowerment in the work environment is to prevent mistakes. Mistakes can be prevented by giving management more control over the actions of lower-level workers.

An increase in global trade will:

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Zero defects means that there is a company goal of no mistakes in making products.

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

Employers provide tools and technology for their employees in order to:

The number of businesses owned by Hispanics and Asians has:

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 Union and 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

Filters

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

Which of the following is an advantage of utilizing technology?

Money is one of the five factors of production that contribute to the creation of wealth.

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

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

Which of the following is the best example of a business whose goal is to earn a profit?

Traditional businesses have a managerial focus rather than a customer focus.

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

The only real purpose of a business is to make money for entrepreneurs.

Jing is a recent U.S. college graduate who is interested in starting an import tea business. If she follows through with her plans, she will be a pioneer, because only a handful of women choose to start businesses in the U.S.

The growth of Hispanic owned businesses:

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

The goal of empowerment in the work environment is to prevent mistakes. Mistakes can be prevented by giving management more control over the actions of lower-level workers.

An increase in global trade will:

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Zero defects means that there is a company goal of no mistakes in making products.

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

Employers provide tools and technology for their employees in order to:

The number of businesses owned by Hispanics and Asians has:

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 Union and 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

Filters