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

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

Contemporary governments promote business development by:

Businesses that produce and sell tangible products such as steel and machines are part of the:

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

Honda and Toyota have used insourcing for years to produce cars in the United States. Insourcing:

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

Backstreet Books, an eclectic bookstore on a large college campus generated total revenues of $15 million while incurring expenses of $12 million. During the year Backstreet Books earned a profit of $3 million.

Business consultant Peter Drucker said that the most important factor of production is knowledge.

Technology allows firms to be more responsive to their customers' wants and needs.

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

Honesty, integrity, and high ethical standards are essential to a capitalist economic system like the one that operates in the United States.

Technological innovation has a ripple effect. With the advent of the Internet, Tyler Hanley, a certified techno-nerd, is being courted by companies to write the next generation of antivirus software. He tells us its big business!

Countries that provide little or no government involvement provide the best environment for competitive businesses.

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

SleekWrap is a company that produces industrial coatings for the steel industry. Until recently it relied on wholesalers to distribute its products to other businesses, but now it also sells directly to its business customers through its website. This is an example of the largest and most important type of e-commerce transaction.

Empowerment requires that managers focus more on lower-level employees.

Greening refers to:

When corruption is present in the business environment:

The databases of a business often include a great deal of information about the firm's customers.

A policy of empowerment encourages managers to make decisions quickly for their front line employees.