Exam 1: Business Now: Change Is the Only Constant

Big Poppa's Pizzeria will be opening outlets in three new locations, bringing new jobs to its community. It also plans to purchase all ingredients from local farms and merchants. Which of the following is Big Poppa contributing to, as a result of these actions?

Entrepreneurs are primarily motivated by the desire to help others.

Which of the following statements is true of a nonprofit organization?

A small consulting company in Waikiki, Hawaii struggles financially because of limited access to economic resources. This company decides to get creative and uses technology to build long­term bonds with its current customers and also to reach new customers. This company is using concepts from the:

The government in the United States has helped foster free enterprise and fair competition by reducing the risks of starting and running a business.

Islane college has contracted a construction company to build a new bookstore. The heavy machinery and equipment that the contractor will use in the construction process are classified as:

A group of concerned community leaders formed Homeless Help, a nonprofit organization providing shelter for homeless individuals. Besides the fact that it doesn't seek a profit, Homeless Help is likely to operate much like a business in many respects.

Which of the following is included in the capital factor of production?

Profit is the money that a business earns in sales, minus expenses such as the cost of goods and the cost of salaries.

Which of the following was a result of the Industrial Revolution?

Using corn to create ethanol as an alternative fuel source will likely increase the price of corn products in the grocery store.

Capital, as a factor of production, includes machines, tools, buildings, information, and technology.

Which of the following was a negative effect of the entrepreneurship era?

Research highlights that successful brands use imagination and innovation to deliver value to their customers.

Typically, socially responsible businesses act as advocates for the well­being of the community.

U.S. laws help suppress all domestic corruption in the United States.

_____ provides information to businesses about where people live and their traits, such as race, gender, age, income, and education.

Companies use capital to produce goods and services.

Sustainability is a company's ability to stay in business even when they are not making a profit.

Describe the sources of competitive advantage for companies today.