Question 1

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

Accepted Answer

A)  firms have been trying to weaken unions by reducing their reliance on labor. 
B)  workers in the U.S. have become less productive and are no longer able to compete in the global economy. 
C)  firms in many industries have become so efficient that they need fewer workers. 
D)  the economy has been in a prolonged depression that has lasted more than a decade. 
A)  firms have been trying to weaken unions by reducing their reliance on labor. 
B)  workers in the U.S. have become less productive and are no longer able to compete in the global economy. 
C)  firms in many industries have become so efficient that they need fewer workers. 
D)  the economy has been in a prolonged depression that has lasted more than a decade.

Question 2

For-profit businesses and nonprofit organizations are similar in that they both:

Accepted Answer

A)  contribute to the welfare of society. 
B)  seek to earn a profit. 
C)  have a limited life. 
D)  must be controlled by a board of directors. 
A)  contribute to the welfare of society. 
B)  seek to earn a profit. 
C)  have a limited life. 
D)  must be controlled by a board of directors.

Question 3

Businesses satisfy the demands of all stakeholders by balancing the demands of customers and stockholders.

Accepted Answer

A) True 
 B)False

Question 4

A common characteristic of most entrepreneurs is that they:

Accepted Answer

A)  accept the risks involved in starting and managing a business. 
B)  have a high level of scientific and technical expertise. 
C)  possess a great deal of personal wealth. 
D)  have experience in running large, complex organizations. 
A)  accept the risks involved in starting and managing a business. 
B)  have a high level of scientific and technical expertise. 
C)  possess a great deal of personal wealth. 
D)  have experience in running large, complex organizations.

Question 5

China and India have become major U.S. competitors.

Accepted Answer

A) True 
 B)False

Question 6

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Accepted Answer

A) True 
 B)False

Question 7

When corruption is present in the business environment:

Accepted Answer

A)  company leaders may threaten competitors and minimize competition. 
B)  factories are easier to build without a government permit. 
C)  it promotes fair competition. 
D)  laborers can make more money. 
A)  company leaders may threaten competitors and minimize competition. 
B)  factories are easier to build without a government permit. 
C)  it promotes fair competition. 
D)  laborers can make more money.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Maria is an engineer for Blustery Breezes, a small manufacturer of wind turbines. Recently, a larger company, PowerMen Electric, has shown interest in investing in this small operation. This is not surprising since firms that are creating products for alternative sources of energy are attracting the attention of governments and other businesses.

Accepted Answer

A) True 
 B)False

Question 10

An entrepreneur risks time and money to start and manage a business.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following policies would tend to foster entrepreneurship?

Accepted Answer

A)  Minimize taxes and regulations. 
B)  Promote more regulations to protect the environment. 
C)  Develop policies to reduce corruption between individuals. 
D)  Encourage public ownership of businesses. 
A)  Minimize taxes and regulations. 
B)  Promote more regulations to protect the environment. 
C)  Develop policies to reduce corruption between individuals. 
D)  Encourage public ownership of businesses.

Question 12

Demographic changes create new business opportunities.

Accepted Answer

A) True 
 B)False

Question 13

Globalization

Accepted Answer

A)  has greatly improved living standards around the world. 
B)  has significantly reduced living standards around the world. 
C)  has opened doors to only a handful of markets. 
D)  has greatly changed companies that hire people to sell products, but not companies that hire people to provide services. 
A)  has greatly improved living standards around the world. 
B)  has significantly reduced living standards around the world. 
C)  has opened doors to only a handful of markets. 
D)  has greatly changed companies that hire people to sell products, but not companies that hire people to provide services.

Question 14

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?

Accepted Answer

A)  Acquire more land by invading a neighboring country that is even poorer and weaker than Cantlivia. 
B)  Use foreign aid from other nations to purchase more tools and machinery. 
C)  Establish a business environment that promotes and rewards entrepreneurship. 
D)  Establish barriers to trade to protect Cantlivia businesses from foreign competition. 
A)  Acquire more land by invading a neighboring country that is even poorer and weaker than Cantlivia. 
B)  Use foreign aid from other nations to purchase more tools and machinery. 
C)  Establish a business environment that promotes and rewards entrepreneurship. 
D)  Establish barriers to trade to protect Cantlivia businesses from foreign competition.

Question 15

Which of the following best describes recent job growth in the service sector?

Accepted Answer

A)  The service sector has generated almost all new jobs in the American economy since the mid-1980s, but the rate of job growth in services has slowed in recent years. 
B)  Jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries. 
C)  Employment in the service sector has declined in recent years, and this decline is expected to continue. 
D)  There has been little change in the number of jobs in the service sector in recent years; however, employment is expected to increase rapidly. 
A)  The service sector has generated almost all new jobs in the American economy since the mid-1980s, but the rate of job growth in services has slowed in recent years. 
B)  Jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries. 
C)  Employment in the service sector has declined in recent years, and this decline is expected to continue. 
D)  There has been little change in the number of jobs in the service sector in recent years; however, employment is expected to increase rapidly.

Question 16

In recent years, businesses in general have experienced a lasting impact due to the emergence of

Accepted Answer

A)  motor-related technologies 
B)  technologies related to brain studies 
C)  counterfeit technologies 
D)  information technologies 
A)  motor-related technologies 
B)  technologies related to brain studies 
C)  counterfeit technologies 
D)  information technologies

Question 17

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

Accepted Answer

A)  increases 
B)  decreases 
C)  stabilizes 
D)  destabilizes 
A)  increases 
B)  decreases 
C)  stabilizes 
D)  destabilizes

Question 18

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

Accepted Answer

A)  Profit 
B)  Revenue 
C)  Interest 
D)  Dividends 
A)  Profit 
B)  Revenue 
C)  Interest 
D)  Dividends

Question 19

The two main types of e-commerce are:

Accepted Answer

A)  online and offline. 
B)  EDI and EDC. 
C)  wholesale and retail. 
D)  B2B and B2C. 
A)  online and offline. 
B)  EDI and EDC. 
C)  wholesale and retail. 
D)  B2B and B2C.

Question 20

When we compare the factors of production in wealthy versus poor nations, we find

Accepted Answer

A)  poor nations have plenty of land and knowledge, but very little labor. 
B)  poor and wealthy nations (both) have an abundance of knowledge; it is the land that varies, with rich nations always having more. 
C)  wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas. 
D)  wealthy nations have land and labor, while poor nations have capital and entrepreneurship. 
A)  poor nations have plenty of land and knowledge, but very little labor. 
B)  poor and wealthy nations (both) have an abundance of knowledge; it is the land that varies, with rich nations always having more. 
C)  wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas. 
D)  wealthy nations have land and labor, while poor nations have capital and entrepreneurship.

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

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

For-profit businesses and nonprofit organizations are similar in that they both:

Businesses satisfy the demands of all stakeholders by balancing the demands of customers and stockholders.

A common characteristic of most entrepreneurs is that they:

China and India have become major U.S. competitors.

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

When corruption is present in the business environment:

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

An entrepreneur risks time and money to start and manage a business.

Which of the following policies would tend to foster entrepreneurship?

Demographic changes create new business opportunities.

Globalization

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?

Which of the following best describes recent job growth in the service sector?

In recent years, businesses in general have experienced a lasting impact due to the emergence of

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

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

The two main types of e-commerce are:

When we compare the factors of production in wealthy versus poor nations, we find

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 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

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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