Question 1

The threat of terrorism

Accepted Answer

A)  benefits most businesses because just about all companies contribute toward averting these threats. 
B)  will certainly affect companies that participate in global trade, but most large U.S. companies do their business domestically. 
C)  has increased the quality of life of most people because companies employ more workers when the threat is high, and workers help companies increase profits. 
D)  is costly to most firms because it is costly to governments who increase taxes to pay for added protection. 
A)  benefits most businesses because just about all companies contribute toward averting these threats. 
B)  will certainly affect companies that participate in global trade, but most large U.S. companies do their business domestically. 
C)  has increased the quality of life of most people because companies employ more workers when the threat is high, and workers help companies increase profits. 
D)  is costly to most firms because it is costly to governments who increase taxes to pay for added protection.

Question 2

Businesses are supporting single-parent families with:

Accepted Answer

A)  Social Security benefits. 
B)  a more lenient welfare system. 
C)  more flexible work benefits such as flextime and family leave. 
D)  limited benefits due to the declining numbers of these families. 
A)  Social Security benefits. 
B)  a more lenient welfare system. 
C)  more flexible work benefits such as flextime and family leave. 
D)  limited benefits due to the declining numbers of these families.

Question 3

The best employment strategy for today's college graduates is to search for jobs that are closely related to their college major.

Accepted Answer

A) True 
 B)False

Question 4

The statistical study of the human population to describe its size, age, gender, and income is known as diversity recognition.

Accepted Answer

A) True 
 B)False

Question 5

A business incurs a ________ if its costs and expenses exceed its revenues.

Accepted Answer

A)  loss 
B)  liability 
C)  debit 
D)  dividend 
A)  loss 
B)  liability 
C)  debit 
D)  dividend

Question 6

An electronic storage file where firms keep customer information is known as a(n) ________.

Accepted Answer

A)  MP3 file 
B)  management information system 
C)  database 
D)  e-mail server 
A)  MP3 file 
B)  management information system 
C)  database 
D)  e-mail server

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

Accepted Answer

For most of our nation's history, the ag

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

As a factor of production, the term capital includes:

Accepted Answer

A)  Stocks and bonds issued by corporations. 
B)  Natural resources such as land and water. 
C)  Tools, machinery, and buildings. 
D)  Services provided by the government that enable businesses to be more productive. 
A)  Stocks and bonds issued by corporations. 
B)  Natural resources such as land and water. 
C)  Tools, machinery, and buildings. 
D)  Services provided by the government that enable businesses to be more productive.

Question 11

SmoothCoats 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 B2B customers through its website. This is an example of the largest and most important type of e-commerce transaction.

Accepted Answer

A) True 
 B)False

Question 12

The resources that contribute to the creation of wealth are known as ________.

Accepted Answer

A)  production coefficients 
B)  factors of production 
C)  production technologies 
D)  production aggregates 
A)  production coefficients 
B)  factors of production 
C)  production technologies 
D)  production aggregates

Question 13

In order to make an intelligent investment decision, entrepreneurs should:

Accepted Answer

A)  limit their options to those business investments that are backed by the U.S. government. 
B)  invest in businesses that have generated a stable rate of profit for at least the past 10 years. 
C)  invest only in business opportunities where it is possible to take an active role in management. 
D)  compare the risks of potential investments to their expected profits and find the right balance between profit and risk. 
A)  limit their options to those business investments that are backed by the U.S. government. 
B)  invest in businesses that have generated a stable rate of profit for at least the past 10 years. 
C)  invest only in business opportunities where it is possible to take an active role in management. 
D)  compare the risks of potential investments to their expected profits and find the right balance between profit and risk.

Question 14

Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gushes over the gorgeous landscaping that surrounds the 30-acre headquarters. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding the warehouses look like a park. Across the street from the garages are several shops and businesses. The CEO, Patty, often talks about how thankful she is that the town permits her to store equipment at that site, and vows to always maintain the premises for her neighbors, not to mention that she asks 100 employees to come to work there every day. Which of the following statements describes Patty's business philosophy?

Accepted Answer

A)  Patty is a nice woman whose company made a lot of money, so she is willing to spread it around. 
B)  Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive. 
C)  Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns. 
D)  Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages. 
A)  Patty is a nice woman whose company made a lot of money, so she is willing to spread it around. 
B)  Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive. 
C)  Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns. 
D)  Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The online B2B market consists of selling goods and services to consumers.

Accepted Answer

A) True 
 B)False

Question 17

The green movement is

Accepted Answer

A)  a trend that started with the U.S. government. 
B)  concerned with depletion of natural resources. 
C)  developing more green food products to feed the world's poor. 
D)  our concern with the fact that everywhere we look, things are remaining green for longer periods of time. 
A)  a trend that started with the U.S. government. 
B)  concerned with depletion of natural resources. 
C)  developing more green food products to feed the world's poor. 
D)  our concern with the fact that everywhere we look, things are remaining green for longer periods of time.

Question 18

________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

Accepted Answer

A)  Depreciation 
B)  Risk 
C)  Fallibility 
D)  Redundancy 
A)  Depreciation 
B)  Risk 
C)  Fallibility 
D)  Redundancy

Question 19

Michael James owns a small manufacturing company that makes ventilation systems used in the construction of buildings. As the U.S. continues to be involved in wars around the globe, Michael may notice that his business will be growing more slowly in the future as more money continues to be put into the war effort.

Accepted Answer

A) True 
 B)False

Question 20

________ is/are the external and internal circumstances that surround the business.

Accepted Answer

A)  The business environment 
B)  The factors of production 
C)  The business corral 
D)  The business disciplines 
A)  The business environment 
B)  The factors of production 
C)  The business corral 
D)  The business disciplines

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

The threat of terrorism

Businesses are supporting single-parent families with:

The best employment strategy for today's college graduates is to search for jobs that are closely related to their college major.

The statistical study of the human population to describe its size, age, gender, and income is known as diversity recognition.

A business incurs a ________ if its costs and expenses exceed its revenues.

An electronic storage file where firms keep customer information is known as a(n) ________.

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

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

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

As a factor of production, the term capital includes:

The resources that contribute to the creation of wealth are known as ________.

In order to make an intelligent investment decision, entrepreneurs should:

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

The online B2B market consists of selling goods and services to consumers.

The green movement is

________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

________ is/are the external and internal circumstances that surround the business.

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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