Question 1

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following government policies would be least likely to encourage entrepreneurship?

Accepted Answer

A)  Passage of laws that enable businesspeople to write enforceable contracts 
B)  Establishment of a currency that is tradable in world markets 
C)  Establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability 
D)  Passage of laws that eliminate corruption in government and business 
A)  Passage of laws that enable businesspeople to write enforceable contracts 
B)  Establishment of a currency that is tradable in world markets 
C)  Establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability 
D)  Passage of laws that eliminate corruption in government and business

Question 3

After losing her manufacturing job in the U.S. automobile industry, Cho has found that well-paid service-sector jobs require retraining and further education.

Accepted Answer

A) True 
 B)False

Question 4

The evidence for climate change is highly suspect. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Health care availability, a clean environment, and good schools all contribute to a high quality of life.

Accepted Answer

A) True 
 B)False

Question 7

The immigrant population (both legal and illegal) is having the most dramatic effect on

Accepted Answer

A)  car and truck makers. 
B)  mining and minerals industry. 
C)  schools, hospitals, and other services industries. 
D)  ice cream and confection industry. 
A)  car and truck makers. 
B)  mining and minerals industry. 
C)  schools, hospitals, and other services industries. 
D)  ice cream and confection industry.

Question 8

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Accepted Answer

A) True 
 B)False

Question 9

Often in business the greater the risk, the ________.

Accepted Answer

A)  greater the potential reward 
B)  lower the expected revenues 
C)  lower the value provided to society 
D)  greater the number of stakeholders 
A)  greater the potential reward 
B)  lower the expected revenues 
C)  lower the value provided to society 
D)  greater the number of stakeholders

Question 10

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

Accepted Answer

A)  empowered with the authority to respond quickly to the unmet needs of customers 
B)  closely supervised to reduce the risk of product liability and discrimination lawsuits 
C)  eliminated and replaced with automated equipment whenever possible 
D)  relieved of any burden to make a customer decision 
A)  empowered with the authority to respond quickly to the unmet needs of customers 
B)  closely supervised to reduce the risk of product liability and discrimination lawsuits 
C)  eliminated and replaced with automated equipment whenever possible 
D)  relieved of any burden to make a customer decision

Question 11

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Accepted Answer

A)  industry. 
B)  corporation. 
C)  business. 
D)  service. 
A)  industry. 
B)  corporation. 
C)  business. 
D)  service.

Question 12

Empowerment means:

Accepted Answer

A)  giving employees the authority to make decisions. 
B)  making certain that employees always defer to management when making decisions. 
C)  hiring employees that do not require training due to the costly nature of this activity. 
D)  asking employees to write the policies which govern their jobs. 
A)  giving employees the authority to make decisions. 
B)  making certain that employees always defer to management when making decisions. 
C)  hiring employees that do not require training due to the costly nature of this activity. 
D)  asking employees to write the policies which govern their jobs.

Question 13

Brandford Books, an eclectic bookstore in a Phoenix suburb, generated total revenues of $17 million while incurring expenses of $14 million. By the end of the year, Brandford Books earned a profit of $3 million.

Accepted Answer

A) True 
 B)False

Question 14

Elizabeth is a single mother of small children. Her employer is considering providing family leave. Since she is a single mom with two young children, she is unlikely to benefit from this program.

Accepted Answer

A) True 
 B)False

Question 15

Technology can help businesses become more efficient and productive.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

High tax rates tend to:

Accepted Answer

A)  promote economic development. 
B)  make a nation's currency tradable. 
C)  discourage entrepreneurship. 
D)  reduce the amount of money created by the government. 
A)  promote economic development. 
B)  make a nation's currency tradable. 
C)  discourage entrepreneurship. 
D)  reduce the amount of money created by the government.

Question 18

Walter Waterson owns a lawn irrigation system business. He manages the installations and maintenance of these systems. Several customers are golf courses, but he serves a large group of residential customers as well. When he started the business 10 years ago, he promised to always operate within the legal limits of the law, but lately, the competition is eating him alive. Large competitors have hired illegal immigrants to perform the manual labor, and they do not pay taxes on these employees-they just pay them in cash at the end of the week. Employment taxes are a burden to him. Walter does not want to hire illegal workers. There's a risk if you permit an illegal worker to drive a truck; or, if he/she has an accident on the job. You have just studied business ethics in your class. You inform Walter that

Accepted Answer

A)  taxes only need to be paid for the owners. 
B)  he is not only taking a chance that a bigger problem may occur, he is indirectly setting the ethics code for his business. 
C)  small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business. 
D)  it is not unethical to try to better the lives of others. Everyone needs jobs. 
A)  taxes only need to be paid for the owners. 
B)  he is not only taking a chance that a bigger problem may occur, he is indirectly setting the ethics code for his business. 
C)  small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business. 
D)  it is not unethical to try to better the lives of others. Everyone needs jobs.

Question 19

Technology affects people in:

Accepted Answer

A)  all industries. 
B)  most industries. 
C)  information technology industries with the exception of agriculture. 
D)  primarily high-income countries. 
A)  all industries. 
B)  most industries. 
C)  information technology industries with the exception of agriculture. 
D)  primarily high-income countries.

Question 20

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

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

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Which of the following government policies would be least likely to encourage entrepreneurship?

After losing her manufacturing job in the U.S. automobile industry, Cho has found that well-paid service-sector jobs require retraining and further education.

The evidence for climate change is highly suspect. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

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

Health care availability, a clean environment, and good schools all contribute to a high quality of life.

The immigrant population (both legal and illegal) is having the most dramatic effect on

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Often in business the greater the risk, the ________.

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Empowerment means:

Brandford Books, an eclectic bookstore in a Phoenix suburb, generated total revenues of $17 million while incurring expenses of $14 million. By the end of the year, Brandford Books earned a profit of $3 million.

Elizabeth is a single mother of small children. Her employer is considering providing family leave. Since she is a single mom with two young children, she is unlikely to benefit from this program.

Technology can help businesses become more efficient and productive.

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

High tax rates tend to:

Technology affects people in:

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

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

Filters