Question 1

Which of the following statements about the competitive environment is most accurate?

Accepted Answer

A)  Firms that produce a quality product will always succeed in the competitive marketplace. 
B)  Traditional firms will be unable to successfully compete against the new online firms unless they immediately create a way to reach customers through the Internet. 
C)  Firms that empower their employees will continue to perform poorly in the competitive environment. 
D)  Companies now have to offer both high-quality products and outstanding service at competitive prices. 
A)  Firms that produce a quality product will always succeed in the competitive marketplace. 
B)  Traditional firms will be unable to successfully compete against the new online firms unless they immediately create a way to reach customers through the Internet. 
C)  Firms that empower their employees will continue to perform poorly in the competitive environment. 
D)  Companies now have to offer both high-quality products and outstanding service at competitive prices.

Question 2

Businesses seek to earn a profit by providing goods and services to others.

Accepted Answer

A) True 
 B)False

Question 3

Julia finds it easy to do all her holiday shopping online. She can take comfort in the fact that new technologies if installed properly are seldom used in unethical ways.

Accepted Answer

A) True 
 B)False

Question 4

If Eli starts his own business, his firm's activities and policies will impact many different groups of stakeholders, including employees, customers, creditors, suppliers, and people living in the community where his business is located. Which of the following statements represents how Eli should deal with these various groups? Eli should

Accepted Answer

A)  take the needs of all of these groups into account, and try to satisfy each group as much as possible. 
B)  concentrate on meeting the needs of his customers, since they are crucial to the success of his business, but ignore the needs of other groups in order to keep costs low. 
C)  satisfy whichever group complains the loudest, using the "squeaky wheel gets the grease" philosophy. 
D)  concentrate on maximizing his own profits and let everyone else look out for themselves. 
A)  take the needs of all of these groups into account, and try to satisfy each group as much as possible. 
B)  concentrate on meeting the needs of his customers, since they are crucial to the success of his business, but ignore the needs of other groups in order to keep costs low. 
C)  satisfy whichever group complains the loudest, using the "squeaky wheel gets the grease" philosophy. 
D)  concentrate on maximizing his own profits and let everyone else look out for themselves.

Question 5

Which of the following organizations is an example of the goods-producing sector of the economy?

Accepted Answer

A)  Samsung Electronics 
B)  Princeton University 
C)  Bank of America 
D)  Barnes Hospital 
A)  Samsung Electronics 
B)  Princeton University 
C)  Bank of America 
D)  Barnes Hospital

Question 6

Successful businesses are keenly focused on their

Accepted Answer

A)  customers. 
B)  managers. 
C)  creditors. 
D)  bureaucrats. 
A)  customers. 
B)  managers. 
C)  creditors. 
D)  bureaucrats.

Question 7

An important environmental change in the global environment is the growth of international competition.

Accepted Answer

A) True 
 B)False

Question 8

Jackson is supposed to be studying for finals but his mind keeps wandering to the beach. Several years ago, his Uncle Mitch made it big and now owns a small resort near Fort Lauderdale. He promised Jackson a management trainee position and the opportunity to buy into the company by contributing a portion of his paycheck each month back into the business. As he daydreams about being his own boss, he should realize that freedom to succeed also means freedom to fail.

Accepted Answer

A) True 
 B)False

Question 9

High taxes and government restrictions help to encourage entrepreneurs by providing greater incentives for people to work hard and create profit.

Accepted Answer

A) True 
 B)False

Question 10

One advantage of a database is it

Accepted Answer

A)  permits a retail store to directly gather information on the customers who do business with its competitors, so it can target promotional materials to those people. 
B)  creates efficiency in that the store can quickly replenish items that are purchased. 
C)  prevents identity theft. 
D)  prevents stores from exchanging customer information with each other. 
A)  permits a retail store to directly gather information on the customers who do business with its competitors, so it can target promotional materials to those people. 
B)  creates efficiency in that the store can quickly replenish items that are purchased. 
C)  prevents identity theft. 
D)  prevents stores from exchanging customer information with each other.

Question 11

Businesses favor:

Accepted Answer

A)  minimal government spending because it keeps taxes to a minimum. 
B)  more government services because it minimizes tax consequences. 
C)  maximum government spending because it raises business profits. 
D)  less government spending because it lowers business profits. 
A)  minimal government spending because it keeps taxes to a minimum. 
B)  more government services because it minimizes tax consequences. 
C)  maximum government spending because it raises business profits. 
D)  less government spending because it lowers business profits.

Question 12

Businesses and nonprofit organizations often strive to accomplish the same objectives.

Accepted Answer

A) True 
 B)False

Question 13

Due to population shifts,

Accepted Answer

A)  businesses that cater to older consumers will see higher growth. 
B)  businesses that cater to older consumers will see slower growth. 
C)  businesses that sell electronic devices will see a significant decline. 
D)  health care will emerge as the only business sector that will grow. 
A)  businesses that cater to older consumers will see higher growth. 
B)  businesses that cater to older consumers will see slower growth. 
C)  businesses that sell electronic devices will see a significant decline. 
D)  health care will emerge as the only business sector that will grow.

Question 14

Diversity is more than recruiting and keeping minorities. Diversity means appreciating and understanding other differences in our customers and in our workforce. The best description of these differences is:

Accepted Answer

A)  people with disabilities, people with different sexual orientations, religious preferences, and even personality differences such as extraverts and introverts. 
B)  gender roles. 
C)  surface-level things such as green eyes versus brown eyes. 
D)  racial differences and gender differences. 
A)  people with disabilities, people with different sexual orientations, religious preferences, and even personality differences such as extraverts and introverts. 
B)  gender roles. 
C)  surface-level things such as green eyes versus brown eyes. 
D)  racial differences and gender differences.

Question 15

Competition among businesses has never been greater. Identify and describe two ways that businesses can become more competitive.

Accepted Answer

Businesses can compete by exceeding cust

Question 16

Which of the following is a factor of production?

Accepted Answer

A)  Bonds 
B)  Money 
C)  Knowledge 
D)  Service 
A)  Bonds 
B)  Money 
C)  Knowledge 
D)  Service

Question 17

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Accepted Answer

A)  natural resources 
B)  intangible resources 
C)  current asset 
D)  capital 
A)  natural resources 
B)  intangible resources 
C)  current asset 
D)  capital

Question 18

The government of Willopolis is trying to attain a higher quality of life by imposing strict regulations to protect the environment and ensure safe working conditions in its industries. The government also has established programs to help the poor, financing them by raising tax rates. These efforts by Willopolis's government should create an atmosphere that encourages entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 19

Tabitha called in a food order to feed her office team. When she arrived to pick up, it was not what she ordered. The store associate quickly made it right, and offered an extra dozen bagels to make up for the mistake. There was no need to check with the supervisor, as the employee was ________ to make decisions that translate into good customer service.

Accepted Answer

A)  structured 
B)  empowered 
C)  asked by the customer 
D)  deputized 
A)  structured 
B)  empowered 
C)  asked by the customer 
D)  deputized

Question 20

Today's businesses have a managerial focus rather than a customer focus.

Accepted Answer

A) True 
 B)False

Which of the following statements about the competitive environment is most accurate?

Businesses seek to earn a profit by providing goods and services to others.

Julia finds it easy to do all her holiday shopping online. She can take comfort in the fact that new technologies if installed properly are seldom used in unethical ways.

Which of the following organizations is an example of the goods-producing sector of the economy?

Successful businesses are keenly focused on their

An important environmental change in the global environment is the growth of international competition.

High taxes and government restrictions help to encourage entrepreneurs by providing greater incentives for people to work hard and create profit.

One advantage of a database is it

Businesses favor:

Businesses and nonprofit organizations often strive to accomplish the same objectives.

Due to population shifts,

Diversity is more than recruiting and keeping minorities. Diversity means appreciating and understanding other differences in our customers and in our workforce. The best description of these differences is:

Competition among businesses has never been greater. Identify and describe two ways that businesses can become more competitive.

Which of the following is a factor of production?

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Today's businesses have a managerial focus rather than a customer focus.

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

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

Which of the following statements about the competitive environment is most accurate?

Businesses seek to earn a profit by providing goods and services to others.

Julia finds it easy to do all her holiday shopping online. She can take comfort in the fact that new technologies if installed properly are seldom used in unethical ways.

Which of the following organizations is an example of the goods-producing sector of the economy?

Successful businesses are keenly focused on their

An important environmental change in the global environment is the growth of international competition.

High taxes and government restrictions help to encourage entrepreneurs by providing greater incentives for people to work hard and create profit.

One advantage of a database is it

Businesses favor:

Businesses and nonprofit organizations often strive to accomplish the same objectives.

Due to population shifts,

Diversity is more than recruiting and keeping minorities. Diversity means appreciating and understanding other differences in our customers and in our workforce. The best description of these differences is:

Competition among businesses has never been greater. Identify and describe two ways that businesses can become more competitive.

Which of the following is a factor of production?

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Today's businesses have a managerial focus rather than a customer focus.

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