Question 1

Honda and Hyundai have insourced for years to design and manufacture cars in the United States. Insourcing

Accepted Answer

A)  helps offset the number of jobs being outsourced. 
B)  increases the number of jobs being outsourced. 
C)  damages the United States economy. 
D)  causes jobs to be lost to overseas competitors. 
A)  helps offset the number of jobs being outsourced. 
B)  increases the number of jobs being outsourced. 
C)  damages the United States economy. 
D)  causes jobs to be lost to overseas competitors.

Question 2

According to the box, "Hollywood Climbs the Great Wall," Chinese investors are not only distributing Hollywood films in their home country, they are also

Accepted Answer

A)  producing films to distribute in South America. 
B)  buying companies that manufacture cameras and sound equipment. 
C)  creating theatrical education programs in the nation's universities. 
D)  investing in American entertainment companies and working to make China a moviemaking power. 
A)  producing films to distribute in South America. 
B)  buying companies that manufacture cameras and sound equipment. 
C)  creating theatrical education programs in the nation's universities. 
D)  investing in American entertainment companies and working to make China a moviemaking power.

Question 3

Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following entails the greatest amount of risk?

Accepted Answer

A)  Working for the government 
B)  Working for a large business 
C)  Working for a small business 
D)  Starting a business 
A)  Working for the government 
B)  Working for a large business 
C)  Working for a small business 
D)  Starting a business

Question 5

Bonnie runs a house cleaning service. Although she and her employees could service 12 households in one day, they average eight homes per day. Bonnie recently restructured her crew and provided each housekeeper with an incentive to acquire two new customers each month through customer referrals. As a recent business graduate, you would tell her she's probably on the right track.

Accepted Answer

A) True 
 B)False

Question 6

The only way a firm can increase its profits is to increase its sales revenue.

Accepted Answer

A) True 
 B)False

Question 7

According to the box, "Hollywood Climbs the Great Wall," casting American actors of Chinese descent attracts larger audiences in China rather than casting a Chinese actor.

Accepted Answer

A) True 
 B)False

Question 8

The primary focus of successful firms is designing and producing high-quality goods. Advertising is then used to convince consumers to buy their superior products.

Accepted Answer

A) True 
 B)False

Question 9

Money is one of the five factors of production that contribute to the creation of wealth.

Accepted Answer

A) True 
 B)False

Question 10

Globalization has increased among nations.

Accepted Answer

A) True 
 B)False

Question 11

The growth in the service sector in the United States appears to be giving way to an information-based global era.

Accepted Answer

A) True 
 B)False

Question 12

What is demography? Identify two demographic trends in the United States and discuss how they will impact U.S. businesses.

Accepted Answer

Demography is the statistical study of p

Question 13

Klara wants to compare the price of a wallet she saw at Nordstrom Rack with other stores that may have the same wallet. She locates the product on three different websites, including Amazon. Klara's quest is an example of how customers are using ________ to solve problems.

Accepted Answer

A)  price shopping 
B)  databases 
C)  information technology 
D)  social networking 
A)  price shopping 
B)  databases 
C)  information technology 
D)  social networking

Question 14

HealthLink Hospital is looking into introducing a flextime program for its employees. A group of workers who would probably benefit from flextime is

Accepted Answer

A)  workers who do not have access to computers at home. 
B)  workers who have little self-motivation to work eight-hour days. 
C)  frontline workers who frequently go out to meet with home furnishing designers. 
D)  single-parent families. 
A)  workers who do not have access to computers at home. 
B)  workers who have little self-motivation to work eight-hour days. 
C)  frontline workers who frequently go out to meet with home furnishing designers. 
D)  single-parent families.

Question 15

One factor that has had a major effect on businesses is the growth of single-parent families.

Accepted Answer

A) True 
 B)False

Question 16

________ means producing items using the least amount of resources.

Accepted Answer

A)  Efficiency 
B)  Technology 
C)  E-production 
D)  Productivity 
A)  Efficiency 
B)  Technology 
C)  E-production 
D)  Productivity

Question 17

One of the major advantages to firms involved in e-commerce is that the technology is still so new that the online firms face very little competition.

Accepted Answer

A) True 
 B)False

Question 18

Though it has received a lot of attention, the development of information technology (IT) has had less of an impact on the way businesses operate than many other changes.

Accepted Answer

A) True 
 B)False

Question 19

World trade has both benefits and costs. Which of the following statements best attests to this fact?

Accepted Answer

A)  The U.S. economy and all businesses that participate in this economy were negatively impacted by recent wars. 
B)  The standard of living for citizens in developing nations has significantly decreased due to globalization. 
C)  Economists are convinced that global job creation will never occur if our politicians support world trade. 
D)  Large companies and small companies agree that the green movement is a global issue. Firms are embracing opportunities to bring value to consumers by creating green products and services. 
A)  The U.S. economy and all businesses that participate in this economy were negatively impacted by recent wars. 
B)  The standard of living for citizens in developing nations has significantly decreased due to globalization. 
C)  Economists are convinced that global job creation will never occur if our politicians support world trade. 
D)  Large companies and small companies agree that the green movement is a global issue. Firms are embracing opportunities to bring value to consumers by creating green products and services.

Question 20

In order to create more wealth and provide better services, some nations recognize that ________.

Accepted Answer

A)  raising taxes benefits all businesses. 
B)  a good strategy is to minimize interference with the free exchange of goods and services. 
C)  restricting trade with other countries always helps domestic businesses. 
D)  taking control of privately owned businesses and making them government-run will decrease taxes and improve the lives of everyone. 
A)  raising taxes benefits all businesses. 
B)  a good strategy is to minimize interference with the free exchange of goods and services. 
C)  restricting trade with other countries always helps domestic businesses. 
D)  taking control of privately owned businesses and making them government-run will decrease taxes and improve the lives of everyone.

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

Honda and Hyundai have insourced for years to design and manufacture cars in the United States. Insourcing

According to the box, "Hollywood Climbs the Great Wall," Chinese investors are not only distributing Hollywood films in their home country, they are also

Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

Which of the following entails the greatest amount of risk?

The only way a firm can increase its profits is to increase its sales revenue.

According to the box, "Hollywood Climbs the Great Wall," casting American actors of Chinese descent attracts larger audiences in China rather than casting a Chinese actor.

The primary focus of successful firms is designing and producing high-quality goods. Advertising is then used to convince consumers to buy their superior products.

Money is one of the five factors of production that contribute to the creation of wealth.

Globalization has increased among nations.

The growth in the service sector in the United States appears to be giving way to an information-based global era.

What is demography? Identify two demographic trends in the United States and discuss how they will impact U.S. businesses.

Klara wants to compare the price of a wallet she saw at Nordstrom Rack with other stores that may have the same wallet. She locates the product on three different websites, including Amazon. Klara's quest is an example of how customers are using ________ to solve problems.

HealthLink Hospital is looking into introducing a flextime program for its employees. A group of workers who would probably benefit from flextime is

One factor that has had a major effect on businesses is the growth of single-parent families.

________ means producing items using the least amount of resources.

One of the major advantages to firms involved in e-commerce is that the technology is still so new that the online firms face very little competition.

Though it has received a lot of attention, the development of information technology (IT) has had less of an impact on the way businesses operate than many other changes.

World trade has both benefits and costs. Which of the following statements best attests to this fact?

In order to create more wealth and provide better services, some nations recognize that ________.

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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