Question 1

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Accepted Answer

A) True 
 B)False

Question 2

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-Two of his friends approached Sergio with a proposal to start a language school. Sergio is fluent in English and Spanish, and also has an education degree. Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services. He learns that an important demographic trend is:

Accepted Answer

A)  the service sector is likely to decline in significance in the next few years. 
B)  the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off. 
C)  the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals in hospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English. 
D)  the number of retirees is decreasing, making way for a younger generation. 
A)  the service sector is likely to decline in significance in the next few years. 
B)  the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off. 
C)  the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals in hospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English. 
D)  the number of retirees is decreasing, making way for a younger generation.

Question 3

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

Accepted Answer

A)  Firms that produce a quality product will almost always succeed in the competitive marketplace. 
B)  Traditional firms will be unable to successfully compete against the new Internet firms unless they immediately create a way to reach customers through this technology. 
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 almost always succeed in the competitive marketplace. 
B)  Traditional firms will be unable to successfully compete against the new Internet firms unless they immediately create a way to reach customers through this technology. 
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 4

Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement.

Accepted Answer

Greening refers to a movement to save en

Question 5

Demographic trends suggest that businesses will benefit from offering flexible work schedules, eldercare, and childcare to help employees balance the demands of job and family.

Accepted Answer

A) True 
 B)False

Question 6

Empowerment requires that managers focus more on __________ lower-level employees.

Accepted Answer

A)  directly supervising 
B)  training 
C)  simplifying the jobs of 
D)  controlling and correcting 
A)  directly supervising 
B)  training 
C)  simplifying the jobs of 
D)  controlling and correcting

Question 7

People between the ages of 65 and 74 represent:

Accepted Answer

A)  the unemployed generation. 
B)  the single-parent family generation. 
C)  a lucrative market. 
D)  a group that has never contributed to social security. 
A)  the unemployed generation. 
B)  the single-parent family generation. 
C)  a lucrative market. 
D)  a group that has never contributed to social security.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Since the beginning of the 1900s, the agricultural sector of the United States has:

Accepted Answer

A)  seen the number of family farms more than double. 
B)  become less and less competitive in the global economy. 
C)  produced a consistent output per farm. 
D)  experienced a significant drop in employment, mainly because of tremendous improvements in efficiency. 
A)  seen the number of family farms more than double. 
B)  become less and less competitive in the global economy. 
C)  produced a consistent output per farm. 
D)  experienced a significant drop in employment, mainly because of tremendous improvements in efficiency.

Question 10

Since businesses strive to earn a profit, their owners benefit at the expense of the rest of society.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

The major advantage rich nations have over poor nations is an abundance of land and labor.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

Businesses that cater to older consumers in the future will likely not be successful.

Accepted Answer

A) True 
 B)False

Question 17

Rob is an emergency room nurse at a local hospital in Texas. On a weekly basis, he will serve a number of patients who are not legally U.S. citizens. Many of them are giving birth to babies. Fortunately, Rob speaks enough Spanish to communicate with the patients. Rob is experiencing the realities of the social environment in some states.

Accepted Answer

A) True 
 B)False

Question 18

Life of Luxury, Inc., is a mail order firm that specializes in expensive and unusual gifts for all occasions. The company keeps a large file of information on all of its regular customers, including names, addresses, and type of gifts they have ordered in the past, and the size and frequency of their orders. The electronic file which stores this information is a(n):

Accepted Answer

A)  spreadsheet. 
B)  MP3 file. 
C)  PERT file. 
D)  database. 
A)  spreadsheet. 
B)  MP3 file. 
C)  PERT file. 
D)  database.

Question 19

The capitalist system relies heavily on:

Accepted Answer

A)  protectionist policies with respect to world markets. 
B)  minimizing government intervention in corrupt business practices. 
C)  making sure that currencies are never under-valued. 
D)  honesty, integrity, and high ethical business standards. 
A)  protectionist policies with respect to world markets. 
B)  minimizing government intervention in corrupt business practices. 
C)  making sure that currencies are never under-valued. 
D)  honesty, integrity, and high ethical business standards.

Question 20

Currently people between the ages of 45 and 54 are the richest group in the United States.

Accepted Answer

A) True 
 B)False

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

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

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

Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement.

Demographic trends suggest that businesses will benefit from offering flexible work schedules, eldercare, and childcare to help employees balance the demands of job and family.

Empowerment requires that managers focus more on __________ lower-level employees.

People between the ages of 65 and 74 represent:

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

Since the beginning of the 1900s, the agricultural sector of the United States has:

Since businesses strive to earn a profit, their owners benefit at the expense of the rest of society.

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

The two main types of e-commerce are:

The major advantage rich nations have over poor nations is an abundance of land and labor.

Technology affects people in:

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

Businesses that cater to older consumers in the future will likely not be successful.

The capitalist system relies heavily on:

Currently people between the ages of 45 and 54 are the richest group in the United States.

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 Union and 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

Managing the Marketing Mix: Product, Price, Place and Promotion

Extension: Working Within the Legal Environment

Extension: Using Technology to Manage Information

Extension: Managing Risk

Extension: Managing Personal Finances

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