Question 1

Zero defects means that there is a company goal of no mistakes in making products.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Producing a high quality product will ensure success in the competitive environment.

Accepted Answer

A) True 
 B)False

Question 4

Over the past several years, workers in the small nation of Rainland have enjoyed an increase in the number of holidays and a reduction in the average length of the workday that has reduced the total number of hours they work each year. However, the output per worker in Rainland is higher now than it was before the reduction in hours. These facts suggest that productivity in Rainland has increased.

Accepted Answer

A) True 
 B)False

Question 5

The Internet and the emergence of an information-based economy are important parts of the ___________ environment in which businesses operate.

Accepted Answer

A)  economic and legal 
B)  technological 
C)  competitive 
D)  global 
A)  economic and legal 
B)  technological 
C)  competitive 
D)  global

Question 6

Technology helped the manufacturing industry to become more productive.

Accepted Answer

A) True 
 B)False

Question 7

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. Five-member families are steadily growing. 
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. Five-member families are steadily growing.

Question 8

Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling football memorabilia outside of the hometown stadium. Their first year went well, but the past two years have been a real struggle. Due to poor economic conditions including loss of jobs, ticket sales at the stadium are down, which has significantly hurt their sales as well. As a recent business school graduate, you explain to Ben and Chris that:

Accepted Answer

A)  this type of business is always high risk because it is seasonal. 
B)  the business does not fill a sufficient need for most people. 
C)  environmental circumstances are dynamic and tough to control. 
D)  social entrepreneurs are currently getting most of the attention. 
A)  this type of business is always high risk because it is seasonal. 
B)  the business does not fill a sufficient need for most people. 
C)  environmental circumstances are dynamic and tough to control. 
D)  social entrepreneurs are currently getting most of the attention.

Question 9

Improved distribution systems have led to more global trade.

Accepted Answer

A) True 
 B)False

Question 10

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!
-As he explores his options for starting a new business, Sergio has looked into the tax implications and government regulations that he would encounter. He wants to maintain an office in a different location from his home. He has discovered that some nearby communities offer tax credits and lower taxes than his town. Sergio's decision will be influenced by the:

Accepted Answer

A)  demographic environment. 
B)  technological environment. 
C)  socio-religious environment. 
D)  economic and legal environment. 
A)  demographic environment. 
B)  technological environment. 
C)  socio-religious environment. 
D)  economic and legal environment.

Question 11

___________ 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 12

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!
-If Sergio starts his own business, his firm's activities and policies will impact many different groups and individuals, including employees, customers, creditors, suppliers, and people living in the community where his business is located. Which of the following statements represents how Sergio should deal with these various groups? Sergio 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 13

Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking-out to the wrong hands is to:

Accepted Answer

A)  avoid all e-commerce transactions because this is the only type of buying transactions where websites and others handle sensitive, personal information. 
B)  install antivirus software, firewalls, and anti-spyware software on her computer. 
C)  limit her purchases with vendors that she knows do not store her information in a database. 
D)  limit her travels to only the U.S. because identity theft is an international problem. 
A)  avoid all e-commerce transactions because this is the only type of buying transactions where websites and others handle sensitive, personal information. 
B)  install antivirus software, firewalls, and anti-spyware software on her computer. 
C)  limit her purchases with vendors that she knows do not store her information in a database. 
D)  limit her travels to only the U.S. because identity theft is an international problem.

Question 14

Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society.

Accepted Answer

A) True 
 B)False

Question 15

In order to compete well and gain market share, contemporary businesses are changing to be more _________________.

Accepted Answer

A)  customer-driven 
B)  cash-driven 
C)  management-driven 
D)  production-driven 
A)  customer-driven 
B)  cash-driven 
C)  management-driven 
D)  production-driven

Question 16

Shelby recently started selling her invention: A bed that looks like it floats in mid- air. The bed is actually suspended by magnetic forces. Shelby is a(n):

Accepted Answer

A)  arbitrageur. 
B)  entrepreneur. 
C)  speculator. 
D)  account manager. 
A)  arbitrageur. 
B)  entrepreneur. 
C)  speculator. 
D)  account manager.

Question 17

Greg recently completed his degree in construction management and is planning to start a business developing apartment buildings. After researching several potential areas, he chose Mexico City due to its high population. Greg felt that this factor would create a large labor pool, the most important of the five factors of production.

Accepted Answer

A) True 
 B)False

Question 18

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!
-As he explores his options, Sergio notices that some opportunities appear to be riskier than others. When considering various opportunities, Sergio should keep in mind that:

Accepted Answer

A)  he will be better off picking a low risk business opportunity, since the safest ones are usually the most profitable as well. 
B)  even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another. 
C)  high risk business opportunities often have the potential for high returns as well. 
D)  government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk. 
A)  he will be better off picking a low risk business opportunity, since the safest ones are usually the most profitable as well. 
B)  even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another. 
C)  high risk business opportunities often have the potential for high returns as well. 
D)  government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk.

Question 19

Land, sometimes called natural resources, is the most critical factor of production in explaining why some countries are poor while others are rich.

Accepted Answer

A) True 
 B)False

Question 20

It's no secret that Blockbuster™ stores have closed, while Netflix™ is still growing. Both companies participated in the video rental business. Netflix evaluated the lifestyle needs of video customers, understanding that time, family, and work obligations called for more convenient methods to receive video entertainment. Netflix embraced the opportunity to utilize the Internet and smart TVs, to stream videos directly to customers. The company also managed to keep customer costs down, by passing along the savings it realized in labor. Blockbuster did not keep its eye on competitor movements, permitting Netflix to quickly capture video market share. In sizing up the situation, which external environment(s) probably had the least effect on Netflix's success?

Accepted Answer

A)  Social environment 
B)  Competitive environment 
C)  Economic and legal environment 
D)  Technological environment 
A)  Social environment 
B)  Competitive environment 
C)  Economic and legal environment 
D)  Technological environment

Zero defects means that there is a company goal of no mistakes in making products.

The threat of terrorism:

Producing a high quality product will ensure success in the competitive environment.

The Internet and the emergence of an information-based economy are important parts of the ___________ environment in which businesses operate.

Technology helped the manufacturing industry to become more productive.

Businesses are supporting single-parent families with:

Improved distribution systems have led to more global trade.

___________ means producing items using the least amount of resources.

Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking-out to the wrong hands is to:

Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society.

In order to compete well and gain market share, contemporary businesses are changing to be more _________________.

Shelby recently started selling her invention: A bed that looks like it floats in mid- air. The bed is actually suspended by magnetic forces. Shelby is a(n):

Land, sometimes called natural resources, is the most critical factor of production in explaining why some countries are poor while others are rich.

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

Filters

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

Zero defects means that there is a company goal of no mistakes in making products.

The threat of terrorism:

Producing a high quality product will ensure success in the competitive environment.

The Internet and the emergence of an information-based economy are important parts of the ___________ environment in which businesses operate.

Technology helped the manufacturing industry to become more productive.

Businesses are supporting single-parent families with:

Improved distribution systems have led to more global trade.

___________ means producing items using the least amount of resources.

Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking-out to the wrong hands is to:

Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society.

In order to compete well and gain market share, contemporary businesses are changing to be more _________________.

Shelby recently started selling her invention: A bed that looks like it floats in mid- air. The bed is actually suspended by magnetic forces. Shelby is a(n):

Land, sometimes called natural resources, is the most critical factor of production in explaining why some countries are poor while others are rich.

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

Filters