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

Leanne owns a nursery business.The trucks,handcarts,and forklift she purchased for the business are called __________ investments.

Which of the following statements about social entrepreneurs (such as Muhammad Yunus who won the Nobel Prize)describes their challenge?

Revenue is the total amount of money a business takes in during a given period by selling goods and services.

Bruno and Gino are worthy competitors in the bakery business in a small upscale resort town.Gino recently negotiated a contract with a supplier for really cheap cooking oil.He knows that bakery customers want cheap products.In this competitive environment,keeping the price down is all that matters.

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

Which of the following is the most accurate statement about the impact of business on society?

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

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Wars are costly to all companies.

People living in San Jose,CA on average earn more money than people living in St.Louis,MO.The citizens of San Jose enjoy a higher standard of living than the citizens of St.Louis.

Lucy owns a restaurant in Los Angeles.She heard on the radio that the homeland security threat level has been increased due to anticipated terrorist activities,especially in large cities in the U.S.She will likely not be able to get insurance to cover any losses her business may suffer should an attack occur in L.A.

The war on terrorism in many parts of the world should lead to _____.

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

The threat of terrorism more often __________ the cost of operating a business.

The federal government requires companies to take diversity very seriously,even recommending establishing a chief diversity officer in the executive suite.

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

The social security system,

By balancing the demands of customers and stockholders,businesses satisfy the demands of all stakeholders.

Which of the following policies would tend to foster entrepreneurship?

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