Question 1

There are more high-paying jobs in the service sector than in the goods-producing sector.

Accepted Answer

A) True 
 B)False

Question 2

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.

Accepted Answer

A) True 
 B)False

Question 3

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

Accepted Answer

A) True 
 B)False

Question 4

John earned the same amount of money this year as he did last year.Thus,his standard of living must be the same as it was last year.

Accepted Answer

A) True 
 B)False

Question 5

The rise of Internet marketing has become particularly important in doing business in the B2B markets.

Accepted Answer

A) True 
 B)False

Question 6

The goal of empowerment in the work environment is to prevent mistakes.Mistakes can be prevented by giving management more control over the actions of lower-level workers.

Accepted Answer

A) True 
 B)False

Question 7

Business consultant Peter Drucker said that the most important factor of production is knowledge.

Accepted Answer

A) True 
 B)False

Question 8

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Accepted Answer

A) True 
 B)False

Question 9

Global trade has suffered because of increased problems with the Internet.

Accepted Answer

A) True 
 B)False

Question 10

Appliance repair firms,tax consultants,law firms,and insurance companies are all business firms that are part of the:

Accepted Answer

A)  production sector. 
B)  management sector. 
C)  neo-industrial sector. 
D)  service sector. 
A)  production sector. 
B)  management sector. 
C)  neo-industrial sector. 
D)  service sector.

Question 11

The business environment refers to the surrounding factors that either help or hinder the development of businesses.

Accepted Answer

A) True 
 B)False

Question 12

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 13

An entrepreneur risks time and money to start and manage a business.

Accepted Answer

A) True 
 B)False

Question 14

SleekWrap is a company that produces industrial coatings for the steel industry.Until recently it relied on wholesalers to distribute its products to other businesses,but now it also sells directly to its business customers through its website.This is an example of the largest and most important type of e-commerce transaction.

Accepted Answer

A) True 
 B)False

Question 15

Robin has started her own Internet consulting firm.While she recognizes the risks involved in operating a business,she is still willing to invest her time,effort,and money in hopes of earning a profit.Robin is an example of an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 16

Tools,machinery,and buildings are examples of capital resources.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following business policies would most likely help a single-parent family?

Accepted Answer

A)  Requiring the employee to work regularly scheduled hours each day. 
B)  Allowing sick leave to be used only if the employee is ill. 
C)  Requiring education outside of regular business hours to help the employee advance. 
D)  Allowing family leave and flextime. 
A)  Requiring the employee to work regularly scheduled hours each day. 
B)  Allowing sick leave to be used only if the employee is ill. 
C)  Requiring education outside of regular business hours to help the employee advance. 
D)  Allowing family leave and flextime.

Question 18

___________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom,safety,education,and a clean environment.

Accepted Answer

A)  Standard of living 
B)  Quality of life 
C)  Gross national income 
D)  Social satisfaction index 
A)  Standard of living 
B)  Quality of life 
C)  Gross national income 
D)  Social satisfaction index

Question 19

Companies that participate in the defense industry by making weapons and other companies that make armored vehicles and even food companies do well when the U.S.is at war.

Accepted Answer

A) True 
 B)False

Question 20

A common characteristic of most entrepreneurs is that they:

Accepted Answer

A)  accept the risks involved in starting and managing a business. 
B)  have a high level of scientific and technical expertise. 
C)  possess a great deal of personal wealth. 
D)  have experience in running large,complex organizations. 
A)  accept the risks involved in starting and managing a business. 
B)  have a high level of scientific and technical expertise. 
C)  possess a great deal of personal wealth. 
D)  have experience in running large,complex organizations.

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

There are more high-paying jobs in the service sector than in the goods-producing sector.

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

John earned the same amount of money this year as he did last year.Thus,his standard of living must be the same as it was last year.

The rise of Internet marketing has become particularly important in doing business in the B2B markets.

The goal of empowerment in the work environment is to prevent mistakes.Mistakes can be prevented by giving management more control over the actions of lower-level workers.

Business consultant Peter Drucker said that the most important factor of production is knowledge.

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Global trade has suffered because of increased problems with the Internet.

Appliance repair firms,tax consultants,law firms,and insurance companies are all business firms that are part of the:

The business environment refers to the surrounding factors that either help or hinder the development of businesses.

Successful businesses are keenly focused on their:

An entrepreneur risks time and money to start and manage a business.

Robin has started her own Internet consulting firm.While she recognizes the risks involved in operating a business,she is still willing to invest her time,effort,and money in hopes of earning a profit.Robin is an example of an entrepreneur.

Tools,machinery,and buildings are examples of capital resources.

Which of the following business policies would most likely help a single-parent family?

___________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom,safety,education,and a clean environment.

Companies that participate in the defense industry by making weapons and other companies that make armored vehicles and even food companies do well when the U.S.is at war.

A common characteristic of most entrepreneurs is that they:

Understanding How Economics 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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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 A: Using Technology to Manage Information

Appendix B: Managing Risk

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