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

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves.Such things they are likely to pass-up on are:

Accepted Answer

A) the freedom to make their own decisions. 
B) local government benefits such as enterprise zone tax credits. 
C) employer paid benefits such as paid vacation and health insurance. 
D) tickets to sporting events that trading partners may provide. 
A) the freedom to make their own decisions. 
B) local government benefits such as enterprise zone tax credits. 
C) employer paid benefits such as paid vacation and health insurance. 
D) tickets to sporting events that trading partners may provide.

Question 3

__________ is illegally obtaining and illegally using private information about a person,such as using someone's credit card number.

Accepted Answer

A) Petty theft 
B) Identity theft 
C) Banking theft 
D) Online theft 
A) Petty theft 
B) Identity theft 
C) Banking theft 
D) Online theft

Question 4

In today's competitive environment,good value means:

Accepted Answer

A) making products with zero defects. 
B) superior quality that translates into durable products. 
C) offering the latest trends without seeming like you are over the top. 
D) providing quality products and services at competitive prices. 
A) making products with zero defects. 
B) superior quality that translates into durable products. 
C) offering the latest trends without seeming like you are over the top. 
D) providing quality products and services at competitive prices.

Question 5

Nolivia is a small and poor nation,but its current president has a genuine desire to create more wealth for Nolivia citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Nolivia?

Accepted Answer

A) Acquire more land by invading a neighboring country that is even poorer and weaker than Nolivia. 
B) Use foreign aid from other nations to purchase more tools and machinery. 
C) Establish a business environment that promotes and rewards entrepreneurship. 
D) Establish barriers to trade to protect Nolivia businesses from foreign competition. 
A) Acquire more land by invading a neighboring country that is even poorer and weaker than Nolivia. 
B) Use foreign aid from other nations to purchase more tools and machinery. 
C) Establish a business environment that promotes and rewards entrepreneurship. 
D) Establish barriers to trade to protect Nolivia businesses from foreign competition.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Stakeholders include customers,employees,stockholders,suppliers,dealers,bankers,government officials and environmentalists.

Accepted Answer

A) True 
 B)False

Question 8

In some cities the number of legal and illegal immigrants has caused governments to adapt by changing signs to other languages.

Accepted Answer

A) True 
 B)False

Question 9

High tax rates tend to:

Accepted Answer

A) promote economic development. 
B) make a nation's currency tradable. 
C) discourage entrepreneurship. 
D) reduce the amount of money created by the government. 
A) promote economic development. 
B) make a nation's currency tradable. 
C) discourage entrepreneurship. 
D) reduce the amount of money created by the government.

Question 10

Productivity is the amount of output you generate given the amount of input such as hours worked.

Accepted Answer

A) True 
 B)False

Question 11

Maintaining a high quality of life requires the combined efforts of businesses,nonprofit organizations,and government agencies.

Accepted Answer

A) True 
 B)False

Question 12

For-profit businesses and nonprofit organizations are similar in that they both:

Accepted Answer

A) contribute to the welfare of society. 
B) seek to earn a profit. 
C) have a limited life. 
D) must be controlled by a board of directors. 
A) contribute to the welfare of society. 
B) seek to earn a profit. 
C) have a limited life. 
D) must be controlled by a board of directors.

Question 13

Globalization has increased among nations.

Accepted Answer

A) True 
 B)False

Question 14

Though it has received a lot of attention,the development of the Internet has had less of an impact on the way businesses operate than many other technological changes.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

The customers,employees,stockholders,suppliers,creditors,and others who stand to gain or lose by the policies and activities of a business represent the firm's:

Accepted Answer

A) market makers. 
B) economic environment. 
C) stakeholders. 
D) social mentors. 
A) market makers. 
B) economic environment. 
C) stakeholders. 
D) social mentors.

Question 18

"Insourcing" refers to the practice of global companies setting up design and production facilities in the United States.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) Social entrepreneurs may switch social causes several times before finding their niche. 
B) Social entrepreneurs understand that their business environments are less dynamic than other businesses,especially during a recession. 
C) Social entrepreneurs use different business skills than entrepreneurs who start other businesses.They should focus on a different educational curriculum than other entrepreneurs. 
D) Using the same business skills as other entrepreneurs,social entrepreneurs develop businesses to improve the skill(s)and/or quality of life of others. 
A) Social entrepreneurs may switch social causes several times before finding their niche. 
B) Social entrepreneurs understand that their business environments are less dynamic than other businesses,especially during a recession. 
C) Social entrepreneurs use different business skills than entrepreneurs who start other businesses.They should focus on a different educational curriculum than other entrepreneurs. 
D) Using the same business skills as other entrepreneurs,social entrepreneurs develop businesses to improve the skill(s)and/or quality of life of others.

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

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

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves.Such things they are likely to pass-up on are:

__________ is illegally obtaining and illegally using private information about a person,such as using someone's credit card number.

In today's competitive environment,good value means:

Nolivia is a small and poor nation,but its current president has a genuine desire to create more wealth for Nolivia citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Nolivia?

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

Stakeholders include customers,employees,stockholders,suppliers,dealers,bankers,government officials and environmentalists.

In some cities the number of legal and illegal immigrants has caused governments to adapt by changing signs to other languages.

High tax rates tend to:

Productivity is the amount of output you generate given the amount of input such as hours worked.

Maintaining a high quality of life requires the combined efforts of businesses,nonprofit organizations,and government agencies.

For-profit businesses and nonprofit organizations are similar in that they both:

Globalization has increased among nations.

Though it has received a lot of attention,the development of the Internet has had less of an impact on the way businesses operate than many other technological changes.

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

The threat of terrorism,

The customers,employees,stockholders,suppliers,creditors,and others who stand to gain or lose by the policies and activities of a business represent the firm's:

"Insourcing" refers to the practice of global companies setting up design and production facilities in the United States.

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

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

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

Bonus A: Using Technology to Manage Information

Bonus B: Managing Risk

Bonus C: Managing Your Personal Finances

Appendix: Working Within the Legal Environment

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