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

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,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):

Eve and her three college friends enjoy perfumes.As a special gift to each of them last holiday season,Eve found a way to make scented candles with each friend's favorite perfume scent.The three friends loved her gift idea and encouraged Eve to create more and sell them on the Internet.Recently,she is filling orders from her website,and turning a profit.Eve is proof that:

After losing her manufacturing job in the U.S.automobile industry,Juanita has found that well paid service sector jobs require retraining and further education. High-paying service sector jobs can be found in health care,accounting,finance,entertainment,telecommunications,architecture,law,and software engineering.However,these jobs require specialized training and education.

Which of the following policies would tend to foster entrepreneurship?

Effectiveness means producing the desired result.

The B2B Internet market consists of selling goods and services to consumers.

Which of the following organizations is an example of the goods-producing sector of the economy?

Workplace changes due to the rise of single-parent families create many job opportunities in day care,counseling,and other related fields.

Backstreet Books,an eclectic bookstore on a large college campus generated total revenues of $15 million while incurring expenses of $12 million.During the year Backstreet Books earned a profit of $3 million. The profit a firm earns is found by subtracting total costs from total revenue.

Retired people will be draining the U.S.economy of wealth.This is due to:

Efficiency means:

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

Diversity groups identified in the market today include extroverts,introverts,atheists,and the devout.

The new era of business is likely to be dominated by the:

Airline companies around the world are experiencing increased costs in part due to __________.

Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

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.

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

Health care availability,a clean environment,and good schools all contribute to a high quality of life.

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