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

A common characteristic of most entrepreneurs is that they:

In recent years,manufacturing firms in the United States have laid off workers.The best explanation of this trend is that:

Since businesses strive to earn a profit,their owners benefit at the expense of the rest of society. In the pursuit of profit,businesses create jobs,produce goods and services that contribute to a higher standard of living,and pay taxes that support important government programs.Thus,businesses benefit others in society as well as their owners.

There is less risk involved in starting an e-commerce only business than there is in trying to add e-commerce to a traditional (bricks-and-mortar)store. Although there is no question that some Internet businesses will grow and prosper,it is also evident that many e-commerce firms will fail.On the other hand,many traditional businesses have successfully expanded by incorporating e-commerce into their plans.

A business incurs a ___________ if its costs and expenses exceed its revenues.

The war on terrorism will:

Businesses that produce and sell tangible products such as steel and machines are part of the:

Businesses favor:

Technology affects people in:

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

When we compare the factors of production in wealthy and poor nations,we find:

Laura and Tim McNash recently moved to North Carolina on a three-acre home site.They purposefully purchased their home within biking distance to the university where they are both employed,and their bikes each have room for two cloth bags for groceries if they need to purchase food on the way home,although they plan to grow much of their own.Laura and Tim are examples of a growing number of young people who:

The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups.

Diversity is more than recruiting and keeping minorities and women.Diversity means appreciating and understanding other differences in our customers and in our workforce.The statement that best describes this difference is:

Insourcing creates new jobs,and helps offset the number of jobs being outsourced. Many companies are setting up design and production facilities here in the United States.For example,Hyundai is doing design and engineering work in Detroit and producing cars in Montgomery,Alabama.Such insourcing creates many new jobs,and helps offset the number of jobs being outsourced.

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

Greg recently completed his college degree in construction management.He is heading to Mexico City to start a business developing apartment dwellings.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. While labor is included in the factors of production,entrepreneurship and knowledge are considered the most important factors in the creation of wealth.

Adam Ripley sells custom bicycles.Adam buys several bike parts including wheels and tires from the Good Treads Company.Although several government-supported regulations help Adam in his business,regulations that make it easy for Adam's business to enjoy good vendor relationships are:

Nick is a recent finance graduate who has two passions: music and finance.Upon graduation,he was offered an opportunity to join a struggling rock band with a lot of potential,or a job at a large well-established financial services company.By joining the band,he will forego which of the following?

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: