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

A charitable organization,such as the Red Cross or Salvation Army,is classified as a for-profit organization. A charitable organization is not classified as a for-profit organization since it does not seek a profit.Charities are classified as nonprofit organizations.

During the past 150 years,the U.S.has evolved from:

Describe several ways that governments can foster entrepreneurship and encourage the creation of wealth.

Jing is a recent U.S.college graduate who is interested in starting an import tea business.If she follows through with her plans,she will be a pioneer,because only a handful of women choose to start businesses in the U.S. During the past two decades there has been a rapid increase in the number of women-owned businesses,increasing from about 3 million firms in 1980 to over 10.6 million women-owned firms today.Women currently own over a third of all businesses.

Traditional businesses have a managerial focus rather than a customer focus.

Greening refers to:

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

__________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

Businesses use demographic studies to understand where people live,their lifestyles,and what they are likely to buy. Demography is the statistical study of the human population to learn its size,density and characteristics.Since many goods and services appeal to customers with specific demographic characteristics (such as age or income),studying demographic trends can help businesses determine whether the demand for a good is likely to rise or fall.

Mark recently graduated with honors from his college.He has bragged to his friends that his academic performance has prepared him so well for a successful career that he can forget school or training in his future.In evaluating the future of the workplace,Mark is:

Susan quit her job in a big city to take a less stressful position in a small town located in a scenic area.She earns less money at her new job and has had to cut back on her purchases of material goods,but she has more leisure time and really enjoys the clean air and scenic beauty of her new home.Susan has accepted a lower standard of living in order to enjoy a higher quality of life. The standard of living is the amount of goods and services people can buy with the money they have.The quality of life is a broader measure of social welfare that refers to the general well being of a nation's citizens.If citizens benefit from a cleaner environment,more political freedom,or more leisure time,their overall welfare (quality of life)may improve even if they are not able to purchase more goods and services with their incomes.

Technology affects people in most,but not all industries.

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

The standard of living for a nation's people depends mainly on:

An electronic storage file where firms keep customer information is known as a(n)_________.

Since the beginning of the 1900s,the agricultural sector of the United States has:

An effort to please one group of stakeholders eventually pleases all stakeholders. Balancing the demands of all stakeholders is a tremendous challenge for organizations.Tradeoffs are common.Benefiting one group may have a negative impact on another group of stakeholders.For example,the need to stay competitive may call for outsourcing jobs to other countries,but that might do great harm to the community because many jobs would be lost.

The transition from an agricultural economy to a manufacturing economy to a service based economy has resulted in a serious increase in long-term unemployment.

Which of the following entails the greatest amount of risk?

In rich countries such as the United States,changes in the level of taxation have little impact on the incentives of entrepreneurs. High taxes and excessive regulation tend to discourage entrepreneurship even in wealthy nations.In the United States,those states with the highest taxes and most burdensome regulations tend to drive out entrepreneurs while states with lower taxes and fewer regulations tend to attract them.