Deck 1: The Changing Face of Business

Question 1

ABC Minimg Inc.is a small-scale mining company that started its business in 20011.By the year 2018,the firm had to close its operations.The company had been continuously laying off its employees since 2016,which led to the further downsizing of the firm.The decline in the availability of minerals in its operating region since 2014 has contributed vastly to its downfall and also reduced the need to inject new capital since then.Which of the following factors of production has primarily caused the firm to end its operations?

A)Natural resources
B)Capital
C)Human resources
D)Entrepreneurship

Answer 1

A

Question 2

Samantha,a former middle manager from Gaylord Manufacturing,owns and operates a 7-Eleven franchise.Samantha is demonstrating _____.

A)social responsibility
B)socialism
C)entrepreneurship
D)pure competition

Answer 2

C

Question 3

The economist Adam Smith was the first person to describe _____ in his book The Wealth of Nations.

A)socialism
B)communism
C)capitalism
D)entrepreneurship

Answer 3

C

Question 4

Technology,tools,information,and physical facilities for the operation of a business are examples of _____.

A)profits
B)wages
C)capital
D)liability

Question 5

All of the following are basic rights within a private enterprise system EXCEPT _____.

A)right to private property
B)right to profits before tax deduction
C)freedom of choice of investment
D)freedom of choice of employment

Question 6

Which of these are essential because it serves as a primary incentive for people to start companies,expand them,and provide consistently high-quality competitive goods and services?

A)Coupons
B)Profits
C)Discounts
D)Rebates

Question 7

Which of the following is NOT typically a part of the not-for-profit sector?

A)Labor unions
B)Religious organizations
C)Hotels
D)Museums

Question 8

Which of the following describes a for-profit system established,owned,and operated by individuals?

A)The private enterprise system
B)A social democracy
C)A monopoly
D)State ownership

Question 9

The Allegany County Library provides a wide variety of library services to its neighborhood.It also provides free online support to its members,and any fee collected from its members goes directly to charity.The library is an example of a(n)_____.

A)not-for-profit organization
B)corporate organization
C)offshore unit
D)business conglomerate

Question 10

In the U.S.economy,_____ are considered the reward for the risk of entering a business.

A)revenues
B)concessions
C)profits
D)sales

Question 11

The labor of a firm refers to _____.

A)household consumers
B)everyone who works for the business
C)full-time employees
D)top management executives

Question 12

Accountants think of profits as:

A)the overall sales of a company in comparison with its top competitor.
B)the difference between a firm's revenues and the expenses incurred in generating them.
C)the value of the products or services sold during a financial year.
D)the difference between the capital and revenue obtained through selling stocks.

Question 13

Which of the following describes the right to profit?

A)Owner is legally guaranteed the right to all profits (after taxes)that are earned by a business
B)Right to such profits without any form of deduction
C)Government will guarantee a profit
D)Firm has to earn only profits

Question 14

Conchita recently sold her Ford Taurus to a personal friend.Conchita's sale of her automobile illustrates the right to _____.

A)freedom of choice
B)private property
C)profit making
D)set ground rules for competitive activity

Question 15

Capitalism is founded on _____.

A)the social changes that followed the Industrial Revolution
B)the idea that 80 percent of a nation's wealth should be owned by no more than 20 percent of its people
C)the principles of a private enterprise system
D)the idea that government must own all factors of production

Question 16

When Private Jets,Inc.finds itself losing contracts because Global Aviation,Inc.charges less money,Private Jets responds by lowering its bids.According to Adam Smith,this reaction demonstrates _____.

A)the invisible hand of competition
B)collision
C)the right to private property
D)social responsibility

Question 17

Competition,according to Adam Smith,would lead to consumers receiving the best possible products and prices because _____.

A)government interference in economic activity would be maximized
B)less efficient producers would be driven out of the market
C)increased supply of raw materials would lead to increased production
D)natural resources would be utilized more efficiently

Question 18

For successful companies,which of the following statements is true?

A)They often adapt to changes in customer tastes.
B)They spend less time on technology-related projects.
C)They refrain from all kinds of competition.
D)They strive to reduce the standards of living of their respective countries.

Question 19

Jason is an accountant.When he is looking at clients' books,for him,profits are _____.

A)the difference between revenues and expenses
B)the sum of commissions earned and receipts
C)the difference between sales and expenses
D)the sum of sales and expenses

Question 20

By offering a lifetime warranty on its products,Savvy Security Systems has set itself apart from its competitors.This difference is known as Warner Electronics' _____.

A)private enterprise system
B)competitive differentiation
C)capitalism
D)checkoff

Question 21

The business philosophy that advocates determining what consumers want and need,and then designing products to satisfy those needs,is known as _____.

A)consumer orientation
B)self-sufficiency
C)work ethics
D)production enhancement

Question 22

Fabian uses a weblog to sell his products.His blog has generated massive sales for his products.His capital expenditure was the lowest in comparison to most of the other online firms.Which of the following eras is he most likely to be originating from?

A)Production era
B)Social era
C)Industrial era
D)Marketing era

Question 23

Diverse employee teams tend to perform _____ and develop _____ than do homogeneous employee groups.

A)less effectively; better solutions
B)more effectively; better solutions
C)less effectively; worse solutions
D)more effectively; worse solutions

Question 24

Blogs and social networking use _____ to manage relationships.

A)strategic alliances
B)marketing research analyses
C)technology
D)business etiquette

Question 25

When Microsoft opened offices in Tokyo,London,and Sydney,it was utilizing _____ by relocating business activities to lower-cost locations overseas.

A)nearshoring
B)cybersquatting
C)offshoring
D)employee sourcing

Question 26

Which of the following best describes a partnership?

A)A category of relationship management
B)An affiliation of two or more companies
C)Outside the scope of e-business management
D)Helpful in eliminating competitive advantage

Question 27

The Industrial Revolution in England transformed America's economy by introducing _____.

A)the concept of each worker producing one complete product
B)the concept labor unions
C)the factory system
D)the continuously moving assembly line

Question 28

______ is a benefit of entrepreneurship.

A)Low risk
B)Flexibility
C)Guaranteed profit
D)Reduced competition

Question 29

All of the following are rights granted to citizens and to the government in a private enterprise system EXCEPT the right to _____.

A)fair competition
B)permit price discrimination
C)select from among a variety of goods and services
D)own property

Question 30

What do managers of global workforces need to do to retain valued employees?

A)Build and earn trust
B)Share financial information with employees
C)Lay off tenured employees
D)Follow traditional management practices

Question 31

Which of the following BEST distinguishes the philosophy of the marketing era from the philosophy of the production era?

A)The marketing era was more consumer oriented.
B)The production era occurred after World War II.
C)The marketing era advocated price discrimination.
D)The production era was more consumer oriented.

Question 32

When a business employs an outside company to handle all customer correspondence and phone calls,the business is _____ its customer service department.

A)outsourcing
B)branding
C)cybersquatting
D)shrinking

Question 33

Which of the following is necessary in the current business workforce trend?

A)Awareness that businesses are moving toward traditional management practices
B)Increased reliance on employees' intellectual capabilities
C)Increased reliance on natural resources and physical inputs
D)Transition from focus on production to creating a brand

Question 34

Which of the following is a management challenge associated with broad age diversity?

A)The uniformity in expectations of work
B)The need to accommodate a variety of work lifestyles
C)The decreasing need for advanced skills
D)The increasing reliance on older individuals

Question 35

Which of the following is considered to be the most fundamental right of the private enterprise system?

A)The right to private property
B)The right to guaranteed profits
C)The right to exercise price discrimination
D)The right to fair competition

Question 36

Which of these refers to the collection of activities that build and maintain ongoing,mutually beneficial ties with customers and other parties?

A)Relationship management
B)Transaction management
C)Financial management
D)Marketing management

Question 37

The economic focus,in colonial society,was centered on _____.

A)metropolitan areas
B)areas west of the Mississippi River
C)rural areas
D)cities

Question 38

Apple Series 4 watches sold on Amazon's Web site signify the formation of a _____ to increase profits.

A)transaction alliance
B)brand partnership
C)strategic alliance
D)marketing agreement

Question 39

When a U.S.company contracts work to a company in Mexico,it is _____.

A)nearshoring
B)nearsourcing
C)exporting
D)offshoring

Question 40

The American Industrial Revolution did not make real progress until _____.

A)a railroad system was built,providing fast,economical transportation
B)a good relationship was formed with England
C)an introduction of the automobile occurred
D)a reliable system of telephonic communication was established

Question 41

_______ represents a natural force that guides free market capitalism.

A)Socialism
B)Communism
C)Competition
D)Government

Question 42

Social responsibility would include all of the following EXCEPT _____.

A)supporting the local United Way
B)buying goods and services from minority-owned vendors
C)making campaign contributions to politicians in the hope of obtaining a government contract
D)making contributions to the local public radio station

Question 43

"Newman's Own" is a food product line that gives 100 percent of its after-tax profits to charity.This company is ____.

A)evaluating its business ethics
B)enacting upon its social responsibility
C)creating customer satisfaction
D)using creativity to promote sales

Question 44

Which of the following is NOT an example of an internal force that requires organizational change?

A)Labor union demands
B)Production problems
C)New technologies
D)New company goals

Question 45

Which of these refers to standards of conduct and moral values of a firm?

A)Creativity
B)Business ethics
C)A social audit
D)A social responsibility

Question 46

When management adheres to a set of standards involving the right and wrong actions arising in the work environment,the management is _____.

A)enacting upon its social responsibility
B)following its business ethics
C)working towards social welfare
D)using creativity to encourage team spirit

Question 47

A tax law provision granted to not-for-profits by the Internal Revenue Service is called _______.

A)strategic alliance
B)concession
C)consumer orientation
D)section 501(c)(3)

Question 48

Which is the ability to perceive marketplace needs and what an organization must do to satisfy these needs?

A)Critical thinking
B)Social responsibility
C)Vision
D)Creativity

Question 49

Which of these describes the unique combination of organizational abilities,products,and approaches that sets a company apart from competitors in the minds of customers?

A)Private enterprise system
B)Competitive differentiation
C)Capitalism
D)Strategic alliance

Question 50

The main characteristic of ______ era is the new ways for businesses and consumers to communicate and share information.

A)marketing
B)social
C)relationship
D)age of industrial entrepreneurs

Question 51

Which of the following represent corresponding factor payments for labor and capital?

A)Land and rent
B)Perseverance and natural resources
C)Wages and interest
D)Natural resources and entrepreneurship

Question 52

The main characteristic of ______ era was mass production by semiskilled workers,aided by machines.

A)industrial revolution
B)social
C)relationship
D)age of industrial entrepreneurs

Question 53

The main characteristic of ______ era was benefits derived from deep,ongoing links with individual customers,employees,suppliers,and other businesses.

A)marketing
B)social
C)relationship
D)age of industrial entrepreneurs

Question 54

Ramona works for ABC Pharmaceutical Company and gives a presentation on the need to expand the company's geriatric division within the next 10 years.Ramona is focusing primarily on establishing the company's _____.

A)morales
B)ethics
C)vision
D)codes

Question 55

Tevasoft,a content management company,introduces a new software tool for quality analysis.This product has been programmed and introduced after several rounds of meticulous analysis that included researching,brainstorming sessions,arguments,and several rounds of testing for the product's accuracy and authenticity.In this scenario,which of the following has Tevasoft demonstrated?

A)Critical thinking
B)Competitive differentiation
C)Sociability
D)Creativity

Question 56

Crowdsourcing allows companies to find:

A)workers for a specific task.
B)potential candidates through a physical job fair.
C)appropriate candidates within the company.
D)candidates specifically for the managerial roles.

Question 57

Stewart is a small business owner who runs a local coffee shop and a bakery.For Stewart,_____ represents an earned reward for taking the risks of running the business.

A)government intervention
B)concessions
C)profits
D)long hours

Question 58

In business,_____ refers to the ability to see better and different ways of doing business.

A)critical thinking
B)social responsibility
C)creativity
D)vision

Question 59

Feedback from customers is an example of a(n)_____ that requires organizational change.

A)internal force
B)external force
C)change agent
D)marketing issue

Question 60

Delco Corp.a multinational corporation located in Chicago is planning to relocate its operations in India.The firm has identified that the labor cost and technology available in India would ensure optimum performance of its business operations.Which of the following strategies has Delco Corp.adopted?

A)Exporting
B)Offshoring
C)Nearshoring
D)Licensing

Question 61

In the private enterprise system,government has no role to play in ensuring fair competition.

Question 62

Land is linked to the factor payment of rent.

Question 63

Capitalism is another name for the private enterprise system.

Question 64

Labor encompasses both the physical labor and the intellectual inputs contributed by workers.

Question 65

During the era of Industrial Revolution,the focus was on agriculture and other rural activities.

Question 66

In order to remain viable,not-for-profit organizations need to focus on profits even more than the public service they provide.

Question 67

The private enterprise system is enhanced by maximized government participation.

Question 68

Capital usually includes entrepreneurs and human resources.

Question 69

When customers enter a supermarket and select their favorite brand of laundry detergent,they are exercising their right to freedom of choice.

Question 70

Just as with a for-profit business,the first priority for a not-for-profit organization is making a profit.

Question 71

In the private enterprise system,the right to private property is considered the most basic right.

Question 72

Given that not-for-profit organizations still focus on and make profits,they are commonly required to pay federal,state,and local taxes.

Question 73

When farmers rent land in order to increase crop production,they are acquiring capital.

Question 74

Technology is considered to be a form of capital.

Question 75

Technology and capital are considered as two separate factors of production.

Question 76

For a business to be successful,competitive differentiation is highly discouraged.

Question 77

A common characteristic of most entrepreneurs is finding unique ways to use the factors of production.

Question 78

Government intervention is critically important and encouraged in the private enterprise system.

Question 79

Companies need to be ethical to succeed in the long run.

Question 80

"Risk-taking" and entrepreneurship are synonymous.