Deck 1: Business Now: Change Is the Only Constant

Question 1

In the context of the history of American business, which of the following is a true statement about the industrial revolution?

A)Firms aimed at building long-term relationships with customers during the industrial revolution.
B)During the industrial revolution, there was a loss of personal pride in the production process.
C)The production efficiency was the lowest during the industrial revolution.
D)During the industrial revolution, there was a creation of individual ownership in the production process.

Answer 1

B

Question 2

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

Answer 2

False

Question 3

Which of the following is a true statement about profit in a business?

A)It is calculated by subtracting the cost of goods from the sales revenues of a business.
B)It is the financial reward that comes for starting and running a business.
C)It is the goodwill that an organization gains while running a business.
D)It is earned by every business all the time.

Answer 3

B

Question 4

The huge gains in production efficiency during the industrial revolution were mainly the result of changes in the nature of the production process that encouraged workers to take more pride and ownership in their work.

Question 5

People can create natural resources by growing and harvesting agricultural products.

Question 6

In the context of making business personal, following one's passion doesn't guarantee a fat paycheck, but it does boost one's chances of both financial and personal success.

Question 7

Susan is the human resources director at ABC Cosmetics. In her job, she is responsible for recruiting, hiring, and training employees. She is a factor of production for the company.

Question 8

During the _____, jobs became even more specialized, increasing productivity and lowering costs and prices.

A)entrepreneurship era
B)production era
C)marketing era
D)relationship era

Question 9

Which of the following occurred during the entrepreneurship era?

A)The balance of power shifted away from producers and toward consumers.
B)Web and digital resources were used to gather detailed information about customers.
C)Industrial titans created enormous wealth and dominated their markets.
D)The standard of living declined at a high rate.

Question 10

Value is the relationship between the price of a good or a service and the benefits that it offers to the customer.

Question 11

Which of the following is considered a business?

A)A firm funded by the state that specializes in providing free consultations for at-risk teens
B)A private charity that donates clothes and notebooks to orphaned kids
C)An online shopping portal that offers discounted prices on clothes
D)A federal agency that establishes and enforces environmental regulations

Question 12

The broader economy and one's own business skills will influence the level of one's personal financial success.

Question 13

The core goal of successful firms is to:

A)create a diverse workforce in an organization.
B)generate long-term profits by delivering unsurpassed value to their customers.
C)meet the rising expectations of workers.
D)ensure free trade of goods and services within local and international markets.

Question 14

Capital, as a factor of production, includes machines, tools, buildings, information, and technology.

Question 15

Which of the following statements is a characteristic of entrepreneurs?

A)They are hardly interested in creating wealth for themselves.
B)They create value for themselves at the expense of others.
C)They have little or no impact on other people in the society.
D)They produce a ripple effect that enriches everyone around them.

Question 16

The significance of the economic dimension of a business environment is highlighted when a number of states-from Alabama to Nevada-make their local economies even more appealing by providing special tax deals to attract new firms.

Question 17

Huge factories replaced skilled artisan workshops during the _____.

A)industrial revolution
B)entrepreneurship era
C)production era
D)marketing revolution

Question 18

Identify a true statement about the entrepreneurship era.

A)Industrial titans exploited workers and decimated the environment during the entrepreneurship era.
B)Large-scale entrepreneurs failed to dominate their markets during the entrepreneurship era.
C)During the entrepreneurship era, the overall standard of living across the country declined.
D)During the entrepreneurship era, the balance of power shifted from producers and toward consumers.

Question 19

Speed-to-market is the rate at which a company's competitors copy its new product innovations.

Question 20

In the U.S., nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined.

Question 21

A college has contracted a construction company to build a new bookstore for its college. The heavy machinery and equipment used by the contractor in the construction process is an example of a(n)_____.

A)entrepreneurial resource
B)human resource
C)natural resource
D)capital resource

Question 22

Which of the following statements is true of the marketing era?

A)In the marketing era, skilled artisan workshops were replaced by huge factories.
B)In the marketing era, major businesses focused on refining the production process and creating greater efficiencies.
C)In the marketing era, large-scale entrepreneurs dominated the market and raised the standard of living across the country.
D)In the marketing era, the balance of power shifted away from producers and toward consumers.

Question 23

Identify a true statement about nonprofit organizations.

A)They are usually in the business of financial gain.
B)They employ people and take in revenue.
C)They do not produce goods and services.
D)They are not business-like establishments.

Question 24

Identify a true statement about entrepreneurs.

A)They are people who write and establish government policies.
B)They avoid taking the risk of launching and operating their own businesses.
C)They thrive in an environment that supports economic freedom.
D)They are rarely motivated by any profit incentive to run a business.

Question 25

During the_____, businesses began to develop brands to help customers understand the differences among various products.

A)industrial revolution
B)entrepreneurship era
C)marketing era
D)relationship era

Question 26

Before sales of its IPad 1 reached their peak, Apple launched the IPad 2, which took sales from the IPad 1 but also overtook the sales of its competitors' products. This strategy helped Apple maintain its standing as a leading-edge company in tablet PCs and demonstrates the importance of _____ as a competitive advantage.

A)speed-to-market
B)budgeting
C)event chain methodology
D)elemental cost planning

Question 27

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?

A)Economic
B)Technological
C)Competitive
D)Social

Question 28

Legislation that supports enforceable contracts usually forms part of an organization's _____ environment.

A)competitive
B)cultural
C)economic
D)social

Question 29

Which of the following is most likely to be part of the social dimension of a business environment?

A)Population income
B)Bank lending rates
C)Telecommunication
D)Federal tax laws

Question 30

Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are on its staff. Its advertisements indicate that Children's Campground relies heavily on its _____ to provide its services.

A)natural resources
B)human resources
C)entrepreneurship
D)capital

Question 31

Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?

A)Social
B)Technological
C)Cultural
D)Economic

Question 32

Identify a true statement about e-commerce.

A)Business-to-consumer selling companies have the larger share of profits arising from the total e-commerce sales.
B)E-commerce has completely eliminated the individualized buying experience.
C)Business-to-business selling companies comprise the vast majority of total e-commerce sales.
D)E-commerce excludes the sales of goods and services through websites or online portals.

Question 33

Too much taxation, an overuse of regulation, and limited choices in the broader business environment are likely to result in:

A)a decrease in entrepreneurial activities.
B)an increase in the level of personal freedom.
C)an increase in global trade.
D)a social crisis.

Question 34

Which of the following is most likely an example of a nonprofit organization?

A)A regional retail store that sells goods at discount prices
B)A community museum that is funded by a society and is free for public use
C)A local newspaper house that sells newspapers at lower prices than its competitors
D)A fashion publication house that issues free subscriptions of its weekly magazines to consumers who are yearly subscribers

Question 35

Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.

A)economic
B)social
C)cultural
D)technological

Question 36

A small-scale consulting firm in Hawaii is struggling financially because it is unable to generate enough capital to run the business. The company then decides to get creative and uses web technology and digital resources to build long-term bonds with its current customers and also to reach new customers. This company is using concepts that primarily originated in the:

A)entrepreneurship era.
B)relationship era.
C)production era.
D)industrial era.

Question 37

Samuel is struggling to run his start-up company in his locality. He is struggling because the local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom of a business environment, which of the following is adversely affecting Samuel's start-up?

A)Lack of freedom of production
B)Lack of freedom of staffing
C)Excessive regulation
D)Excessive taxation

Question 38

In the context of factors of production, which of the following is an example of a natural resource?

A)An equipment
B)Land
C)An investment
D)Information

Question 39

Identify a true statement about the production era.

A)Major businesses focused on shifting the balance of power from producers and toward consumers.
B)The method of "hard sell" was eliminated.
C)The assembly line became standard across major manufacturing industries.
D)Leading-edge firms looked beyond each immediate transaction with a customer and aimed to build a long-term relationships.

Question 40

Fred operates two resorts in the Miami area.His company works hard to develop long-term relationships by calling customers to make sure that they are satisfied with their recent visits to the resorts and with offers to host free. In this case, Fred is most likely using concepts that were popularized during the:

A)entrepreneurship era.
B)production era.
C)relationship era.
D)technology era.

Question 41

Describe the four factors of production required for an economic system to thrive and create wealth.

Question 42

In the context of factors of production, the _________ factor encompasses the physical, intellectual, and creative contributions of everyone who works within an economy.

A)economic
B)natural resources
C)capital
D)human resources

Question 43

_________ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

A)Stock companies
B)Nonprofits
C)Credit unions
D)Parastatals

Question 44

What is a business and how does it survive and maintain a profit?

Question 45

How do nonprofit organizations play a critical role in an economy?

Question 46

_________ is the quality and quantity of goods and services available to a population.

A)Standard of living
B)Quality of working life
C)Social mobility
D)Speed-to-market

Question 47

As competition has become truly global, free trade has resulted in _____ across virtually every product category.

A)lower prices and lower quality
B)higher prices and lower quality
C)lower prices and higher quality
D)higher prices and higher quality

Question 48

_________ is the rate at which a new product moves from conception to commercialization.

A)Speed-to-market
B)Picketing
C)Hard sell
D)Leveraging

Question 49

When a business brings in less money than it needs to cover expenses, it incurs a _________.

A)deferral
B)loss
C)depreciation
D)tax cut

Question 50

Describe the technological dimension of a business environment.

Question 51

Describe the emergence of the "hard sell" in the production era and the marketing concept in the marketing era.