Question 1

In order to make an intelligent investment decision,entrepreneurs should:

Accepted Answer

A) limit their options to those business investments that are backed by the Canadian government. 
B) invest in businesses that have generated a stable rate of profit for at least ten years. 
C) invest only in business opportunities where it is possible to take an active role in management. 
D) do research to compare the risks of potential investments to their expected profits and find the right balance between profit and risk. Those companies with high risk also often possess the potential for high profits.Entrepreneurs must weigh risk and profit and find the right balance.

Question 2

A retailer can store a lot of customer records that include their name,address,and telephone numbers and past purchases in a database.This allows the retailer to only stock what the customers in their area want.This saves the retailer money in:

Accepted Answer

A) inventory costs 
B) accounting costs 
C) wages 
D) benefits

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

Appliance repair firms,tax consultants,law firms,and insurance companies are all business firms that are part of the:

Accepted Answer

A) production sector. 
B) management sector. 
C) neo-industrial sector. 
D) service sector.

Question 5

To remain competitive in today's market,firms must produce a quality product and offer outstanding service and products at a reasonable price.

Accepted Answer

A) True 
 B)False

Question 6

The business environment refers to the surrounding factors that either help or hinder the development of businesses.

Accepted Answer

A) True 
 B)False

Question 7

E-commerce only covers one aspect of e-business.

Accepted Answer

A) True 
 B)False

Question 8

A lesson to learn from the story of Ron Joyce,who became a franchisee in the first Tim Hortons,is that to be a successful entrepreneur you need to find something that you love to do.

Accepted Answer

A) True 
 B)False

Question 9

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.Actions benefiting one group may have a negative impact on another group of stakeholders.

Accepted Answer

A) True 
 B)False

Question 10

The advice provided by a lawyer is an example of the service industry.

Accepted Answer

A) True 
 B)False

Question 11

Although employment in the service sector has increased rapidly in recent years,the vast majority of workers are still employed in the goods producing sector.

Accepted Answer

A) True 
 B)False

Question 12

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.
Profit is the difference between a firm's revenue and its expenses.

Accepted Answer

A) True 
 B)False

Question 13

As businesses expand to serve global markets,new jobs will be created in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 14

Money is one of the five factors of production that contribute to the creation of wealth.
see Figure 1.2.

Accepted Answer

A) True 
 B)False

Question 15

Offshoring entails:

Accepted Answer

A) sourcing parts outside of the country. 
B) assigning various functions to outside organizations. 
C) having a limited life. 
D) being controlled by a board of directors.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Bar codes allow retailers to scan information about products consumers buy,directly into a database.

Accepted Answer

A) True 
 B)False

Question 18

After losing her manufacturing job in the Canadian 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.

Accepted Answer

A) True 
 B)False

Question 19

The resources that contribute to the creation of wealth are known as:

Accepted Answer

A) production coefficients. 
B) factors of production. 
C) production technologies. 
D) production aggregates.

Question 20

The baby-boom echo includes those people born after 1995.

Accepted Answer

A) True 
 B)False

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

In order to make an intelligent investment decision,entrepreneurs should:

A retailer can store a lot of customer records that include their name,address,and telephone numbers and past purchases in a database.This allows the retailer to only stock what the customers in their area want.This saves the retailer money in:

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.

Appliance repair firms,tax consultants,law firms,and insurance companies are all business firms that are part of the:

To remain competitive in today's market,firms must produce a quality product and offer outstanding service and products at a reasonable price.

The business environment refers to the surrounding factors that either help or hinder the development of businesses.

E-commerce only covers one aspect of e-business.

A lesson to learn from the story of Ron Joyce,who became a franchisee in the first Tim Hortons,is that to be a successful entrepreneur you need to find something that you love to do.

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.Actions benefiting one group may have a negative impact on another group of stakeholders.

The advice provided by a lawyer is an example of the service industry.

Although employment in the service sector has increased rapidly in recent years,the vast majority of workers are still employed in the goods producing sector.

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues. Profit is the difference between a firm's revenue and its expenses.

As businesses expand to serve global markets,new jobs will be created in the manufacturing sector.

Money is one of the five factors of production that contribute to the creation of wealth. see Figure 1.2.

Offshoring entails:

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

Bar codes allow retailers to scan information about products consumers buy,directly into a database.

The resources that contribute to the creation of wealth are known as:

The baby-boom echo includes those people born after 1995.