Question 1

Several years ago, the government of the small nation of Allegro owned the nation's telephone company and landlines. This relatively poor government relied on taxes to develop this industry and provide service to its citizens. If the government desired to rapidly improve people's access to phone service, its best course of action would involve selling the telephone company to private investors.

Accepted Answer

A) True 
 B)False

Question 2

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?

Accepted Answer

A) Added benefits such as health insurance provided to employees of large corporations. 
B)  The freedom to contribute as an innovator in his work environment. 
C)  Long hours at work, while he learns the business and contributes to making it successful. 
D) Job protection.

Question 3

Taxes and government regulations are part of the economic and legal environment in which businesses operate.

Accepted Answer

A) True 
 B)False

Question 4

Identity theft is when individuals or firms access people's personal information and then use it for illegal purposes and activities.

Accepted Answer

A) True 
 B)False

Question 5

A nation progresses socially when it has good schools, clean air and water, and more. Which of the following statements addresses conditions for social progress?

Accepted Answer

A) Social progress will evolve when capital is apportioned to everyone in equal amounts. 
B) A city, state, or nation's social progress needs the right business environment. 
C)  The foundation for social progress is a handful of wealthy entrepreneurs willing to spread the wealth. 
D) Social progress can only improve when there is a strong labor pool to draw from.

Question 6

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:

Accepted Answer

A) Avoid all e-commerce transactions because this is the only types of buying transactions where websites and others handle sensitive, personal information. 
B) Install antivirus software, firewalls, and anti-spyware software on her computer. 
C)  Limit her purchases with vendors that she knows do not store her information in a database. 
D) Limit her travels to the United States because identity theft is an international problem.

Question 7

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Accepted Answer

A) True 
 B)False

Question 8

Questionable business practices such as those followed by many mortgage lending companies in the past few years:

Accepted Answer

A) encouraged investors to increase their stock market holdings. 
B) fundamentally weakened the entire economic environment. 
C)  helped retired employees at the expense of current employees. 
D) resulted from too much government regulation.

Question 9

Bar codes are a form of technology that has enhanced a company's ability to be responsive to consumer needs.

Accepted Answer

A) True 
 B)False

Question 10

Technology affects people in:

Accepted Answer

A) all industries. 
B)  most industries. 
C)  information technology industries with the exception of agriculture. 
D)  primarily high income countries.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) the quality of the natural environment. 
B)  how much political freedom they have. 
C)  their income and the prices of the goods and services they buy. 
D)  the amount of labor and capital available employed in the manufacturing sector.

Question 13

The amount of goods and services people can buy with the money they have is called their:

Accepted Answer

A) nominal income. 
B)  consumer price index. 
C)  profit margin. 
D) standard of living.

Question 14

The business-to-business segment of e-commerce is of less importance than the business-to-consumer segment of e-commerce.

Accepted Answer

A) True 
 B)False

Question 15

The threat of terrorism more often the cost of operating a business.

Accepted Answer

A)  increases 
B)  decreases 
C)  stabilize 
D) destabilizes

Question 16

Robin has started her own Internet consulting firm. While she recognizes the risks involved in operating a business, she is still willing to invest her time, effort, and money in hopes of earning a profit. Robin is an example of an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements describes a recurring theme about today's ecological environment?

Accepted Answer

A) Most people agree that there is strong evidence that the temperature of the planet is going down. 
B)  Smart businesses know that green business is currently a trend and they should proceed with caution because most green initiatives are more costly than wars and terrorism. 
C) There is a strong push by customers that businesses develop products and services that clearly save energy. 
D) Clearly, the greening issue is an American trend that has not captured the attention of the international business community.

Question 18

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

Accepted Answer

A) firms have been trying to weaken unions by reducing their reliance on labor. 
B)  workers in the U.S. have become less productive and are no longer able to compete in the global economy. 
C) firms in many industries have become so efficient that they need fewer workers. 
D) the economy has been in a prolonged depression that has lasted more than a decade.

Question 19

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 differences is:

Accepted Answer

A) disabilities, sexual orientation, religious preferences, and even personality differences such as extroverts and introverts. 
B)  gender roles. 
C)  surface level things such as green eyes versus brown eyes. 
D) racial differences and gender differences.

Question 20

Social entrepreneurs are people who start and manage organizations that are not-for-profit. Their mission is to help others improve their quality of life.

Accepted Answer

A) True 
 B)False

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

Taxes and government regulations are part of the economic and legal environment in which businesses operate.

Identity theft is when individuals or firms access people's personal information and then use it for illegal purposes and activities.

A nation progresses socially when it has good schools, clean air and water, and more. Which of the following statements addresses conditions for social progress?

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:

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Questionable business practices such as those followed by many mortgage lending companies in the past few years:

Bar codes are a form of technology that has enhanced a company's ability to be responsive to consumer needs.

Technology affects people in:

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

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

The amount of goods and services people can buy with the money they have is called their:

The business-to-business segment of e-commerce is of less importance than the business-to-consumer segment of e-commerce.

The threat of terrorism more often the cost of operating a business.

Robin has started her own Internet consulting firm. While she recognizes the risks involved in operating a business, she is still willing to invest her time, effort, and money in hopes of earning a profit. Robin is an example of an entrepreneur.

Which of the following statements describes a recurring theme about today's ecological environment?

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

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 differences is:

Social entrepreneurs are people who start and manage organizations that are not-for-profit. Their mission is to help others improve their quality of life.