Question 1

The rise of Internet marketing has become particularly important in doing business in the B2B markets.

Accepted Answer

A) True 
 B)False

Question 2

Honesty,integrity,and high ethical standards are essential to a capitalist economic system like the one that operates in the United States.

Accepted Answer

A) True 
 B)False

Question 3

Technology can help businesses become more efficient and productive.

Accepted Answer

A) True 
 B)False

Question 4

An electronic storage file where information is kept is called a CPU.

Accepted Answer

A) True 
 B)False

Question 5

Working as an entrepreneur is the only way to succeed in business.

Accepted Answer

A) True 
 B)False

Question 6

Zero defects means that there is a company goal of no mistakes in making products.

Accepted Answer

A) True 
 B)False

Question 7

When businesses sell to other businesses over the Internet,these transactions are known as:

Accepted Answer

A) B2C transactions. 
B) e-wholesale transactions. 
C) B2B transactions. 
D) intermediate e-commerce transactions.

Question 8

With the emergence of the Internet,Jasmine finds it easy to do all her gift buying online.She takes comfort in the fact that new technologies if installed properly are seldom used in unethical ways.
Although technological wonders such as the Internet have improved the way we communicate with customers and friends,problems such as identity theft have surfaced.

Accepted Answer

A) True 
 B)False

Question 9

The "pay-as-you-go" Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.
The pay-as-you-go Social Security system means that today's workers pay for today's retirees.To date this has worked since there are more workers supporting each retiree.However in 2018,less money will be coming into Social Security than will be going out and there will be a shortfall,suggesting that today's young people will not have Social Security benefits in the future.

Accepted Answer

A) True 
 B)False

Question 10

Allowing today's young people to invest part of their Social Security money in personal savings accounts makes sense since in the future less money will be coming into Social Security than will be going out.
Paying Social Security to senior citizens in the future will draw huge amounts of money from the economy.One option to deal with this is to allow young people to invest part of their Social Security money in personal savings accounts.

Accepted Answer

A) True 
 B)False

Question 11

As a factor of production,the term capital includes:

Accepted Answer

A) stocks and bonds issued by corporations. 
B) natural resources such as land and water. 
C) tools,machinery,and buildings. 
D) services provided by the government that enable businesses to be more productive.

Question 12

Last year,Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million.Based on this information,Adventure reported:

Accepted Answer

A) profits of $14 million. 
B) profits of $34 million. 
C) losses of $14 million. 
D) losses off $34 million.

Question 13

Land,sometimes called natural resources,is the most critical factor of production in explaining why some countries are poor while others are rich.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

If they wish to create more wealth,poor nations should focus on policies that increase entrepreneurship and the effective use of knowledge.
Poor nations often have plenty of labor and land,as well as access to capital.However,the absence of entrepreneurship and knowledgeable workers seems to be the reason that most poor countries remain poor.

Accepted Answer

A) True 
 B)False

Question 16

Companies that outsource research and development and design jobs:

Accepted Answer

A) have always made a wise decision. 
B) will be more profitable in the long run. 
C) run the risk of overseas companies using the information to produce competitive products. 
D) always invest in the overseas companies that take on these jobs.

Question 17

_______________ is/are the external and internal circumstances that surround the business.

Accepted Answer

A) The business environment 
B) The factors of production 
C) The business corral 
D) The business disciplines

Question 18

Greg is working as a marketing trainee for an online Music CD and video retailer.His boss called a meeting for next week with one thing on the agenda: "Bring with you your ideas about how we can gain a competitive advantage." Greg plans to provide the following response:

Accepted Answer

A) Create a management-driven environment with lots of employee training. 
B) Create a customer-driven environment where we constantly try to create customer value. 
C) Restructure the organization so that there is always a manager on duty to chat with online customers who are having problems with their orders. 
D) Always match the promotions of our competitors.Price is the only thing customers care about.

Question 19

Historically jobs lost in one sector of the economy have been replaced by increased employment opportunities in other sectors.
The history of our nation's economy shows that as jobs were lost in agriculture earlier in the last century;displaced farm workers were often able to find employment in the growing manufacturing sector.More recently,declines in manufacturing employment have been offset by rapid growth in the service sector.The latest growth area for new jobs is in information technology.

Accepted Answer

A) True 
 B)False

Question 20

Often in business the greater the risk,the ___________.

Accepted Answer

A) greater the potential reward 
B) lower the expected revenues 
C) lower the value provided to society 
D) greater the number of stakeholders

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

The rise of Internet marketing has become particularly important in doing business in the B2B markets.

Honesty,integrity,and high ethical standards are essential to a capitalist economic system like the one that operates in the United States.

Technology can help businesses become more efficient and productive.

An electronic storage file where information is kept is called a CPU.

Working as an entrepreneur is the only way to succeed in business.

Zero defects means that there is a company goal of no mistakes in making products.

When businesses sell to other businesses over the Internet,these transactions are known as:

As a factor of production,the term capital includes:

Last year,Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million.Based on this information,Adventure reported:

Land,sometimes called natural resources,is the most critical factor of production in explaining why some countries are poor while others are rich.

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

Companies that outsource research and development and design jobs:

_______________ is/are the external and internal circumstances that surround the business.

Greg is working as a marketing trainee for an online Music CD and video retailer.His boss called a meeting for next week with one thing on the agenda: "Bring with you your ideas about how we can gain a competitive advantage." Greg plans to provide the following response:

Often in business the greater the risk,the ___________.