Question 1

Profits of a business include the salaries paid to its employees.

Accepted Answer

A) True 
 B)False

Question 2

Global trade has suffered because of increased problems with the Internet.

Accepted Answer

A) True 
 B)False

Question 3

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Accepted Answer

A) True 
 B)False

Question 4

Lacey owns a bakery in Dallas. She read online that the homeland security threat level has been increased due to anticipated terrorist activities, especially in large cities in the U.S. She will likely not be able to get insurance to cover any losses her business may suffer should an attack occur in Dallas.

Accepted Answer

A) True 
 B)False

Question 5

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.E) B) and C)
F) A) and D)

Question 6

The service industry represents about ________ of the value of the U.S. economy.

Accepted Answer

A)   30%
B)   50%
C)   60%
D)   80%E) A) and B)
F) B) and D)

Question 7

Lux Ladies, Inc., is a company that specializes in expensive and unusual gifts for all occasions. It keeps a large file of information on all of its regular customers, including names, addresses, and type of gifts they have ordered in the past, and the size and frequency of their orders. The electronic file which stores this information is a(n)

Accepted Answer

A)   spreadsheet.
B)   MP3 file.
C)   PERT file.
D)   database.E) All of the above
F) None of the above

Question 8

Which of the following best describes the main difference between B2B and B2C transactions?

Accepted Answer

A)   B2B transactions involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.
B)   B2B transactions focus on financial transactions while B2C e-commerce focuses on the sale of manufactured goods.
C)   B2B transactions refer to business between nonprofit organizations while B2C e-commerce is carried out by business firms seeking to earn a profit.
D)   B2B transactions involve sales in foreign markets while B2C e-commerce is restricted to domestic markets.E) C) and D)
F) B) and D)

Question 9

________ refers to the amount of output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.

Accepted Answer

A)   Efficiency
B)   Technology
C)   Telecommuting
D)   ProductivityE) B) and D)
F) All of the above

Question 10

The global environment:

Accepted Answer

A)   is a new frontier.
B)   is far reaching and affects all the other business environments.
C)   is shrinking.
D)   has not affected the United States due to its strong gross domestic product.E) All of the above
F) C) and D)

Question 11

Gina is working as a marketing trainee for a streaming video company. Her 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." Gina 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.E) A) and B)
F) All of the above

Question 12

Dennis and Donna recently moved to Kansas on a three-acre site. They purchased their home within biking distance to the hospital where they work, and their bikes have room for groceries if they need to purchase food on the way home, although they plan to grow some crops on their own. Dennis and Donna are examples of a growing number of people who

Accepted Answer

A)   have developed a health-conscious attitude.
B)   want to change their lifestyle to be more in tune to saving energy.
C)   dislike urban centers and wish to live in the country.
D)   stay away from urban areas due to increased threats of terrorist attacks in those localities.E) C) and D)
F) A) and D)

Question 13

A(n)  ________ is a person who assumes the risk of starting a business.

Accepted Answer

A)   manager
B)   entrepreneur
C)   employee
D)   stakeholderE) A) and B)
F) B) and D)

Question 14

Productivity is the amount of output you generate given the amount of input such as hours worked.

Accepted Answer

A) True 
 B)False

Question 15

Business decisions should consider the interests of customers, employees, suppliers, government leaders, and stockholders.

Accepted Answer

A) True 
 B)False

Question 16

The series of lines on a product packaging that the cashier scans when you check out at a grocery store or discount store is called a

Accepted Answer

A)   bar code.
B)   zip code.
C)   scan code.
D)   laser code.E) A) and B)
F) A) and C)

Question 17

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Accepted Answer

A) True 
 B)False

Question 18

Entrepreneurship is one of the five factors of production that contribute to the creation of wealth.

Accepted Answer

A) True 
 B)False

Question 19

Opportunities and advancements in the technological environment during the past 20 years have opened the doors for a number of products that enhance the lives of consumers. Identity theft and other forms of cybercrime are also by-products of these technological advancements. Which of the following statements describes a form of identity theft?

Accepted Answer

A)   Smartphone apps that permit the consumer to price compare by scanning the barcode of a product, such as a cell phone.
B)   Hacking into a business's database to obtain customer credit card numbers, and then selling those numbers to others for use.
C)   GPS technology that permits you to find the exact location of a person, by entering that person's phone number into your application.
D)   The application of cookies to a consumer's computer system that identify his/her purchasing patterns.E) B) and C)
F) C) and D)

Question 20

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials, and environmentalists.

Accepted Answer

A) True 
 B)False

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

Correct Answer
verified

Business decisions should consider the interests of customers, employees, suppliers, government leaders, and stockholders.

Correct Answer
verified

Productivity is the amount of output you generate given the amount of input such as hours worked.

Correct Answer
verified

A(n) ________ is a person who assumes the risk of starting a business.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

The global environment:

Correct Answer
verified

Which of the following best describes the main difference between B2B and B2C transactions?

Correct Answer
verified

The series of lines on a product packaging that the cashier scans when you check out at a grocery store or discount store is called a

Correct Answer
verified

________ refers to the amount of output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.

Correct Answer
verified

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials, and environmentalists.

Correct Answer
verified

The service industry represents about ________ of the value of the U.S. economy.

Correct Answer
verified

Global trade has suffered because of increased problems with the Internet.

Correct Answer
verified

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Correct Answer
verified

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Correct Answer
verified

Entrepreneurship is one of the five factors of production that contribute to the creation of wealth.

Correct Answer
verified

Correct Answer
verified

Profits of a business include the salaries paid to its employees.

Correct Answer
verified

Gina is working as a marketing trainee for a streaming video company. Her 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." Gina plans to provide the following response:

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

Business decisions should consider the interests of customers, employees, suppliers, government leaders, and stockholders.

Correct AnswerverifiedShow Answer

Productivity is the amount of output you generate given the amount of input such as hours worked.

Correct AnswerverifiedShow Answer

A(n) ________ is a person who assumes the risk of starting a business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The global environment:

Correct AnswerverifiedShow Answer

Which of the following best describes the main difference between B2B and B2C transactions?

Correct AnswerverifiedShow Answer

The series of lines on a product packaging that the cashier scans when you check out at a grocery store or discount store is called a

Correct AnswerverifiedShow Answer

________ refers to the amount of output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.

Correct AnswerverifiedShow Answer

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials, and environmentalists.

Correct AnswerverifiedShow Answer

The service industry represents about ________ of the value of the U.S. economy.

Correct AnswerverifiedShow Answer

Global trade has suffered because of increased problems with the Internet.

Correct AnswerverifiedShow Answer

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Correct AnswerverifiedShow Answer

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Correct AnswerverifiedShow Answer

Entrepreneurship is one of the five factors of production that contribute to the creation of wealth.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Profits of a business include the salaries paid to its employees.

Correct AnswerverifiedShow Answer

Gina is working as a marketing trainee for a streaming video company. Her 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." Gina plans to provide the following response:

Correct AnswerverifiedShow Answer

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Correct Answer
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