Question 1

An increase in global trade will:

Accepted Answer

A)   increase prices.
B)   decrease jobs.
C)   increase political instability.
D)   increase global competition.

Question 2

One reason given for the decline in the number of U.S. workers employed in manufacturing is that manufacturing firms in the U.S. have become more efficient.

Accepted Answer

A) True 
 B)False

Question 3

Efficiency means:

Accepted Answer

A)   producing the desired result.
B)   producing goods and services using the least amount of resources.
C)   the amount of output you generate given the amount of input.
D)   the buying and selling of goods using the most amount of resources.

Question 4

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

Accepted Answer

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

Question 5

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.

Question 6

Traditional businesses have a managerial focus rather than a customer focus.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   manager
B)   entrepreneur
C)   private investor
D)   stakeholder

Question 8

To realize his passion, Alex recently opened Original Tunes, Inc., a small state of the art recording studio in Nashville, TN. He probably could have set-up shop in several major cities, but Nashville offered him the two most important factors that he learned in business school would enhance the creation of wealth: labor and political freedom.

Accepted Answer

A) True 
 B)False

Question 9

A common characteristic of most entrepreneurs is that they:

Accepted Answer

A)   accept the risks involved in starting and managing a business.
B)   have a high level of scientific and technical expertise.
C)   possess a great deal of personal wealth.
D)   have experience in running large, complex organizations.

Question 10

Jay and Jim Spears own a lawn irrigation system business. They perform installations and maintenance of these systems. Several of their customers are golf courses, but they serve a large group of residential customers as well. When they started the business ten years ago, they made a pact to always operate within the legal limits of the law, but lately, the competition is eating them alive. Local competitors have hired illegal immigrants to perform the manual labor. They do not pay taxes on these employees - they just pay them in cash at the end of the week. Employment taxes are a burden for small businesses. Jay and Jim do not want to hire illegal workers. There's a risk if you permit an illegal worker to drive a truck; or, if he/she has an accident on the job. You have just studied business ethics in your class. You inform this partnership that:

Accepted Answer

A)   Taxes only need to be paid for the owners.
B)   They are not only taking a chance that a bigger problem may occur, they are indirectly setting the ethics code for their firm.
C)   Small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business.
D)   It is not unethical to try to better the lives of others. Everyone needs jobs.

Question 11

Almost all of the growth in employment opportunities since the mid-1980s has been generated by the service sector.

Accepted Answer

A) True 
 B)False

Question 12

The government of the nation of Winstone is trying to achieve a high quality of life by imposing strict regulations to protect the environment and ensure safe working conditions in factories and mines. The government also has established ambitious programs to help the poor, financing them by setting high tax rates. These efforts by Winstone's government should create an atmosphere that encourages entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 13

Two factors of production that seem to contribute the most to a nation's ability to create wealth are:

Accepted Answer

A)   land and labor.
B)   land and capital.
C)   entrepreneurship and labor.
D)   entrepreneurship and knowledge.

Question 14

The most important difference between for-profit businesses and nonprofit organizations is that:

Accepted Answer

A)   businesses do not benefit society.
B)   nonprofit organizations seek to make a profit for its owners and organizers.
C)   nonprofit organizations do not seek a profit for its owners or organizers.
D)   nonprofit organizations do not file tax returns.

Question 15

The statistical study of human population to learn its size, density, and characteristics is called:

Accepted Answer

A)   psychographics.
B)   econometrics.
C)   demography.
D)   geometry.

Question 16

An activity which seeks to earn a profit by providing a good or service is known as a(n) :

Accepted Answer

A)   industry.
B)   corporation.
C)   business.
D)   service.

Question 17

Healthcare, insurance, recreation and other intangible products are provided by the:

Accepted Answer

A)   global sector.
B)   service industry.
C)   industrial sector.
D)   manufacturing industry.

Question 18

The only way a firm can increase its profits is to increase its sales revenue.

Accepted Answer

A) True 
 B)False

Question 19

Demographic changes create new business opportunities.

Accepted Answer

A) True 
 B)False

Question 20

Honda and Toyota have used insourcing for years to produce cars in the United States. Insourcing:

Accepted Answer

A)   helps offset the number of jobs being outsourced.
B)   increases the number of jobs being outsourced.
C)   damages the United States economy.
D)   causes jobs to be lost to overseas competitors.

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

Correct Answer
verified

The only way a firm can increase its profits is to increase its sales revenue.

Correct Answer
verified

An activity which seeks to earn a profit by providing a good or service is known as a(n) :

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Honda and Toyota have used insourcing for years to produce cars in the United States. Insourcing:

Correct Answer
verified

An increase in global trade will:

Correct Answer
verified

Efficiency means:

Correct Answer
verified

One reason given for the decline in the number of U.S. workers employed in manufacturing is that manufacturing firms in the U.S. have become more efficient.

Correct Answer
verified

Traditional businesses have a managerial focus rather than a customer focus.

Correct Answer
verified

The global environment:

Correct Answer
verified

Two factors of production that seem to contribute the most to a nation's ability to create wealth are:

Correct Answer
verified

The most important difference between for-profit businesses and nonprofit organizations is that:

Correct Answer
verified

A common characteristic of most entrepreneurs is that they:

Correct Answer
verified

Correct Answer
verified

Almost all of the growth in employment opportunities since the mid-1980s has been generated by the service sector.

Correct Answer
verified

Healthcare, insurance, recreation and other intangible products are provided by the:

Correct Answer
verified

The statistical study of human population to learn its size, density, and characteristics is called:

Correct Answer
verified

Demographic changes create new business opportunities.

Correct Answer
verified

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

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

The only way a firm can increase its profits is to increase its sales revenue.

Correct AnswerverifiedShow Answer

An activity which seeks to earn a profit by providing a good or service is known as a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Honda and Toyota have used insourcing for years to produce cars in the United States. Insourcing:

Correct AnswerverifiedShow Answer

An increase in global trade will:

Correct AnswerverifiedShow Answer

Efficiency means:

Correct AnswerverifiedShow Answer

One reason given for the decline in the number of U.S. workers employed in manufacturing is that manufacturing firms in the U.S. have become more efficient.

Correct AnswerverifiedShow Answer

Traditional businesses have a managerial focus rather than a customer focus.

Correct AnswerverifiedShow Answer

The global environment:

Correct AnswerverifiedShow Answer

Two factors of production that seem to contribute the most to a nation's ability to create wealth are:

Correct AnswerverifiedShow Answer

The most important difference between for-profit businesses and nonprofit organizations is that:

Correct AnswerverifiedShow Answer

A common characteristic of most entrepreneurs is that they:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Almost all of the growth in employment opportunities since the mid-1980s has been generated by the service sector.

Correct AnswerverifiedShow Answer

Healthcare, insurance, recreation and other intangible products are provided by the:

Correct AnswerverifiedShow Answer

The statistical study of human population to learn its size, density, and characteristics is called:

Correct AnswerverifiedShow Answer

Demographic changes create new business opportunities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Correct Answer
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