Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Accepted Answer

A) True 
 B)False

Question 3

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the best example of a business whose goal is to earn a profit?

Accepted Answer

A)  A community college
B)   The Salvation Army
C)   Boy Scouts of America
D)  Best Buy, Inc.E) A) and B)
F) C) and D)

Question 6

The goal of empowerment in the work environment is to prevent mistakes. Mistakes can be prevented by giving management more control over the actions of lower-level workers.

Accepted Answer

A) True 
 B)False

Question 7

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Accepted Answer

A) True 
 B)False

Question 8

The growth of Hispanic owned businesses:

Accepted Answer

A)  remained relatively constant during the past decade.
B)   slowly increased during the past decade.
C)  increased dramatically in recent years.
D)  decreased slightly compared to other minority groups who have stared businesses.E) A) and D)
F) All of the above

Question 9

Paid vacations and health care insurance are among the benefits provided by the government to entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 10

Jing is a recent U.S. college graduate who is interested in starting an import tea business. If she follows through with her plans, she will be a pioneer, because only a handful of women choose to start businesses in the U.S.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

Accepted Answer

A)  E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively over the Internet.
B)  Traditional brick-and-mortar firms will enter the e-commerce market by creating their own web sites.
C)   E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets.
D)  Brick-and-mortar businesses will cease to exist within twenty years.E) A) and B)
F) A) and C)

Question 12

An increase in global trade will:

Accepted Answer

A)  increase prices.
B)   decrease jobs.
C)   increase political instability.
D)  increase global competition.E) A) and B)
F) None of the above

Question 13

The number of businesses owned by Hispanics and Asians has:

Accepted Answer

A)  has decreased after the 9-11 terrorist attack.
B)   slowly increased.
C)  significantly increased.
D)  remained relatively constant.E) A) and C)
F) None of the above

Question 14

Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest)  uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-Two of his friends approached Sergio with a proposal to start a language school. Sergio is fluent in English and Spanish, and also has an education degree. Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services. He learns that an important demographic trend is:

Accepted Answer

A)   the service sector is likely to decline in significance in the next few years.
B)   the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off.
C)   the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals inhospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English.
D)   the number of retirees is decreasing, making way for a younger generationE) B) and C)
F) B) and D)

Question 17

Employers provide tools and technology for their employees in order to:

Accepted Answer

A)  increase the cost of production and profitability.
B)  improve their efficiency and productivity.
C)   reduce corruption in business and eliminate scandals.
D)  encourage the private ownership of businesses.E) A) and B)
F) A) and C)

Question 18

Ben and Chris combined their love of hockey with a business venture. They purchased a small portable cart and began selling hockey memorabilia outside of the hometown hockey arena. Their first year went well, but this past year has been a real struggle. Due to poor economic conditions including a loss of jobs, ticket sales at the arena are down, which has significantly hurt their sales as well. As a recent business school graduate, you explain to Ben and Chris:

Accepted Answer

A)  this type of business is always high risk because it is seasonal.
B)   the business does not fill a sufficient need for most people.
C)  environmental circumstances are dynamic and tough to control.
D)  social entrepreneurs are currently getting most of the attention.E) None of the above
F) A) and C)

Question 19

The only real purpose of a business is to make money for entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an advantage of utilizing technology?

Accepted Answer

A)  Technology increases the cost of production.
B)   Technology reduces the need for a marketing plan.
C)  Productivity increases.
D)  Management becomes isolated from the demands of stakeholders.E) B) and C)
F) B) and D)

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

The only real purpose of a business is to make money for entrepreneurs.

Correct Answer
verified

Jing is a recent U.S. college graduate who is interested in starting an import tea business. If she follows through with her plans, she will be a pioneer, because only a handful of women choose to start businesses in the U.S.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The number of businesses owned by Hispanics and Asians has:

Correct Answer
verified

The growth of Hispanic owned businesses:

Correct Answer
verified

Which of the following is the best example of a business whose goal is to earn a profit?

Correct Answer
verified

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

Correct Answer
verified

The goal of empowerment in the work environment is to prevent mistakes. Mistakes can be prevented by giving management more control over the actions of lower-level workers.

Correct Answer
verified

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

Correct Answer
verified

Correct Answer
verified

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Correct Answer
verified

An increase in global trade will:

Correct Answer
verified

Correct Answer
verified

Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses.

Correct Answer
verified

Which of the following is an advantage of utilizing technology?

Correct Answer
verified

Paid vacations and health care insurance are among the benefits provided by the government to entrepreneurs.

Correct Answer
verified

Employers provide tools and technology for their employees in order to:

Correct Answer
verified

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Correct Answer
verified

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

Correct Answer
verified

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

The only real purpose of a business is to make money for entrepreneurs.

Correct AnswerverifiedShow Answer

Jing is a recent U.S. college graduate who is interested in starting an import tea business. If she follows through with her plans, she will be a pioneer, because only a handful of women choose to start businesses in the U.S.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The number of businesses owned by Hispanics and Asians has:

Correct AnswerverifiedShow Answer

The growth of Hispanic owned businesses:

Correct AnswerverifiedShow Answer

Which of the following is the best example of a business whose goal is to earn a profit?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The goal of empowerment in the work environment is to prevent mistakes. Mistakes can be prevented by giving management more control over the actions of lower-level workers.

Correct AnswerverifiedShow Answer

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Correct AnswerverifiedShow Answer

An increase in global trade will:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of utilizing technology?

Correct AnswerverifiedShow Answer

Paid vacations and health care insurance are among the benefits provided by the government to entrepreneurs.

Correct AnswerverifiedShow Answer

Employers provide tools and technology for their employees in order to:

Correct AnswerverifiedShow Answer

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Correct AnswerverifiedShow Answer

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

Correct AnswerverifiedShow Answer

Correct Answer
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