Question 1

The resources that contribute to the creation of wealth are known as ________.

Accepted Answer

A)   production coefficients
B)   factors of production
C)   production technologies
D)   production aggregates

Question 2

Michael James owns a small manufacturing company that makes ventilation systems used in the construction of buildings. As the U.S. continues to be involved in wars around the globe, Michael may notice that his business will be growing more slowly in the future as more money continues to be put into the war effort.

Accepted Answer

A) True 
 B)False

Question 3

In order to make an intelligent investment decision, entrepreneurs should:

Accepted Answer

A)   limit their options to those business investments that are backed by the U.S. government.
B)   invest in businesses that have generated a stable rate of profit for at least the past 10 years.
C)   invest only in business opportunities where it is possible to take an active role in management.
D)   compare the risks of potential investments to their expected profits and find the right balance between profit and risk.

Question 4

Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gushes over the gorgeous landscaping that surrounds the 30-acre headquarters. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding the warehouses look like a park. Across the street from the garages are several shops and businesses. The CEO, Patty, often talks about how thankful she is that the town permits her to store equipment at that site, and vows to always maintain the premises for her neighbors, not to mention that she asks 100 employees to come to work there every day. Which of the following statements describes Patty's business philosophy?

Accepted Answer

A)   Patty is a nice woman whose company made a lot of money, so she is willing to spread it around.
B)   Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive.
C)   Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns.
D)   Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages.

Question 5

The databases of a business often include a great deal of information about the firm's customers.

Accepted Answer

A) True 
 B)False

Question 6

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

Accepted Answer

For most of our nation's history, the ag...

Question 7

Businesses are supporting single-parent families with:

Accepted Answer

A)   Social Security benefits.
B)   a more lenient welfare system.
C)   more flexible work benefits such as flextime and family leave.
D)   limited benefits due to the declining numbers of these families.

Question 8

________ 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 9

A business incurs a ________ if its costs and expenses exceed its revenues.

Accepted Answer

A)   loss
B)   liability
C)   debit
D)   dividend

Question 10

The green movement is

Accepted Answer

A)   a trend that started with the U.S. government.
B)   concerned with depletion of natural resources.
C)   developing more green food products to feed the world's poor.
D)   our concern with the fact that everywhere we look, things are remaining green for longer periods of time.

Question 11

The statistical study of the human population to describe its size, age, gender, and income is known as diversity recognition.

Accepted Answer

A) True 
 B)False

Question 12

The best employment strategy for today's college graduates is to search for jobs that are closely related to their college major.

Accepted Answer

A) True 
 B)False

Question 13

Technology allows firms to be more responsive to their customers' wants and needs.

Accepted Answer

A) True 
 B)False

Question 14

________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

Accepted Answer

A)   Depreciation
B)   Risk
C)   Fallibility
D)   Redundancy

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The threat of terrorism

Accepted Answer

A)   benefits most businesses because just about all companies contribute toward averting these threats.
B)   will certainly affect companies that participate in global trade, but most large U.S. companies do their business domestically.
C)   has increased the quality of life of most people because companies employ more workers when the threat is high, and workers help companies increase profits.
D)   is costly to most firms because it is costly to governments who increase taxes to pay for added protection.

Question 17

An electronic storage file where firms keep customer information is known as a(n)  ________.

Accepted Answer

A)   MP3 file
B)   management information system
C)   database
D)   e-mail server

Question 18

The online B2B market consists of selling goods and services to consumers.

Accepted Answer

A) True 
 B)False

Question 19

SmoothCoats produces industrial coatings for the steel industry. Until recently it relied on wholesalers to distribute its products to other businesses, but now it also sells directly to its B2B customers through its website. This is an example of the largest and most important type of e-commerce transaction.

Accepted Answer

A) True 
 B)False

Question 20

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.

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

As a factor of production, the term capital includes:

Correct Answer
verified

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

Correct Answer
verified

The green movement is

Correct Answer
verified

The resources that contribute to the creation of wealth are known as ________.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Businesses are supporting single-parent families with:

Correct Answer
verified

The statistical study of the human population to describe its size, age, gender, and income is known as diversity recognition.

Correct Answer
verified

Technology allows firms to be more responsive to their customers' wants and needs.

Correct Answer
verified

________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

Correct Answer
verified

The databases of a business often include a great deal of information about the firm's customers.

Correct Answer
verified

The online B2B market consists of selling goods and services to consumers.

Correct Answer
verified

Correct Answer
verified

A business incurs a ________ if its costs and expenses exceed its revenues.

Correct Answer
verified

An electronic storage file where firms keep customer information is known as a(n) ________.

Correct Answer
verified

The threat of terrorism

Correct Answer
verified

The best employment strategy for today's college graduates is to search for jobs that are closely related to their college major.

Correct Answer
verified

In order to make an intelligent investment decision, entrepreneurs should:

Correct Answer
verified

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

Correct Answer
verified
For most of our nation's history, the ag...
View Answer

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

As a factor of production, the term capital includes:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The green movement is

Correct AnswerverifiedShow Answer

The resources that contribute to the creation of wealth are known as ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Businesses are supporting single-parent families with:

Correct AnswerverifiedShow Answer

The statistical study of the human population to describe its size, age, gender, and income is known as diversity recognition.

Correct AnswerverifiedShow Answer

Technology allows firms to be more responsive to their customers' wants and needs.

Correct AnswerverifiedShow Answer

________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

Correct AnswerverifiedShow Answer

The databases of a business often include a great deal of information about the firm's customers.

Correct AnswerverifiedShow Answer

The online B2B market consists of selling goods and services to consumers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A business incurs a ________ if its costs and expenses exceed its revenues.

Correct AnswerverifiedShow Answer

An electronic storage file where firms keep customer information is known as a(n) ________.

Correct AnswerverifiedShow Answer

The threat of terrorism

Correct AnswerverifiedShow Answer

The best employment strategy for today's college graduates is to search for jobs that are closely related to their college major.

Correct AnswerverifiedShow Answer

In order to make an intelligent investment decision, entrepreneurs should:

Correct AnswerverifiedShow Answer

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

Correct AnswerverifiedFor most of our nation's history, the ag...View AnswerShow Answer

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verified
For most of our nation's history, the ag...
View Answer