Question 1

Adam Ripley sells custom bicycles.Adam buys several bike parts including wheels and tires from the Good Treads Company.Although several government-supported regulations help Adam in his business,regulations that make it easy for Adam's business to enjoy good vendor relationships are:

Accepted Answer

A)  lower taxes that business to business customers pay to each other.
B)  laws that permit minimal corruption in banking institutions.
C)  laws that permit small businesses to use the government as an intermediary when doing business with other small businesses.
D)  laws that support enforceable contracts between firms.E) All of the above
F) A) and B)

Question 2

There is less risk involved in starting an e-commerce only business than there is in trying to add e-commerce to a traditional (bricks-and-mortar)store.
Although there is no question that some Internet businesses will grow and prosper,it is also evident that many e-commerce firms will fail.On the other hand,many traditional businesses have successfully expanded by incorporating e-commerce into their plans.

Accepted Answer

A) True 
 B)False

Question 3

In recent years,manufacturing firms in the United States have laid off workers.The best explanation of this trend is that:

Accepted Answer

A)  firms have been trying to weaken unions by reducing their reliance on labor.
B)  workers in the U.S.have become less productive and are no longer able to compete in the global economy.
C)  firms in many industries have become so efficient that they need fewer workers.
D)  the economy has been in a prolonged depression that has lasted more than a decade.E) B) and C)
F) C) and D)

Question 4

Since businesses strive to earn a profit,their owners benefit at the expense of the rest of society.
In the pursuit of profit,businesses create jobs,produce goods and services that contribute to a higher standard of living,and pay taxes that support important government programs.Thus,businesses benefit others in society as well as their owners.

Accepted Answer

A) True 
 B)False

Question 5

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.E) All of the above
F) C) and D)

Question 6

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Accepted Answer

A) True 
 B)False

Question 7

Insourcing creates new jobs,and helps offset the number of jobs being outsourced.
Many companies are setting up design and production facilities here in the United States.For example,Hyundai is doing design and engineering work in Detroit and producing cars in Montgomery,Alabama.Such insourcing creates many new jobs,and helps offset the number of jobs being outsourced.

Accepted Answer

A) True 
 B)False

Question 8

Nick is a recent finance graduate who has two passions: music and finance.Upon graduation,he was offered an opportunity to join a struggling rock band with a lot of potential,or a job at a large well-established financial services company.By joining the band,he will forego which of the following?

Accepted Answer

A)  Added benefits such as health insurance provided to employees of large corporations.
B)  The freedom to contribute as an innovator in his work environment.
C)  Long hours at work,while he learns the business and contributes to making it successful.
D)  Job protection.E) B) and D)
F) A) and C)

Question 9

Greg recently completed his college degree in construction management.He is heading to Mexico City to start a business developing apartment dwellings.After researching several potential areas,he chose Mexico City due to its high population.Greg felt that this factor would create a large labor pool,the most important of the five factors of production.
While labor is included in the factors of production,entrepreneurship and knowledge are considered the most important factors in the creation of wealth.

Accepted Answer

A) True 
 B)False

Question 10

When we compare the factors of production in wealthy and poor nations,we find:

Accepted Answer

A)  poor nations have plenty of land and knowledge,but very little labor.
B)  poor and wealthy nations (both) have an abundance of knowledge,it is the land that varies,with rich nations always having more.
C)  wealthy nations have knowledge and entrepreneurial opportunities,while poor nations are often lacking in these areas.
D)  wealthy nations have land and labor,while poor nations have capital and entrepreneurship.E) A) and B)
F) A) and C)

Question 11

Marla Staples is concerned with identity theft.One of the ways that she can protect her information from leaking-out to the wrong hands is:

Accepted Answer

A)  Avoid all e-commerce transactions because this is the only type of buying transactions where websites and others handle sensitive,personal information.
B)  Install antivirus software,firewalls,and anti-spyware software on her computer.
C)  Limit her purchases with vendors that she knows do not store her information in a database.
D)  Limit her travels to the United States because identity theft is an international problem.E) B) and C)
F) B) and D)

Question 12

The war on terrorism will:

Accepted Answer

A)  improve the confidence level of most consumers.
B)  hurt the profitability of every business operating in the U.S.
C)  help some businesses and hurt others.
D)  stabilize the business sector.E) B) and C)
F) None of the above

Question 13

Diversity is more than recruiting and keeping minorities and women.Diversity means appreciating and understanding other differences in our customers and in our workforce.The statement that best describes this difference is:

Accepted Answer

A)  disabilities,sexual orientation,religious preferences,and even personality differences such as extroverts and introverts.
B)  gender roles.
C)  surface level things such as green eyes versus brown eyes.
D)  racial differences and gender differences.E) None of the above
F) B) and D)

Question 14

Technology affects people in:

Accepted Answer

A)  all industries.
B)  most industries.
C)  information technology industries with the exception of agriculture.
D)  primarily high income countries.E) A) and B)
F) A) and C)

Question 15

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

Accepted Answer

A) True 
 B)False

Question 16

Businesses that produce and sell tangible products such as steel and machines are part of the:

Accepted Answer

A)  manufacturing industry.
B)  knowledge-based industry.
C)  service industry.
D)  production sector.E) C) and D)
F) B) and C)

Question 17

The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  loss
B)  liability
C)  debit
D)  dividendE) A) and B)
F) A) and C)

Question 19

Laura and Tim McNash recently moved to North Carolina on a three-acre home site.They purposefully purchased their home within biking distance to the university where they are both employed,and their bikes each have room for two cloth bags for groceries if they need to purchase food on the way home,although they plan to grow much of their own.Laura and Tim are examples of a growing number of young 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) B) and C)
F) A) and B)

Question 20

Businesses favor:

Accepted Answer

A)  minimal government spending because it keeps taxes to a minimum.
B)  more government services because it minimizes tax consequences.
C)  maximum government spending because it raises business profits.
D)  less government spending because it lowers business profits.E) C) and D)
F) A) and B)

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

Marla Staples is concerned with identity theft.One of the ways that she can protect her information from leaking-out to the wrong hands is:

Correct Answer
verified

Correct Answer
verified

The war on terrorism will:

Correct Answer
verified

Businesses that produce and sell tangible products such as steel and machines are part of the:

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

In recent years,manufacturing firms in the United States have laid off workers.The best explanation of this trend is that:

Correct Answer
verified

Nick is a recent finance graduate who has two passions: music and finance.Upon graduation,he was offered an opportunity to join a struggling rock band with a lot of potential,or a job at a large well-established financial services company.By joining the band,he will forego which of the following?

Correct Answer
verified

Adam Ripley sells custom bicycles.Adam buys several bike parts including wheels and tires from the Good Treads Company.Although several government-supported regulations help Adam in his business,regulations that make it easy for Adam's business to enjoy good vendor relationships are:

Correct Answer
verified

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Technology affects people in:

Correct Answer
verified

Businesses favor:

Correct Answer
verified

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

Correct Answer
verified

Correct Answer
verified

A common characteristic of most entrepreneurs is that they:

Correct Answer
verified

Diversity is more than recruiting and keeping minorities and women.Diversity means appreciating and understanding other differences in our customers and in our workforce.The statement that best describes this difference is:

Correct Answer
verified

When we compare the factors of production in wealthy and poor nations,we find:

Correct Answer
verified

The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups.

Correct Answer
verified

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

Marla Staples is concerned with identity theft.One of the ways that she can protect her information from leaking-out to the wrong hands is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The war on terrorism will:

Correct AnswerverifiedShow Answer

Businesses that produce and sell tangible products such as steel and machines are part of the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In recent years,manufacturing firms in the United States have laid off workers.The best explanation of this trend is that:

Correct AnswerverifiedShow Answer

Nick is a recent finance graduate who has two passions: music and finance.Upon graduation,he was offered an opportunity to join a struggling rock band with a lot of potential,or a job at a large well-established financial services company.By joining the band,he will forego which of the following?

Correct AnswerverifiedShow Answer

Adam Ripley sells custom bicycles.Adam buys several bike parts including wheels and tires from the Good Treads Company.Although several government-supported regulations help Adam in his business,regulations that make it easy for Adam's business to enjoy good vendor relationships are:

Correct AnswerverifiedShow Answer

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Technology affects people in:

Correct AnswerverifiedShow Answer

Businesses favor:

Correct AnswerverifiedShow Answer

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A common characteristic of most entrepreneurs is that they:

Correct AnswerverifiedShow Answer

Diversity is more than recruiting and keeping minorities and women.Diversity means appreciating and understanding other differences in our customers and in our workforce.The statement that best describes this difference is:

Correct AnswerverifiedShow Answer

When we compare the factors of production in wealthy and poor nations,we find:

Correct AnswerverifiedShow Answer

The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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