Question 1

The U.S. population tends to buy the same things and spend time in roughly the same way as people did a decade ago.

Accepted Answer

A) True 
 B)False

Question 2

Donnell wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed .3% rate of return. However, he would like to earn a higher return. Donnell should keep in mind that to earn a higher return on his money he

Accepted Answer

A)   will have to invest overseas.
B)   should invest in a business that has a very stable and predictable rate of return.
C)   will probably have to accept a higher level of risk.
D)   will probably have to engage in illegal activities.E) A) and C)
F) All of the above

Question 3

Certain industries of the U.S. economy, such as farming and heavy equipment manufacturing, have experienced a significant decline in employment. Which of the following best explains this job loss?

Accepted Answer

A)   The cause is a decline in the productivity of labor in these industries.
B)   Workers lost these jobs because technological advances increased productivity.
C)   The U.S. economy cannot compete in these industries any longer.
D)   Government regulations have eliminated profit opportunities in these industries.E) C) and D)
F) B) and D)

Question 4

The Social Security system:

Accepted Answer

A)   continues to burden businesses due to the fact that businesses must provide and pay for this benefit for their employees.
B)   met the needs of our nation when it was first introduced, but needs an overhaul.
C)   will continue to serve the needs of U.S. citizens into the distant future, due to the fact that there are so few retirees placing a strain on it.
D)   is failing because the U.S. government failed to invest the money that employees contributed.E) A) and B)
F) None of the above

Question 5

Hussein got a call yesterday from First Bank, the company that issued his credit card inquiring about an $105.00 charge made in Buenos Aires, Argentina. Upon learning that Hussein was in Detroit and had not made this purchase, the bank quickly took steps to cancel the card and issue a new one. Given the circumstances that Hussein's credit card number had an illegal transaction, he may also want to

Accepted Answer

A)   check his computer's firewall to make sure it's working.
B)   cancel his account and eliminate credit cards from his life.
C)   change his passwords and store them in a password manager.
D)   diversify his spending habits by using one of several credit cards when making purchases.E) A) and C)
F) C) and D)

Question 6

When businesses sell to other businesses online, these transactions are known as:

Accepted Answer

A)   B2C transactions.
B)   e-wholesale transactions.
C)   B2B transactions.
D)   intermediate e-commerce transactions.E) C) and D)
F) A) and B)

Question 7

Retired people will be draining the U.S. economy of wealth. This is due to

Accepted Answer

A)   the fact that most have smoked all their lives and now are accumulating large healthcare bills.
B)   the fact there are not enough workers in subsequent generations to support the ongoing drain of older persons into the Social Security system.
C)   their lack of interest in supporting restaurants, resorts, educational institutions, and service-intensive companies.
D)   the fact that they refuse to use current information technology to improve efficiency.E) B) and C)
F) B) and D)

Question 8

The major advantage rich nations have over poor nations is an abundance of land and labor.

Accepted Answer

A) True 
 B)False

Question 9

Two of his friends approached Eli with a proposal to start a language school. Eli is fluent in English and Spanish, and also has an education degree. He is strongly considering the idea but 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 in hospitals 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 generation.E) B) and C)
F) A) and D)

Question 10

Which of the statements about demography is most accurate? Demographic studies:

Accepted Answer

A)   focus on factors that have great political relevance, but little relevance to business firms.
B)   suggest that the number of single-parent families is declining.
C)   provide businesses and individuals with insights into business and career opportunities for the future.
D)   are an important source of information about changes in health patterns.E) C) and D)
F) A) and B)

Question 11

Since businesses strive to earn a profit, their owners benefit at the expense of the rest of society.

Accepted Answer

A) True 
 B)False

Question 12

China is a nation with a vast amount of land and a very large population. Another characteristic of this nation is its people's affinity for saving money. Referring to the five factors of production, the government of China has made significant progress in building its business environment by focusing on factors that needed improvement. Its best strategy would be to

Accepted Answer

A)   increase the supply of labor.
B)   increase sources for capital.
C)   increase entrepreneurship.
D)   encourage neighboring nations to provide the necessary land for business development.E) All of the above
F) C) and D)

Question 13

New orders are coming in quickly for SmartTech, and management is confident that new contracts will take them through the next couple of years. The company has started investing again, but not in people. The number of employees is the same as when the company and its competitors faced the Great Recession. Most likely due to ________, the company is producing more product and services with less people.

Accepted Answer

A)   the lack of skilled labor
B)   new competition
C)   social changes
D)   technological advancementE) B) and D)
F) A) and B)

Question 14

As you consider the factors of production, which of the following did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth?

Accepted Answer

A)   Land
B)   Labor
C)   Knowledge
D)   CapitalE) All of the above
F) None of the above

Question 15

Since the 1800s, the U.S. has evolved

Accepted Answer

A)   straight from an agrarian economy to an information technology economy.
B)   from a business to business economy to a business to consumer economy.
C)   from an agrarian economy to a manufacturing economy to a service-oriented economy.
D)   from a manufacturing economy to a service economy, to a cottage economy, and now we are trending back to an agrarian economy.E) A) and D)
F) None of the above

Question 16

Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy.

Accepted Answer

A) True 
 B)False

Question 17

Casey is looking into opening a day care in her community. She is aware of many single-parent families that need a place for their children to stay while they work, but she is concerned about the long-term prospects for such a business. Casey thinks the future of her day care will depend on whether birth rates and the number of single-parent families keep growing. These concerns illustrate how businesses can be affected by ________ trends.

Accepted Answer

A)   econometric
B)   demographic
C)   holographic
D)   psychometricE) B) and C)
F) A) and B)

Question 18

The major difference between businesses and nonprofit organizations is that only businesses can increase the standard of living, while only nonprofit organizations can improve the quality of life.

Accepted Answer

A) True 
 B)False

Question 19

There are currently more high-paying jobs in the service sector than in the goods-producing sector.

Accepted Answer

A) True 
 B)False

Question 20

The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:

Accepted Answer

A)   market makers.
B)   economic environment.
C)   stakeholders.
D)   social mentors.E) None of the above
F) A) and D)

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

When businesses sell to other businesses online, these transactions are known as:

Correct Answer
verified

Which of the statements about demography is most accurate? Demographic studies:

Correct Answer
verified

The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:

Correct Answer
verified

Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy.

Correct Answer
verified

The Social Security system:

Correct Answer
verified

Since businesses strive to earn a profit, their owners benefit at the expense of the rest of society.

Correct Answer
verified

There are currently more high-paying jobs in the service sector than in the goods-producing sector.

Correct Answer
verified

As you consider the factors of production, which of the following did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth?

Correct Answer
verified

Donnell wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed .3% rate of return. However, he would like to earn a higher return. Donnell should keep in mind that to earn a higher return on his money he

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Certain industries of the U.S. economy, such as farming and heavy equipment manufacturing, have experienced a significant decline in employment. Which of the following best explains this job loss?

Correct Answer
verified

The U.S. population tends to buy the same things and spend time in roughly the same way as people did a decade ago.

Correct Answer
verified

Correct Answer
verified

The major difference between businesses and nonprofit organizations is that only businesses can increase the standard of living, while only nonprofit organizations can improve the quality of life.

Correct Answer
verified

Retired people will be draining the U.S. economy of wealth. This is due to

Correct Answer
verified

Two of his friends approached Eli with a proposal to start a language school. Eli is fluent in English and Spanish, and also has an education degree. He is strongly considering the idea but wants to know if there is a growing demand for his services. He learns that an important demographic trend is

Correct Answer
verified

Correct Answer
verified

The major advantage rich nations have over poor nations is an abundance of land and labor.

Correct Answer
verified

Since the 1800s, the U.S. has evolved

Correct Answer
verified

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

When businesses sell to other businesses online, these transactions are known as:

Correct AnswerverifiedShow Answer

Which of the statements about demography is most accurate? Demographic studies:

Correct AnswerverifiedShow Answer

The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:

Correct AnswerverifiedShow Answer

Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy.

Correct AnswerverifiedShow Answer

The Social Security system:

Correct AnswerverifiedShow Answer

Since businesses strive to earn a profit, their owners benefit at the expense of the rest of society.

Correct AnswerverifiedShow Answer

There are currently more high-paying jobs in the service sector than in the goods-producing sector.

Correct AnswerverifiedShow Answer

As you consider the factors of production, which of the following did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth?

Correct AnswerverifiedShow Answer

Donnell wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed .3% rate of return. However, he would like to earn a higher return. Donnell should keep in mind that to earn a higher return on his money he

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Certain industries of the U.S. economy, such as farming and heavy equipment manufacturing, have experienced a significant decline in employment. Which of the following best explains this job loss?

Correct AnswerverifiedShow Answer

The U.S. population tends to buy the same things and spend time in roughly the same way as people did a decade ago.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The major difference between businesses and nonprofit organizations is that only businesses can increase the standard of living, while only nonprofit organizations can improve the quality of life.

Correct AnswerverifiedShow Answer

Retired people will be draining the U.S. economy of wealth. This is due to

Correct AnswerverifiedShow Answer

Two of his friends approached Eli with a proposal to start a language school. Eli is fluent in English and Spanish, and also has an education degree. He is strongly considering the idea but wants to know if there is a growing demand for his services. He learns that an important demographic trend is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The major advantage rich nations have over poor nations is an abundance of land and labor.

Correct AnswerverifiedShow Answer

Since the 1800s, the U.S. has evolved

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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