Question 1

Though it has received a lot of attention,the development of the Internet has had less of an impact on the way businesses operate than many other technological changes.

Accepted Answer

A) True 
 B)False

Question 2

Maintaining a high quality of life requires the combined efforts of businesses,nonprofit organizations,and government agencies.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

Nolivia is a small and poor nation,but its current president has a genuine desire to create more wealth for Nolivia citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Nolivia?

Accepted Answer

A)  Acquire more land by invading a neighboring country that is even poorer and weaker than Nolivia.
B)  Use foreign aid from other nations to purchase more tools and machinery.
C)  Establish a business environment that promotes and rewards entrepreneurship.
D)  Establish barriers to trade to protect Nolivia businesses from foreign competition.E) None of the above
F) B) and D)

Question 5

High tax rates tend to:

Accepted Answer

A)  promote economic development.
B)  make a nation's currency tradable.
C)  discourage entrepreneurship.
D)  reduce the amount of money created by the government.E) All of the above
F) B) and D)

Question 6

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) A) and D)
F) None of the above

Question 7

"Insourcing" refers to the practice of global companies setting up design and production facilities in the United States.

Accepted Answer

A) True 
 B)False

Question 8

Currently people between the ages of 45 and 54 are the richest group in the United States.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about social entrepreneurs (such as Muhammad Yunus who won the Nobel Prize) describes their challenge?

Accepted Answer

A)  Social entrepreneurs may switch social causes several times before finding their niche.
B)  Social entrepreneurs understand that their business environments are less dynamic than other businesses,especially during a recession.
C)  Social entrepreneurs use different business skills than entrepreneurs who start other businesses.They should focus on a different educational curriculum than other entrepreneurs.
D)  Using the same business skills as other entrepreneurs,social entrepreneurs develop businesses to improve the skill(s) and/or quality of life of others.E) None of the above
F) A) and C)

Question 10

__________ is illegally obtaining and illegally using private information about a person,such as using someone's credit card number.

Accepted Answer

A)  Petty theft
B)  Identity theft
C)  Banking theft
D)  Online theftE) A) and B)
F) A) and C)

Question 11

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves.Such things they are likely to pass-up on are:

Accepted Answer

A)  the freedom to make their own decisions.
B)  local government benefits such as enterprise zone tax credits.
C)  employer paid benefits such as paid vacation and health insurance.
D)  tickets to sporting events that trading partners may provide.E) B) and C)
F) A) and D)

Question 12

In some cities the number of legal and illegal immigrants has caused governments to adapt by changing signs to other languages.

Accepted Answer

A) True 
 B)False

Question 13

Productivity is the amount of output you generate given the amount of input such as hours worked.

Accepted Answer

A) True 
 B)False

Question 14

The federal government requires companies to take diversity very seriously,even recommending establishing a chief diversity officer in the executive suite.

Accepted Answer

A) True 
 B)False

Question 15

Globalization has increased among nations.

Accepted Answer

A) True 
 B)False

Question 16

Stakeholders include customers,employees,stockholders,suppliers,dealers,bankers,government officials and environmentalists.

Accepted Answer

A) True 
 B)False

Question 17

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.
Revenues minus expenses = profits.

Accepted Answer

A) True 
 B)False

Question 18

In today's competitive environment,good value means:

Accepted Answer

A)  making products with zero defects.
B)  superior quality that translates into durable products.
C)  offering the latest trends without seeming like you are over the top.
D)  providing quality products and services at competitive prices.E) A) and C)
F) All of the above

Question 19

For-profit businesses and nonprofit organizations are similar in that they both:

Accepted Answer

A)  contribute to the welfare of society.
B)  seek to earn a profit.
C)  have a limited life.
D)  must be controlled by a board of directors.E) B) and C)
F) C) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

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

Nolivia is a small and poor nation,but its current president has a genuine desire to create more wealth for Nolivia citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Nolivia?

Correct AnswerverifiedShow Answer

High tax rates tend to:

Correct AnswerverifiedShow Answer

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues. Revenues minus expenses = profits.

Correct AnswerverifiedShow Answer

Currently people between the ages of 45 and 54 are the richest group in the United States.

Correct AnswerverifiedShow Answer

Maintaining a high quality of life requires the combined efforts of businesses,nonprofit organizations,and government agencies.

Correct AnswerverifiedShow Answer

For-profit businesses and nonprofit organizations are similar in that they both:

Correct AnswerverifiedShow Answer

Stakeholders include customers,employees,stockholders,suppliers,dealers,bankers,government officials and environmentalists.

Correct AnswerverifiedShow Answer

Globalization has increased among nations.

Correct AnswerverifiedShow Answer

Though it has received a lot of attention,the development of the Internet has had less of an impact on the way businesses operate than many other technological changes.

Correct AnswerverifiedShow Answer

"Insourcing" refers to the practice of global companies setting up design and production facilities in the United States.

Correct AnswerverifiedShow Answer

In some cities the number of legal and illegal immigrants has caused governments to adapt by changing signs to other languages.

Correct AnswerverifiedShow Answer

Which of the following statements about social entrepreneurs (such as Muhammad Yunus who won the Nobel Prize) describes their challenge?

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

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

Correct AnswerverifiedShow Answer

In today's competitive environment,good value means:

Correct AnswerverifiedShow Answer

The threat of terrorism,

Correct AnswerverifiedShow Answer

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves.Such things they are likely to pass-up on are:

Correct AnswerverifiedShow Answer

__________ is illegally obtaining and illegally using private information about a person,such as using someone's credit card number.

Correct AnswerverifiedShow Answer

Productivity is the amount of output you generate given the amount of input such as hours worked.

Correct AnswerverifiedShow Answer

The federal government requires companies to take diversity very seriously,even recommending establishing a chief diversity officer in the executive suite.

Correct AnswerverifiedShow Answer

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