Question 1

Which of the following statements about factors of production is the most accurate?

Accepted Answer

A)   The five factors of production are energy, capital, labor, leadership and money.
B)   Wealth creation in poor nations is slowed by chronic shortages of labor.
C)   Each of the factors of production is equally important in creating wealth.
D)   Entrepreneurship and knowledge are the most important in creating wealth.E) C) and D)
F) A) and B)

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

People living in San Jose, CA on average earn more money than people living in St. Louis, MO. The citizens of San Jose enjoy a higher standard of living than the citizens of St. Louis.

Accepted Answer

A) True 
 B)False

Question 4

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) All of the above A

Question 5

Max is in charge of production for a family-owned firm that makes and sells sports gloves including baseball gloves, softball gloves, golf gloves, and more. He has stated that speed of delivery is the most important factor for success in the competitive environment. Which of the following would be the best response to Max?

Accepted Answer

A)   You are right on target, Max. Time is money.
B)   You are the man, Max. As long as our price is competitive, speedy delivery will win in today's changing marketplace.
C)   Well Max, speed isn't everything. What would exceed our customers' expectations? Some consumers may put more importance on high quality and/or lower prices.
D)   Dude, you couldn't be more wrong. Quality is the name of the game. He who has the best product will win in the competitive environment.E) A) and B)
F) A) and C)

Question 6

How is the profile of business owners changing?

Accepted Answer

A)   In the U.S., men between the ages of 18 and 24 are starting businesses at a faster rate than men of all ages, or women of all ages.
B)   Recent male immigrants, who can legally work in the U.S., are starting businesses at a faster rate than natural-born male citizens, and at a faster rate than all women.
C)   Businesses owned by minority women are growing at a faster rate than businesses owned by men or nonminority women.
D)   It is difficult to collect information on the profile of business owners. Most new businesses do not file so they don't have to pay taxes.E) C) and D)
F) All of the above

Question 7

Which of the following policies would tend to foster entrepreneurship?

Accepted Answer

A)   Minimize taxes and regulations.
B)   Promote more regulations to protect the environment.
C)   Develop policies to reduce corruption between individuals.
D)   Encourage public ownership of businesses.E) B) and C)
F) A) and B)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Gabriella wants to compare the price of a designer bag she saw in a local department store, with other stores that may have the same. She locates the product on three different websites, and then stumbles on a site that does the price shopping for her. Gabriella's quest is an example of how customers are using __________ to solve problems.

Accepted Answer

A)   price shopping
B)   databases
C)   information technology
D)   social networkingE) A) and B)
F) A) and C)

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 and leaving a large carbon footprint.
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.E) All of the above
F) A) and D)

Question 11

The main difference between B2C and B2B e-commerce is that B2C uses only the Internet, while B2B combines e-commerce with traditional (bricks-and-mortar) outlets.

Accepted Answer

A) True 
 B)False

Question 12

Globalization has greatly increased living standards around the world.

Accepted Answer

A) True 
 B)False

Question 13

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Accepted Answer

A) True 
 B)False

Question 14

War and terrorism have had a significant effect in drawing many resources away from the U.S. economy and led to many additional costs for businesses.

Accepted Answer

A) True 
 B)False

Question 15

In countries where businesses cannot enter into binding contracts, business owners assume additional risk.

Accepted Answer

A) True 
 B)False

Question 16

New welfare rules have made it easier for single parents to remain at home with their young children without being required to seek employment.

Accepted Answer

A) True 
 B)False

Question 17

Competition among businesses has never been greater. Identify and describe several ways that businesses can become more competitive.

Accepted Answer

Businesses can compete by exceeding cust...

Question 18

Outsourcing means selling goods and services to people in other countries.

Accepted Answer

A) True 
 B)False  False

Question 19

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 conceived, 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) None of the above
F) B) and C) B

Question 20

Which of the following best describes the main difference between B2B and B2C transactions? B2B transactions:

Accepted Answer

A)   involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.
B)   focus on financial transactions while B2C e-commerce focuses on the sale of manufactured goods.
C)   refer to business between nonprofit organizations while B2C e-commerce is carried out by business firms seeking to earn a profit.
D)   involve sales in foreign markets while B2C e-commerce is restricted to domestic markets.E) A) and B)
F) C) and D)

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

Which of the following statements about factors of production is the most accurate?

Correct Answer
verified

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

Correct Answer
verified

People living in San Jose, CA on average earn more money than people living in St. Louis, MO. The citizens of San Jose enjoy a higher standard of living than the citizens of St. Louis.

Correct Answer
verified

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

Correct Answer
verified
A

Correct Answer
verified

How is the profile of business owners changing?

Correct Answer
verified

Which of the following policies would tend to foster entrepreneurship?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

The green movement is:

Correct Answer
verified

The main difference between B2C and B2B e-commerce is that B2C uses only the Internet, while B2B combines e-commerce with traditional (bricks-and-mortar) outlets.

Correct Answer
verified

Globalization has greatly increased living standards around the world.

Correct Answer
verified

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Correct Answer
verified

War and terrorism have had a significant effect in drawing many resources away from the U.S. economy and led to many additional costs for businesses.

Correct Answer
verified

In countries where businesses cannot enter into binding contracts, business owners assume additional risk.

Correct Answer
verified

New welfare rules have made it easier for single parents to remain at home with their young children without being required to seek employment.

Correct Answer
verified

Competition among businesses has never been greater. Identify and describe several ways that businesses can become more competitive.

Correct Answer
verified
Businesses can compete by exceeding cust...
View Answer

Outsourcing means selling goods and services to people in other countries.

Correct Answer
verified
False

The Social Security system,

Correct Answer
verified
B

Which of the following best describes the main difference between B2B and B2C transactions? B2B transactions:

Correct Answer
verified

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

Which of the following statements about factors of production is the most accurate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People living in San Jose, CA on average earn more money than people living in St. Louis, MO. The citizens of San Jose enjoy a higher standard of living than the citizens of St. Louis.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

Correct AnswerverifiedShow Answer

How is the profile of business owners changing?

Correct AnswerverifiedShow Answer

Which of the following policies would tend to foster entrepreneurship?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The green movement is:

Correct AnswerverifiedShow Answer

The main difference between B2C and B2B e-commerce is that B2C uses only the Internet, while B2B combines e-commerce with traditional (bricks-and-mortar) outlets.

Correct AnswerverifiedShow Answer

Globalization has greatly increased living standards around the world.

Correct AnswerverifiedShow Answer

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Correct AnswerverifiedShow Answer

War and terrorism have had a significant effect in drawing many resources away from the U.S. economy and led to many additional costs for businesses.

Correct AnswerverifiedShow Answer

In countries where businesses cannot enter into binding contracts, business owners assume additional risk.

Correct AnswerverifiedShow Answer

New welfare rules have made it easier for single parents to remain at home with their young children without being required to seek employment.

Correct AnswerverifiedShow Answer

Competition among businesses has never been greater. Identify and describe several ways that businesses can become more competitive.

Correct AnswerverifiedBusinesses can compete by exceeding cust...View AnswerShow Answer

Outsourcing means selling goods and services to people in other countries.

Correct AnswerverifiedFalse

The Social Security system,

Correct AnswerverifiedB

Which of the following best describes the main difference between B2B and B2C transactions? B2B transactions:

Correct AnswerverifiedShow Answer

Correct Answer
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A

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Correct Answer
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Correct Answer
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Correct Answer
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Businesses can compete by exceeding cust...
View Answer

Correct Answer
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False

Correct Answer
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B

Correct Answer
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