Question 1

Which of the following entails the greatest amount of risk?

Accepted Answer

A)   Working for the government
B)   Working for a large business
C)   Working for a small business
D)   Starting a businessE) A) and D)
F) A) and C)

Question 2

One way for a government to actively promote entrepreneurship is to establish a currency that's tradable in world markets so that you can buy and sell goods anywhere in the world using that currency.

Accepted Answer

A) True 
 B)False

Question 3

Customer-driven organizations require managers to closely direct and control their employees.

Accepted Answer

A) True 
 B)False

Question 4

Due to population shifts,

Accepted Answer

A)   businesses that cater to older consumers will see exceptional growth.
B)   businesses that cater to older consumers will see slower growth.
C)   businesses that sell electronic devices will see a significant decline.
D)   healthcare will emerge as the only business sector that will grow.E) A) and B)
F) None of the above

Question 5

Companies that outsource research and development and design jobs:

Accepted Answer

A)   have always made a wise decision.
B)   will be more profitable in the long run.
C)   run the risk of overseas companies using the information to produce competitive products.
D)   always invest in the overseas companies that take on these jobs.E) C) and D)
F) A) and B)

Question 6

Often in business the greater the risk, the ____________.

Accepted Answer

A)   greater the potential reward
B)   lower the expected revenues
C)   lower the value provided to society
D)   greater the number of stakeholdersE) All of the above
F) A) and D)

Question 7

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Accepted Answer

A) True 
 B)False

Question 8

The number of businesses owned by Hispanics and Asians has:

Accepted Answer

A)   has decreased after the 9-11 terrorist attack.
B)   slowly increased.
C)   significantly increased.
D)   remained relatively constant.E) None of the above
F) A) and C)

Question 9

Tools, machinery, and buildings are examples of capital resources.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest)  uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-Sergio's frustration with his lack of freedom and flexibility at work indicates that Bigbux:

Accepted Answer

A)   prefers the use of cross-functional teams rather than individual initiative.
B)   has not adopted a strategy of empowerment.
C)   knows that the best way to ensure good customer service is to closely monitor its lower-level employees.
D)   is trying to please customers as well as other stakeholders.E) B) and C)
F) A) and C)

Question 12

According to the box, "How a Food Truck Helped Rebuild a Storm-Struck Community," Mike Diamond of the Beastie Boys teamed up with friends and started a non-profit food truck. What happened after the storm cleared?

Accepted Answer

A)   They decided to keep the truck running and are helping the youth of the area to gain experience in food service by working on the truck.
B)   They continued to offer free lunches every day to the residents of Rockaway Beach.
C)   They shut down business and all went back to their other jobs.
D)   They started six other Rockaway Plate trucks in Los Angeles, Seattle, Chicago, Miami Las Vegas, and New York City.E) None of the above
F) B) and D)

Question 13

In order to create more wealth and provide better services, some nations recognize that _________________________________.

Accepted Answer

A)   raising taxes benefits all businesses
B)   a good strategy is to minimize interference with the free exchange of goods and services
C)   restricting trade with other countries always helps domestic businesses
D)   taking control of privately owned businesses and making them government -run will decrease taxes and improve the lives of everyoneE) A) and C)
F) B) and C)

Question 14

One factor that has had a major effect on businesses is the growth of single-parent families.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following business policies would most likely help a single-parent family?

Accepted Answer

A)   Requiring the employee to work regularly scheduled hours each day.
B)   Allowing sick leave to be used only if the employee is ill.
C)   Requiring education outside of regular business hours to help the employee advance.
D)   Allowing family leave and flextime.E) None of the above
F) B) and D)

Question 16

The standard of living for a nation's people depends mainly on:

Accepted Answer

A)   the quality of the natural environment.
B)   how much political freedom they have.
C)   their income and the prices of the goods and services they buy.
D)   the amount of labor and capital available employed in the manufacturing sector.E) B) and D)
F) A) and B)

Question 17

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Accepted Answer

A) True 
 B)False

Question 18

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 unwilling to pay for healthcare in order to stay alive.
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) None of the above
F) A) and D)

Question 19

Since all businesses make a profit, starting a business is not risky.

Accepted Answer

A) True 
 B)False

Question 20

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

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

Which of the following business policies would most likely help a single-parent family?

Correct Answer
verified

Since all businesses make a profit, starting a business is not risky.

Correct Answer
verified

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Correct Answer
verified

One way for a government to actively promote entrepreneurship is to establish a currency that's tradable in world markets so that you can buy and sell goods anywhere in the world using that currency.

Correct Answer
verified

Tools, machinery, and buildings are examples of capital resources.

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

According to the box, "How a Food Truck Helped Rebuild a Storm-Struck Community," Mike Diamond of the Beastie Boys teamed up with friends and started a non-profit food truck. What happened after the storm cleared?

Correct Answer
verified

In order to create more wealth and provide better services, some nations recognize that _________________________________.

Correct Answer
verified

Which of the following entails the greatest amount of risk?

Correct Answer
verified

The standard of living for a nation's people depends mainly on:

Correct Answer
verified

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

Correct Answer
verified

Customer-driven organizations require managers to closely direct and control their employees.

Correct Answer
verified

Due to population shifts,

Correct Answer
verified

Often in business the greater the risk, the ____________.

Correct Answer
verified

Companies that outsource research and development and design jobs:

Correct Answer
verified

One factor that has had a major effect on businesses is the growth of single-parent families.

Correct Answer
verified

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

Correct Answer
verified

The number of businesses owned by Hispanics and Asians has:

Correct Answer
verified

Correct Answer
verified

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Correct Answer
verified

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

Which of the following business policies would most likely help a single-parent family?

Correct AnswerverifiedShow Answer

Since all businesses make a profit, starting a business is not risky.

Correct AnswerverifiedShow Answer

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Correct AnswerverifiedShow Answer

One way for a government to actively promote entrepreneurship is to establish a currency that's tradable in world markets so that you can buy and sell goods anywhere in the world using that currency.

Correct AnswerverifiedShow Answer

Tools, machinery, and buildings are examples of capital resources.

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

According to the box, "How a Food Truck Helped Rebuild a Storm-Struck Community," Mike Diamond of the Beastie Boys teamed up with friends and started a non-profit food truck. What happened after the storm cleared?

Correct AnswerverifiedShow Answer

In order to create more wealth and provide better services, some nations recognize that _________________________________.

Correct AnswerverifiedShow Answer

Which of the following entails the greatest amount of risk?

Correct AnswerverifiedShow Answer

The standard of living for a nation's people depends mainly on:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Customer-driven organizations require managers to closely direct and control their employees.

Correct AnswerverifiedShow Answer

Due to population shifts,

Correct AnswerverifiedShow Answer

Often in business the greater the risk, the ____________.

Correct AnswerverifiedShow Answer

Companies that outsource research and development and design jobs:

Correct AnswerverifiedShow Answer

One factor that has had a major effect on businesses is the growth of single-parent families.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The number of businesses owned by Hispanics and Asians has:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Correct AnswerverifiedShow Answer

Correct Answer
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