Question 1

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Accepted Answer

A) True 
 B)False

Question 2

The statistical study of human population to learn its size, density, and characteristics is called

Accepted Answer

A)   psychographics.
B)   econometrics.
C)   demographics.
D)   geometrics.E) B) and D)
F) C) and D)

Question 3

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) B) and C)

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) All of the above
F) None of the above

Question 5

The most important difference between for-profit businesses and nonprofit organizations is that:

Accepted Answer

A)   businesses do not benefit society.
B)   nonprofit organizations seek to make a profit for their owners and organizers.
C)   nonprofit organizations do not seek a profit for their owners or organizers.
D)   nonprofit organizations do not file tax returns.E) A) and C)
F) A) and B)

Question 6

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 C)
F) A) and B)

Question 7

In recent years, almost all new job creation in the U.S. has occurred in the ________ sector.

Accepted Answer

A)   service
B)   manufacturing
C)   agricultural
D)   telecommunicationsE) B) and C)
F) A) and B)

Question 8

If you were to discuss and analyze the social changes affecting the future of business, which of the following statements should be part of that conversation?

Accepted Answer

A)   It is becoming more difficult to provide expert pre-natal care for women, resulting in a negative impact on the future of childbirth.
B)   The increase in older citizens may impact an employee's take-home pay if programs such as Social Security will need to be funded at a higher level. Skilled employees may require higher wages to make up the shortfall.
C)   With less money to spend, older Americans over 65 will no longer require transportation, entertainment, education, and lodging. This is highly likely to negatively impact these industries.
D)   Business taxes are very likely to spike due to the fact that welfare laws are making it relatively easy for single parents to stay home with their children, rather than find jobs.E) A) and D)
F) B) and C)

Question 9

Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the ______ sector.

Accepted Answer

A)   production
B)   management
C)   neo-industrial
D)   serviceE) A) and B)
F) A) and C)

Question 10

The service industry represents about ________ of the value of the U.S. economy.

Accepted Answer

A)   30%
B)   50%
C)   60%
D)   80%E) C) and D)
F) B) and D)

Question 11

The new era of business is likely to be dominated by the

Accepted Answer

A)   service sector.
B)   information-based sector.
C)   manufacturing sector.
D)   continued decline in productivity.E) A) and B)
F) All of the above

Question 12

Natalie has joined several other investors to form a new company that sells cosmetics products to consumers online. Natalie has invested in a B2C e-commerce company.

Accepted Answer

A) True 
 B)False

Question 13

Profits of a business include the salaries paid to its employees.

Accepted Answer

A) True 
 B)False

Question 14

Efficiency means:

Accepted Answer

A)   producing the desired result.
B)   producing goods and services using the least amount of resources.
C)   the amount of output you generate given the amount of input.
D)   the buying and selling of goods using the most amount of resources.E) A) and B)
F) B) and D)

Question 15

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) A) and B)
F) B) and C)

Question 16

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Accepted Answer

A)   natural resources
B)   intangible resources
C)   current asset
D)   capitalE) None of the above
F) B) and D)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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) A) and D)
F) C) and D)

Question 19

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 20

A New York Times article about Bernie Madoff and his illegal Ponzi scheme stated, "When money goes global, fraud does too." Although the goal of investors who trusted Madoff's investment company was to earn the highest return possible on their investments, they turned a blind eye toward the fact that some of those returns were too good to be true. Individual investors, companies, and even charities lost large sums of money by investing with Madoff's company. Which of the following statements relates to this story?

Accepted Answer

A)   The unethical behavior of one company had a worldwide ripple effect that can impact the well-being of an economy.
B)   Too much regulation caused the capitalistic nature of Mr. Madoff's business model to fail.
C)   People lost money because of the fluctuations in world trading currencies, questioning the legitimacy of trading abroad.
D)   Investors did not sign contracts with Mr. Madoff's company. The government can only protect individuals and companies who sign enforceable contracts.E) A) and C)
F) A) and B)

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

Correct Answer
verified

The statistical study of human population to learn its size, density, and characteristics is called

Correct Answer
verified

The Social Security system:

Correct Answer
verified

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

Correct Answer
verified

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Correct Answer
verified

Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the ______ sector.

Correct Answer
verified

Correct Answer
verified

The service industry represents about ________ of the value of the U.S. economy.

Correct Answer
verified

If you were to discuss and analyze the social changes affecting the future of business, which of the following statements should be part of that conversation?

Correct Answer
verified

The most important difference between for-profit businesses and nonprofit organizations is that:

Correct Answer
verified

In recent years, almost all new job creation in the U.S. has occurred in the ________ sector.

Correct Answer
verified

Which of the following entails the greatest amount of risk?

Correct Answer
verified

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

Correct Answer
verified

The new era of business is likely to be dominated by the

Correct Answer
verified

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Correct Answer
verified

Correct Answer
verified

Natalie has joined several other investors to form a new company that sells cosmetics products to consumers online. Natalie has invested in a B2C e-commerce company.

Correct Answer
verified

Efficiency means:

Correct Answer
verified

Profits of a business include the salaries paid to its employees.

Correct Answer
verified

Which of the following policies would tend to foster entrepreneurship?

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

The statistical study of human population to learn its size, density, and characteristics is called

Correct AnswerverifiedShow Answer

The Social Security system:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In an effort to increase wealth and their country's standard of living, many governments are taking over major industries and operating them as nonprofit organizations.

Correct AnswerverifiedShow Answer

Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the ______ sector.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The service industry represents about ________ of the value of the U.S. economy.

Correct AnswerverifiedShow Answer

If you were to discuss and analyze the social changes affecting the future of business, which of the following statements should be part of that conversation?

Correct AnswerverifiedShow Answer

The most important difference between for-profit businesses and nonprofit organizations is that:

Correct AnswerverifiedShow Answer

In recent years, almost all new job creation in the U.S. has occurred in the ________ sector.

Correct AnswerverifiedShow Answer

Which of the following entails the greatest amount of risk?

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.

Correct AnswerverifiedShow Answer

The new era of business is likely to be dominated by the

Correct AnswerverifiedShow Answer

Mary Kay owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Natalie has joined several other investors to form a new company that sells cosmetics products to consumers online. Natalie has invested in a B2C e-commerce company.

Correct AnswerverifiedShow Answer

Efficiency means:

Correct AnswerverifiedShow Answer

Profits of a business include the salaries paid to its employees.

Correct AnswerverifiedShow Answer

Which of the following policies would tend to foster entrepreneurship?

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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