Question 1

An entrepreneur risks time and money to start and manage a business.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)   Acquire more land by invading a neighboring country that is even poorer and weaker than Cantlivia.
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 Cantlivia businesses from foreign competition.E) All of the above
F) A) and C)

Question 3

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

Accepted Answer

A)   firms have been trying to weaken unions by reducing their reliance on labor.
B)   workers in the U.S. have become less productive and are no longer able to compete in the global economy.
C)   firms in many industries have become so efficient that they need fewer workers.
D)   the economy has been in a prolonged depression that has lasted more than a decade.E) A) and C)
F) B) and C)

Question 4

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

Accepted Answer

A)   Profit
B)   Revenue
C)   Interest
D)   DividendsE) A) and D)
F) None of the above

Question 5

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

Question 6

When we compare the factors of production in wealthy versus poor nations, we find

Accepted Answer

A)   poor nations have plenty of land and knowledge, but very little labor.
B)   poor and wealthy nations (both)  have an abundance of knowledge; it is the land that varies, with rich nations always having more.
C)   wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas.
D)   wealthy nations have land and labor, while poor nations have capital and entrepreneurship.E) C) and D)
F) B) and C)

Question 7

When corruption is present in the business environment:

Accepted Answer

A)   company leaders may threaten competitors and minimize competition.
B)   factories are easier to build without a government permit.
C)   it promotes fair competition.
D)   laborers can make more money.E) A) and B)
F) All of the above

Question 8

Globalization

Accepted Answer

A)   has greatly improved living standards around the world.
B)   has significantly reduced living standards around the world.
C)   has opened doors to only a handful of markets.
D)   has greatly changed companies that hire people to sell products, but not companies that hire people to provide services.E) B) and C)
F) A) and B)

Question 9

The threat of terrorism more often ________ the cost of operating a business.

Accepted Answer

A)   increases
B)   decreases
C)   stabilizes
D)   destabilizesE) C) and D)
F) B) and D)

Question 10

Business consultant Peter Drucker said that the most important factor of production is knowledge.

Accepted Answer

A) True 
 B)False

Question 11

In recent years, businesses in general have experienced a lasting impact due to the emergence of

Accepted Answer

A)   motor-related technologies
B)   technologies related to brain studies
C)   counterfeit technologies
D)   information technologiesE) None of the above
F) A) and C)

Question 12

The two main types of e-commerce are:

Accepted Answer

A)   online and offline.
B)   EDI and EDC.
C)   wholesale and retail.
D)   B2B and B2C.E) A) and B)
F) None of the above

Question 13

Demographic changes create new business opportunities.

Accepted Answer

A) True 
 B)False

Question 14

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

China and India have become major U.S. competitors.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following best describes recent job growth in the service sector?

Accepted Answer

A)   The service sector has generated almost all new jobs in the American economy since the mid-1980s, but the rate of job growth in services has slowed in recent years.
B)   Jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries.
C)   Employment in the service sector has declined in recent years, and this decline is expected to continue.
D)   There has been little change in the number of jobs in the service sector in recent years; however, employment is expected to increase rapidly.E) A) and B)
F) C) and D)

Question 18

Maria is an engineer for Blustery Breezes, a small manufacturer of wind turbines. Recently, a larger company, PowerMen Electric, has shown interest in investing in this small operation. This is not surprising since firms that are creating products for alternative sources of energy are attracting the attention of governments and other businesses.

Accepted Answer

A) True 
 B)False

Question 19

Businesses satisfy the demands of all stakeholders by balancing the demands of customers and stockholders.

Accepted Answer

A) True 
 B)False

Question 20

A common characteristic of most entrepreneurs is that they:

Accepted Answer

A)   accept the risks involved in starting and managing a business.
B)   have a high level of scientific and technical expertise.
C)   possess a great deal of personal wealth.
D)   have experience in running large, complex organizations.E) A) and C)
F) A) and B)

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

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

Correct Answer
verified

Demographic changes create new business opportunities.

Correct Answer
verified

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

Correct Answer
verified

Business consultant Peter Drucker said that the most important factor of production is knowledge.

Correct Answer
verified

When we compare the factors of production in wealthy versus poor nations, we find

Correct Answer
verified

China and India have become major U.S. competitors.

Correct Answer
verified

In recent years, businesses in general have experienced a lasting impact due to the emergence of

Correct Answer
verified

Which of the following policies would tend to foster entrepreneurship?

Correct Answer
verified

A common characteristic of most entrepreneurs is that they:

Correct Answer
verified

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

Correct Answer
verified

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Correct Answer
verified

Which of the following best describes recent job growth in the service sector?

Correct Answer
verified

Correct Answer
verified

The two main types of e-commerce are:

Correct Answer
verified

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

Correct Answer
verified

Globalization

Correct Answer
verified

The threat of terrorism more often ________ the cost of operating a business.

Correct Answer
verified

Businesses satisfy the demands of all stakeholders by balancing the demands of customers and stockholders.

Correct Answer
verified

When corruption is present in the business environment:

Correct Answer
verified

An entrepreneur risks time and money to start and manage a business.

Correct Answer
verified

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

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

Correct AnswerverifiedShow Answer

Demographic changes create new business opportunities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Business consultant Peter Drucker said that the most important factor of production is knowledge.

Correct AnswerverifiedShow Answer

When we compare the factors of production in wealthy versus poor nations, we find

Correct AnswerverifiedShow Answer

China and India have become major U.S. competitors.

Correct AnswerverifiedShow Answer

In recent years, businesses in general have experienced a lasting impact due to the emergence of

Correct AnswerverifiedShow Answer

Which of the following policies would tend to foster entrepreneurship?

Correct AnswerverifiedShow Answer

A common characteristic of most entrepreneurs is that they:

Correct AnswerverifiedShow Answer

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that

Correct AnswerverifiedShow Answer

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Correct AnswerverifiedShow Answer

Which of the following best describes recent job growth in the service sector?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The two main types of e-commerce are:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Globalization

Correct AnswerverifiedShow Answer

The threat of terrorism more often ________ the cost of operating a business.

Correct AnswerverifiedShow Answer

Businesses satisfy the demands of all stakeholders by balancing the demands of customers and stockholders.

Correct AnswerverifiedShow Answer

When corruption is present in the business environment:

Correct AnswerverifiedShow Answer

An entrepreneur risks time and money to start and manage a business.

Correct AnswerverifiedShow Answer

Correct Answer
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