Chapter 1: Business Now: Change is the Only Constant

Which of the following marketing concepts emerged during the marketing era?

A consumer focus that permeates successful companies in every department, at every level.

Anya is an administrator at Zenorx Inc., a start-up software company. She is responsible for acquiring capital for the company. In the context of the various factors of production that businesses rely on, which of the following functions is most likely to be a part of Anya's responsibilities?

Acquiring synthetic resources like computers and telephones

Which of the following statements best describes e-commerce?

Business transactions conducted online, typically via the Internet

In the context of the history of American business, which of the following statements is true of the relationship era?

Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business.

In the context of the history of American business, which of the following statements is true of the marketing era?

Businesses began to develop brands to help customers understand the differences among various products.

Which of the following scenarios illustrates the utilization of human resources as a factor of production?

Carlos hires a content writer to develop content for his online portal that sells fashion accessories.

Which of the following statements is true when a person makes a career choice based on what he or she loves doing?

Chances of personal success are boosted.

In the context of the history of American business, which of the following is a feature of the relationship era?

Cultivating current customers turn out to be more profitable than constantly seeking new ones.

In the context of the history of American business, which of the following statements is true of the industrial revolution?

Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks.

_____ are four fundamental resources—natural resources, capital, human resources, and entrepreneurship—that both businesses and nonprofits rely on.

Factors of production

_____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries.

Free trade

The _____ is an international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.

General Agreement on Tariffs and Trade

Which of following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?

Goods moved more freely than ever across international boundaries.

Which of the following factors of production encompasses the physical, intellectual, and creative contributions of people working within an economy?

Human resources

In the context of the technological environment, which of the following statements is true of business technology?

It includes any tools that companies can use to become more efficient and effective.

In a business, which of the following statements best describes profit?

It is the money that a business earns in sales, minus expenses.

Conela is a nonprofit organization that renovates abandoned government schools and facilitates their functioning. It is headed by two social activists and is funded by the government. Which of the following statements is true of Conela?

It takes in revenue like any other business.

Drenexa Pharmaceuticals is based in the United States. In the context of the social environment, which of the following is most likely to be an impact of the rapidly aging population on Drenexa Pharmaceuticals?

It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom.

In the context of the history of American business, which of the following statements is true of the production era?

Jobs became specialized, increasing productivity and lowering costs and prices.

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

Large-scale entrepreneurs emerged in the second half of the 1800s, building business empires.

In the context of a business environment, which of the following is a key element of the U.S. economic environment?

Legislation that supports enforceable contracts

Which of the following is a similarity between millennials and digital natives?

Like millennials, digital natives tend to be extremely tolerant and inclusive.

In the context of factors of production that businesses and nonprofits rely on, which of the following can be classified as capital?

Machine

In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources?

Most of them must be extracted, purified, or harnessed.

_____ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

Nonprofits

Which of the following factors is most likely to be covered by the social environment dimension of a business?

Population size and density

Which of the following is a key dimension of the business environment?

The economic environment

In the context of the social environment of the United States, which of the following statements is true of diversity?

The growth in ethnic populations offers robust profit potential for firms pursuing them.

In the context of the U.S. economic environment, which of the following is a government policy that supports business?

The relatively low federal tax rate

In the context of factors of production, which of the following statements is true of entrepreneurial enterprises?

They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production.

In the context of the competitive environment, which of the following statements is true of bleeding-edge firms?

They launch products that fail because they are too far ahead of the market.

Which of the following statements is true of entrepreneurs?

They produce a ripple effect that enriches everyone around them.

Which of the following statements is true of millennials?

They shaped the Internet.

In the context of factors of production, which of the following is a natural resource?

Wind

In the context of the production era, the "hard sell" refers to the:

aggressive persuasion designed to separate consumers from their cash.

In the context of factors of production that businesses and nonprofits rely on, _____ cannot be considered a natural resource.

cereal crops

During the _____, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers.

entrepreneurship era

Jason set up a textile mill in his hometown in 1865. He became a rich businessman by the time his son Earl took over the business in 1895. Soon after Earl started heading the business, the government passed laws to regulate business and protect consumers and workers. Due to this move by the government, the textile mill had to introduce a fixed salary structure for its employees and implement quality checks for the products manufactured. In the context of the history of American business, Jason had set up this textile mill in the _____.

entrepreneurship era

When making a career choice, experts often advise graduating students to:

find a career they love as it will tend to be more rewarding.

In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category, as competition becomes truly global.

free-trade movement

During the __________, as mass production took hold, huge factories replaced skilled artisan workshops.

industrial revolution

During the production era, in the early part of the 1900s, major businesses focused on:

refining the production process and creating greater efficiencies.

In the context of the competitive environment of a business, the best measure of value is the:

size gap between product benefits and price

The quality and quantity of goods and services available to a population is referred to as the _____.

standard of living

Businesses that strongly focus on customer satisfaction tend to:

transform their current customers into loyal advocates for themselves.