Intro to Business Chapter One

In a business, which of the following statements best describes profit? a. It is the money that a business earns in sales, minus expenses. b. It is the increase in the value of a firm's assets that are not resold. c. It is the income that a firm receives from its secondary business activities. d. It is the total revenue that a business generates, including the cost of salaries.

a

In the context of the history of American business, which of the following statements is true of the marketing era? a. Businesses began to develop brands to help customers understand the differences among various products. b. Businesses focused on refining production processes and creating greater efficiencies. c. Businesses lost individual ownership as large factories emerged to increase production. d. Businesses that dominated their markets ousted competitors, manipulated prices, and exploited workers.

a

In the context of the U.S. economic environment, which of the following is a government policy that supports business? a. The no-taxes policy for new firms b. The relatively low federal tax rate c. The exemption from trade regulations d. The exemption of import duties

b

Which of the following factors of production encompasses the physical, intellectual, and creative contributions of people working within an economy? a. Entrepreneurship b. Natural resources c. Human resources d. Capital

c

During the production era, in the early part of the 1900s, major businesses focused on: a. differentiating themselves from their competitors. b. creating wealth by manipulating prices and exploiting workers. c. customer satisfaction and building long-term relationships with customers. d. refining the production process and creating greater efficiencies.

d

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? a. It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom. b. It will face a loss as the rapidly aging population will cause the size of the market for pharmaceutical companies to shrink. c. It will benefit because it will have access to a larger labor pool that can drive its expansion plans. d. It will be at a disadvantage as the focus of the state and federal government is currently on the younger population.

a

In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources? a. Most of them must be extracted, purified, or harnessed. b. They are created and upgraded by businesses using capital. c. Most of their value tends to decline as demand increases or supply decreases. d. They include agricultural products, which people create through planting and tending.

a

In the context of the history of American business, which of the following statements is true of the relationship era? a. Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business. b. Businesses build strategies to constantly seek new customers as it is more profitable than cultivating current ones. c. Businesses focus on efficient production and concentrate only on each immediate transaction with a customer. d. Businesses identify ways to exploit workers and manipulate prices of goods offered to customers depending on changing government laws.

a

The _____ is an international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide. a. General Agreement on Tariffs and Trade b. North American Integrative Trade Plan c. Greater American Free Trade Protocol d. Trans-Atlantic Trading Partnership Agreement

a

Businesses that strongly focus on customer satisfaction tend to: a. believe that the cheapest product represents the best value for customers. b. transform their current customers into loyal advocates for themselves. c. be less successful as there is deterioration in the quality of the products they offer to their customers. d. develop new products for customers while compromising on its features when competition is tough.

b

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 _____. a. marketing era b. entrepreneurship era c. production era d. relationship era

b

When making a career choice, experts often advise graduating students to: a. focus only on careers with the highest income potential. b. find a career they love as it will tend to be more rewarding. c. concentrate on performing routine tasks as this will improve their employability. d. focus on the sector that promises quick career growth

b

Which of the following statements best describes e-commerce? a. A marketing claim that refers to the trade of goods that have no impact on the environment b. Business transactions conducted online, typically via the Internet c. The rate at which a firm transforms designed products into actual products d. A production technology that focuses on refining production processes and creating greater efficiencies

b

Which of the following statements is true of millennials? a. They were born between 1975 and 1980. b. They shaped the Internet. c. They approached adulthood planning to work for success. d. They did not feel entitled to a great job when they graduated from college.

b

_____ are four fundamental resources—natural resources, capital, human resources, and entrepreneurship—that both businesses and nonprofits rely on. a. Aspects of competition b. Factors of production c. Terms of union d. Basics of living

b

During the _____, as mass production took hold, huge factories replaced skilled artisan workshops. a. relationship era b. marketing revolution c. industrial revolution d. entrepreneurship era

c

In the context of a business environment, which of the following is a key element of the U.S. economic environment? a. Protocols that restrict mergers between nonprofits and private businesses b. Regulations that decrease corporate accountability c. Legislation that supports enforceable contracts d. Policies that ensure high federal tax rates for businesses

c

_____ 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. a. Plutocracies b. Restricted mergers c. Nonprofits d. Credit unions

c

In the context of factors of production that businesses and nonprofits rely on, which of the following can be classified as capital? a. Land b. Labor c. Money d. Machine

d

In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category, as competition becomes truly global. a. federal sales act b. foreign globalization measure c. bulk-pack protocol d. free-trade movement

d

In the context of the production era, the "hard sell" refers to the: a. relationship between the price of a good and the benefits offered. b. outcome when a business incurs expenses that are greater than its revenue. c. outcome when businesses focus on contributing to the society rather than on profits. d. aggressive persuasion designed to separate consumers from their cash.

d

In the context of the social environment of the United States, which of the following statements is true of diversity? a. Effectively managing it in a workplace would only become tougher as time goes by. b. Its growth in a workplace limits innovation and creativity. c. The population has become less ethnically diverse in recent years than it was during previous years. d. The growth in ethnic populations offers robust profit potential for firms pursuing them.

d