BUS 10

19. Your town's local hardware store has served the community for over 70 years. However, business has been way down ever since two big box hardware stores opened less than 10 minutes away. This local hardware store is looking to cut costs and increase marketing efforts as a response to changing _____ in the business environment. a. social factors b. environmental factors c. competitive factors d. marketing factors e. economic factors

c. competitive factors

20. Even though the recession of 2008 ended several years ago, youth unemployment continues to be higher than at most times in our country's modern history. This is an example of youth being impacted by which factor of the business environment? a. Social b. Economic c. Competitive d. Employment e. Educational

b. Economic

13. A new regulation requires the local coal plant to install filtering technology to reduce their carbon emissions by 50%. Purchasing the necessary equipment is too expensive for this business, forcing them to close the plant and lay off its 500 employees. Although the intent of the new regulation was to address potential _____ caused by the plant, the closing of the business will likely cause _____ in this community, as many of its residents relied on jobs at the plant. a. convenience; health and safety risks b. environmental damage; social disruption c. social disruption; taxes d. environmental damage; economic growth e. valuable products; social disruption

b. environmental damage; social disruption

16. Which of the following scenarios most accurately describes Adam Smith's view of an economic system that best serves the interests of society? a. A country only has a limited amount of space for college students and uses a type of lottery system to determine who gets these spaces. b. Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them. c. Government scarcely exists in this country, and transactions are based on a system of barter, or trading goods, for other goods. d. Markets are carefully regulated to ensure that all individuals within a nation are treated fairly and charged standardized prices. e. Individuals are selected to fill certain positions within the economy of their nation according to the needs of the nation as a whole.

b. Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.

10. The United States has lost hundreds of thousands of high-tech manufacturing jobs in the last decade, mainly to Asia. The result is that many US workers have to update the skills needed for a successful career. This change is due to _____ factors in the business environment. a. technology b. global c. educational d. social e. economic

b. global

17. Many small communities attempt to block Walmart from opening new stores in their towns. Although a new Walmart location can add hundreds of jobs, it tends to increase traffic and drive "mom and pop shops" out of business. This is an example of: a. environmental damage. b. community development. c. increased convenience. d. health and safety risks. e. social disruption.

e. social disruption.

12. Procter & Gamble added new fragrances to its laundry detergent line in an effort to appeal to Hispanic consumers, a demographic that likes to use fragrances in their homes. This is an example of changing ________ in the business environment. a. environmental factors b. competitive factors c. global factors d. economic factors e. social factors

e. social factors

5. An undercover investigation of large electronics manufacturing plants overseas revealed that employees often work in crowded conditions for long hours, and are exposed to a variety of hazardous chemicals. In addition, it was suspected that some of these chemicals are disposed of in nearby drainage pipes that lead to the sea. These are examples of which two concerns regarding the impact of business on society? a. Social disruption and heath and safety risks b. Quality of life and social disruption c. Employment and environmental damage d. Employment and social disruption e. Health and safety risks and environmental damage

e. Health and safety risks and environmental damage

9. The increase of manufacturing in lower wage countries like China is part of the reason prices for DVD players and televisions have continued to decrease, even as technology has improved. This is a benefit of _____ factors in the business environment. a. economic b. global c. social d. competitive e. technology

b. global

11. An increase in marketing to Hispanic consumers and an expected increase in health care spending in the United States are examples of how _____ factors are impacting the business environment. a. language b. social c. economic d. cultural e. financial

b. social

a. McDonald's has 1.5 million employees 2 b. McDonald's pays more than $2.5 billion in taxes each year. c. McDonald's adds healthier items to menu, such as salads. 4 d. Prior to changing to paper, McDonald's used nonrecyclable, polystyrene containers. 5 e. Concerns have been raised about entry-level pay levels for McDonald's employees. 6 f . Concerns have been raised about work conditions at meat-processing plants.

a) Employment b) Quality of Life c) Valuable products d) Environment e) Social disruption f)Health/Safety

a. In a ______________ economic system, key industries and resources are controlled by the government and production is planned in accordance with national goals. b)In a _________________ economic system, production planning is largely determined by market forces and most businesses are privately owned with various levels of government regulation (depending on industry). c). In a _____________ economic system, all property and profits are owned by the state and production is centrally planned. d)In a ______________ economic system, production is entirely determined by market forces and most businesses and land is privately owned, with very limited government intervention.

a) Socialist b) MIXED c)Communist d) Capitalist

15. Which of the following is a feature of laissez-faire capitalism? a. Right to own private property and resources b. Right to extensive government intervention c. Right to economic dominance d. Right to own another person's property e. Right to government wealth creation

a. Right to own private property and resources

3. Capitalism stems from the theories of which eighteenth-century Scottish economist? a. Adam Smith b. Karl Marx c. Frederick Taylor d. Milton Friedman e. John Maynard Keynes

a. Adam Smith

14. For many years, HBO insisted that its current shows would only be offered via paid cable subscription. Partly because of the rise of Hulu, Netflix, and other on-demand viewing services, HBO launched its own HBO Go on-demand service. This is an example of HBO being influenced by what factor in the business environment? a. Employment b. Social c. Environmental d. Competitive e. Global

d. Competitive

8. Beginning in 2017 Carrier, a heating, ventilation and air-conditioning company, will transfer manufacturing to Mexico because of the lower labor costs in Mexico, resulting in the elimination of 700 U.S. jobs. This move is in response to changing _________ in the business environment. a. social factors b. technology factors c. environmental factors d. demographic factors e. economic factors

e. economic factors

Use the drop-down menu to choose the correct answer. 1. The price of jeans drops from $50 to $40 2. The price of shoes increases from $75 to $100 3. The price of socks increases from $12 to $15 4. The price of coats drops from $200 to $100

1.Supply down, demand up 2. supply up, demand down 3. supply up, demand down 4. supply down, demand up

Use the drop-down menu to choose the impact for each example. 1 a. GM adds OnStar® automatic crash response to cars. 2 b. GM has 225,000 employees worldwide. 3 c. GM Global Corporate Giving focuses on global development and education in STEM programs. 4 d. A GM plant worker in Ohio was crushed to death by a piece of heavy equipment. 5 e. GM settles with federal authorities for pollution to New York's Onondaga Lake. 6 f. GM plant closures over the decades have led to chronically high unemployment in Detroit.

a)Valuables Products b)Employment c)Quality of Life d)Health/Safety e)Environment f)Social disruption

7. In the last few years, there has been increasing competition from Chinese smartphone makers. Some Chinese-made smartphones are sold at prices well below those made by competitors Apple and Samsung, in part due to low labor costs. This best illustrates the impact of _______ factors in the smartphone industry. except: a. global b. economic c. technology d. demographic e. social

a. global

1. If you have trouble finding a job because the majority of businesses have falling revenues and profits, you are being impacted by what factor of the business environment? a. Economic b. Global c. Health d. Competitive e. Employment

a. Economic

2. Which of the following is the best example of how technology factors affect the business environment? a. Eighty percent of Fortune 500 companies have a presence on Facebook. b. Even years after the recent recession ended, millions of people are still facing long-term unemployment. c. The majority of electronics products are produced in factories in Asia. d. To keep up with one another, car companies now offer as standard many features that customers previously had to pay extra for. e. The number of Spanish-speaking consumers in the United States increases substantially each year.

a. Eighty percent of Fortune 500 companies have a presence on Facebook.

Use the drop down menu to match each degree of competition with the key strategic consideration for companies that are in (or entering) an industry with that degree of competition. a. Minimize the cost of production b. Match competitor pricing and differentiate product c. Differentiate product d. Ensure market entry is even possible, ensure you can afford other barriers to entry, and achieve large market share quickly

a. Perfect (pure) b. Oligopoly c. Monopolistic competition d. Monopoly

6. According to Adam Smith, the role of government in a capitalistic society should be: a. to redistribute wealth by taxing the private sector, promote social objectives, and centrally plan the economy. b. collective ownership of land and resources, distribution of goods and pay according to work done, and owner of industries. c. limited to providing defense against foreign enemies, ensuring internal order, and furnishing public works and education. d. controlling interest in industry, distribution of resources, and promoting social objectives. e. a single authority that owns all land and resources, centrally plans the economy, and distributes economic goods equitably.

c. limited to providing defense against foreign enemies, ensuring internal order, and furnishing public works and education.

18. Amazon is now one of the top 10 largest retailers in the United States, even though they don't have any substantial physical retail presence. This illustrates the impact of _____ factors in the business environment. a. global b. competitive c. technology d. economic e. social

c. technology

4. Increased competition from firms in other nations is an example of which factor in the business environment? a. Economic b. Social c. Global d. Environmental e. Technology

c. Global