Business Principles 1301: Chapter 1

Factors in the environment that support the development of businesses include:

-a strong level of competition -a healthy economic environment -evolving technology

Examples of demographic statistics are:

-age, income level, and gender -race and national origin

For a business to be successful, it must continue to make a profit and it must also:

-balance the sometimes conflicting needs of its stakeholders.

Dealing with a diverse workforce requires managers to:

-be sensitive to workers and cultures around the world.

The wars in Iraq and Afghanistan have ___ some sectors of the U.S. economy such as those that manufacture arms, but has ___ growth in others such as tourism.

-benefited; slowed -grown; decreased

Businesses can be more successful by responding to customer needs and wants they track using:

-databases that track a customer's specific choices -databases of customer buying preferences

A country's quality of life includes such elements as:

-education and safety -health care and leisure time -political freedom and natural environment

It takes many years for a company to change its culture and structure to one of empowerment because:

-employees will have to take on more responsibility. -managers often resist giving up some authority.

The purpose of nonprofit organizations include:

-filling a societal need -filling an educational need

For businesses to succeed in today's environment, they need support from:

-government -social leaders

Examples of the increased organizational costs to businesses caused by wars and terrorism are:

-increased security staff and equipment -increased insurance

An increase in the number of retirees in the population is a demographic statistic that affects business because:

-it creates opportunities for new products and services to fill their needs. -it increases the need for products and services to serve that population

The factors of production include:

-labor -capital -land

Companies that are customer-driven:

-listen to their customers -adjust their offerings accordingly

Despite laws to prevent it, many companies have acted illegally by using corrupt practices to:

-operate without a permit -bribe officials in other countries -reduce competition

Businesses improve the quality of life in their communities by:

-paying taxes -providing jobs for workers

Which of the following products are classified as a service?

-plane flight to Ireland -life insurance

The trend called greening is important because it:

-reduces harm to the environment -saves energy

A good strategy for college graduates today is to:

-research where jobs are being created. -be flexible

Entrepreneurs take risks with their time and money to start a business. They are also able to build their own wealth if they:

-successfully fill a market need at a profit -offer a needed service at a profit

One of the problems facing the U.S. government in the near future is paying for Social Security because:

-the government has been draining the Social Security account for other purposes -the ratio of people in the labor force for each retiree will be far lower than when the program started in the 1940s.

Entrepreneurs take the risks involved in starting a business because they gain:

-the possibility of accumulating wealth. -freedom to make their own decisions. -opportunities to succeed.

A goal for many companies striving for high-quality products is "zero defects" because:

-their customers are happier with their products -fewer defects means lower costs of materials

One way for government to actively promote entrepreneurship is to allow private __ of businesses.

ownership

Why is the standard of living in the United States higher than that of Japan or Germany, although their workers make more on the average?

U.S. workers can buy more with their money because the prices are lower in the United States

The businesses that will succeed in today's economy will be those that are:

most responsive to customer wants and needs.

Whether working for a nonprofit such as the Red Cross or a company with the goal of making profits such as Macy's, managers:

need the same organizational skills

Organizations such as the Red Cross, public school systems, and the United Way are examples of ___ organizations.

nonprofit

A benefit of ___ is the improved living standards in developing countries such as China and India.

globalization

To balance the money coming in with that going out of the Social Security program by 2017:

government will have to raise taxes, reduce benefits, spend less on other programs, or borrow on the world market.

Some companies who produce armaments have benefited from the wars in Iraq and Afghanistan, whereas others:

have lost workers and added costly safety equipment and procedures.

The risks of entrepreneurship are decreased by:

having laws that support writing enforceable contracts.

A worker who is more productive is worth more to a company than one who is less productive because:

he produces more output with fewer resources, which costs the company less

Businesses have responded to the increase in single-parent households by:

implementing such programs as family leave and flextime.

By the year 2020, the population over 65 is projected to:

increase from 16% to 22.8% of the population.

When a company such as Toyota or Hyundai opens a design or production facility in the United States, we see it as

insourcing

The Uniform Commercial Code is important to businesses in the United States because:

it makes business agreements such as contracts enforceable by law.

As the economy evolves, the use of new technologies means the need for jobs in some industries disappears and there are new ___ in others.

jobs

Governments can encourage entrepreneurship by allowing private ownership of businesses and by writing ___ that support writing enforceable contracts.

laws

When a business's expenses are greater than its revenues, the business is operating at a(n)

loss

When a company contracts with other companies, sometimes in another country, to do some of all of its functions, what is it called?

outsourcing

Economic well-being and the quality of life improve when businesses create more jobs because:

people can purchase more goods and services

Projections are that although service jobs are growing now, the economy is continuing to evolve to one based on the information-based global revolution. The best strategy for college graduates is to:

remain flexible and see where new jobs are being created.

The group ages 65-74 is currently in the __ demographic in the U.S.

richest

It is no longer enough to provide customers with high-quality products. They also expect outstanding customer___

service

There are more high-paying jobs in the ___ sector of the economy than in the goods-producing sector.

service

The amount of goods and services people can buy with the money they have is known as the ___ of ___.

standard, living

The government will often increase government spending in an attempt to:

stimulate the growth of the economy

Goods are ___ products such as shoes or cars, while services are ___ products such as insurance or travel.

tangible, intangible

Businesses provide help to the communities they are in by providing ___, services, and jobs.

taxes

Climate change can be defined as the movement of the ____ of the planet up or down over time.

temperature

When buyers, real estate brokers, and mortgage leaders were dishonest about the ability of people to pay their mortgages, it led to:

the deep recession of 2008-2009

Demography is the statistical study of:

the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.

The global environment affects all of the other environmental influences such as the economic, legal, and social environments because:

the increase in free trade among nations and technological changes have created globalization and increased competition.

Private ownership of business provides an incentive for people to work hard because:

they hope to accumulate wealth by making profits.

What is it that entrepreneurs risk losing when they start a business?

time and money

True or false: Profit or loss is the difference between revenues and the expenses needed to run the business.

true

Benefits of a healthy global and business environment include social benefits such as good schools, low crime rates, and clean air and water. That is because a healthy business environment is the source of:

wealth creation and good jobs.

An important effect of changed communication technology is that we communicate:

with people worldwide instantly

To be more competitive, companies set a goal of ___ ____ in their production processes because it reduces costs due to wasted materials.

zero defects

Some of the world's largest firms that believe in climate change are:

-Johnson and Johnson and Nestle -British Airways, DuPont, and Shanghai Electric -General Electric, Shell, and Coca-Cola

Since white males compromise about 64% of the workforce, efforts to improve diversity in the workplace now include which of the following groups?

-Seniors and disabled people -Minority and female employees

Globalization has occurred because of:

-advances in communication -efficient distribution systems

Some of the goods and services most likely to be needed by elderly consumers include:

-assisted living, health care, and entertainment. -adult day care, recreation, and physical therapy.

Companies trade database information so they:

-can send you direct mail advertising products you are likely to want -know what customers buy and from whom

The elements of the external business environment include the:

-competitive environment -technological environment -economic and legal environments

Government policies that favor business are:

-keeping interference to a minimum. -writing laws that support writing enforceable contracts.

It is important to empower front-line workers, such as salespeople, because they are most often the ones who interact with which group of stakeholders?

Customers

Giving front-line employees the training, authority, responsibility, and equipment they need to respond quickly to customer needs is known as:

empowerment

For businesses to succeed and provide social benefits such as good schools and low crime rates, the:

environment must be healthy enough to support job creation and accumulation of wealth.

The ___ factors of ___ are land, labor, capital, entrepreneurship, and knowledge.

factors, production

Which percentage of the value of the U.S. economy is generated by the service sector?

70%

Examples of high-paying service jobs are in:

accounting, health care, and telecommunications

Municipalities have adapted to increased diversity in their populations by:

adding languages other than English to their signs and websites.

Many improvements in productivity are due to improved technology

because the same or greater amounts are produced with fewer workers.

Entrepreneurs have to provide themselves and their employees any __ they receive such as sick days or insurance.

benefits

One way to reduce international tensions is to foster global economic growth because:

businesses work together more profitably in a peaceful environment.

The definition of e-commerce is:

buying and selling goods over the internet.

In business, you can be certain that the environment is constantly ___

changing.

Global trade means more opportunities, but it also means more global

competition

Bar codes on products purchased help retailers build a(n) __ about customer preferences.

database

Coca-Cola is able to do business in China because:

The US and China have currencies that are easily exchanged.

One of the ways government can encourage business is to provide___ that is easily exchanged or traded for that of other countries.

currency

Businesses are a part of a country's _____ system that distributes its resources and contributes to the standard of living and quality of life of its citizens.

economic

The invention of farm equipment such as Cyrus McCormick's harvester and other such improvements has led to large-scale ___ and increased world's food supplies.

farming

New technologies that connect people all over the world and the increased amount of information available to institutional, wholesale and retail consumers have created:

greater levels of competition among businesses than ever before.

The amount of output you generate for the amount of input is:

productivitiy

Expenditures on the military during an economic ___ creates much debate in the country because people prefer to have the money used to stimulate the economy at home.

recession

One of the challenges for future leaders is that the information-based global revolution is moving the economy in new directions that:

require innovation to succeed in global markets.

The total amount of money a business takes in during a given period of time by selling goods and services is its:

revenue

The fastest growing sector of the economy is the ___ sector, which makes up about 70% of the value of the U.S. economy.

service

The United States has experienced strong economic growth and increased productivity:

since the 1800s

The decision to outsource requires management to balance the needs of their ___.

stakeholders

Groups that have a strong interest in the success and outcomes of a business, such as employees, neighbors, or government regulators, are called:

stakeholders (those affected by a business's activities and policies.

Many countries have large quantities of one or more factors of production, but have not been successful in accumulating wealth because:

they lack entrepreneurship and knowledge to use the other resources effectively.

One of the effects of increased productivity in one sector of the economy is that society overall benefits from:

using that created wealth to create new jobs in another sector.