Fundamental Business Chapter 1 Test

Nonprofit organizations: A. are usually in the business of financial gain. B. do not contribute to a region's economic stability and growth. C. account for more paid workers than the entire construction industry. D. are not business-like establishments.

Account for more paid workers than the entire construction industry

In the context of factors of production, the synthetic resources that a business needs to produce goods or services are referred to as _____. A. nonprofits B. the hard sell C. capital D. depositories

Capital

In the context of the social environment of business, which of the following is likely to happen as the American population rapidly ages? A. Companies with older employees are less likely to find innovative ways to reach the aging consumer market. B. Companies in fields such as healthcare, pharmaceuticals, and travel will clearly decline. C. With a smaller labor pool, companies will not need to compete for top talent. D. Creative companies will reimagine their current products to serve older clients.

Creative companies will reimagine their current products to serve older clients

In the context of the social environment dimension of business, _____ is the measurable characteristics of a population. A. public relations B. demographics C. speed-to-market D. the hard sell

Demographics

Melina and Carl want to start an event management company that would provide local artists with a platform to showcase their talent and gain an audience. Melina and Carl are willing to invest their own resources in this project. In the context of factors of production, the given scenario exemplifies the concept of _____. A. deployment B. entrepreneurship C. situational analysis D. capital creation

Entrepreneurship

Russia and China are both rich in natural resources and human resources, and both countries have a solid level of capital. Yet, neither country is wealthy. The missing ingredient seems to be _____. A. synthetic resources B. taxable income C. workforce D. entrepreneurship

Entrepreneurship

Minsk Revel, a food and beverage company, recently faced criticism when customers found worms in some of its products. As a result, the company was obligated to have a better level of transparency between its production processes and its consumers. Identify the dimension of the social environment that this scenario exemplifies. A. Income B. Diversity C. Age D. Ethics

Ethics

In the context of the workforce advantage in the business environment, as the baby boom generation begins to retire, which of the following will likely become a crucial competitive issue in the next decade? A. Profitable implementation of speed-to-market strategies B. Successful use of digital resources to find customer data C. Finding and holding the best talent D. Increasing dysfunctional employee turnover

Finding and holding the best talent

Which of the following is an example of a nonprofit organization? A. Costicon, a regional retail store that sells goods at discounted prices B. Hollorg, a community museum that is funded by a trust and is free for public use C. Tempim, a local newspaper house that sells newspaper at prices lower than its competitors D. Modashows, a fashion publication house that issues free subscriptions of its weekly magazines to consumers who are yearly subscribers

Hollorg, a community museum that is funded by a trust and is free for public use

In the context of factors of production, which of the following is an entrepreneurial "must"? A. Abundant availability of natural resources B. Excess and strict government regulation C. An increase in global trading D. Protection from corruption

Protection from corruption

Chargon Flasks, a restaurant specializing in Asian cuisine, focuses solely on customer satisfaction. It allows patrons to customize the quantity of their meals and only charges them half the price if their meal is unsatisfactory. The restaurant also has a voluntary service charge policy. In this context, which dimension of the business environment is affected the most? A. The global environment B. The political environment C. The technological environment D. The competitive environment

The competitive environment

Marina, a garments manufacturing company, signed a contract with Tertch Tex, a textile company, to receive 2 million pounds of yarn at a rate of $2 per pound. However, Tertch Tex hikes up the price to $5 per pound just before the day of delivery. Marina files a lawsuit against Tertch Tex for breaking an enforceable contract and receives $100 million in compensation. In this context, which dimension of the business environment is affected the most? A. The economic environment B. The technological environment C. The social environment D. The political environment

The economic environment

Which of the following dimensions of the business environment covers the measurable characteristics of a population? A. The economic environment B. The technological environment C. The competitive environment D. The social environment

The social environment

Onyi Muro, a boutique restaurant, has dining tables with interactive screens on them. The customers can place their orders, watch their food being prepared, and provide feedback to the chefs using these screens. In this context, which dimension of the business environment is affected the most? A. The technological environment b. The political environment C. The global environment D. The social environment

The technological environment

Digital natives only spend when a business offers them value

True

The central banking system of the United States is the Federal Reserve

True

When business drives up the standard of living for people worldwide, it contributes to a high quality of life

True

The traditional retirement age in the United States is 60

False

When the government takes steps to reduce the risks of starting and running a business, it is most likely to result in: A. public ownership of the means of production. B. ethical lapses. C. low levels of bribery. D. an increase in free enterprises.

An increase in free enterprises

In the context of the competitive environment, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them

False

Vertivius, a gaming device manufacturer, entered the gaming market only after conducting a thorough survey of the potential customer base. Vertivius waited for five years before introducing its unique product—the first handheld gaming device—in the market. It introduced this product after ensuring that it would be embraced by the customers. In this scenario, Vertivius: A. has a high speed-to-market. B. is a leading-edge firm. C. uses the concept of fast-laning. D. is a bleeding-edge firm.

Is a leading-edge firm

In the context of factors of production, which of the following is a natural resource? A. An equipment B. Land C. An investment D. Information

Land

When a business brings in less money than it needs to cover expenses, it incurs a _____. A. deferral B. loss C. depreciation D. bondage

Loss

Which of the following statements is true of successful firms? A. They overlook the overall sense of well-being experienced by their customers. B. They focus on the price of a good rather than on the benefits offered. C. They deliver unsurpassed value to their customers. D. Their core goal is to generate short-term profits.

They deliver unsurpassed value to their customers

In the context of the technological environment of business, which of the following statements is true of e-commerce? A. Connecting a business's digital networks with its suppliers results in an inefficient flow of goods. b. It has eliminated the individualized buying experience for consumers. C. Business-to-business selling comprises the vast majority of total e-commerce sales. D. It excludes the provision of consultation services through websites or online portals.

Business-to-business selling comprises the vast majority of total e-commerce sales

Roggenok, a textile company, owns 15 factories that produce clothing materials. The company has 1500 employees working in shifts. In this scenario, the factories owned by Roggenok can be classified as _____. A. equity B. human resources C. capital D. natural resources

Capital

Torino Mex, a men's fashion boutique, is renowned for creating designer clothes for Latino Americans. However, it introduced a new line of designer clothing that especially caters to young Hispanic Americans to widen its customer base. Which of the following dimensions of the social environment is highlighted in this scenario? A. Age B. Diversity C. Social responsibility D. Ethics

Diversity

In the context of the history of American business, the "hard sell" emerged during the relationship era of marketing

False

The value of all natural resources tends to rise with low demand, high supply, or both

False

A small-scale consulting firm in Hawaii was struggling financially because it was unable to generate enough capital to run its business transactions. To generate capital, the firm decided to use web technologies and digital resources to build long-term associations with current customers and to reach out to new customers. In this scenario, the firm is using concepts that primarily originated in the _____ of American business history. A. entrepreneurship era B. relationship era C. production era D. industrial era

Relationship era

In the context of today's business environment, which of the following statements is true of millennials? A. They represent the smallest customer segment of the population. B. They refer to those baby boomers who delay their retirement and continue to work even beyond the age of 70. C. They represent the smallest employee segment of the population. D. They can be trained and developed to fill the leadership gap that is being created by the retirement of baby boomers.

They can be trained and developed to fill the leadership gap that is being created by the retirement of baby boomers.

Western Transit Bank has 150 automated teller machines (ATMs) across the country. Customers can use these machines to withdraw money, deposit money in their bank accounts, check their account balance, and transfer money to other accounts. These machines enable Western Transit Bank to carry out some of its operations smoothly. In the given scenario, the ATMs of Western Transit Bank can be classified as _____. A. natural resources B. capital C. human resources D. equity

Capital

In the context of ethics and social responsibility, which of the following has become a core issue in the marketplace? A. Keeping pace with the latest developments in technology B. Achieving a strong competitive advantage by offering unsurpassed value to customers C. Training employees thoroughly before they are exposed to services that are outsourced D. Doing business today without harming the ability of future generations to meet their needs

Doing business today without harming the ability of future generations to meet their needs

Lewis Gretsz, the owner of a small railroad company in the 1860s, started gaining more influence and money as his business started to flourish to a point where he began controlling the entire northern half of railroad services. He followed a ruthless and cunning business strategy that involved exploiting workers and decimating the environment. In the context of the history of American business, Lewis Gretsz most likely belonged to the _____. A. entrepreneurship era B. production era C. marketing era D. relationship era

Entrepreneurship era

Raebin Xi, a stock management firm, implemented a new rule that allows its clients to have better clarity and knowledge about the firm's core functions and methods of operation. Identify the dimension of the social environment that this scenario exemplifies. A. Age B. Income C. Ethics D. Diversity

Ethics

Samuel is struggling to run his start-up in his locality because local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom in a business environment, which of the following is adversely affecting Samuel's start-up? A. A lack of freedom of production B. A lack of freedom of staffing C. Excessive regulation D. Excessive taxation

Excessive regulation

Demographic factors include the milestones achieved during the developments in the field of computers, telecommunications, and other digital products

False

In the context of making a career choice, following one's passion guarantees a fat paycheck

False

Verti, a North American country, engages in business with Jerg, a South American country. Verti imports agricultural products from Jerg, whereas Jerg outsources its technological operations to workers in Verti. The two nations are able to carry out these business transactions with minimal tax implications. The given scenario most likely exemplifies the concept of _____. A. free trade B. e-commerce C. deployment D. internal audit

Free trade

Which of the following statements is true of profit in a business? A. It is the difference in the number of customers served between two financial years. B. It is the financial reward that comes from starting and running a business. C. It is the difference between the stock at the start and end of an inventory reporting period. D. It is estimated by calculating the total interest amount due when a business has availed multiple loans.

It is the financial reward that comes from starting and running a business

Which of the following statements is true of the technological environment of business? A. It helps firms that find it difficult to integrate new approaches. B. The rise of digital networks hinders individualized buying experience. C. It is beneficial for firms that are slow to adopt new innovations. D. It represents a rich source of competitive advantage for fast-moving firms.

It represents a rich source of competitive advantage for fast-moving firms

In the context of the history of American business, which of the following occurred during the entrepreneurship era? A. the overall standard of living across the country declined rapidly B. large-scale entrepreneurs failed to dominate their markets C. many industrial titans forced out their competitors D. the balance of power shifted from their producers and toward consumers

Many industrial titans forced out their competitors

Niconti Inc. sells premium quality tea leaves. The company owns 400 acres of land on which it has established a large tea plantation with a tea processing factory. In this scenario, the land owned by Niconti Inc. can be classified as _____. A. man-made resources B. capital resources C. human resources D. natural resources

Natural resources

Pride of Peers is a bakery chain that specializes in preparing homemade confectionaries. The company donates most of its earnings to rehabilitation centers for war victims and keeps just enough to buy raw materials. The primary goal of the company is to contribute to the rehabilitation of war victims. In this scenario, Pride of Peers would most likely be classified as a _____. A. political organization B. paper organization C. nonprofit organization D. corporation

Nonprofit organization

Rayman Automobiles, an automobile manufacturing company, was founded in 1912. The company primarily focused on creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase its output and lower the prices of its products. As a result, automobiles became an affordable commodity. In the context of the history of American business, Rayman Automobiles was most likely founded during the _____. A. digital information era B. entrepreneurship era C. marketing era D. production era

Production era

Monclaire, a chain of luxury hotels, uses social media for promotional purposes. It also maintains a dedicated interactive Web page where customers write detailed reviews and discuss their experiences. In the context of the history of American business, Monclaire most likely belongs to the _____. A. relationship era B. entrepreneurship era C. production era D. industrial revolution era

Relationship era

Buba Joe's Pizzeria, a fast food chain, wants to expand its customer base. It introduced a new range of vegan pizzas to cater specifically to the vegan market. It also introduced new flavors to cater especially to Hispanic Americans. In this context, which dimension of the business environment is affected the most? A. The social environment B. The ethical environment C. The technological environment D. The political environment

The social environment

In the context of career choices, less-routine abilities tend to be more rewarding for most people than routine skills

True

Which of the following is a difference between the millennial generation and Generation Z? A. Unlike the millennial generation, Generation Z is comprised of people born between 1980 and 1995. B. Unlike the millennial generation, Generation Z tends to be extremely tolerant and inclusive. C. Unlike the millennial generation, Generation Z approaches adulthood planning to work for success. D. Unlike the millennial generation, Generation Z feels entitled to a great job after college graduation.

Unlike the millennial generation, Generation Z approaches adulthood planning to work for success

When Rotomate, a technology solutions company, started producing portable GPS tracking devices in the early 1980s, it faced severe losses because of the lack of a market for its product. Given this information, it can be concluded that Rotomate: A. was a bleeding-edge firm. b. used the concept of fast-laning. C. had a low speed-to-market. D. was a leading-edge firm.

Was a bleeding-edge firm