BP Quiz 1

Bill is an information technology manager for a large firm. His company needs to install a new software program, which he orders from his company's online supplier. This is an example of ________ e-commerce.

???

Which of the following BEST enables all companies, regardless of size, to compete in the global market?

??? NOT effective marketing

Robert wants to upgrade his real estate company's computer systems. Which of the following factors of production would Robert find LEAST useful for his project?

??? NOT human resources

Keeping up with new technology is ________. vital professionally, but not personally not worth the expense involved only relevant if you consider yourself to be tech-savvy impossible, since it is changing so rapidly important for individuals as well as businesses

??? NOT vital professionally, but not personally

Which of the following problems is potentially posed by an aging population?

??? NOT labor surplus NOT decreased demand for social services

"Computers are outdated after three years and obsolete after five." What aspect of technology does that statement BEST represent? Technological innovation can help streamline businesses and cut costs. Technological innovation is expensive and time-consuming. Technological innovation is necessary in order to remain competitive. Technological innovations can be used to keep a company well-organized. Technological innovation is changing the focus of how many businesses are run.

????

Leroy owns a small hardware store that is known for its high level of customer service. A large chain home improvement store has just opened up in his community. Which of the following would BEST help Leroy deal with his new competitor?

Advertise aggressively to increase consumer awareness of his reputation for service.

Chris orders a salad at a restaurant. What is the BEST definition of what he is buying?

Chris is buying both a good and a service.

Chris orders a salad at a restaurant. What is the BEST definition of what he is buying? Chris is buying a service. Chris is buying a good. Chris is buying a service, but not a good. Chris is buying neither a good nor a service. Chris is buying both a good and a service.

Chris is buying both a good and a service.

_____ refers to a company's choice to relocate its production facilities overseas or subcontract at least some of the components to foreign companies at low costs.

Offshoring

Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity?

Develop a website that would enable customers to shop and place orders online.

Keeping up with technological advances is an inexpensive way for companies to remain competitive.

False

National businesses often serve international markets. True False

False

Providing temporary disability insurance for employees is a federal requirement imposed on companies that operate in the United States.

False

Which of the following statements is TRUE of a not-for-profit organization?

It can earn excess revenue.

Which of these qualities BEST explains why a specialty shop is often classified as a local business? It accepts cash, checks, and credit cards as forms of payment. It is a one of a kind operation and relies on local consumers to generate business. It sells only products that are made locally. It does not need to carry liability insurance. It is not able to borrow funds for expansion.

It is a one of a kind operation and relies on local consumers to generate business.

Which of the following is NOT a benefit of business competition?

It may lead to a limited variety of goods and services.

Which of these characteristics is NOT applicable to a multinational company? It may serve only one country but have suppliers or facilities in other countries. Its employees must speak multiple languages. It must comply with the laws of the countries in which it operates. It may adapt its operations to fit the cultures of the countries in which it operates. It provides goods or services to international consumers.

Its employees must speak multiple languages.

Patricia owns a small electronics store in a rural area. She carries two different brands of weather radios that are equally priced. One model is selling well, but the other does not seem to be attracting customers. What should Patricia do?

Reduce the price of the model that is not selling well.

The WAWA chain of convenience stores has over 500 locations in five states in the mid-Atlantic region of the United States. WAWA is an example of ________.

a regional business

Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician's repairs?

a service

Which of the following would MOST likely happen to companies that are less efficient than their competitors?

They would close down.

Competition arises when two or more businesses contend with one another to attract customers and gain an advantage.

True

Local businesses are prone to bankruptcy because they are likely to be undercapitalized.

True

Which of the following BEST describes competition?

Two or more companies compete with one another to attract customers and gain an advantage.

Carla wants to start a new software company, but she lives in a remote community where few skilled software programmers live. Which of the following is the BEST cost-effective strategy for building her workforce? Produce only software she can create herself. Wait until more software programmers move to the area. Offer free computer programming training programs to the local workforce. Relocate to an urban area where there are many software programmers. Use the Internet and other technologies to hire remote employees who want to telecommute.

Use the Internet and other technologies to hire remote employees who want to telecommute.

Tom is a college senior who would like to get a "green-collar" job when he graduates. Which of the following positions is he LEAST likely to apply for?

a job as manager at an oil refinery

Which of the following is an example of real capital? natural gas a manufacturing plant personal savings computer software a business loan

a manufacturing plant

Which of the following would MOST likely be part of a company's diversity initiative?

a minority network

In a business environment, the term "minority" applies to more than just people of different ethnicities. Minority groups represent all of the following EXCEPT ________. a person's political party a person's gender a person's disability a person's sexual orientation a person's culture

a person's political party

Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician's repairs? a liability a benefit a good a service an appointment

a service

Competition affects companies in all of the following ways EXCEPT ________. forcing them to improve their products forcing them to aggressively promote their brands forcing them to increase their production levels forcing them to lower their prices forcing them to deliver customer satisfaction

forcing them to increase their production levels

Which of the following events would MOST likely change the racial demographic of a population?

an influx of immigrants

Profits allow a company to ________.

increase productivity

Who is legally responsible for protecting the privacy of consumer information that businesses store online?

business owners

When businesses compete, products usually become more expensive. true false

false

The various resources used to create a company's goods and services are collectively referred to as ________.

factors of production

Any profits generated by a not-for-profit organization must be turned over to the government. true false

false

Globalization is recognized by all as a force for good in the U.S. economy. true false

false

Not all businesses provide a product. true false

false

Real capital refers to the money used to facilitate a business enterprise. true false

false

Profits allow a company to ________. lower employee wages reduce its span of operations increase productivity disregard concern about expenses lower standards of living for the entire society

increase productivity

Addison wants her new t-shirt store to be environmentally friendly. With the concept of the green economy in mind, which of the following business initiatives would BEST make her business greener?

install solar panels on her store's roof to provide electricity

Globalization is a controversial subject for many people because ________.

it results in the closing of some U.S. manufacturing facilities

Which of the following factors do multinational companies MOST often look for in a country when they are considering a location for offshore manufacturing?

low production costs

The economy of the United States is BEST described as ________. noncompetitive not-for-profit government-owned socialistic market-based

market-based

A multinational company ________. makes a multitude of products domestically that it sells only within its own nation may be challenged by language barriers cannot serve only one country must make products in several countries is only required to follow the laws of its home country

may be challenged by language barriers

A CVS/pharmacy store is an example of a ________ business.

national

________ refers to a company's choice to relocate its production facilities overseas or subcontract at least some of the components to foreign companies at low costs.

offshoring

A(n) ________ is the process by which products, information, and money move between supplier and consumer.

supply chain

Melinda is a store owner who buys items online to sell in her shop. Which of the following factors of production is BEST illustrated in Melinda's use of the Internet?

technology

When a company's revenue is greater than its expenses, it means that ________.

the company earns a profit

Which of the following social issues would LEAST affect the environment in which U.S. businesses operate?

the popularity of reality television

As more profit is generated, a company is able to increase its productivity.

true

Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barbara's, are able to expand as they earn more profits. true false

true

The private enterprise system assumes that competition benefits consumers. true false

true

To be successful, a company should keep pace with the latest technology. true false

true

When a business is profitable, the whole society benefits. true false

true

Which of the following poses the MOST COMMON financial threat to local and regional businesses? employee retention low productivity inefficiency undercapitalization limited customer base

undercapitalization