BUS120 Ch. 1

When corruption is present in the business environment:

company leaders can threaten competitors and minimize competition.

Honda and Toyota have used insourcing for years to produce cars in the United States. Insourcing:

helps offset the number of jobs being outsourced.

The new era of business is likely to be dominated by the:

information-technology

Which of the following is a factor of production?

knowledge

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves. Such things they are likely to pass-up on are:

employer paid benefits such as paid vacation and health insurance.

In order to create more wealth and provide better services, some nations recognize that _________________________________.

a good strategy is to minimize interference with the free exchange of goods and services

The resources that contribute to the creation of wealth are known as ________.

factors of production

The Internet and the emergence of an information-based economy are important parts of the ___________ environment in which businesses operate.

technological

In countries where businesses are government owned:

there is less incentive to work hard.

Efficiency means:

producing goods and services using the least amount of resources.

The amount of goods and services people can buy with the money they have is called their:

standard of living

A nation progresses socially when it has good schools, clean air and water, and more. Which of the following statements addresses conditions for social progress?

A city, state, or nation's social progress needs the right business environment and more entrepreneurship.

Which of the following is the most accurate statement about the impact of business on society?

Businesses can have a positive impact on both the standard of living and the quality of life within a society.

Maintaining a competitive advantage is very important to the success of today's businesses. All of the following strategies will help a firm remain competitive, except:

Ignoring competitor movements, including new products and services offered by the competition.

World trade has both benefits and costs. Which of the following statements attests to this fact?

Large companies and small companies agree that the green movement is a global issue. Firms are embracing opportunities to bring value to consumers by creating green products and services.

Which of the following policies would tend to foster entrepreneurship?

Minimal taxes and regulations.

___________ is a measure of the general well-being and satisfaction that comes from a variety of factors such as: political freedom, safety, access to good school and colleges, and a clean environment.

Quality of life

Revenue is the total amount of money a business takes in during a given period by selling goods and services.

True

Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

True

Technology affects people in:

all industries.

World-class businesses attempt to meet the needs of:

all of their stakeholders

Leanne owns a nursery business. The trucks, handcarts, and forklift she purchased for the business are called as __________ items.

capital

Diversity is more than recruiting and keeping minorities and women. Diversity means appreciating and understanding other differences in our customers and in our workforce. The statement that best describes this difference is:

disabilities, sexual orientation, religious preferences, and even personality differences such as extroverts and introverts.

Taxes and government regulations are part of the ________________ environment that effect businesses.

economic and legal

The capitalist system relies heavily on:

honesty, integrity, and high ethical business standards.

China is a nation with a vast amount of land and a very large population. Another characteristic of this nation is its people's affinity for saving money. Referring to the five factors of production, the government of China has made significant progress in building its business environment by focusing on factors that needed improvement. Its strategy was to:

increase entrepreneurship.

An increase in global trade will:

increase global competition.

The global environment,

is far reaching and affects all the other business environments.

Businesses favor:

minimal government spending because it keeps taxes to a minimum.

In today's competitive environment, good value means:

providing quality products and services at fair prices.