Ch 1 Business Now Quiz:

Which of the following is most likely an example of a nonprofit organization?

A community museum that is funded by a society and is free for public use

Which of the following is considered a business?

An online shopping portal that offers discounted prices on clothes

Identify a true statement about e-commerce.

Business-to-business selling companies comprise the vast majority of total e-commerce sales.

Haley, the owner of a small grocery store, plans on expanding her business. Therefore, she decides to invest her savings in the manufacturing resources that a business needs. Which factor of production is Haley looking to invest in?

Capital

_____ refer(s) to the synthetic resources that a business needs to produce goods or services.

Capital

Which of the following is an example of a natural resource?

Coal and petroleum

A marketer looking to launch a new product wants to study the measurable characteristics of the population. These characteristics include population size, density, and specific traits, such as age, gender, race, education, and income. Which of the following factors is the marketer analyzing?

Demographic

In the context of the history of American business, which of the following is a true statement about the industrial revolution?

During the industrial revolution, there was a loss of personal pride in the production process.

_____ refers to business transactions conducted online, typically via the Internet.

E-commerce

Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?

Economic

Samuel is struggling to run his start-up company in his locality. He is struggling because the local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom of a business environment, which of the following is adversely affecting Samuel's start-up?

Excessive regulation

Quick Eats Inc. is a firm that manufactures processed food, such as canned soup. Which of the following resources used by the firm can be classified as capital?

Food processing equipment, such as industrial blenders

_____ is an international economic and political movement designed to help goods and services flow more freely across international boundaries.

Free trade

Which of the following statements is true of the marketing era?

In the marketing era, the balance of power shifted away from producers and toward consumers.

Which of the following occurred during the entrepreneurship era?

Industrial titans created enormous wealth and dominated their markets.

Identify a true statement about the entrepreneurship era.

Industrial titans exploited workers and decimated the environment during the entrepreneurship era.

Which of the following is true of the Production Era?

It gave rise to the concept of "hard sell," which was designed to separate consumers from their cash.

Which of the following factors is true of natural resources?

It includes land, fresh water, wind, and mineral deposits.

Which of the following is a true statement about profit in a business?

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

Which of the following is true of the Entrepreneurship Era?

It led to the creation of enormous wealth, raising the overall standard of living across the country.

Aster Inc. works on providing basic amenities for underprivileged children in Sudan. Which of the following activities of the organization would indicate that it is a nonprofit organization?

Its main goal is to work for the upliftment of people living below the poverty line.

The _____ saw the balance of power shift away from producers toward consumers, flooding the market with enticing choices.

Marketing Era

Which of the following is most likely to be part of the social dimension of a business environment?

Population income

_____ is the overall sense of well-being experienced by either an individual or a group.

Quality of life

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?

Social

is the rate at which a new product moves from conception to commercialization.

Speed-to-market

Which of the following periods of transition resulted in unprecedented production efficiency along with loss of individual ownership and personal pride in the production process?

The Industrial Revolution

Identify a true statement about the production era.

The assembly line became standard across major manufacturing industries.

Which of the following is true of nonprofit organizations?

Their fundamental goal is to contribute to the community.

Identify a true statement about nonprofit organizations.

They employ people and take in revenue.

Which of the following statements is a characteristic of entrepreneurs?

They produce a ripple effect that enriches everyone around them.

Identify a true statement about entrepreneurs.

They thrive in an environment that supports economic freedom.

the relationship between the price of a good or a service and the benefits that it offers to its customers.

Value is:

During early 1990s, EasyShop Inc. had started a virtual store where customers could purchase women's fashion apparel and accessories. However, the firm went bankrupt since its customers were not ready to embrace cyber-shopping. Most women found it difficult to purchase clothes that they hadn't tried. EasyShop Inc. can be categorized as:

a bleeding-edge firm.

Too much taxation, an overuse of regulation, and limited choices in the broader business environment are likely to result in:

a decrease in entrepreneurial activities.

A college has contracted a construction company to build a new bookstore for its college. The heavy machinery and equipment used by the contractor in the construction process is an example of a(n) _____.

capital resource

Legislation that supports enforceable contracts usually forms part of an organization's _____ environment.

economic

Mr. Durham has recently started a company that manufactures organic baby food products. He has invested his personal finances to start this business and runs the risk of losing all his savings if it fails. Mr. Durham is most likely to be categorized as a(n) _____.

entrepreneur

Capital, as a factor of production, includes money.

false

In the U.S., nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined.

false

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

false

People can create natural resources by growing and harvesting agricultural products.

false

Speed-to-market is the rate at which a company's competitors copy its new product innovations.

false

The core goal of successful firms is to:

generate long-term profits by delivering unsurpassed value to their customers.

Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are on its staff. Its advertisements indicate that Children's Campground relies heavily on its _____ to provide its services.

human resources

In the context of factors of production, the human resources factor encompasses the physical, intellectual, and creative contributions of everyone who works within an economy.

human resources

Huge factories replaced skilled artisan workshops during the _____.

industrial revolution

When a business brings in less money than it needs to cover expenses, it incurs a

loss

As competition has become truly global, free trade has resulted in _____ across virtually every product category.

lower prices and higher quality

During the_____, businesses began to develop brands to help customers understand the differences among various products.

marketing era

are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

nonprofits

During the _____, jobs became even more specialized, increasing productivity and lowering costs and prices.

production era

A small-scale consulting firm in Hawaii is struggling financially because it is unable to generate enough capital to run the business. The company then decides to get creative and uses web technology and digital resources to build long-term bonds with its current customers and also to reach new customers. This company is using concepts that primarily originated in the:

relationship era.

Fred operates two resorts in the Miami area. His company works hard to develop long-term relationships by calling customers to make sure that they are satisfied with their recent visits to the resorts and with offers to host free. In this case, Fred is most likely using concepts that were popularized during the:

relationship era.

Before sales of its IPad 1 reached their peak, Apple launched the IPad 2, which took sales from the IPad 1 but also overtook the sales of its competitors' products. This strategy helped Apple maintain its standing as a leading-edge company in tablet PCs and demonstrates the importance of _____ as a competitive advantage.

speed-to-market

Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.

technological

Mr. Robinson, an entrepreneur, believes in the hard sell concept. He is of the opinion that aggressive persuasion of consumers will result in the separation of consumers from their cash. Mr. Robinson's beliefs most closely reflect the characteristics of _____.

the Production Era

Mr. Stewart owns a convenience store. He always encourages his employees to focus on enhancing customers' experience to ensure that they come to the store on a long-term basis. This means that at times the store compromises on the immediate transaction to promote long-term associations with the customers. Mr. Stewart's business approach most closely resembles the characteristics of _____.

the Relationship Era

Capital, as a factor of production, includes machines, tools, buildings, information, and technology.

true

In the context of making business personal, following one's passion doesn't guarantee a fat paycheck, but it does boost one's chances of both financial and personal success.

true

Nationwide, nonprofits employ about one in ten workers, accounting for more paid workers than the entire construction industry and more than the finance, insurance, and real-estate sectors combined.

true

Susan is the human resources director at ABC Cosmetics. In her job, she is responsible for recruiting, hiring, and training employees. She is a factor of production for the company.

true

The broader economy and one's own business skills will influence the level of one's personal financial success.

true

The significance of the economic dimension of a business environment is highlighted when a number of states—from Alabama to Nevada—make their local economies even more appealing by providing special tax deals to attract new firms.

true

Value is the relationship between the price of a good or a service and the benefits that it offers to the customer.

true