Chapter 1: SmartBook

The businesses that will succeed in today's economy will be those that are: A. able to use databases B. focused on producing most efficiently C. using traditional methods D. most responsive to customer wants and needs

D

Select all that apply Select three elements that are part of the business environment. A. economic and legal environments B. corporate structure C. financial environment D. technological environment E. competitive environment

A, D, and E

Municipalities have adapted to increased diversity in their populations by: A. adding languages other than English to their signs and websites B. changing their tax structures to include illegal immigrants C. creating separate facilities for those who don't speak English D. reducing services to all

A

New technologies that connect people all over the world and the increased amount of information available to institutional, wholesale and retail consumers have created: A.greater levels of competition among businesses than ever before B. lower levels of competition between businesses than ever before C. greater control of customer accounts by the business that first has access to them D. conflict between nations competing for new business

A

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. A. benefited; slowed B. eliminated; increased C. created; eliminated

A

The __________ environment of business impacts all of the other environmental influences. A. competitive B. global C. financial D. social

B

The increase in farm productivity as a result of the invention of the harvester and other farm equipment has A. reduced the world's food supplies. B. increased the world's food supplies. C. created starvation in many cities. D. led to an oversupply of food worldwide.

B

What term refers to the buying and selling of goods online? web buying e-commerce web commerce e-trading

B

Which statement regarding productivity in the United States is true? A. Productivity has not kept pace with the technological revolution. B. Technology has improved productivity by reducing the number of workers needed. C. While there have been advances in technology, productivity has declined due to fewer available workers.

B

Select all that apply What are two challenges faced by new leaders as a result of the global information-based revolution? A. training employees takes too much time B. recognizing that the service era is coming to a close C. learning about world quality standards D. manufacturing jobs are the only ones that pay well

B and C

All companies will be negatively affected when war and terrorism are present in the global economy. True False

False

The term stakeholders refers only to those who own stock in a company. True False

False

Communities are improved when businesses pay taxes to the government. True False

True

Globalization has led to _________ with countries such as China and India. A. inefficiency in distribution systems B. increased competition C. less technological advances D. decreased competition

B

Select all that apply What are two characteristics that define a business? A. It operates in more than one location. B. It seeks to earn a profit. C. It has more than one employee. D. It seeks to provide goods and services.

B and D

Select all that apply What are three ways in which companies manage diversity? A. They only recruit female and minority employees. B. They create a sense of belonging to a community. C. They are sensitive to those from other cultures. D. They are inclusive of those who are different. E. They pay everyone the same amount.

B, C, and D

A benefit of globalization is that it has greatly improved the standard of living: A. only in the United States and UK B. only in China C. only in India, South Korea, and Japan D.around the world

D

Companies strive for zero defects in making their products because A. they know it is not really an achievable goal B. it increases customer satisfaction C. it increases the cost of waste D. it creates a lot of waste and byproducts

D

The sector of the U.S. economy that generates 85% of its value is the A. manufacturing sector B. extraction and mining sector C. underground economy D. service sector

D

The study of the characteristics of human populations such as size, density, age, race, gender, and income is known as _________. A. economics B. human science C. psychographics D .demography

D

One result of the wars in Afghanistan and Iraq is that: A. they have drained the U.S. economy of trillions of dollars B. the U.S. economy has been unable to adjust to new safety procedures C. the U.S. economy has benefited by adding billions of dollars in income D. businesses have found it easier to plan

A

Retailers scan bar codes on products to build a(n) ______ containing information about customers. database inventory warehouse resource

A

Select all that apply Businesses can be more successful by responding to a customer's needs and wants they track using: A. databases of customer buying preferences B. databases that track a customer's specific choices C. competitors' patented information D. databases that use bar codes to track customer's purchases

A, B, and D

Select all that apply Changes in the technological environment include the emergence of Information Technology that includes such tools as A. the Internet B. Jackhammers C. Computers D. Cell phones

A, C, and D

One of the challenges for future leaders is that the information-based global revolution is moving the economy in new directions that: A. completely exclude the manufacturing sector B. require innovation to succeed in global markets C. make it harder to succeed internationally because we are not an innovative country D. make low-tech businesses very attractive

B

The resources of land, labor, capital, entrepreneurship, and knowledge are: A. products of a country B. not important to the creation of wealth C. the factors of production D. needed by governments to succeed

C

What is the term for all of the groups that stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address? A. Employees B. Shareholders C. Stakeholders D. Stockholders

C

What is the term for the monetary value of all resources that come into the firm from operating activities? A. Gross Sales B. Profit C. Revenue D. Net Sales

C

Businesses use bar codes on products that you purchase in order to: A. add to shipping costs B. slow down checkout to keep customers in the store longer C. increase checkout time and make impulse purchases more likely D. build databases about customer preferences

D

Businesses improve the communities in which they operate by A. advising the government B. marketing products C. paying taxes D. eliminating competition

C

The service era is giving way to a new era based on: A. information B. agriculture C. mining D. manufacturing

A

An important effect of changed communication technology is that we communicate only with those nearby. less often than before. nationally less than we do internationally. with people worldwide instantly.

D

As a result of changes in _______ we are able to communicate with people around the world instantaneously. A. demography B. climate C. regulations D. technology

D

Dealing with a diverse workforce requires managers to: A. speak more than one language fluently B. ignore the cultural differences within a work group C. require all workers, no matter how diverse, to act the same D. be sensitive to workers and cultures around the world

D

Farmers now use computers to track each year's harvest and show where to spread fertilizer and seed. This relates to which aspect of the business environment? the economic environment the social environment the legal environment the technological environment

D

In the information age, a company's value is based on its: A. number of service employees B. quality processes C. manufacturing equipment D. intellectual capital

D

Minimizing government interference with the free exchange of goods and services can help developing countries. Why? A. It is harder to do business when contracts are legally enforced B. It discourages entrepreneurs who want to start their own businesses C. The lack of legal restrictions makes it impossible to enforce contracts D. It encourages entrepreneurs to start businesses that create jobs and wealth

D

Match the element of the business environment with the correct sector. Instructions Legal Technological Social Competitive ----------------------------------------- 1. Customer Service 2. The Internet 3. Contract Laws 4. Demographic changes

Legal - Contract Laws Technological - The Internet Social - Demographic Changes Competitive - Customer Services

Many small businesses fail every year. True False

True

The service sector employs which percentage of the U.S. workforce today? A. 85 percent B. 75 percent C. 55 percent D. 45 percent

A

Equipment such as phones, fax machines, and computers are all examples of which of the elements of the business environment? A. Economic B. Technological C. Competitive D. Legal and social

B

An example of the effect of globalization on U.S. consumers is A. many goods and services are provided more cheaply by outsourcing their production to India or China. B. many U.S. employees have much better jobs. C. that there has been an increase in the cost of health care. D. many goods we use are now produced offshore, increasing delivery times and costs.

A

Demography is the statistical study of ___________. the human population's characteristics such as size, density, age, gender, and income the environment and changes that affect global business businesses and their locations, sizes, and production levels global warming and its affect on wildlife, air quality, and water levels

A

Since the 1800s, strong economic development and technological inventions in the Blank______ industry have reduced the number of farmers around the world. A. agricultural B. communications C. manufacturing D. transportation

A

The businesses that will succeed in today's economy will be those that are: A. most responsive to customer wants and needs B. able to use databases C. using traditional methods D. focused on producing most efficiently

A

The term "factors of production" refers to the: A. natural, human, and financial resources used to produce goods and services B. the processes needed to produce goods and services C. people who create wealth in a country D. the factories and infrastructure that produce goods

A

What is the most likely reason you see "made in China" stickers on products sold in the United States? A. an increase in globalization B. increase in demand for foreign made products C. poor quality of U.S. products D. government embargoes on domestic products

A

Select all that apply Technology improves the productivity of a farmer by enabling access to the latest prices for commodities and using satellites to view his fields. What are two other ways that technology has improved the productivity of a farmer? A. Showing the farmer how to seed and fertilize to get the best yields B. Accessing websites to communicate with farmers around the world C. using co-ops to reduce the costs of farming D. Using high tech equipment to minimize the farmer's yields to reduce the costs of fertilizer and seed

A and B

Select all that apply What are two advantages of being an entrepreneur? A. You get to be your own boss. B. You have the opportunity to keep any profits from the business. C. You assume the risk of failure. D. You have to provide your own benefits.

A and B

Select all that apply What two areas have been especially affected by legal and illegal immigration? A. Schools B. Entertainment C. Hospitals D Travel

A and B

Select all that apply Expenditures on war and terrorism have: A. drained money from the economy B. reduced risks for businesses C. increased risks for businesses D. benefited all sectors of the economy

A and C

Select all that apply What are two reasons that many companies strive for high-quality products with "zero defects"? Their customers are happier with their products. It increases production time and labor. They produce more scrap materials and byproducts. Fewer defects means less material wasted doing it over.

A and D

Select all that apply Increases in the legal and illegal immigrant population have affected: A. businesses in many regions of the U.S. B. very little in most regions of the U.S. C. hospitals in many regions of the U.S. D. schools in many regions of the U.S.

A, C, and D

Select all that apply Some local governments are making efforts to adapt to a more diverse population by: A. changing signs to include languages other than English B. trying to rely only on English as a language choice C. changing websites and telephone messaging to include more language choices D. developing brochures in more than one language

A, C, and D

Select all that apply What are three ways in which companies manage diversity? A. They create a sense of belonging to a community. B. They only recruit female and minority employees. C. They are sensitive to those from other cultures. D. They are inclusive of those who are different. E. They pay everyone the same amount.

A, C, and D

A business can be defined as A. any group of individuals that come together to achieve a goal B. any activity that seeks to provide goods and services to others while operating at a profit C. a socially responsible organization that isa not for profit D. an organization that provides services to a community

B

Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that A. almost all small businesses grow much larger B. many small businesses fail to be profitable C. small business seldom fail D. the risk of opening a business always pays off financially

B

Some companies who produce armaments have benefited from the wars in Iraq and Afghanistan, whereas others have A. started production facilities in Iraq and Afghanistan B. lost workers and added costly safety equipment and procedures. C. been able to import oil more cheaply. D. imported goods from those countries more cheaply than before.

B

The definition of e-commerce is A.increasing productivity through the use of technology. B. buying and selling goods online. C. building databases to market goods. D. using electronic payment methods instead of cash in retail stores.

B

Equipment such as phones, fax machines, and computers are all examples of which of the elements of the business environment? A. Competitive B. Legal and social C. Technological D. Economic

C

Expenditures on war and terrorism creates much debate because: A. most people want to spend the money on foreign aid B. sectors such as tourism grow more rapidly C. it drains money from the economy D. people in the country do not want to support the troops

C

Globalization has improved living standards in developing countries such as: A. the United States B. Germany C. China and India D. the European Union

C

Managers today must be sensitive to differing cultural backgrounds because: A. it is illegal not to be aware of diversity B. it is easier than ignoring them and treating everyone the same C. the workforce is increasingly diverse, with workers around the world D. there are heavy fines and penalties for insensitivity

C

What should governments of developing countries do to actively promote entrepreneurship? A. increase taxes to minimize competition B. encourage government ownership of business C. minimize the interference with the free exchange of goods and services D. impose tariffs on the country's exports

C

When companies create a workplace that promotes inclusion and belonging, they are A. practicing stereotypical behavior. B. creating competition among employees. C. effectively managing diversity. D less likely to be profitable.

C

Why are many of the improvements in productivity due to improved technology? A. because technology requires highly educated workers to operate the equipment B. because some industries will always need more labor C. because the same or greater amounts are produced with fewer workers

C

Why might you choose to work for a company instead of being an entrepreneur? A. because being a company employee is riskier and more rewarding B. because you get to keep all the profits made by the business C. because the company assumes the risk if the business fails D. because you get the freedom to make the decisions that control the business

C

Select all that apply Which two factors are key in making the global environment of business so important that it encompasses all the other environmental influences? A. fluctuating currency exchange rates B. government protection of domestic producers C. the growth of global competition D. the negotiation of trade agreements among nations

C and D

______ is the monetary value of what a company received for goods sold, services rendered, and all other payments to the firm. A. Rent B. Interest C. Sales D. Revenue

D