Foundations of business CH 1

The ___________ environment of business impacts all of the other environmental influences.

global

War and terrorism have helped some companies ________ , such as those that manufacture uniforms and armaments.

grow

The service era is giving way to a new era based on _______ .

information

U.S. consumers have paid ___________ prices for goods at many stores such as Wal-Mart due to globalization.

lower

Expenditures on the ___________ , especially during an economic downturn creates much debate in the country because people prefer to have the money used to stimulate the economy at home.

military

The difference between a company's revenues and the expenses needed to operate the business is its:

profit or loss

The demographic group ages 75 and over is currently the _______ demographic in the U.S.

richest

Legal and illegal immigrants have had a significant effect on businesses, ___________ , and _____________ .

schools and hospitals

The _______ sector generates about 85 percent of the value of the U.S. economy.

service

The agriculture industry in the U.S. has changed from millions of ________ farms to fewer but ________ farms.

small, large

The amount of goods and services people can buy with the money they have is known as the ______ of _______ .

standard of living

The amount of goods and services people can buy with the money they have is known as the _______ of _________ .

standard of living

True or false: Many small businesses fail every year.

True

Select all that apply The U.S. government's ability to pay for Social Security in the near future is a problem because: Multiple select question. A. the ratio of people in the labor force for each retiree will be far lower than when the program started in the 1940s B. demographic shifts mean there are fewer workers to support more retirees C. there will be more workers to support each retiree D. there will be fewer retirees drawing Social Security than when the program started

AB

Changes in the technological environment include the emergence of Information Technology that includes such tools as Multiple select question. A. cell phones B. computers C. the Internet D. jackhammers

ABC

Select all that apply Among the benefits businesses provide to their communities are: A. tax payments B. higher taxes required for fire and police protection C. goods and services D. jobs

ACD

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

B

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

B

Which demographic group is currently the richest in the United States? Multiple choice question. A. Middle class workers aged 18-29 B. Seniors 75 and older C. Children from 0-12 D. Children from 8-14

B

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

BC

Select all that apply Funding Social Security in the future is a problem because: Multiple select question. A. Social Security has lowered the age of those who can collect benefits B. there are fewer workers paying in than older people who are collecting benefits C. the government has used Social Security funds for other purposes D. Social Security no longer requires workers to pay into the fund

BC

Select all that apply Managing diversity means: Multiple select question. A, only recruiting female and minority employees B. creating a sense of belonging to a community C. being sensitive to those from other cultures D. being inclusive of those who are different

BCD

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

BCD

An important effect of changed communication technology is that Multiple choice question. A. it is easier for those with few resources to get loans and capitalize their companies B. it is harder for those with fewer resources to compete with large companies C. those with fewer resources are able to compete with large companies through the internet. D. banks are more willing to lend to small businesses with few resources

C

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

C

One of the advantages of working for a company instead of being an entrepreneur is that: Multiple choice question. A. you own the profits made by the business B. you have the freedom to make the decisions that control the business C. the company assumes the entrepreneurial risk of failure D. you assume the entrepreneurial risk of failure

C

Select all that apply 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. Multiple select question. A. benefited; slowed B. slowed; benefited C. grown; decreased D. reduced; increased

C

The Internet has affected business because the explosion of B2B and B2C transactions means that: Multiple choice question. A. customer service is no longer important B. businesses no longer have storefronts if they have websites C. websites have become as important as brick-and-mortar stores in our economy D. businesses must decide between websites and brick-and-mortar stores

C

The businesses that contribute to the quality of life and and standard of living in a country are part of its: A. political system B. social system C. economic system D. educational system

C

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

C

Companies trade database information so they __. Multiple select question. A. are able to send product information to a wider, less focused customer base B. can steal each others' customers C. can send customers direct mail advertising products that they are likely to want D. know what customers buy and from whom

CD

Many companies strive for high-quality products with "zero defects" because: Multiple select question. A. they produce more scrap materials and byproducts B. it increases production time and labor C. fewer defects means less material wasted doing it over D. their customers are happier with their products

CD

Many companies today have facilities and customers around the world, which requires greater sensitivity to different ______ .

Cultures

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

D

The amount of goods and services people can buy with the money they have is known as the: Multiple choice question. A. economy B. quality of life C. employment rate D. standard of living

D

The buying and selling of goods over the Internet is known as ________.

E-commerce

Governments of __________ countries can encourage trade by minimizing interference with the free exchange of goods and services.

developing

Businesses are part of a country's ________ system that distributes its resources and contributes to the standard of living and quality of life of its citizens.

economic

Freedom of ownership is part of the ______ and __________ environment.

economic, legal

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

A

Coca-Cola is able to do business in China because: Multiple choice question. A. the United States and China have currencies that are easily exchanged B. the exchange rates are low C. the United States and China have currencies that are not easily exchanged D. the currency exchange rates are high

A

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

A

Municipalities have adapted to increased diversity in their populations by: Multiple choice question. A. adding languages other than English to their signs and websites B. creating separate facilities for those who don't speak English C. changing their tax structures to include illegal immigrants 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: Multiple choice question. A. greater levels of competition among businesses than ever before B. greater control of customer accounts by the business that first has access to them C. conflict between nations competing for new business D. lower levels of competition between businesses than ever before

A

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

A

The global environment affects all of the other environmental influences (such as the economic, legal, and social environments) because: Multiple choice question. A. the increase in free trade among nations and technological changes have created globalization and increased competition B. economies are reducing their interactions with one another to reduce debt C. it provides a broader technical base for those who want to communicate more often D. the increase in free trade among nations and technological changes have created globalization and decreased competition

A

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

A

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

A

Select all that apply Productivity in the U.S. has risen because: Multiple select question. A. computers have increased the speed of production B. technology has improved productivity by reducing the number of workers needed C. businesses are paying higher wages to more workers D. businesses are hiring more workers to get the job done

AB

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

ABC

Select all that apply Technology improves the productivity of a farmer by enabling access to the latest prices for commodities, using satellites to view his fields, and: Multiple select question. A. communicating with farmers around the world B. showing him which fields have the best yields C. maximizing the use of seed and fertilizer by tracking yields to improve profits D. minimizing his yields to reduce the costs of fertilizer and seed

ABC

Select all that apply Businesses improve the quality of life in their communities by A. providing needed goods and services B. paying taxes C. requiring more taxes for police and fire services D. providing jobs for workers

ABD

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

ABD

Select all that apply Capitalist and mixed economies provide incentives for entrepreneurs by: Multiple select question. A. allowing private ownership of business B. writing a lot of regulations about the exchange of goods and services C. establishing a currency tradeable in world markets D. passing laws that support writing enforceable contracts

ACD

Select all that apply Among the advantages of being an entrepreneur is that you: Multiple select question. A. are your own boss B. have to provide your own benefits C. assume the risk of failure D. have the opportunity to keep any profits from the business

AD

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 every year C. they are unlikely to fail D. small businesses seldom fail

B

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

B

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

B

Nonprofit organizations are: Multiple choice question. A. companies that make a contribution to society and make a profit B. founded to make a contribution to the welfare of society C. founded to make money for the people who start them D. companies like Wal-mart who provide a lot of jobs

B

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

B

One of the main explanations for the relatively sharp increases in the U.S. manufacturing sector productivity is: Multiple choice question. A. the corresponding decrease in the service sector productivity B. improved technology makes the production process faster C. the increase in service sector jobs D. today most manufacturing workers are college graduates

B

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

B

The definition of e-commerce is: Multiple choice question. A. using technology to sell goods and services B. buying and selling goods over the Internet C. building databases to market goods D. increasing productivity through the use of technology

B

When farmers used technology to improve productivity, farm workers moved to the cities to fill new manufacturing jobs. Eventually, manufacturers: Multiple choice question. A. hired highly trained service workers B. used technology to improve productivity and workers lost manufacturing jobs C. reduced their use of technology and improved their products D. improved productivity and their workers went back to the farms

B

An important effect of changed communication technology is that we communicate: Multiple choice question. A. only with those nearby B. less often than before C. with people worldwide instantly D. nationally less than we do internationally

C

It is important for a government to have a currency that is easily exchanged in world markets because it: Multiple choice question. A. makes your home currency cheaper B. enables businesses in the home country to trade with one another, but not in foreign countries C. lets you buy and sell goods and services anywhere in the world D. makes your home currency more expensive

C

Select all that apply A result of business expansion to global markets is that it creates new jobs in manufacturing and service businesses. It also: Multiple select question. A. makes it much easier for existing businesses to maintain the status quo B. maintains the existing job base here C. means some jobs have moved to different locations around the world D. creates greater global competition between businesses and for jobs

CD

Businesses that will be most competitive are those that are able to be most responsive to the changing needs and wants of their ________ .

Customers

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? Multiple choice question. A. Stockholders B. Employees C. Shareholders D. Stakeholders

D

Which percentage of the value of the U.S. economy is generated by the service sector? Multiple choice question. A. 55 percent B. 75 percent C. 45 percent D. 85 percent

D

True or false: The term stakeholders refers only to those who own stock in a company.

False

Managing diversity in the workplace means creating a sense of _______ to a community.

belonging

An organization that provides goods and services while seeking to operate at a profit is a(n)

business

Global trade means more opportunities, but it also means more global ________ .

competition

Globalization has led to increased ____________ with countries such as China and India.

competition

Coca Cola and Wal-Mart are able to do business in Mexico and China because those countries have tradable _______ .

currency

One of the ways government can encourage business is to provide _________ that is easily exchanged or traded for that of other countries.

currency

The internet impacts businesses by providing more information about their _________ .

customers

Bar codes on products purchased help retailers build a(n) _____ about customer preferences.

database

The statistical description of a population using characteristics such as age, gender, and income is ________ .

demography

The five______ of __________are land, labor, capital, entrepreneurship, and knowledge.

factors of production

The invention of farm equipment such as Cyrus McCormick's harvester and other such improvements has led to large-scale ____________ and increased the world's food supplies.

farming

As businesses expand to serve __________ markets, new jobs will be created in service and manufacturing. There will also be more _______ to fill those jobs.

global, competition

A benefit of ___________ is the improved living standards in developing countries such as China and India.

globalization

A business tries to earn a profit by providing ________ and ________ that satisfy people's needs and wants.

goods and services

An organization whose function is to serve a societal need rather than make a profit for its owners is a(n) ____________ organization.

nonprofit

As the economy evolves, the use of new technologies means the need for jobs in some industries disappears and there are new _______ in others.

opportunities

One way for government to actively promote entrepreneurship is to allow private _________ of businesses.

ownership

Whether a business makes a profit or loss is determined by the difference between the total amount of money a business takes in from sales, known as its ____________ and the money needed to operate it, known as __________

revenue, expenses

Equipment such as phones, fax machines, and computers are all examples of the _________ element of the business environment.

technological

Farmers today use _________ to determine the best use of seed and fertilizer to improve their crops.

technology