Quiz 1 Chapter 1 "Intro to Business"

Which of the following characteristics of the service sector distinguish it from the product sector?

*All of these answers ~Unique financial, regulatory, and investment structures ~Knowledge and information technology ~Ever-changing business processes

From this week's video, what are the limitations of market research that Steve Jobs mentions?

A company can't predict something that a customer doesn't quite know they want yet

Which of the following is NOT an advantage of starting a business?

A lack of involvement in day to day business activities

How is a stakeholder different from a shareholder?

A shareholder is an owner of the company, whereas a stakeholder is any individual or group with an interest in the company's operations and/or output.

Which of the following basic business processes has the Internet NOT been increasingly used for?

Bookkeeping

What is the process managers use to transfer authority and responsibility to positions below them?

Delegation

Which of the following is NOT an acceptable use of surplus revenues generated by a non-profit?

Distribution to shareholders

The difference between a firm's total revenue and all costs represents __________.

Economic profit

IT is changing the basis of business from labor and manual skills to _________.

Knowledge management

According to economist Milton Friedman, the main purpose of a business is to ________.

Maximize profits for its owners

From this week's video, what information can businesses obtain from market research does Steve Jobs mention?

What your customers think and want

What belief has driven customers, businesses, home buyers, and the U.S. government itself to rely increasingly on debt?

that the value of their investments would continue to grow