Unit 5 Test POB

amount of money paid for a good service or resource

price

Which of the following was one of government's original roles in business: Ensuring a business's profitability Protecting the environment Regulating technology Acting as a referee

Acting as a

The possibility of business failure or loss

Business risk

governments establish the basic rules of the game and are responsible for the production of public goods

capitalism

When Caring Companions and Smiling Pets merged two years ago, what was the most likely effect on the primary business activities of both companies? Each primary business activity became two smaller business activities. All of the primary business activities combined into two distinct activities. Each primary business activity combined with the matching activity of the other firm. All of the primary business activities combined into one activity.

Each primary business activity combined with the matching activity of the other firm.

Into what two categories can wants be divided? Unlimited and limited Economic and noneconomic Unlimited and economics Unlimited and noneconomic

Economic and noneconomic

All of the world's people are willing and able to work. T/F

False

Owners of resources compare relative prices to determine where they can most advantageously buy their resources T/F

False

The choices others make depend on the value of the items to you. T/F

False

Which of the following is an example of a speculative business risk? A supplier's shipment is lost in transit. A cutomer is injured at a business and sues the company. A cashier gives unauthorized discounts to friends. A special promotion fails to increase sales.

a special promotion fails to increase sales

system of relatively competitive markets

capitalism

One way in which government protects private property is to provide Federal Reserve Banks. patents or copyrights. fire insurance policies. local governmental programs.

Parents or copy

Which of the following behaviors demonstrates the primary business activity of strategic management: Recruiting appropriate employees Regularly updating business processes Planning and organizing for the future Obtaining funds for business projects

Planning and organizing for the future

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity that the bread shop will likely partake in before the release: Promoting the new bread through advertising Collecting information on last year's new breads Creating a system for storing new bread recipes Planning for the long-term results of introducing new breads

Promoting the new bread through advertising

Which of the following activities demonstrates human resources management: The business includes top-level managers in long-term planning. The business gives its preferred customers a special discount. The business takes care of the responsibilities associated with having employees. The business acts on new information about a competitor.

The business takes care of the responsibilities associated with having employees.

What are the three basic economic questions? When will products be produced, what products will be produced, and how will products be allocated When will products be produced, how will products be produced, and how will products be allocated Where will products be produced, when will products be produced, and what products will be produced What products will be produced, how will products be produced, and how will products be allocated

What products will be produced, how will products be produced, and how will products be allocated

All economic systems must determine which goods and services will be available for public use and which for private use. T/F

True

Some developing countries lack the technology to tap their natural resources. T/F

True

Some natural resources are difficult or costly to obtain. T/F

True

Which one of the following groups of words best describes wants: Limited, unchanging, and competing Unlimited, changing, and competing Limited, changing, and compensating Unlimited, unchanging, and compensating

Unlimited, changing, and competing

Emilia works for a company that constructs houses and business facilities. Which type of producer does she work for? A trade industry A raw-goods producer A manufacturer A builder

a builder

Brain drain" occurs when businesses outsource jobs to other countries. people who speak different languages try to communicate with each other. consumers spend too much time shopping online. a country loses talented employees to better opportunities overseas.

a country loses talented

what primary economic question is what goods and services should be produced?

allocation

Why should a business practice good ethics? An unethical business will go bankrupt. An ethical business contributes toward its own success. The government will fine an unethical business. An ethical business makes more money than all its competitors.

an ethical business contributes toward its own success

Which is an example of a Manufacturer? Great Clips Walmart Apple Target

apple

One difference between business ethics and the law is that business ethics are enforced by government. must be published. are often unwritten are easy to determine.

are often unwritten

Two factors involved in determining the value of a resource, good, or service are availability and demand productivity and opportunity costs availability and trade-offs demand and economizing

availability and demand

Two factors involved in determining the value of a resource, good, or service are productivity and opportunity costs availability and trade-offs. demand and desires. availability and demand

availability and demand

Which is an example of an economic service? Baseball glove Car stereo Barber shop Tennis shoes

barber shop

In economics, capital goods include trees and water mental and physical work buildings and equipment labor and management

buildings and equipment

in economics, capital goods include labor and management trees and water. buildings and equipment mental and physical work.

buildings ans equipment

Which of the following is a common way for a divisional organizational structure to be broken down: By manager By job type By product By function

by product

Which of the following terms refers to the flow of authority within an organization: Division of labor Chain of command Functional structure Innovation

chain of command

most economic issues of production and distribution are resolved through central planning and control

command economy

A company goes bankrupt because of its unethical accounting practices. The reason for this unethical behavior is that the action is committed by unethical employees. not illegal. acceptable in a foreign culture. acceptable within the industry.

committed by unethical employees

excruciatingly detailed and comprehensive resource allocation decision making by the central government.

communism

government ownership and control of most resourced and the means of production

communism

a local dry cleaner that cleans suits and dresses is selling

consumer services

The ultimate goal of all economic activity is consumption. production exchange distribution

consumption

The ultimate goal of all economic activity is Distribution Production Consumption Exchange

consumtion

Carefully selecting goods or services to sell is an example of handling business risks by _______________ the risk. avoiding controlling bypassing transferring

controlling

Government is involved in settling business disagreements through the use of negotiation. force. courts. fines.

courts

Into what two categories can wants be divided? Unlimited and limited Unlimited and economics Economic and noneconomic Unlimited and noneconomic

economic and noneconomic

Nathan is a project manager in charge of four other employees. He has divided up responsibilities and assigned them to specific team members to work on. This is known as delegation innovation unity of command the scalar principle

delegation

At a hair salon, one employee washes customers' hair, another employee cuts it, and another dries and styles it. This allows the employees to make the most efficient use of their time and illustrates an organizational principle known as authority. innovation. division of labor. span of control.

division of labor

what kind of risk is competition

economic

Which of the following is one of the four pillars of a business's social responsibility: Universal responsibility Economic responsibility Media responsibility Political responsibility

economic responsibility

Which type of risk high unemployment rate causes a downturn in the retail sales for the year

economic risk

what kind of risk is inflation

economic risk

Risks that result from changes in overall business conditions

economic risks

institutional framework of formal and informal rules that a society uses to determine what to produce, how to produce and how to distribute goods and services

economic system

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is a producer creating scarcity increasing distribution economizing

economizing

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is: economizing increasing distribution creating scarcity a producer

economizing

the ability to do something or produce something without wasting materials, time, or energy

efficiency

what primary economic question is how should goods and services be produced

efficiency

You decide not to take a certain action because you know it's the wrong thing to do. You have made this decision based on your laws ethics regulations peers

ethics

What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments? Distribute Produce Consume Exchange

exchange

A U.S. company would decide to offer its products in other countries as a reason to: subsidize developing countries. sell obsolete, outdated products. provide jobs to people in other countries. expand to new, untapped markets.

expand to new untapped markets

Which is the least risky approach to taking your Business global? Export your product a Joint Venture a Wholly-Owned Subsidiary a Franchise agreement

export your product

In the U.K., prices are expressed in dollars and cents T/F

false

Producers provide what are the most profitable, selling products at the lowest prices the market will bear. T/F

false

With utility, a consumer's or a business's level of satisfaction is measured at any point in time because a level of satisfaction remains constant over time. T/F

false

Which of the following regulatory agencies would be concerned with price fixing and unfair competitive practices: Federal Communications Commission National Labor Relations Board Consumer Product Safety Commission Federal Trade Commission

federal trade commision

Rather than being required to start his workday at 8:00 a.m. and end at 4:00 p.m., Tyler is allowed to start and end his workday at his convenience as long as he works 40 hours per week. This is an example of shared time flextime just-in-time lead time

flextime

Which of the following is an industrial good: Flour for a bakery Matt's cell phone Emily's home computer Holiday flowers for your wife

flour for a bakery

Which is an example of a Manufacturer? Walmart Ford Motor Company Great Clips Target

ford motor

Government uses some of the tax money it collects from individuals and businesses to support public welfare programs. What is the benefit of these welfare programs to businesses in a private enterprise economy?

funds received by recipients are spent in businesses

An example of performing business activities in an "out of the ordinary" way is when a business begins long-term planning and organization. hires an outside firm to perform its marketing. offers a new product in a popular product line. operates as the link between customers and products.

hires an outside firm to perform its marketing

Which of the following economic resources is responsible for combining the other resources to produce goods and services: Natural resources Nonrenewable resources Human resources Capital goods

human resources

Which occurs when the supply of individuals who are able and willing to work diminishes? Human resources become unlimited Human resources become limited Capital goods become unlimited Capital goods become limited

human resources become limited

which occurs when the supply of individuals who are able and willing to work diminishes capital goods become limited capital goods become unlimited human resources become unlimited human resources become limited

human resources become limited

Risks caused by human errors as well as the unpredictability of customers, employees, or the work environment

human risk

One factor that might limit the human resources available for certain jobs is a/an: good safety record organized training program inadequate pay level appealing company image

inadequate pay level

Which of the following is an outside factor that affects the business environment? Conflict negotiation Industry competition Staff organization Information management

industry competition

What do service businesses sell? Intangible activities Retail merchandise Wholesale merchandise Raw goods

intangible activities

Wholesalers supply the goods that will be sold to other wholesalers to government agencies at a discount to retailers or used by businesses in their operations

intangible activities

Which of the following is a public good that is provided by government: New automobiles Private schools Interstate highways Marketing research

interstate highways

Making sure that a business has enough of a product in stock without having too much on hand is the goal of quality control. production human resources management. inventory management.

inventory management

Unethical business practices may lower a company's stock prices because the government fines unethical companies. unethical companies usually go bankrupt. investors prefer companies they perceive to be ethical. employees resign from unethical companies.

investors prefer companies they perceive to be ethical

A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action benefits the community. is committed by unethical employees is acceptable within the industry is acceptable in foreign cultures

is acceptable within the industry

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action is not illegal. doesn't hurt anyone benefits the community. is committed by unethical employees.

is not illegal

Which of the following is an advantage of using the divisional organizational structure: It balances conflicting organizational objectives It can create better customer experiences. It's unpredictable in nature. It can encourage competition

it can create better customer experiences

Which of the following describes the functional organizational structure: It includes traditional departments, such as sales and marketing It is a combination of two other organizational structures. It is the newest organizational structure being used. It is separated by divisions, such as product or process

it includes traditional departments such as sales and marketing

Which of the following describes the matrix organizational structure: It is separated by product lines. It includes only traditional departments, such as sales and marketing. It is a combination of two other organizational structures. It is the oldest organizational structure being used.

it is a combination of two other organizational structures

Which of the following is a true statement about breaking the law: It is acceptable in most industries. It may have different consequences than breaching ethics. It is necessary for business success. It will make a company more popular.

it may have different consequences than breaching ethics

Pepsi had decided to build a new manufacturing facility in Brazil. They will own this plant together with a local Brazilian partner. This project is a: Wholly-owned subsidiary Joint venture Franchise Licensing

joint venture

Financial analysis occurs when a business keeps accurate expense records. plans for long-term success. effectively retrieves data. communicates with potential customers.

keeps accurate expense records

One factor that might limit the human resources available for certain jobsis a/an: lack of required skills appealing company image good safety record organized training program

lack of required skills

The amount of teamwork included in an organizational design is often referred to as division of labor delegation. lateral relations staff authority.

lateral relations

Which of the following is a positive effect of government regulation: Unfair competition Legal protection Price controls Increased inflation

legal protection

A restaurant fails to meet government regulations, so it loses its __________ and is no longer allowed to do business. disposable income license price controls tariffs

license

A clothing manufacturer in the United States allows a company in Argentina to use its name and logo in exchange for a fee and royalties. This is an example of licensing franchising exporting a joint venture.

licensing

A business with poor ethics is likely to lose customers. beat the competition. avoid fines. decrease its financial risk.

lose customers

Which of the following government actions is most likely to stimulate the economy: Raising the prime interest rate Borrowing more money Lowering tax rates Printing less money

lowering tax rates

The goals of government are to protect the rights of individuals and businesses and to provide a stable environment, but the main goal of business is to provide a safe working environment. make a profit. provide the best products. save the environment.

make a profit

Some people believe that a business's only true ethical obligation is to protect the environment. make money provide jobs. contribute to charity.

make money

Economic votes" are cast by consumers each time they Participate in market research Visit a business Respond to a survey Make a purchase

makes a purchase

A producer is someone who sells products. employs others. makes things. is very creative

makes things

A producer is someone who sells products. makes things. employs others. is very creative

makes things

A company that transforms cotton into wearable clothing is considered a builder. service business. raw-goods producer. manufacturer.

manufacturer

A company that transforms cotton into wearable clothing is considered a manufacturer. service business. raw-goods producer. builder.

manufacturer

Most of the decisions in the economy about what to produce, how to produce it and who receives it are made by individuals and firms

market economy

economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources

market economy

The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product? production marketing finance management

marketing

Which of the following represents a primary business activity: Designing Marketing Supervising Scheduling

marketing

When government sets safety standards for the workplace, it is attempting to modernize working environments. minimize risks to employees. control business. prohibit excess standards.

minimize risks

Which of the following is an example of unethical business behavior? Persuading others Questioning standards Identifying target markets Misleading customers

misleading customers

nearly all economies are actually

mixed economy

Risks resulting from natural causes

natural risk

what kind of risk is flood

natural risk

which type of risk Because of a flu epidemic, a local school district must employee additional substitutes

natural risk

Which of the following is a potential consequence of poor business ethics: Negative public image Decreased internal problems Reduced risk of lawsuits Increased customer loyalty

negative public image

A business that exists to fulfill a specific mission or undertaking is called a __________business. nonprofit mission-central focused for-profit

nonprofit

Within a local pizza shop, financial analysis is most likely used to oversee the baking process. develop the best recipe. obtain funding for supplies. attract customers.

obtain funding for supplies

A farmer has 1,000 acres. He decides to plant apple trees on 800 acresand raise cows on the remaining 200 acres. If he wanted to raise morecows, he would have to reduce the amount of land allotted to growingapples. The value associated with reducing the apple crop is an example of: Utility Opportunity cost Distribution Efficiency

opportunity cost

A business can be described as a(n) organized effort to produce goods and services. disorganized method of manufacturing products. unreasonable means for increasing revenues reasonable way to make a profit.

organized effort to produce goods and services

Businesses use organizational design to structure their information, technology, and competitors. people, information, and competitors people, information, and technology technology, people, and competitors

people, information, and technology

One of the reasons that has caused government's role in business to expand is that costs of production have continued to increase. people's attitudes have changed. competition in the marketplace has increased. products have become very technical.

peoples attitudes have changed

A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility. legal economic ethical philanthropic

philanthropic

A major characteristic of a market economy is which type of ownership of property? limited monopolistic government private

private

In order for consumption to occur, goods and services must be Produced Specialized Improved Distributed

produced

Distribution examines how income is divided between producers and economizers consumers and producers consumers and resource owners producers and resource owners

producers and resource owners

Which of the following behaviors best describes the primary business activity of operations: Keeping accurate financial records Planning for future success Producing goods and services Hiring qualified employees

producing goods and services

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually: helps with the day-to-day operations of the business. evaluates the performance of the business's employees. assumes all legal responsibility for the business's actions. provides experience that increases the business's credibility.

provides experience that increases the business's credibility.

Which of the following is an example of a business's ethical obligation to its stakeholders: Providing safe working environments for employees Allowing the competition to succeed Sharing trade secrets within its industry Doubling investors' money within two years

providing safe working environments for employees

what primary economic question is who consumes the goods and serviced produced in society

public choice

The possibility of loss to a business without any possibility of gain

pure risk

Farms, mines, and lumber companies are examples of raw-goods producers. manufacturers. builders. trade industries

raw goods producers

Farms, mines, and lumber companies are examples of raw-goods producers. manufacturers. trade industries builders.

raw-goods producers

Government can prevent unqualified persons from operating a business by helping their competitors. closing their bank accounts. refusing to grant them a license. raising their taxes.

refusing to grant them a lisence

Government tries to protect competition by regulating monopolies. controlling the prices of products. preventing all monopolies. restricting the production of certain products.

regulating moopolies

Business ethics involve considering issues about what is: positive and negative. right and wrong. safe and unsafe. legal and illegal.

right and wrong

The possibility of a financial loss

risk

The process of managing a business's exposure to risk in order to achieve business objectives

risk management

Consumers are typically most willing to pay more for goods and services that bring them greater trade-offs satisfaction popularity opportunity costs

satisfaction

A gap between unlimited wants and limited resources creates Scarcity Wants Economics Resources

scarcity

Unlimited wants and needs with limited resources

scarcity

condition resulting from the gap between unlimited wants for goods and services and limited resources

scarcity

relatively detailed but not comprehensive, resource allocation decision making by the central government

socialism

transition between capitalism and communism

socialism

Retailing takes place whenever goods are sold at a discount. exchanged for other goods. offered for sale. sold to the ultimate consumer.

sold to the ultimate consumer

Retailing takes place whenever goods are sold at a discount. exchanged for other goods. sold to the ultimate consumer. offered for sale.

sold to the ultimate consumer

Susan is willing to pay a high price for her brand name clothing. This clothing would be classified as a(n) __________ product. industrial shopping specialty convenience

specialty

Risking loss to make a profit

speculative risk

Which of the following activities demonstrates information management: Conducting employee evaluations Storing and retrieving information Hiring appropriate employees Researching customers' needs

storing and retrieving information

Pens and pencils used by a business would be classified as industrial equipment materials supplies parts

supplies

quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period

supply

The two main sources of revenue used to pay the costs of government regulation are taxpayers and nontaxpayers. government and industry. taxes and borrowing. business and labor.

taxes and borrowing

Which factor has aided the most in creating a global business environment? government cultural change technology exchange rate

technology

Which of the following factors has aided the most in creating a global business environment? Exhange rates Cultural changes Technology Government

technology

Which of the following is an example of ethical business behavior? Accepting a bribe from a prominent customer Testing products to ensure they are safe to use Disclosing partial information about products Using advertisements to confuse customers

testing products to ensure they are safe to use

A well-planned organizational design helps a business to better compete because the business is more productive and innovative it cuts down on communication competitors don't have organizational structures. the business has more money.

the business is more productive and innovative

Which of the following activities demonstrates the primary business activity of marketing: The business expects to merge with another business in the industry. The business hires qualified employees to perform complex job duties. The business meets customers' needs by offering appropriate products. The business prepares for long-term success by planning and organizing.

the business meets customers needs by offering appropriate products

Which is a reason that natural resources are considered limited? Technology has advanced faster than training. Some countries are unable to manufacture them. People lack training or skills needed to do a job The earth has certain boundaries.

the earth has certain boundaries

Which of the following situations would most likely indicate the need to adapt to changes in the business environment? The number of your business's competitors has decreased. The business has experienced little employee turnover during the past year. The supply of materials used in manufacturing a product has decreased. The demand for your product is stable.

the supply of materials used in manufacturing a product has decreased

Which of the following is a true statement about business ethics and the law: The two are not the same thing, but they do overlap. The two have nothing to do with each other. Everything that is illegal is also unethical. Everything that is unethical is also illegal.

the two are not the same thing but they overlap

Which of the following is a problem associated with communist command economies? Supply and demand control what will be produced. There are high taxes. Individuals run the risk of losing their business. There is no competition.

there is no competition

What is the purpose of government regulation of business activities that might cause air or water pollution? To conserve the environment To stabilize the economy To protect competition To provide public goods

to conserve their enviornment

Which of the following is a reason that a U.S. company would decide to offer its products in other countries? To expand to new, untapped markets To sell obsolete, outdated products To subsidize developing countries To provide jobs to people in other countries

to expand to new untapped markets

Why does government set and collect taxes? To help businesses grow and prosper To provide economic security To increase the use of technology To help pay the expenses of government

to help pay the expenses

Wholesalers supply the goods that will be sold to government agencies to retailers or used by businesses in their operations at a discount to other wholesalers

to retailers or used by businesses in their operations

Wholesalers supply the goods that will be sold to other wholesalers to government agencies at a discount to retailers or used by businesses in their operations

to retailers or used by businesses in their operations

The desire for which item(s) would be considered a noneconomic want? to watch the sunset golf clubs new clothing a caribbean cruise

to watch the sunset

Rembert works for a grocery store that buys food from producers and sells it to customers. The grocery store is considered a raw-goods producer. trade industry. service business. builder.

trade industry

Rembert works for a grocery store that buys food from producers and sells it to customers. The grocery store is considered a service business. builder. raw-goods producer. trade industry.

trade industry

Which is a natural resource that can be renewed through people's efforts? tree coal water crude oil

tree

All economic systems must determine which goods and services will be available for public use and which for private use.

true

Customers generally willing to pay more for items they highly value. T/F

true

Resource owners must feel that their incomes are large enough so that they will continue to supply resources. T/F

true

Societies must determine how the goods and services will be divided among people. T/F

true

all economic systems must determine how to allocate productive resources true or false

true

Determine whether the following statement is true or false: Government has become an active participant in the world of business. False; government works with businesses only. True; government produces goods and services. True; government helps to start monopolies. False; government doesn't produce any products.

true; government produces goods and services

Which group of words best describes wants? limited, changing, and compensating unlimited, unchanging, and compensating limited, unchanging, and competing unlimited, changing and competing

unlimited, changing, and competing

Which group of words best describes wants? limited, unchanging, and competing limited, changing, and compensating unlimited, unchanging, and compensating unlimited, changing, and competing

unlimited, changing, and competing

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit? Encouraging the production of wheat Industrializing the economy Encouraging energy conservation Using price supports

using price supports

The usefulness of a product to consumers is referred to as product: consumption utility scarcity allocation

utility

desire for something that may not be required

want

What determines whether an economic product is an industrial product or a consumer product? Who buys and uses the product The price of the product The origin of the product Who produces the product

who buys and uses the product

The two main divisions of the trade industry are manufacturers and wholesalers. wholesalers and producers. producers and retailers. wholesalers and retailers.

wholesalers and retailers

A large corporation is planning to "go global." It intends to build, own, manage and operate new plant in China? This would be a: Licensing Franchise Exporting activity Wholly-owned subsidiary

wholly-owned subsidiary

Over the next few years, members of Generation X and Generation Y are expected to fill many job positions vacated by retiring Baby Boomers. This is an example of a change in workforce demographics. automated processes nonrenewable resources. new capital goods

workforce dempgraphics

A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business? Yes, the museum will be a not-for-profit business. No, the museum will not be considered a business. Yes, the museum will be a for-profit business. No, the museum will be a charitable institution.

yes, the mueseum will be a not for profit business

Government provides protection to business owners' property through the use of safety standards. minimum-wage laws. zoning laws. consumer-protection laws.

zoning laws