BA 1301 exam 1

What is the first thing you enter into each section of the Business Model Canvas?

A guess

What is a startup?

A portfolio of activities that become a company

________ is often called the father of capitalism.

Adam Smith

A start-up restaurant would need this key resource to deliver its value proposition.

An oven

A business knows if their product delivers benefit to customers by _________________.

Asking them

By patenting his bottle design and putting his name on the product, HJ Heinz developed a ________________.

Brand

The Plymouth Colony is the foundation of the American System of _____________?

Capitalism and philanthropy

Which communist country was the first to make strong economic gains by adopting capitalist approaches to business?

China

generally, when a retailer announces a discount sale on all its products, what happens?

Consumers will demand more products

What is an example of a revenue stream for Amazon?

Credit payments through the website

Which statement is true about dumping?

Dumping permits quick entry into a market.

Which statement is true about businesses and profits?

Earning profits contributes to society by creating resources that support social institutions and government.

Which of the following is one of the Five Principles of The Lean Startup?

Entrepreneurs are everywhere

who subscribes to the ideals of a communist economy as proposed by Karl Marx

Felix believes that in a society, people should contribute according to their ability and receiving benefits according to what they need

The following is an example of a customer segment of an airline:

First class passengers

Why are customer relationships important?

Foster repeat sales

What cultural problem did William Bradford, leader of the Plymouth Colony, believe was caused by communal ownership of property?

Free-riding

What is a business model?

How a company creates, delivers and captures value

When considering key activities on the Business Model Canvas, what is one important factor?

How do the key activities improve the value proposition?

On the Business Model Canvas, what are channels?

How value is delivered to customers

Adam Smith's Wealth of Nations is based on the idea that ______________.

Individuals and nations act in their own self-interest.

If data shows customers are not buying a company's product, it should ____________.

Iterate and pivot

which country is an example of an economic system based on capitalism?

Japan

Abraham Lincoln enacted policies to protect ____________ as a reward for votes after he was elected president.

Manufacturing

Which is a cause of the Great Depression?

Massive crop failures

How do businesses know if they have a product customers will buy?

Measure customer behaviors

Franklin Roosevelt created the ____ that was later declared unconstitutional because it created a national industry.

National Recovery Administration

Franklin Roosevelt's economic recovery plan to end the Great Depression was called the __________.

New Deal

How did HJ Heinz offer value to his customers?

Offered tiered products and different price levels

What is true of an open economy, like that of the United States?

Open economies are major players in international trade.

Which of the following are Key Partners in the Business Model Canvas?

People or companies with whom you do business

The theory or practice of shielding a country's domestic industries from foreign competition by taxing imports is ___________.

Protectionism

According to The Lean Startup, what is value?

Providing benefit to the customers

A value-driven company prioritizes ______________.

Quality

Because of the way he sold his products, HJ Heinz emphasized _________ in his supply chain.

Quality

When people lose confidence in banks and demand their deposits be returned, it is called a ___________ on a bank.

Run

For what reasons did Adam Smith's Wealth of Nations oppose slavery?

Slavery prevented innovation and made landowners lazy.

What is an example of a minimum viable product?

Software with few features

In Edwards Deming's book Out of the Crisis, what method does he suggest using to measure quality?

Statistical process control

Talia is the owner of a small business. She has an HR person, an operations manager, a marketing manager, and a sales manager on staff. Who is responsible for the financial decisions that arise in the course of business?

Talia, the owner

What method is used to determine if your business model is on the right track?

The scientific method

Which statement regarding multinational corporations (MNCs) is true?

They are the highest level of international business involvement.

What is true regarding trading companies?

They handle all activities required to move products from one country to another.

On what grounds are multinational corporations (MNCs) often criticized by anti-globalization activists?

They misuse and misallocate scarce resources

Which components of the Business Model Canvas should be addressed first?

Value proposition and customer segments

Which of the following are elements of the Business Model Canvas?

Value propositions and customer segments

What is the premise of Maslow's Theory of Needs?

When the lowest needs on the pyramid are met, people become more motivated by meeting the needs of higher levels.

what competitive environment exists when there is only one business providing a product in a given market?

a monopoly

Which of the following can be best defined as a corporation that operates in several countries without significant ties to any of them?

a multinational corporation

which of the following is an example of an intangible product?

a music concert

Tariff

a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, verses domestic goods and services

Bolivia, South America is the only country in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this plant, it has a(n)

absolute advantage.

Until 1970, the United States experienced a trade surplus. What factor contributed to this surplus?

an abundance of natural resources

________ is an example of a product of monopolistic competition.

aspirin

which of the following is a tangible product?

automobile

HJ Heinz pioneered _____ in America.

branding

Quentin owns a company that makes metal and wooden signs. in order to acquire the different kinds of wood and steel he needs to make his product, Quentin needs

capital

Political concerns may lead a group of nations to form a(n) ________, a group of firms or nations that agrees to act as a monopoly and not compete with each other.

cartel

which statement is true regarding a socialist system of economy?

central planning determines what basic goods and services are produced.

Which of the following is an intangible resource?

company reputation

Among the major activities of business, which of the following is an element of management?

conduct product research

_____ measures changes in the price of goods and services purchased for consumption by typical urban households

consumer price index

________ measures changes in the prices of goods and services purchased for consumption by typical urban households.

consumer price index

The cost structure portion of the business model analyzes _____.

cost of key resources and activities

Which of the following is a characteristic of communist economies in reality?

critical shortages of consumer goods

increased unemployment can reduce consumer demand for goods and services, leading to

deflation

The quantity of goods and services that consumers are willing to buy at different prices at a specific time is referred to as

demand

The purchase of overseas production and marketing facilities is an example of

direct investment.

What is associated with a decline in spending?

economic contraction

the study of how resources are distributed for the production of goods and services within a social system is referred to as:

economics

Which market is most likely to be a monopoly?

electricity supply

what is a characteristic of the marketing economy phase of the American economy?

expensive goods such as cars and appliances could be purchased on a time-payment plan

A specific amount of money levied on each unit of a product brought into a country is referred to as a(n) ________ tariff.

fixed

What are the two primary factors economists consider when evaluating the American economy?

growth in GDP and jobs

In Norway, most citizens are able to afford basic necessities and some degree of comfort. This means Norway has a(n)

high standard of living

revenue stream

how you make money how do customers pay and when?

A firm's ________ resources are also known as labor.

human

All of the following are examples of mixed economies EXCEPT

in socialist France, the French government owns the postal service industry.

Ramona is living on a fixed income since her retirement. She is worried that the economy is expanding too rapidly, which could result in

inflation

which statement is true about GDP as a measure of a country's economic health?

it measures only those goods and services within a country

what does the American government do to counteract economic contractions

it reduces interest rates

Trey has a responsibility for the functions of organizing staffing, planning, and controlling activities in large companies. these functions are most closely associated with ___

managers

Ronan works for a custom furniture manufacturer. His job is to oversee the process of taking raw materials—lumber, fabric, and metal components—and ensure that they are transformed to the customer's exact specifications. Ronan's job falls under the business activity known as

operations

when a business fails or does not make a profit ____ have the most to lose in terms of finances.

owners

what is true regarding an oligopoly?

prices charged by different firms stay fairly close because a price cut or increase by one company will trigger a similar response from another company

List the needs of Maslows pyramid from bottom to top

psychological, safety, love, esteem, and self actualization.

A country that imposes an embargo in response to some political event is attempting to

restrict trade with other nations.

what social safety net program was created during the great depression?

social security

Chi Ling lives in a country where income and social services are distributed equally among its citizens. however, the citizens must pay high taxes and the country often experiences high levels of unemployment. chi ling lives in a ____ nation.

socialist

Master Motors is working to find a way to produce the SUVs and trucks its customers want while meeting environmental requirements. This is an effort to please multiple

stakeholders

An entrepreneur has been primarily associated with the willingness to

take risks

What is the purpose of the build-measure-learn feedback loop?

take what you learn and use it to improve

amit hired an attorney to help him draft a purchase and sale agreement for his new home. the home is an example of a product is a

tangible item

what is true regarding the responsibilities of the people involved in a business?

the primary responsibility of providing financial resources for the operation of the business lies w the business owners

Protectionism

the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports

The usefulness of the International Monetary Fund (IMF) for developed countries is limited because

these countries use private markets as a major source of capital.

what would hinder business activity as it relates to an open economy

too much regulation of business activities

Several employees in a well-known corporation, Truck Corporation, were arrested for intentionally selling defective truck parts to their customers. Scandals like this

undermine public confidence in corporations

If a country balances the money it spends for social, defense, and other programs with the amount of money it takes in from taxes, this country

will not have a budget deficit