Business Chapter 1

Which of the following is most likely an example of a nonprofit organization?

A community museum that is funded by a society and is free for public use.

Which of the following is considered a business?

An online shopping portal that offers discounted prices on clothes

Identify a true statement about e-commerce.

Business-to-business selling companies comprise the vast majority of total e-commerce sales.

A college has contracted a construction company to build a new bookstore for its college. The heavy machinery and equipment used by the contractor in the construction process is an example of a(n)

Capital resource

In the context of the history of American business, which of the following is a true statement about the industrial revolution?

During the industrial revolution, there was a loss of personal pride in the production process.

Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?

Economic

T/F: In the U.S., nonprofits employ about one hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined.

False

T/F: Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

False

T/F: People can create natural resources by growing and harvesting agricultural products.

False

T/F: Speed-to-market is the rate at which a company's competitors copy its new product innovations.

False

T/F: The huge gains in production efficiency during the industrial revolution were mainly the result of changes in the nature of the production process that encouraged workers to take more pride and ownership in their work.

False

Children's campground is a summer program of school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are on its staff. It's advertisements indicate that Children's Campground relies heavily on its _____ to provide its services.

Human Resources

In the context of factors of production, the _____ factor encompasses the physical, intellectual, and creative contributions of everyone who works within an economy.

Human resources

Which of the following statements is true of the marketing era?

In the marketing era, the balance of power shifted away from producers and toward consumers.

Huge factories replaced skilled artisan workshops during the ________

Industrial Revolution

Which of the following occurred during the entrepreneurship era?

Industrial titans created enormous wealth and dominated their markets.

Identify a true statement about the entrepreneurship era.

Industrial titans exploited workers and decimated the environment during the entrepreneurship era.

Which of the following is a true statement about profit in a business?

It is the financial reward that comes for starting and running a business.

In the context of factors of production, which of the following is an example of a natural resource?

Land

When a business brings in less money than is needs to cover expenses, it incurs a

Loss

As competition has become truly global, free trade has resulted in __________ across virtually every product category.

Lower prices and high quality

______ are Business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

Nonprofits

Which of the following is most likely to be part of the social dimension of a business environment?

Population income

During the _____, jobs became even more specialized, increasing productivity and lowering costs and prices.

Production era

A small-scale consulting firm in Hawaii is struggling financially because it is unable to generate enough capital to run the business. The company then decides to get creative and uses the web technology and digital resources to build long-term bonds with its current customers and also to reach new customers. This company is using concepts that primarily originated in the

Relationship era

Fred operates two resorts in the Miami area. His company works hard to develop long-term relationships by calling customers to make sure that they are satisfied with their recent visits to the resorts and with offers to host free. In this case, Fred is most likely using concepts that were popularized during the

Relationship era

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?

Social

Before sales of its iPad 1 reached their peak, Apple launched the iPad 2, which took sales from the iPad 1 but also overtook the sales of its competitors' products. This strategy helped Apple maintain its standing as a leading-edge company in tablet PCs and demonstrates the importance of _______ as a competitive advantage.

Speed-to-market

_____ is the rate at which a new product moves from conception to commercialization.

Speed-to-market

______ is the quality and quantity of goods and services available to a population.

Standard of living

Identify a true statement about the production era.

The assembly line became standard across major manufacturing industries.

Identify a true statement about nonprofit organizations.

They employ people and take in revenue.

Which of the following statements is a characteristic of entrepreneurs?

They produce a ripple effect that enriches everyone around them.

Identify a true statement about entrepreneurs.

They thrive in an environment that supports economic freedom.

T/F: Capital, as a factor of production, includes machines, tools, buildings, information, and technology.

True

T/F: In the context of making business personal, following one's passion doesn't guarantee a fat paycheck, but it does boost one's chances of both financial and personal success.

True

T/F: Susan is the Human Resources director at ABC Cosmetics. In her job, she is responsible for recruiting, hiring, and training employees. She is a factor of production for the company.

True

T/F: The broader economy and one's own business skills will influence the level of one's personal financial success.

True

T/F: The significance of the economic dimension of a business environment is highlighted when a number of states - from Alabama to Nevada - make their local economies even more appealing by providing special tax deals to attract new firms.

True

T/F: Value is the relationship between the price of a good or a service and the benefits that it offers to the customer.

True

Too much taxation, an overuse of regulation, and limited choices in the broader business environment are likely to result in:

a decrease in entrepreneurial activities

Samuel is struggling to run his start-up company in his locality. He is struggling because the local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom of a business environment, which of the following is adversely affecting Samuel's start-up?

excessive regulation

The core goal of successful firms is to

generate long-term profits by delivering unsurpassed value to their customers

During the ______, businesses began to develop brands to help customers understand the differences among various products.

marketing era

Computers, digital tools, telecommunications are most likely to be part of the ______ dimension of a business environment.

technological