Chapter 1 - taking risks

Stakeholders

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? -Stockholders -Employees -Shareholders -Stakeholders

Blank 1: revenue or revenues Blank 2: expenses or costs

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 ________.

_x_databases that use bar codes to track customer's purchases _x_databases that track a customer's specific choices _x_databases of customer buying preferences

Businesses can be more successful by responding to their customers needs and wants they track using: Multiple select question. __databases that use bar codes to track customer's purchases __databases that track a customer's specific choices __databases of suppliers __databases of customer buying preferences

goods or taxes

Businesses provide help to the communities they are in by helping to provide _________, services, and jobs.

developing

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

Legal --------------Contract laws Technological ----------The internet Social ------------Demographic changes Competitive --------------Customer service

Matching Question Match the element of the business environment with the correct sector. Instructions Legal -------------- Technological ---------- Social ------------ Competitive -------------- Customer service Contract laws The internet Demographic changes

It encourages entrepreneurs to start businesses that create jobs and wealth.

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

business to consumer commerce

A business that sells goods and services over the Internet to consumers, but not to other businesses is engaged in: -business to community commerce -business to business commerce -illegal activities -business to consumer commerce

business to business commerce

A business that sells goods and services over the Internet to other businesses, but not to consumers is engaged in: -business to community commerce -business to business commerce -illegal activities -business to consumer commerce

-the Internet -cell phones -computers

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

the company assumes the entrepreneurial risk of failure

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

_x_showing him which fields have the best yields _x_communicating with farmers around the world _x_maximizing the use of seed and fertilizer by tracking yields to improve profits

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. __showing him which fields have the best yields __communicating with farmers around the world __maximizing the use of seed and fertilizer by tracking yields to improve profits __minimizing his yields to reduce the costs of fertilizer and seed

profit or loss

The difference between a company's revenues and the expenses needed to operate the business is its: Multiple choice question. -profit or loss -sales and costs -salaries -costs

_x_technological environment _x_economic and legal environments _x_competitive environment

The elements of the business environment include the: Multiple select question. __technological environment __corporate structure __economic and legal environments __competitive environment

_x_filling a societal need _x_filling an educational need

The purposes of nonprofit organizations include: __increasing profits for shareholders __filling a societal need __filling an educational need __increasing the stock price per share

the factors of production

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

-natural, human, and financial resources used to produce goods and services

The term "factors of production" refers to the: Multiple choice question. -natural, human, and financial resources used to produce goods and services -the processes needed to produce goods and services -the factories and infrastructure that produce goods -people who create wealth in a country

zero defects

To be more competitive, companies set a goal of ____________ _________________ in their production processes because it reduces costs due to wasted materials.

risk

Although entrepreneurs expect to succeed, they must be realistic and recognize that they are taking a(n) _____ because many small businesses also fail every year.

_x_are your own boss _x_have the opportunity to keep any profits from the business

Among the advantages of being an entrepreneur is that you: Multiple select question. __are your own boss __have to provide your own benefits __have the opportunity to keep any profits from the business __assume the risk of failure

the human population's characteristics such as size, density, age, gender, and income

Demography is the statistical study of: Multiple choice question. -businesses and their locations, sizes, and production levels -global warming and its affect on wildlife, air quality, and water levels -the human population's characteristics such as size, density, age, gender, and income -the environment and changes that affect global business

Online

E-commerce is the buying and selling of goods ______.

many small businesses fail every year

Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that: -they are unlikely to fail -almost all small businesses grow much larger -small businesses seldom fail -many small businesses fail every year

technological or technology

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

Technological

Equipment such as phones, fax machines, and computers are all examples of which of the elements of the business environment? Multiple choice question. -Competitive -Legal and social -Technological -Economic

Technological

Equipment such as phones, fax machines, and computers are all examples of which of the elements of the business environment? Multiple choice question. -Economic -Technological -Legal and social -Competitive

technology

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

Technology

Multiple Choice Question As a result of changes in ______ we are able to communicate with people around the world instantaneously. Multiple choice question. -demography -disparity -technology -regulations

False

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

_x_goods and services _x_tax payments _x_jobs

Among the benefits businesses provide to their communities are: Multiple select question. __goods and services __tax payments __higher taxes required for fire and police protection __jobs

with people worldwide instantly

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

business

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

nonprofit

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