Intro to Business 1100- Module 2

2. Which of the following can be considered a business? a. Davent, an online shopping portal that offers discounted prices on clothes b. Mender, a private charity organization that donates clothes and notebooks to orphans c. Albertos, a state-funded firm that specializes in providing free consultations for at-risk teens d. Javonson, a federal agency that establishes and enforces environmental regulations

a. Davent, an online shopping portal that offers discounted prices on clothes

18. Which of the following strategies for reaching global markets is a specialized type of licensing? a. Partnership b. Foreign franchising c. Joint venture d. Exporting

b. Foreign franchising

11. Norman Phone Inc. is a leading cell phone manufacturer who recently launched Omn-1 model. Even before the sales of Omn-1 model could reach its peak, the company launched the next version, Omn-2. Omn-2 overtook the sales of the Omn-1 model and also of its competitors' products. This helped Norman Phone Inc. to maintain its position as a leading-edge cell phone manufacturer. This scenario demonstrates the importance of _____ as a key source of competitive advantage. a. speed-to-market b. power-to-cost c. event chain methodology d. elemental cost planning

a. speed-to-market

13. Which of the following countries exemplifies the concept of opportunity cost? a. An African country that produces electronis on a large scale without compromising on any other produce b. A South American country that expands its trade relations to neighboring countries c. A European country that produces more cotton than a North American country despite having equal resources d. An Asian country that increases its production of sugar by decreasing its production of cocoa

d. An Asian country that increases its production of sugar by decreasing its production of cocoa

19. A(n) _____ refers to a group of countries that have eliminated tariffs and harmonized trading rules to facilitate the free flow of goods among the member nations. a. embargo b. foreign franchise c. strategic alliance d. common market

d. common market

17. Brixbee Inc., a European electronics company, has given a domestic firm in Lougard, an Asian country, the rights to manufacture and market its product within Lougard. In this scenario, Brixbee Inc. is most likely involved in _____. a. foreign outsourcing b. a limited partnership c. direct investment d. foreign licensing

d. foreign licensing

7. Which of the following is an example of a nonprofit organization? a. Hollorg, a community museum that is funded by a trust and is free for public use b. Costicon, a regional retail store that sells goods at discounted prices c. Tempim, a local newspaper house that sells newspaper at prices lower than its competitors d. Modashows, a fashion publication house that sells subscriptions to weekly magazines

a. Hollorg, a community museum that is funded by a trust and is free for public use

5. In the context of the history of American business, which of the following statements is true of the marketing era? a. The balance of power shifted away from producers and toward customers. b. Major businesses focused on refining the production process and creating greater efficiencies. c. Large-scale entrepreneurs dominated the market and raised the standard of living across the country. d. Skilled artisan workshops were replaced by huge factories.

a. The balance of power shifted away from producers and toward customers.

4. In the context of the history of American business, which of the following was a result of rapid industrialization in America from the mid-1700s to the mid-1800s? a. Unprecedented production efficiency b. Gain of personal pride in the production process c. Employment of skilled artisans who specialized in several tasks by factories d. Increase in individual ownership of the production process

a. Unprecedented production efficiency

8. A college has contracted a construction company to build a bookstore for its new campus. In the context of factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _____. a. capital b. human resources c. natural resources d. assets

a. capital

10. In the context of the competitive environment of business, customer satisfaction comes in large part from: a. delivering unsurpassed value. b. using a high/low pricing strategy. c. offering discounts on products without warranty. d. using a price skimming strategy.

a. delivering unsurpassed value.

6. In the context of the history of American business, during the _____, businesses began to develop distinctive identities to help customers understand the differences among various products. a. industrial revolution b. marketing era c. entrepreneurship era d. relationship era

b. marketing era

9. When Ruben wanted to start a new online news service, he was skeptical about investing in it because of the financial crisis in his country. However, he was put at ease after learning about the government's policy of levying low federal taxes on startup businesses. In this context, which dimension of the business environment is affected the most? a. The technological environment b. The social environment c. The economic environment d. The competitive environment

c. The economic environment

15. In the context of global trade, a balance of payments deficit means that: a. foreign borrowing and lending are excluded from calculating the balance of payments. b. more money flows in than out. c. more money flows out than in. d. foreign payments and receipts are excluded from calculating the balance of payments.

c. more money flows out than in.

20. Trade restrictions were created to: a. increase jobs from foreign companies. b. use resources more efficiently on a worldwide basis. c. protect domestic industry. d. build exporting opportunities through better relationships with other countries.

c. protect domestic industry.

14. Resorto, a European country, exported sugar worth $600 million between 2015 and 2016 and imported tea worth $750 million during the same period. In this scenario, Resorto most likely had a _____ between 2015 and 2016. a. balance of payments surplus b. trade deficit c. trade surplus d. balance of payments deficit

c. trade surplus

12. Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people? a. The economic environment b. The technological environment c. The competitive environment d. The social environment

d. The social environment

3. Which of the following is a characteristic of entrepreneurs? a. They believe in creating wealth for the underprivileged rather than for themselves. b. They start a business so that no form of loss is incurred. c. They have little or no impact on other people in the society. d. They risk their time, money, and other resources to start and manage their business.

d. They risk their time, money, and other resources to start and manage their business.

16. Which of the following statements is true of foreign outsourcing? a. It is a specialized type of licensing. b. It drives down the cost of production. c. It helps circumvent government restrictions on importing in closed markets. d. It is the most basic level of international market development.

b. It drives down the cost of production.

1. Which of the following statements is true of successful firms? a. They overlook the overall sense of well-being experienced by their customers. b. They deliver unsurpassed value to their customers. c. They focus on the price of a good rather than on the benefits offered. d. Their core goal is to generate short-term profits.

b. They deliver unsurpassed value to their customers.