Business Exam

What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts? "C." Private Limited "S"

"C"

Changing a good's form involves which of the following: Adding a new feature to the good Getting the good to the retailer Providing an easy way to buy the good Making sure the good is available early

Adding a new feature to the good

The main way that economic factors influence the external business environment is by making products more expensive. affecting customers' ability to spend. downgrading national credit ratings. decreasing interest rates.

Affecting customers' ability to spend

Social responsibility should be part of the objectives of __________ businesses. nonprofit specialized government all

All

How would a business's computers be classified? As supplies As parts As an installation As equipment

As equipment

With place utility, when do businesses move the product to the right place? At every point in the process Whenever they can At the end of the process When delivery costs are low

At every point in the process

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

Availability and demand

Which of the following is an example of an economic want: Conversation Fresh air Clothing

Clothing

In a private enterprise economic system, consumers can choose from a variety of products as a result of limited government control. the collection of taxes. competition. inflation.

Competition

If a customer can't afford a product, a business should do whatever it takes to help the customer afford it. encourage the customer to buy something else. focus on customers who can afford it. suggest that the customer visit another store.

Do whatever it takes to help the customer afford it

Which of the following is a way that businesses can plan proactively for environmental changes: Publishing an annual report Conducting research on a new market Buying advertising time on TV Reviewing last year's tax code

Conducting research on a new market.

A fixed value in a mathematical formula and the speed of light in science are examples of constants. the marketing concept. layaway. utility.

Constants

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good. capital ultimate industrial consumer

Consumer

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

Exchange

Which of the factors that affect profit are usually able to be controlled? Expenses and pricing Income and expenses Pricing and billing Expenses and billing

Expenses and pricing

Determine whether the following statement is true or false: Trade industries all have the same form of ownership. True; they all belong to a chain. False; they may be corporations or partnerships. True; they are all independently owned. False; they may be independent or belong to a chain.

False; they may be independent or belong to a chain.

Which of the following is an example of a governmental regulatory agency: Sporting Goods Manufacturers Association Better Business Bureau (BBB) Air Conditioning Contractors of America Federal Aviation Administration (FAA)

Federal Aviation Administration

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 lead time. shared time. flextime. just-in-time.

Flextime

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of licensing. multi-level marketing. franchising. a partnership agreement.

Franchising

Malinda owns a home, and instead of living in it, she decides to rent it out to make more money. Which economic freedom does this illustrate? Freedom to control all the money you earn Freedom to compete for jobs Freedom to own, use, buy, and sell private property Freedom to choose which laws to obey

Freedom to own, use, buy, and sell private property

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.

Amie talks to customers and suppliers from all over the world on a daily basis. Her company's involvement with people in so many different countries is due to the trend of social responsibility. demographics. environmental scanning. globalization.

Globalization

The connection between the social responsibility of a business and the community in which the business operates is that the business's social responsibility __________ the community. targets only has an effect on targets the area outside depends upon

Has an effect

If a good or service is scarce, consumers will usually be unwilling to buy it. willing to pay money to get it. able to get as much of it as they want. uninterested in owning it.

Willing to pay money to get it

A salesclerk working part-time at a clothing store is an example of a(n) unlimited resource. natural resource. human resource. capital good.

Human resource

Offering higher wages, employee-assistance programs, and benefits are responses to limited capital goods. human resources. noneconomic resources. natural resources.

Human resources

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

Human resources

Which of the following 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.

An economic good or service that is scarce is one that is in limited supply. not made in America. not test-marketed. readily available.

In limited supply

Each day, a restaurant sends its used linens to a laundry to be cleaned and pressed. In economic terms, the laundry service would be classified as a(n) __________ service. tangible industrial ultimate consumer

Industrial

Resources that enable businesses to operate are also known as outputs. revenues. sales. inputs.

Inputs

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

Intangible activities

Which of the following is a benefit of the freedom to own private property: It allows people to do anything they want to do. It helps to limit our economic choices. It encourages people to save and to invest. It encourages businesses to be cooperative.

It encourages people to save and to invest

How does technology affect a business's customers? It emphasizes certain cultural differences. It influences what they want and need. It distracts them from making informed buying decisions. It makes them spend more money.

It influences what they want and need.

Businesses must be careful about increasing the prices of their goods to increase profits because the result may be that they lose their stockholders. have to find new suppliers. lose sales to competitors. increase their operating expenses.

Lose sales to competitors

For which of the following do workers compete in a private enterprise system: Profits Jobs Benefits Skills

Jobs

Which of the following statements is true regarding joint ventures: Large corporations are the only business structures that can benefit from joint ventures. Joint ventures are used only when it is necessary to raise a lot of capital. Joint-venture arrangements are usually short-term relationships. An independent attorney must always be consulted before signing a joint-venture agreement.

Joint-venture arrangements are usually short-term relationships.

Business owners are usually interested in net profit because they want to know what they can supply. risk. keep. produce.

Keep

When there is not enough of a resource available for everyone to have as much of it as desired, the resource is natural. limited. human. unlimited.

Limited

"Economic votes" are cast by consumers each time they visit a business. respond to a survey. make a purchase. participate in market research.

Make a purchase

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

Makes things

Individuals put limits on their own economic freedom by deciding to learn new job skills. complying with the law. competing with others. making personal economic choices.

Making personal economic choices

At each organization's core should be a commitment to expanding globally. meeting customer needs. beating the competition. making a profit.

Meeting customer needs

Sugar and flour that are purchased to make baked goods are classified as parts. materials. supplies. installation.

Materials

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

Maufacturer

One way in which a business can show its social responsibility is by __________ its profits. maximizing controlling dividing reducing

Maximizing

Every society must develop a system for deciding how it will use its resources so that it can minimize risk. meet people's needs. control production. prevent problems.

Meet people's need

How has globalization affected consumers?

it has given them a bigger and better variety of products to chose from

Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of multi-level marketing. strategic partnering. product trade-name franchising. product licensing.

Multi-level marketing

Using a stream to supply water for crops is an example of using capital goods. nonrenewable resources. natural resources. human resources.

Natural resources

John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? No opportunity cost was involved. Trip to amusement park New pair of jeans $40

New pair of jeans

When Jacqueline doesn't feel like going to the store to buy her textbooks, she orders them online. Which type of utility does this illustrate? Time Place Form/Task Possession

Place

Where a product is available for purchase is referred to as place utility. the right location. the setting. product display.

Place utility

Friendship would be considered a(n) __________ want. unlimited limited noneconomic economic

Noneconomic

The American Red Cross is an example of a(n) ___________ corporation. "C" nonprofit "S" hybrid

Nonprofit

The money spent to run a business is called net profit. gross profit. operating expense. cost of goods.

Operating expenses

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a corporation. partnership. merger. franchise.

Partnership

How has the ability to travel more freely contributed to globalization?

it helps enable the spread of culture and ideas

A car manufacturer receives a shipment of bolts that are going to be used in the production of automobiles. What type of industrial product would the bolts be? Equipment Parts Materials Supplies

Parts

Antitrust laws are created to keep competition fair. Which of the following external factors are these laws a part of: Economic Social Political Ethnic/Cultural

Political

Which of the following situations involves finding an alternative resource to use in place of a nonrenewable natural resource: Searching for oil in new locations such as the ocean floor Powering a motor vehicle with biodiesel instead of gasoline Passing legislation to prevent the killing of endangered animals Generating energy from wind turbines instead of solar panels

Powering a motor vehicle with biodiesel instead of gasoline

For a consumer to be satisfied, the four types of utility must be profitable. present. promoted. produced.

Present

The private enterprise economic system is often described as a(n) controlled system. price-directed system. entrepreneur system. pure system.

Price-directed system

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public? Franchise "C" Private Limited

Private

Alex owns a guitar, several books, and a telescope. Alex's possessions are examples of capital goods. economic resources. private property. equal distribution.

Private property

In order for consumption to occur, goods and services must be improved. produced. specialized. exchanged.

Produced

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

Producers and resource owners

The basic role of the United States government is to increase production. maintain control of prices. limit business startups. protect U.S. citizens.

Protect U.S. citizens

One reason a physicians' practice might form a partnership as an LLP is to take advantage of higher dividend returns on shares of its stock. protect innocent partners from the malpractice of another partner. ensure that the business experiences unlimited liability. permit the general public to purchase licensing rights in the practice.

Protect innocent partners from the malpractice of another partner.

To provide utility, a product must provide satisfaction. be innovative. look appealing. be economical.

Provide Satisfaction

The Internet creates/enhances form utility by providing customers with product information. allowing goods to be found and purchased quickly. providing mp3s as an alternative to CDs. offering online shopping.

Providing mp3s as an alternative to CDs

Businesses can show their social responsibility by contributing to pollution. promotion. private causes. public interests.

Public interests

Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as marketing rackets. pyramid schemes. pressure-cooker tactics. deceptive advertising gimmicks.

Pyramid schemes

A product that provides utility for one business may provide none for another business because utility is completely constant. irrelevant. unchanging. relative.

Relative

Which of the following statements about wholesale trade businesses is true: They operate in areas convenient to ultimate consumers. They operate only from distribution centers. They operate from a variety of business premises. They operate only from mail-order warehouses.

They operate from a variety of business premises.

Which of the following situations involves finding another source of a limited natural resource: Conserving the oil that we use Replacing oil with natural gas Searching for oil on the ocean floor Paying a higher price for oil

Searching for oil on the ocean floor

Task utility is about making changes to the characteristics of a job. good. service. project.

Service

George has decided to purchase a dishwasher. He is checking the newspaper ads for the best place to get quality goods and services at a reasonable price. What type of product is the dishwasher? Specialty Capital Convenience Shopping

Shopping

If no profit is generated in the long run, a business must invest wisely. reduce expenses. shut down. lay off employees.

Shut down

A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating voluntary chains. wholesaling. social responsibility. e-tailing.

Social responsibility

Retailing takes place whenever goods are exchanged for other goods. sold in a retail establishment. offered for sale. sold to the ultimate consumer.

Sold to the ultimate consumer

Marketers are in charge of manufacturing new products. making sure that the finished product gets where it needs to be. studying and analyzing customer satisfaction. maintaining adequate stock levels throughout the year.

Studying and analyzing customer satisfaction

Cash-register tapes and shipping forms used by a business would be classified as industrial parts. supplies. materials. equipment.

Supplies

One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government production. indecision. taxation. services.

Taxation

A socially responsible business will attempt to give customers high-quality products at high prices. the best products at the best prices. lower quality products at reduced prices. the best products no matter what they cost.

The best products at the best prices

Why are resources considered limited? Entrepreneurs do not invest enough of them. There are not enough available for everyone to have as much of them as desired. Everyone has them, and they change. There are so many that people must decide which ones to choose at any one time.

There are not enough available for everyone to have as much of them as desired.

Which of the following is a true statement about the social factor of lifestyle and fashion trends: They influence retail businesses only. They are more important than economic trends. They do not affect customer needs. They change quite frequently.

They change quite frequently

When producers use the best combination of resources, consumers are more likely to get goods and services that they want. are best known. they do not need. cost more.

They want

Kara orders a dress for her school dance on Saturday. If the dress doesn't arrive until the next Monday, it has no ________utility. form possession place time

Time

Which of the following is an industrial good: Holiday flowers Emily's home computer Matt's cell phone Tires for a tow truck

Tires for a tow truck

Why do marketers classify goods and services? To decide whether to increase production To aid in marketing planning To determine prices to charge for goods and services To determine promotional budgets

To aid in marketing planning

Why does government set and collect taxes?

To help pay the expenses of government

Which of the following is the best reason for studying economics: To learn how to invest money and express social responsibility To prepare for effective decision making and responsible citizenship To find the best use for resources and supplies To determine which occupations interest you

To prepare for effective decision making and responsible citizenship

Each purchase strengthens the economy by encouraging investment. competition. trade. expansion.

Trade

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

Trade industry

A manager is willing to accept the production of fewer products as long as her workers produce higher quality products. The manager is making a(n) distribution. exchange. trade-off. capital good.

Trade-off

Which one of the following groups 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

Determine whether the following statement is true or false: Government has become an active participant in the world of business.

True; government produces goods and services

True or false: Certain industries are more sensitive to specific environmental changes than others. False; industries are not affected by environmental factors. False; environmental factors affect all businesses and industries the same way. True; the financial-services industry is more sensitive to most environmental factors. True; some environmental factors have a greater impact on certain industries.

True; some environmental factors have a greater impact on certain industries.

A characteristic of human wants is that they are unlimited. unchanging. limited. consistent.

Unlimited

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. new capital goods. nonrenewable resources.

Workforce demographics

A business can create a wholly owned subsidiary by building a facility in a foreign market or by

buying an existing firm in the market

One way in which government protects private property is to provide

patents or copyrights

A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation. private "S" "C" limited

"C"

Which of the following is a situation in which people are out of work and can't afford "extra" purchases: Negative circumstance Bad economy Bad investment Unexpected event

Bad economy

Which of the following is a general benefit profit provides: Higher prices Better supplies More products Better wages

Better Wages

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

Buildings and equipment

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs? Business-format franchise Product trade-name franchise Private corporation Sole proprietorship

Business-format franchise

Who answers the basic economic questions in a private enterprise economic system? Influential citizens Entrepreneurs and producers Businesses and individuals Government agencies

Businesses and individuals

Which of the following is a true statement about the external factor of competition: Globalization has made competition less intense. Competition is more influential than political factors. Businesses cannot control their competition. The goal of competition is to cause other businesses to fail.

Businesses cannot control their competition.

"To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts." This is an example of which of the following forms of business ownership: Cooperative Corporation Sole proprietorship Partnership

Sole proprietorship

Susan is willing to pay a high price for the brand of china that she wants for her home. This china would be classified as a(n) __________ product. shopping specialty industrial convenience

Specialty

Gross profit shows business owners the difference between what they've paid and risked. estimated and invoiced. received and billed. spent and received.

Spent and Received

Marcus wants to buy a laptop, but he can't afford one right away. So, an electronics store holds it for him until he's able to pay the outstanding balance. This payment process is known as a business discount. layaway. a loan. credit.

Layaway

ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a sole proprietorship. limited joint-venture contract. product trade-name contract. licensing agreement.

Licensing agreement

Which of the following is a characteristic of economic services: Useful Tangible Non-transferable Freely available to everyone

Useful

A business that produces a product should be socially responsible to the __________ of the product. providers users producers endorsers

Users

Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois? General Private Nonprofit Limited

Limited

Businesses in trade industries that offer discount prices usually offer full services. plush interiors. limited services. elaborate fixtures.

Limited services

Laura is part of a group that is traveling to the state capitol to convince legislators to pass laws that are favorable for small businesses. This is a practice known as outsourcing. lobbying. globalization. environmental scanning.

Lobbying

Weather conditions can most directly affect the supply of capital goods. natural resources. human resources. noneconomic resources.

Natural resources

The state of technology that exists in a society can limit natural resources and capital goods. natural resources. capital goods. human resources and natural resources.

Natural resources and capital goods

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

Satisfaction

To discover a product's level of utility, businesses measure the consumer's satisfaction. perspective. desire. attitude.

Satisfaction

A gap between unlimited wants and limited resources creates scarcity. economics. wants. resources.

Scarcity

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 referee

An organization that has the ability to adapt quickly is open-minded. cohesive. culturally intelligent. agile.

agile

Forming a joint venture reduces risk by

allowing costs to be shared

When people from one country/region eat and dress differently from people in another country/region, it is due to differences in

culture

Jon makes custom furniture for his customers. He strives to make sure that meeting their needs and wants is his top priority. What "adaptable" strategy is Jon using? Innovative management Marketing orientation Proactive management Slack resources

marketing orientation

One of the differences between private enterprise and other types of economic systems is that in other systems, workers may be unable to improve their standard of living. can go to work for themselves if they are dissatisfied. are able to make a wide variety of economic choices. are allowed to change jobs whenever they want to do so.

may be unable to improve their standard of living

When government sets safety standards for the workplace, it is attempting to

minimizing risks to employees

Water and air are examples of __________ resources, while people are considered to be __________ resources. natural; human capital; human mental; natural physical; mental

natural; human

Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of

offshoring

Priscilla's design company is always willing to consider new ideas, trends, and ways of thinking. This is an example of which of the following characteristics of an adaptable organization: Open-mindedness Cohesiveness Agility Cultural intelligence

open mindedness

Which of the following "adaptable" strategies seeks to strengthen an organization by bringing employees together as well as by empowering them as individuals: Marketing orientation Organizational learning Competitive aggression Slack resources

organizational learning

One of the reasons that has caused government's role in business to expand is that

people's attitudes have changed

Which of the following actions describes proactive management: Planning in advance for change Making only long-term plans Avoiding risk Encouraging individualism

planning in advance for change

Government can prevent unqualified persons from operating a business by

refusing to grant them a license

government tries to protect competition by

regulating monopolies

What actions are consumers most likely to take when the economy is poor? Gain confidence Buy more products from overseas Purchase more high-dollar items Restrain their spending

restrain spending

Nic's company is making some quick changes in response to shifting market conditions. The ability to easily realign its people and resources appropriately is called flexibility. cohesiveness. visibility. scalability.

scalability

Which of the following is a reason a company might organize itself under the laws of a different country than those of its "home" country: To save on taxes To build brand value To take advantage of technology To remain competitive

to save on taxes

Which of the following is a main reason for businesses to expand into foreign markets: To build brand value To spread culture To pay taxes To help the less fortunate

to build brand value

What is the purpose of government regulation of business activities that might cause air or water pollution?

to conserve the environment

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

using price supports

To use resources wisely, business owners must reduce risk. waste. reward. wages.

waste

Environmental degradation occurs because of

increased production

The heart of economics is resources. trade-offs. wants. decision making.

Decision Making

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

wholesalers and retailers

Government provides protection to business owners' property through the use of

zoning laws

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

An example of a noneconomic want would be the desire for a friend. a college education. concert tickets. police protection.

A friend

In business terms, what is profit? A monetary reward A risky venture A good investment A holiday bonus

A monetary reward

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with a stress-free atmosphere. regular entertainment. a safe working environment. free meals.

A safe working environment

What role does utility play in the implementation of the marketing concept? A delivery process A satisfaction gauge A payment method A cost-saving tool

A satisfaction gauge

Which of the following statements about economic resources is true: As capital goods and natural resources become limited, human resources become limited. As natural and human resources become limited, capital goods become limited. As human resources become limited, natural resources and capital goods become limited. As capital goods and human resources become limited, natural resources become limited.

As natural and human resources become limited, capital goods become limited.

Which of the following is a true statement about how technology affects the external business environment: Certain target markets do not use technological products. Businesses must look for updated technology all the time. Not all businesses are affected by technology. Technology is the main way to compete with other businesses.

Businesses look for updated technology all the time.

For each new product it offers, a business seeks sellers. buyers. lenders. investors.

Buyers

In possession utility, a consumer finds a product helpful after doing what? Selling the product Upgrading the product Using the product Buying the product

Buying the product

When a stove is used in a restaurant kitchen, it is a natural resource. human resource. noneconomic resource. capital good.

Capital good

Automation involves replacing human resources with capital goods. consumer goods. raw materials. natural resources.

Capital goods

Maintenance, modifications, and use of alternative sources are responses to limited natural resources. capital goods. human resources. noneconomic resources.

Capital goods

Which of the following economic resources helps people to be more productive: Natural resources Capital goods Human resources Noneconomic resources

Capital goods

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

Consumption

Profitable businesses often help improve their local communities by increasing salaries of executives. building facilities in other cities. investing in foreign companies. contributing to charitable causes.

Contributing to charitable causes

Bread for a family would best be classified as a(n) __________ product. convenience shopping specialty installation

Convenience

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate? Cooperative Sole proprietorship Corporation Partnership

Corporation

The amount of money paid for raw materials and products sold is called gross profit. net profit. cost of goods. operating expense.

Cost of Goods

Since Amie deals with people from many different countries, she attempts to become sensitive to differences in their customs and traditions. Amie is developing social responsibility. competition. economic growth. cultural intelligence.

Cultural intelligence

The marketing concept is all about the wholesaler. customer. marketer. retailer.

Customer

Businesses are affected by social factors in the external environment because customer needs are affected by these factors as well. a business cannot survive without social networking. every business creates consumer products. customers no longer value quality.

Customer needs are affected by these factors as well.

It's important for businesses to provide products when customers need them. marketers need them. it's convenient for the business. it's convenient for retailers.

Customers need them

Jonathan has some extra money to spend this month, so he purchases an iPad. He doesn't need this product, but he wants it, making it a poor buying decision. discretionary item. technological product. consumer staple.

Discretionary item

Industry associations differ from regulatory agencies in that they have been created to protect consumers. exist to make a profit. are formed for social purposes only. don't have government authority.

Don't have government authority

Seeing a movie at a theatre would be considered a(n) __________ want. economic limited noneconomic unlimited

Economic

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

Economic and noneconomic

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

Economizing

When employees are working faster or better, they are increasing their value. efficiency. wages. benefits.

Efficiency

Businesses keep track of external changes as part of a process called lobbying. globalization. cultural intelligence. environmental scanning.

Environmental scanning

If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n) general partnership. "C" corporation. private corporation. "S" corporation.

General partnership

Economic factors can affect a business's operations by transforming family roles. eliminating the competition. creating new legislation. increasing or decreasing costs.

Increasing or decreasing costs.

Producers respond to consumers' positive economic votes by classifying their goods and services. increasing production. decreasing production. producing more industrial goods.

Increasing production

Which activities are likely to increase a firm's profit? Decreasing sales and increasing expenses Increasing supplies and decreasing production Decreasing supplies and increasing production Increasing sales and decreasing expenses

Increasing sales and decreasing expenses

Which of the following statements best describes the way that the U.S. economic system functions: The government is the primary decision maker, and occasionally it becomes the regulator. Individuals and businesses are the primary decision makers, while the government is the regulator. Individuals and businesses are the primary decision makers, and there is no regulator. Individuals are the primary decision makers, while businesses are the regulators.

Individuals and businesses are the primary decision makers, while the government is the regulator.

Private enterprise is based on the idea that everyone is better served when businesses regularly increase their prices. economic resources are controlled by the government. individuals are free to set their own goals. government determines where individuals will work.

Individuals are free to set their own goals

Which of the following statements regarding economic resources is true: Natural resources, human resources, and capital goods are often referred to as factors of production. As businesses grow and become more complex, they typically require fewer resources. Industrialized nations typically require fewer capital goods than developing countries. Similarly sized businesses within the same industry usually use identical resources.

Natural resources, human resources, and capital goods are often referred to as factors of production.

Which of the following actions must a business take as a result of political factors in the external environment: Looking for new technologies Adapting to changing values Developing cultural intelligence Paying taxes

Paying taxes

One of the results of freedom in the marketplace is that government decides how to use an individual's private property. businesses use resources efficiently. people and businesses can own things of value. people can buy anything they can afford that can legally be sold.

People can buy anything they can afford that can legally be sold.

Which of the following is a disadvantage of private enterprise: Careful use of resources Equal distribution of income Periods of unemployment Elimination of poverty

Periods of unemployment

What do business owners consider when they select a business ownership structure? Product versatility, advertising strategies, and personal circumstances Personal circumstances, financial needs, and type of business Personal circumstances, type of business, and product mix Product versatility, financial needs, and advertising strategies

Personal circumstances, financial needs, and type of business

Individual customers view products through constant lenses. general viewpoints. corporate filters. personal lenses.

Personal lenses

Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a host franchise. master licensee. piggyback franchise. strategic alliance.

Piggyback franchise

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

Raw-goods producers

In business terms, income is the money spent. produced. supplied. received.

Received

If expenses are greater than income, there's no reward. sales. guarantee. risk.

Reward

Besides motivation, what does profit provide business owners in particular? Satisfaction Energy Influence Determination

Satisfaction

Every new business owner must pay attention to forces operating outside the company that affect its chances for success. These forces are referred to as the external environment. cultural intelligence. demographics. competition.

The external environment

Which of the following is a characteristic of a product trade-name franchise: It is owned by shareholders. It is not open to the public. The franchisee can choose the name of the business. The franchisee has unlimited liability.

The franchisee can choose the name of the business.

One of the benefits of economic freedom is that it provides individuals with the right to buy anything. a good standard of living. the opportunity for success. equality in the workplace.

The opportunity for success

One of the characteristics of the form of business ownership known as an LLC is that the owners' personal property cannot be taken to pay the business's debts. this kind of business can last indefinitely. it is required to have at least three owners (members). the IRS collects taxes based on the LLC's gross income.

The owners' personal property cannot be taken to pay the business's debts.

The economic basis for the private enterprise economic system is the marketplace. competition. the profit motive. supply and demand.

The profit motive

Why are entrepreneurs important in a private enterprise system? They encourage the development of new products. They use resources inefficiently. They are responsible for deceptive advertising. They get rid of competition.

They encourage the development of new products.

Which of the following describes the services offered by trade industries: They are always full line. They are always limited. They vary from day to day. They may be limited or full line.

They may be limited or full line.

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

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose which laws they will obey. which taxes they will pay. how much they will be paid. where they will work.

Where they will work

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

Who buy and uses the product

brain drain occurs when

a country loses talented employees to better opportunities in other countries

You pay Burger King for the right to set up a location in Barcelona under the corporate headquarters' guidance and regulation. This is an example of

a joint venture

How have industry structure changes affected the current business environment? The manufacturing industry has disappeared. Organizations are less willing to change than in the past. Communication is slightly slower than it used to be. Business now moves faster than ever.

business now moves faster than ever

Globalization can be an advantage for businesses because it

can help them to cut costs for certain resources

Kelley makes sure her business runs smoothly and all employees have fast access to important information and the latest technologies. This is an example of which of the following characteristics of an adaptable organization: Cohesiveness Flexibility Cultural intelligence Open-mindedness

cohesiveness

Striving to get new products to the market first and win scarce customer dollars is an "adaptable" strategy often called competitive aggression. globalization. organizational learning. slack resources.

competitive aggression

Which of the following is a true statement about consumer demands: Consumers want value more than they want low prices. Consumers don't care about delivery times. Consumers want new product features. Consumers are less demanding than they were in the past.

consumers want new product features

Government is involved in settling business disagreements through the use of

courts

What characteristic has the globalization trend made it necessary for adaptable organizations to display? Agility Strong leadership Cohesiveness Cultural intelligence

cultural intelligence

Which of the following industries is part of the fast-growing services-producing sector of the economy: Education Manufacturing Agriculture Construction

education

The highest level of involvement in international business is

establishing a multinational firm

Of the following methods of entering a foreign market, which is the least risky: Licensing Creating wholly owned subsidiaries Establishing multinational firms Exporting

exporting

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

federal trade commission

The Polar Bear Publishing Company, a publisher of children's books, has made adjustments to its promotion and pricing strategies to suit the current market. This is an illustration of which of the following characteristics of an adaptable organization: Cohesiveness Flexibility Cultural intelligence Strong leadership

flexibility

Which of the following actions illustrates the strong leadership needed in an adaptable organization: Striving to reduce expenses at all costs Relying on past methods and successes Focusing on maximizing resources Looking at the big picture rather than individual employees

focusing on maximizing resources

Free exchange of ideas contributes to

greater business innovation

Which of the following is a result of globalization: Decreased competition Increased consumer spending Shrinking product life cycles Higher productivity

higher productivity

A popular product is said to be available. late. in demand. out of style.

in demand

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

interstate highways

Which of the following is a true statement about globalization: It involves the flow of ideas across national borders. Its pace is slowing down. It has had a minimal impact on the world. It is a purely economic term.

it involves the flow of ideas across national borders

Which of the following is a true statement about globalization: It involves the flow of ideas across national borders. Its pace is slowing down. It has had a minimal impact on the world. It is a purely economic term.

it involves the flow of ideas across national borders

Which of the following is a true statement about innovative management: Employees work under rigid job descriptions. It focuses more on functions than outcomes. Managers are more controlling than facilitative. It is more participative than traditional management.

it is more participative than facilitative

One of the biggest barriers that separates countries/regions is

language

Which of the following is a positive effect of government regulation: price controls increased inflation legal protection unfair competition

legal protection

A restaurant fails to meet government regulations, so it loses its __________ and is no longer allowed to do business.

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

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

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

make a profit

Wyatt's laptop is only a couple of years old, but he'd already like to replace it with a newer, updated model. What characteristic of the current business environment does this illustrate? Growth of service businesses Spending trends Globalization Shrinking product life cycles

shrinking product life cycles

Jodi needs $10,000 per month to operate her photography business. Last month, she made $13,000. The extra $3,000 are called competitive aggression. spending trends. consumer demands. slack resources.

slack resources

Seeing the "big picture" instead of smaller, individual parts is an organizational learning concept known as systems thinking. shared organizational vision. personal mastery. team learning.

system thinking

The two main sources of revenue used to pay the costs of government regulation are

taxes and borrowing

The technology that has had the most influence on globalization has been

the internet

Which of the following is a true statement about globalization and political barriers: In the future, there will be more political barriers between countries. The United States has very few trading partnerships with other countries. The world is much more politically open than it used to be. Many countries are sealed off from the rest of the world due to communism.

the world is much more politically open than it used to be