chapter 1 business test

Meria Het, a footwear company, designs formal and casual footwear for White American women. However, to increase its customer base, it introduces a line of footwear for Chinese women in the United States, even though they form only a small market in the country. Which of the following dimensions of the social environment does this scenario exemplify?

diversity

Marina, a garments manufacturing company, signed a contract with Tertch Tex, a textile company, to receive 2 million pounds of yarn at a rate of $2 per pound. However, Tertch Tex hikes up the price to $5 per pound just before the day of delivery. Marina files a lawsuit against Tertch Tex for breaking an enforceable contract and receives $100 million in compensation. In this context, which dimension of the business environment is affected the most?

economic environment

Judith plans to start a prosthetic company to help physically challenged people avail prosthetics at affordable prices. She researches and develops a cost-effective way of crafting durable prosthetics. In the context of factors of production, the given scenario exemplifies the concept of _____.

entrepreneurship

In the context of the economic environment of business, which of the following will most likely increase the cost of doing business for everyone involved?

ethical lapses

(t/f) Demographic factors include the milestones achieved during the developments in the field of computers, telecommunications, and other digital products.

false

(t/f) In the context of the history of American business, the "hard sell" emerged during the relationship era of marketing.

false

(t/f) The physiological environment is a key dimension of the business environment.

false

(t/f) The traditional retirement age in the United States is 60.

false

Gormath Inc., a shoe manufacturing company, employs 750 workers to create handcrafted shoes. In the context of factors of production, the employees of Gormath Inc. can be classified as _____.

human resources

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

land

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

loss

Twilight Glitters sells ornate diamond jewelry. The company obtains diamond ore from the Yakutia region of Russia. In this scenario, the ore obtained by Twilight Glitters can be classified as _____.

natural resources

In the context of the history of American business, during the _____, jobs became more specialized, increasing productivity and lowering costs and prices.

production era

Rayman Automobiles, an automobile manufacturing company, was founded in 1912. The company primarily focused on creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase its output and lower the prices of its products. As a result, automobiles became an affordable commodity. In the context of the history of American business, Rayman Automobiles was most likely founded during the _____.

production era

A small-scale consulting firm in Hawaii was struggling financially because it was unable to generate enough capital to run its business transactions. To generate capital, the firm decided to use web technologies and digital resources to build long-term associations with current customers and to reach out to new customers. In this scenario, the firm is using concepts that primarily originated in the _____ of American business history.

relationship era

In the context of the competitive environment of business, the rate at which a new product moves from conception to commercialization is referred to as _____.

speed to market

In the context of a business environment, computers, telecommunications, and other digital tools are considered to be part of the _____.

technological environment

In the context of the business environment, the creation of the World Wide Web is considered a component of the _____.

technological environment

(t/f) Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.

true

(t/f) Digital natives only spend when a business offers them value.

true

(t/f) In the context of career choices, less-routine abilities tend to be more rewarding for most people than routine skills.

true

(t/f) In the context of the diversity in the American population, Caucasians continue to represent the largest chunk of the population at 63%.

true

(t/f) In the context of your career choice, the broader economy will influence the level of your personal financial success.

true