Intro to Business Chapter 1-4
The definition of e-commence is
the selling and buying of products online
For businesses to succeed in today's environment, they need support from: Multiple select question. government the International Monetary Lending Corporation competitors social leaders
government social leaders
The supply concept refers to the relationship between the quantity of products produced and price. If the market price of a product increases, quantity supplied will Blank______. Multiple choice question. stay the same decrease increase
Increase
In the information age, a company's value is based on its: Multiple choice question. number of service employees manufacturing equipment quality processes intellectual capital
Intellectual Capital
Select all that apply. What are two purposes that nonprofit organizations may seek to achieve? filling a societal need filling an educational need increasing profits for shareholders increasing the stock price per share
filling a societal need filling an educational need
An economic system in which the market largely determines what products get produced, who gets them, and how the economy grows is a ______ economy. Multiple choice question. free-market correct command-market demand-social monopolistic-competition
free Market
New technologies that connect people all over the world and the increased amount of information available to institutional, wholesale and retail consumers have created: Multiple choice question. conflict between nations competing for new business greater control of customer accounts by the business that first has access to them greater levels of competition among businesses than ever before lower levels of competition between businesses than ever before
greater levels of competition among businesses than ever before
Equipment in hospitals, such as CAT scanners, PET scanners, and MRI scanners: Multiple choice question. improve the quality of services provided, but do not necessarily increase productivity are expensive, so they always increase productivity should be used more often hence increasing the productivity in hospitals increase productivity by increasing costs
improve the quality of services provided, but do not necessarily increase productivity
One of the main explanations for the relatively sharp increases in the U.S. manufacturing sector productivity is: Multiple choice question. today most manufacturing workers are college graduates improved technology makes the production process faster the increase in service sector jobs the corresponding decrease in the service sector productivity
improved technology makes the production process faster
Select all that apply What two factors are affected by the Federal Reserve's use of monetary policy? Multiple select question. interest rates unemployment rate exchange rate money supply
interest rates Money Supply
Expenditures on war and terrorism creates much debate because: Multiple choice question. most people want to spend the money on foreign aid people in the country do not want to support the troops sectors such as tourism grow more rapidly it drains money from the economy
it drains money from the economy
The real unemployment rate includes the percentage of the population: Multiple choice question. who are civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks who have given up on trying to find a job who are unemployed and have not applied for a job who are included in the standard unemployment rate and those who are underemployed, discouraged, and have looked for a job in the past year
who are included in the standard unemployment rate and those who are underemployed, discouraged, and have looked for a job in the past year
Why did Thomas Malthus believe that population growth would surpass the available resources?
Fast population growth seemed to surpass the growth of the food supply.
What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee? Multiple choice question. joint venture licensing importing franchising
licensing
Communities are improved when businesses pay taxes to the government. True False
True
Globalization has improved living standards in developing countries such as: Multiple choice question. the United States China and India Germany the European Union
China and India
Carlyle called economics the "dismal science" after reading the early work of Multiple choice question. Karl Marx. Adam Smith. Thomas Malthus. Milton Friedman.
Thomas Malthus.
What two areas have been especially affected by legal and illegal immigration? Multiple select question. Hospitals Entertainment Schools Travel
Hospitals schools
The resources of land, labor, capital, entrepreneurship, and knowledge are: Multiple choice question. needed by governments to succeed products of a country not important to the creation of wealth the factors of production
the factors of production
The service sector employs which percentage of the U.S. workforce today? Multiple choice question. 55 percent 75 percent 45 percent 85 percent
85 percent
Hugo lives in a country where all or most of the factors of production and distribution—such as land, factories, railroads, and stores—are owned by individuals. Based on this, Hugo lives in a ______ country. Multiple choice question. socialist capitalist communist federalist
Capitalist
The management of the money supply and raising and lowering interest rates by the Federal Reserve Bank is called Blank______ policy. Multiple choice question. monetary income regulatory fiscal
monetary
Free trade is the movement of goods and services among nations Blank______. Multiple choice question. without political but with economic barriers with political and economic barriers with political but without economic barriers without political or economic barriers
without political or economic barriers
The situation in which prices are declining is called: Multiple choice question. inflation disinflation stagflation deflation
Deflation
Many small businesses fail every year. True false
True
If prices continue to rise as the economy is slowing, then_____ is occurring.
stagflation
The term stakeholders refers only to those who own stock in a company. True false question.TrueFalse
False
What is the study of how resources are distributed for production of goods and services within a social system called? Multiple choice question. Finance Accounting Demograhics Economics
Economics
What form of business ownership is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a product or service in a given territory in a specified manner? Multiple choice question. franchising licensing contract manufacturing exporting
Franchising
Adam Smith believed Blank______ was essential to the survival of any economy. Multiple choice question. taxation government intervention the equal distribution of wealth freedom
Freedom
Select all that apply What two principles did Adam Smith believe essential to the survival of an economy? Multiple select question. Freedom of speech Freedom of religion Freedom to keep a business's profits Freedom to own land or property
Freedom to keep a business's profits Freedom to own land or property
Mark graduated from college a short time ago and is still looking for his first (dream) job. Mark is part of the unemployment category known as Blank______ unemployment. Multiple choice question. seasonal cyclical frictional structural
Frictional
What is the total value of final goods and services produced in a country in a given year called? Multiple choice question. Productivity Profit Gross domestic product correct Gross national product
Gross Domestic Product
What is a benefit of importing goods and services? Multiple choice question. It reduces entrepreneurial risk. It increases the prices of all other goods and services. It incentivizes people to bring new businesses to other markets. It produces absolute advantages for companies.
It incentivizes people to bring new businesses to other markets.
What two statements are characteristics that define a business? It has more than one employee. It seeks to earn a profit. It seeks to provide goods and services. It operates in more than one location.
It seeks to earn a profit. It seeks to provide goods and services.
When it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?
Licensing, exporting, franchising
Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that.... The risk of opening a business always pays off financially. Small businesses seldom fail. Almost all small businesses grow much larger. Many small businesses fail to be profitable.
Many small businesses fail to be profitable.
Over time, as negotiation occurs between buyers demanding products and sellers supplying products, the Blank______ will be determined. Multiple choice question. GDP factors of production CPI market price
Market Price
In recent decades, most capitalist countries have added social programs while communist countries have reformed and permitted such liberties as the right to own private property. These developments are an example of the trend toward: Multiple choice question. mixed economies social economies large economies public economies
Mixed Economies
______ help gauge the health of the economy by measuring the levels of inflation, disinflation, deflation, and stagflation. Multiple choice question. Stock indexes Cost indexes Unemployment rates Price indexes
Price Indexes
Technology improves the productivity of a farmer by enabling access to the latest prices for commodities and using satellites to view his fields. What are two other ways that technology has improved the productivity of a farmer? Multiple select question. Using high tech equipment to minimize the farmer's yields to reduce the costs of fertilizer and seed Accessing websites to communicate with farmers around the world using co-ops to reduce the costs of farming Showing the farmer how to seed and fertilize to get the best yields
Showing the farmer how to seed and fertilize to get the best yields Accessing websites to communicate with farmers around the world
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? Employees Shareholders Stockholders Stakeholders
Stakeholders
Equipment such as phones, fax machines, and computers are all examples of which of the elements of the business environment? Multiple choice question. Competitive Technological Economic Legal and social
Technological
When companies create a workplace that promotes inclusion and belonging, they are Multiple choice question. less likely to be profitable. practicing stereotypical behavior. creating competition among employees. effectively managing diversity.
effectively managing diversity.
Which statement regarding technology and productivity is true? Multiple choice question. The cost of adding technology to services does not improve the quality of the service offered. Technology may add to the quality of the service provided but not to the output per worker. Technology affects worker output but does not improve the service provided.
Technology may add to the quality of the service provided but not to the output per worker.
What is the unemployment rate? Multiple choice question. The percentage of civilians who are not of legal working age and who do not have a job The percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks The total number of people who have lost a job in the past year The percentage of the population that have been out of work at some point in their working career
The percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks
Select all that apply In which three ways are taxes used to influence the economy? Multiple select question. The raising and lowering of tax rates are used to stabilize the economy. High tax rates encourage business ownership. Low tax rates give the economy a boost. High taxes draw the money away from the private sector.
The raising and lowering of tax rates are used to stabilize the economy. Low tax rates give the economy a boost. High taxes draw the money away from the private sector.
Select all that apply What two outcomes may result if the price of the goods and services in the Consumer Price Index are increasing too rapidly? Multiple select question. Consumers can buy more for their dollars. Consumers can buy less for their dollars. There is a strong chance that deflation is occurring. There is a strong chance that inflation is occurring.
There is a strong chance that inflation is occurring. Consumers can buy less for their dollars.
Select all that apply What are two characteristics of mixed economies? Multiple select question. They have no private ownership of business, only businesses owned by the state. They exist when the distribution of resources involves elements from more than one economic system. They are slowly disappearing, since they are unsuccessful. They contain elements of more than one system.
They exist when the distribution of resources involves elements from more than one economic system. They contain elements of more than one system.
Select all that apply What are two ways that socialism affects businesses? Multiple select question. through higher levels of taxation by limiting membership in labor unions through fewer regulations about the environment because government owns many of the basic businesses such as utilities
Through higher taxation because government owns many of the basic businesses such as utilities
The difference between revenues and the expenses needed to run the business will be shown as either a profit or a loss. True False
True
What is the phenomenon known as brain drain? Multiple choice question. The feeling experienced by many young entrepreneurs who feel the pressures in starting a new business The situation that occurs when young interns leave to work for companies that pay higher wages The economic situation felt in a country that has many services, but too few taxes to pay for them When the best and brightest individuals in a country leave to work in other countries
When the best and brightest individuals in a country leave to work in other countries
Select all that apply Socialism has several negative outcomes such as: Multiple select question. a brain drain fewer incentives to work hard fewer employee benefits higher taxes
a brain drain fewer incentives to work hard higher taxes
What occurs in contract manufacturing? Multiple choice question. a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark a business sells others the right to use the business name and sell a product or a service in a given territory in a specified manner two firms in related industries join together to manufacture a new product branded with the names of both firms a firm secures the right to manufacture another firm's product or use its trademark for a royalty fee
a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark
What is inflation? Multiple choice question. a long-term economic slowdown a general rise in the price of goods and service over time a steep drop in the price of goods and services a sudden growth in the stock market
a general rise in the price of goods and service over time
The definition of Blank______ advantage is the advantage that exists when a country has a monopoly on producing or is able to produce something more efficiently than all other countries. Multiple choice question. competitive comparative absolute exclusive
absolute
Job seekers should recognize that small businesses in the United States: Multiple choice question. are unable to compete with large companies. export less due to lack of government support. account for about one-third of the total U.S. exports. do not export enough to be a source of jobs.
account for about one-third of the total U.S. exports.
A benefit of free markets is that it Multiple choice question. allows for more government regulation. is not affected by the forces of supply and demand. keeps prices of goods relatively stable. allows for open competition among companies.
allows for open competition among companies.
When the government spends money on such projects as roads and bridges, it is expected that the money will trickle down to the consumers eventually leading to: Multiple choice question. an increase in the government's profits disinflation an increase in consumer spending wasting the government's money
an increase in consumer spending
What is the most likely reason you see "made in China" stickers on products sold in the United States? Multiple choice question. increase in demand for foreign made products an increase in globalization government embargoes on domestic products poor quality of U.S. products
an increase in globalization
A business can be defined as .... any activity that seeks to provide goods and services to others while operating at a profit. an organization that provides services to a community. a socially responsible organization that is a not for profit. any group of individuals that come together to achieve a goal.
any activity that seeks to provide goods and services to others while operating at a profit.
In a free market, the prices of products exchanged in the market Blank______. Multiple choice question. will be set by buyers will be set by producers unless the government intervenes are negotiated by buyers and sellers are always smaller than they should be
are negotiated by buyers and sellers
Global trade is measured using two key indicators known as the: Multiple select question. equilibrium point market price balance of trade balance of payments
balance of trade balance of payments
Why might you choose to work for a company instead of being an entrepreneur? Multiple choice question. because the company assumes the risk if the business fails correct because being a company employee is riskier and more rewarding because you get to keep all the profits made by the business because you get the freedom to make the decisions that control the business
because the company assumes the risk if the business fails correct
The economic system in which the government largely determines what products get produced, who gets them, and how the economy grows is called a Blank______. Multiple choice question. free market economy market economy command economy correct utopian economy
command Economy
Perfect, monopolistic, oligopoly, and monopoly are four different degrees of Blank______. Multiple choice question. competition market share sole proprietorships organizational structures
competition
Select all that apply What are three benefits of a free market economy? Multiple select question. competition that benefits consumers with better prices and service income inequality for those unable to work in business encouraging efficiency among competing businesses the opportunity for people to work their way out of poverty
competition that benefits consumers with better prices and service encouraging efficiency among competing businesses the opportunity for people to work their way out of poverty
Select all that apply Businesses can be more successful by responding to a customer's needs and wants they track using: Multiple select question. databases that use bar codes to track customer's purchases databases of customer buying preferences competitors' patented information databases that track a customer's specific choices
databases that use bar codes to track customer's purchases databases of customer buying preferences databases that track a customer's specific choices
The quantity of products that people are willing to buy at different prices at a specific time is referred to as Blank______. Multiple choice question. supply equilibrium quantity demand market quantity
demand
The study of the characteristics of human populations such as size, density, age, race, gender, and income is known as Blank______. Multiple choice question. psychographics economics demography human science
demography
Export Assistance Centers work with small and medium-sized businesses who wish to get involved in Multiple choice question. marketing research. dumping. indirect exporting. direct exporting.
direct exporting
GDP, unemployment rate, and price indexes are considered the three major __ indicators. Multiple choice question. demographic financial economic regulatory
economic
Huge differences in the wealth of relatively similar countries such as North and South Korea are an example of how different ______ and political conditions affect businesses. Multiple choice question. cultural social economic geographic
economic
Select all that apply Select three elements that are part of the business environment. Multiple select question.economic and legal environments financial environment corporate structure technological environment competitive environment economic and legal environments financial environment corporate structure technological environment competitive environment
economic and legal environments technological environment competitive environment
The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals is __. Multiple choice question. economics correct capitalism economic philosophy socialism
economics
Companies strive for zero defects in making their products because Multiple choice question. it increases the cost of waste it increases customer satisfaction it creates a lot of waste and byproducts they know it is not really an achievable goal
it increases customer satisfaction
There are more than 7 billion potential customers in 195 countries around the globe. Each country possesses unique materials and skills, and as technology advances, communication barriers are being brought down. Because of this, Blank______. Multiple choice question. conducting business globally is not an increasing trend there are too many differences to be able to successfully conduct business globally the United States should shelter itself from competitors it is important to conduct business globally
it is important to conduct business globally
An example of the effect of globalization on U.S. consumers is Multiple choice question. many goods we use are now produced offshore, increasing delivery times and costs. that there has been an increase in the cost of health care. many goods and services are provided more cheaply by outsourcing their production to India or China. many U.S. employees have much better jobs.
many goods and services are provided more cheaply by outsourcing their production to India or China.
What should governments of developing countries do to actively promote entrepreneurship? Multiple choice question. encourage government ownership of business minimize the interference with the free exchange of goods and services impose tariffs on the country's exports increase taxes to minimize competition
minimize the interference with the free exchange of goods and services
The businesses that will succeed in today's economy will be those that are: Multiple choice question. most responsive to customer wants and needs able to use databases using traditional methods focused on producing most efficiently
most responsive to customer wants and needs
The term "factors of production" refers to the: Multiple choice question. natural, human, and financial resources used to produce goods and services people who create wealth in a country the factories and infrastructure that produce goods the processes needed to produce goods and services
natural, human, and financial resources used to produce goods and services
Businesses improve the communities in which they operate by Multiple choice question. paying taxes correct eliminating competition marketing products advising the government
paying taxes
Select all that apply What are the four different degrees of competition within free markets? Multiple select question. perfect competition monopolies oligopolies collusion cartels monopolistic competition
perfect competition monopolies oligopolies monopolistic competition
Gross Domestic Product refers to the total value of goods and services produced in a country in a given year. The goods and services can be: Multiple select question. produced by foreign owned companies located in the country produced by domestically owned companies produced by foreign owned companies located outside of the country produced by domestically owned companies in other countries
produced by foreign owned companies located in the country produced by domestically owned companies
The difference between revenues and the expenses needed to operate the business is its Blank______. sales and costs profit or loss costs salaries
profit or loss
A positive goal of Blank______ is social equality, while a negative outcome is taking income from citizens at extremely high rates. Multiple choice question. communism socialism capitalism
socialism
The idea that some basic businesses such as steel mills, coal mines and utilities, should be owned and controlled by the government is indicative of a Blank______ economic system. Multiple choice question. communist capitalist free market socialist
socialist
What are the four types of unemployment? Multiple select question. structural seasonal cyclical active flexible frictional
structural cyclical frictional seasonal
The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time is referred to as Blank______. Multiple choice question. equilibrium point demand supply equilibrium quantitysupply
supply
When the government computes the cost of goods and services, including housing, food, apparel, and medical care, to see whether or not they are going up or down, they are measuring Blank______. Multiple choice question. the unemployment rate the supply and demand curves the consumer price index gross domestic product
the consumer price index
Eduardo owns a farm in a country where taxes are very high and where the government openly considers the possibility of taking over the agricultural sector. Eduardo stopped investing in his farm and only works enough hours to be able to grow the food necessary for him and his family. Eduardo's behavior demonstrates that: Multiple choice question. farmers have poor management skills and prefer not to work too hard people are lazy and will not work unless they have a good reason the government can force people to work harder and improve everybody's life the freedom to own property and keep the profits from work is necessary to the survival of an economy
the freedom to own property and keep the profits from work is necessary to the survival of an economy
In an economic and political system called communism, Blank______. Multiple choice question. production is based on free markets there is an abundance of goods and services the government owns almost all the factors of production buyers and sellers decide what needs to be produced and by how much
the government owns almost all the factors of production
According to Adam Smith, as long as farmers, laborers, and businesspeople received economic reward for their efforts, they would work hard. As a result of this self-directed desire to gain, the economy would prosper and everyone would become wealthier. Smith called this process: Multiple choice question. the circular economy self support the invisible hand economic feedback
the invisible hand
Select all that apply Which two factors are key in making the global environment of business so important that it encompasses all the other environmental influences? Multiple select question. the negotiation of trade agreements among nations fluctuating currency exchange rates the growth of global competition government protection of domestic producers
the negotiation of trade agreements among nations the growth of global competition
What does the consumer price index measure? Multiple choice question. the pace of inflation or deflation the level of supply and demand the market price of a basket of goods the overall wealth of an economy
the pace of inflation or deflation
What are business cycles? Multiple choice question. the time it takes from producing a product to selling it the reporting periods that companies must declare their earnings the quarterly time periods that a government uses to report GDP and unemployment rates the periodic rises and falls that occur in economies over time
the periodic rises and falls that occur in economies over time
Managers today must be sensitive to differing cultural backgrounds because: Multiple choice question. there are heavy fines and penalties for insensitivity the workforce is increasingly diverse, with workers around the world it is illegal not to be aware of diversity it is easier than ignoring them and treating everyone the same
the workforce is increasingly diverse, with workers around the world
An important effect of changed communication technology is that Multiple choice question. banks are more willing to lend to small businesses with few resources it is easier for those with few resources to get loans and capitalize their companies it is harder for those with fewer resources to compete with large companies those with fewer resources are able to compete with large companies through the internet.
those with fewer resources are able to compete with large companies through the internet.
What is the goal of a nonprofit organization? Multiple choice question. to make a profit so as to start new businesses to make money for the people who start them to provide a lot of jobs and improve the economy to make a contribution to the welfare of society
to make a contribution to the welfare of society