Introduction to business unit one exam, (chapters 1-7)

In the context of today's business environment, which of the following statements is true of millennials?

They can be trained and developed to fill the leadership gap that is being created by the retirement of baby boomers.

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

loss

Menoth, a recreational resort for the elderly, saw a sharp increase in its customers in the last decade compared to the period between 1996 and 2006. This was because 65% of working individuals retired in the last decade. Identify the dimension of the social environment that this scenario exemplifies.

Aging population

In the context of the competitive environment of business, which of the following can be a key source of competitive advantage?

Speed-to-market

In the context of the global environment of business, the migration of jobs from the United States relates closely to the global movement toward _____, which is an international economic and political movement designed to help goods and services flow more easily across international boundaries.

free trade

Richard is a technical analyst at a marketing firm. He is highly regarded by his peers and supervisors who always seek his advice while making important decisions for the company. In this scenario, Richard can be classified as a(n) _____.

human resource

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

production 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 the social environment of business, which of the following is likely to happen as the American population rapidly ages?

Creative companies will reimagine their current products to serve older clients.

Which of the following is an example of a nonprofit organization?

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

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

Industrial titans exploited workers and decimated the environment.

In the context of factors of production, which of the following statements is true of capital?

It does not include money.

In the context of factors of production, which of the following is an entrepreneurial "must"?

Protection from corruption

Which of the following statements is true of nonprofit organizations?

They employ people and take in revenue.

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 factors of production, the value of all natural resources tends to:

rise with high demand, low supply, or both.

Despite having a small population and severely limited natural resources, Hong Kong has consistently ranked among the richest regions in Asia. The prime reason behind this is:

the active encouragement of entrepreneurship by the government.

Temont Esson, a pharmaceutical company, saw a drastic increase in its sales in 2016 when compared to 2015. A survey showed that the growing percentage of the elderly was directly responsible for improving the company's sales. Identify the dimension of the social environment that this scenario exemplifies.

Aging population

Torino Mex, a men's fashion boutique, is renowned for creating designer clothes for Latino Americans. However, it introduced a new line of designer clothing that especially caters to young Hispanic Americans to widen its customer base. Which of the following dimensions of the social environment is highlighted in this scenario?

Diversity

Verti, a North American country, engages in business with Jerg, a South American country. Verti imports agricultural products from Jerg, whereas Jerg outsources its technological operations to workers in Verti. The two nations are able to carry out these business transactions with minimal tax implications. The given scenario most likely exemplifies the concept of _____.

Free Trade

In the context of the history of American business, which of the following occurred during the entrepreneurship era?

The assembly line became standard across major manufacturing industries.

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?

The economic environment

Renault and Renoir, a law firm, is infamous for influencing witnesses with the use of bribes. Because of this corruption, the law firm has won many cases that it would have otherwise lost. In this context, which dimension of the business environment is affected the most?

The economic environment

In the context of the history of American business, which of the following statements is true of the industrial revolution?

There was a loss of personal pride in the production process.

Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.

True

Digital natives only spend when a business offers them value.

True

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

True

In the context of the diversity in the American population, Caucasians continue to represent the largest chunk of the population at 63%.

True

In the context of your career choice, the broader economy will influence the level of your personal financial success.

True

The central banking system of the United States is the Federal Reserve.

True

Value is the relationship between the price of a good or a service and the benefits that it offers its customers.

True

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?

Unprecedented production efficiency

In the context of factors of production, the synthetic resources that a business needs to produce goods or services are referred to as _____.

capital

Russia and China are both rich in natural resources and human resources, and both countries have a solid level of capital. Yet, neither country is wealthy. The missing ingredient seems to be _____.

entrepreneurship

Susan, the Human Resources Director at Trangend Cosmetics, is responsible for recruiting, hiring, and training employees. In the context of the given scenario, Susan is a _____.

factor of production

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

Despite the U.S. economic crisis of 2008, research suggests that:

most budding entrepreneurs still plan to launch their firms in the next three years.

Unity Prax is a manufacturer of bronze sculptures. It obtains copper ore from the Pima County in Arizona. In this scenario, the copper ore obtained by Unity Prax can be classified as _____.

natural resources

During the production era, managers focused mostly on customer satisfaction and not on production efficiency.

False

Which of the following statements is true of profit in a business?

It is the financial reward that comes from starting and running a business.

In the context of the history of American business, which of the following statements is true of the marketing era?

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

Roggenok, a textile company, owns 15 factories that produce clothing materials. The company has 1500 employees working in shifts. In this scenario, the factories owned by Roggenok can be classified as _____.

capital

In the context of the competitive environment of business, customer satisfaction comes in large part from:

delivering unsurpassed value.

In the context of the history of American business, the _____ emerged in the second half of the 1800s, by building on the foundation of the industrial revolution.

entrepreneurship era

Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are part of its staff. Children's Campground advertisements indicate that the program relies heavily on its _____ factor to provide its services.

human resources

In the context of the history of American business, during the entrepreneurship era, _____.

many industrial titans forced out their competitors

Mercy's Apparels, a fabric company, was established post World War II with the aim of catering to the demands of consumers looking for affordable quality clothing. To differentiate itself from its competitors, the company developed a distinctive identity as the producer of budget clothing. In the context of the history of American business, Mercy's Apparels was most likely established during the _____.

marketing 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

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.

speed-to-market

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 _____.

Capital

Operth, an automobile company, hires people from various cultural and social backgrounds. This allows the company to enjoy a competitive advantage by developing innovative products that serve a wide customer base. Which of the following dimensions of the social environment does this scenario exemplify?

Diversity

Minsk Revel, a food and beverage company, recently faced criticism when customers found worms in some of its products. As a result, the company was obligated to have a better level of transparency between its production processes and its consumers. Identify the dimension of the social environment that this scenario exemplifies.

Ethics

The employees of Carrick Inc., an electronics company, are requesting the management to adopt a new performance appraisal process to allow better transparency between different levels of the company. They propose to have one-on-one feedback sessions that would help reduce various appraisal biases. Identify the dimension of the social environment that this scenario exemplifies.

Ethics

Welterwes, a multinational company, has 15 members in its top management. These executives have to abide by the same company policies as the other employees. However, when it came to light that the executives were not following the appropriate office timings and were abusing their power, the HR department had to pass new policies aimed specifically at the top management. These policies stated that the executives would lose a part of their monthly commission if they failed to abide by the company policies. Identify the dimension of the social environment that this scenario exemplifies.

Ethics

Samuel is struggling to run his start-up in his locality because local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom in a business environment, which of the following is adversely affecting Samuel's start-up?

Excessive regulation

Marsa and Hunare are Asian nations. Jorwen, Kellpit, and Denqor are North American nations. These five nations recently signed a multilateral agreement that allows them to carry out business operations with minimal tax implications. This arrangement would allow Jorwen, Kellpit, and Denqor to import goods from Marsa and Hunare, which have low labor costs and high production quality. This agreement among these five nations is most likely possible because of the _____.

General Agreement on Tariffs and Trade

In the context of the history of American business, which of the following statements is true of the production era?

The assembly line became standard across major manufacturing industries.

Chargon Flasks, a restaurant specializing in Asian cuisine, focuses solely on customer satisfaction. It allows patrons to customize the quantity of their meals and only charges them half the price if their meal is unsatisfactory. The restaurant also has a voluntary service charge policy. In this context, which dimension of the business environment is affected the most?

The competitive environment

Leading-edge companies have focused on customer satisfaction, with a goal to develop long-term, mutually beneficial relationships with customers. Which of the following dimensions of a business environment does this illustrate?

The competitive environment

Lint Port, an apparel company, offers personalized customer service in all its stores and engages in post-purchase communication to take feedback from its customers. It also gives gift vouchers with customized messages to its customers on their birthdays. The company values the importance of building long-term customer relationships. In this context, which dimension of the business environment is affected the most?

The competitive environment

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?

The economic environment

Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?

The economic environment

Moat & Meet, a travel agency, wants to widen its customer base. It adopts a strategy that allows customers to visit their favorite destinations through a virtual reality (VR) machine before visiting the place in person. In this context, which dimension of the business environment is affected the most?

The technological environment

Onyi Muro, a boutique restaurant, has dining tables with interactive screens on them. The customers can place their orders, watch their food being prepared, and provide feedback to the chefs using these screens. In this context, which dimension of the business environment is affected the most?

The technological environment

Ryron Bank, a private bank, introduced Internet banking facilities for its customers after the government demonetized hundred dollar bills. Customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. In this context, which dimension of the business environment is affected the most?

The technological environment

Spearhead Flight Academy uses flight simulation games to train its students in the basics of aviation. It uses these games to make its students more effective and efficient. In addition, it also offers six months of flight training. In this context, which of the following dimensions of the business environment is affected the most?

The technological environment

Ricord Books, a publication house, faced huge losses after 2008. The majority of its readers were born during the late 1950s, whose population was rapidly declining. Most modern readers preferred using e-books rather than reading from hard copies. This resulted in a decrease in the sales of Ricord Books. Identify the dimension of the social environment that this scenario exemplifies.

aging population

As life spans increase and birth rates decrease, the American population is rapidly aging. This may most likely lead to:

an increase in taxes as state and federal governments stretch to serve the aging population.

Western Transit Bank has 150 automated teller machines (ATMs) across the country. Customers can use these machines to withdraw money, deposit money in their bank accounts, check their account balance, and transfer money to other accounts. These machines enable Western Transit Bank to carry out some of its operations smoothly. In the given scenario, the ATMs of Western Transit Bank can be classified as _____.

capital

High taxation, excess regulation, and limited choices in a business environment are likely to result in a(n):

decrease in entrepreneurial activities.

Vertivius, a gaming device manufacturer, entered the gaming market only after conducting a thorough survey of the potential customer base. Vertivius waited for five years before introducing its unique product—the first handheld gaming device—in the market. It introduced this product after ensuring that it would be embraced by the customers. In this scenario, Vertivius:

is a leading-edge firm.

In the context of customer satisfaction, a product has value when:

its benefits to the customer are equal to or greater than the price that the customer pays.

Niconti Inc. sells premium quality tea leaves. The company owns 400 acres of land on which it has established a large tea plantation with a tea processing factory. In this scenario, the land owned by Niconti Inc. can be classified as _____.

natural resources

Pride of Peers is a bakery chain that specializes in preparing homemade confectionaries. The company donates most of its earnings to rehabilitation centers for war victims and keeps just enough to buy raw materials. The primary goal of the company is to contribute to the rehabilitation of war victims. In this scenario, Pride of Peers would most likely be classified as a _____.

nonprofit organization

Monclaire, a chain of luxury hotels, uses social media for promotional purposes. It also maintains a dedicated interactive Web page where customers write detailed reviews and discuss their experiences. In the context of the history of American business, Monclaire most likely belongs to the _____.

relationship era

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

technological environment