Unit 5 Test POB
amount of money paid for a good service or resource
price
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
The possibility of business failure or loss
Business risk
governments establish the basic rules of the game and are responsible for the production of public goods
capitalism
When Caring Companions and Smiling Pets merged two years ago, what was the most likely effect on the primary business activities of both companies? Each primary business activity became two smaller business activities. All of the primary business activities combined into two distinct activities. Each primary business activity combined with the matching activity of the other firm. All of the primary business activities combined into one activity.
Each primary business activity combined with the matching activity of the other firm.
Into what two categories can wants be divided? Unlimited and limited Economic and noneconomic Unlimited and economics Unlimited and noneconomic
Economic and noneconomic
All of the world's people are willing and able to work. T/F
False
Owners of resources compare relative prices to determine where they can most advantageously buy their resources T/F
False
The choices others make depend on the value of the items to you. T/F
False
Which of the following is an example of a speculative business risk? A supplier's shipment is lost in transit. A cutomer is injured at a business and sues the company. A cashier gives unauthorized discounts to friends. A special promotion fails to increase sales.
a special promotion fails to increase sales
system of relatively competitive markets
capitalism
One way in which government protects private property is to provide Federal Reserve Banks. patents or copyrights. fire insurance policies. local governmental programs.
Parents or copy
Which of the following behaviors demonstrates the primary business activity of strategic management: Recruiting appropriate employees Regularly updating business processes Planning and organizing for the future Obtaining funds for business projects
Planning and organizing for the future
Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity that the bread shop will likely partake in before the release: Promoting the new bread through advertising Collecting information on last year's new breads Creating a system for storing new bread recipes Planning for the long-term results of introducing new breads
Promoting the new bread through advertising
Which of the following activities demonstrates human resources management: The business includes top-level managers in long-term planning. The business gives its preferred customers a special discount. The business takes care of the responsibilities associated with having employees. The business acts on new information about a competitor.
The business takes care of the responsibilities associated with having employees.
What are the three basic economic questions? When will products be produced, what products will be produced, and how will products be allocated When will products be produced, how will products 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
All economic systems must determine which goods and services will be available for public use and which for private use. T/F
True
Some developing countries lack the technology to tap their natural resources. T/F
True
Some natural resources are difficult or costly to obtain. T/F
True
Which one of the following groups of words best describes wants: Limited, unchanging, and competing Unlimited, changing, and competing Limited, changing, and compensating Unlimited, unchanging, and compensating
Unlimited, changing, and competing
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
Brain drain" occurs when businesses outsource jobs to other countries. people who speak different languages try to communicate with each other. consumers spend too much time shopping online. a country loses talented employees to better opportunities overseas.
a country loses talented
what primary economic question is what goods and services should be produced?
allocation
Why should a business practice good ethics? An unethical business will go bankrupt. An ethical business contributes toward its own success. The government will fine an unethical business. An ethical business makes more money than all its competitors.
an ethical business contributes toward its own success
Which is an example of a Manufacturer? Great Clips Walmart Apple Target
apple
One difference between business ethics and the law is that business ethics are enforced by government. must be published. are often unwritten are easy to determine.
are often unwritten
Two factors involved in determining the value of a resource, good, or service are availability and demand productivity and opportunity costs availability and trade-offs demand and economizing
availability and demand
Two factors involved in determining the value of a resource, good, or service are productivity and opportunity costs availability and trade-offs. demand and desires. availability and demand
availability and demand
Which is an example of an economic service? Baseball glove Car stereo Barber shop Tennis shoes
barber shop
In economics, capital goods include trees and water mental and physical work buildings and equipment labor and management
buildings and equipment
in economics, capital goods include labor and management trees and water. buildings and equipment mental and physical work.
buildings ans equipment
Which of the following is a common way for a divisional organizational structure to be broken down: By manager By job type By product By function
by product
Which of the following terms refers to the flow of authority within an organization: Division of labor Chain of command Functional structure Innovation
chain of command
most economic issues of production and distribution are resolved through central planning and control
command economy
A company goes bankrupt because of its unethical accounting practices. The reason for this unethical behavior is that the action is committed by unethical employees. not illegal. acceptable in a foreign culture. acceptable within the industry.
committed by unethical employees
excruciatingly detailed and comprehensive resource allocation decision making by the central government.
communism
government ownership and control of most resourced and the means of production
communism
a local dry cleaner that cleans suits and dresses is selling
consumer services
The ultimate goal of all economic activity is consumption. production exchange distribution
consumption
The ultimate goal of all economic activity is Distribution Production Consumption Exchange
consumtion
Carefully selecting goods or services to sell is an example of handling business risks by _______________ the risk. avoiding controlling bypassing transferring
controlling
Government is involved in settling business disagreements through the use of negotiation. force. courts. fines.
courts
Into what two categories can wants be divided? Unlimited and limited Unlimited and economics Economic and noneconomic Unlimited and noneconomic
economic and noneconomic
Nathan is a project manager in charge of four other employees. He has divided up responsibilities and assigned them to specific team members to work on. This is known as delegation innovation unity of command the scalar principle
delegation
At a hair salon, one employee washes customers' hair, another employee cuts it, and another dries and styles it. This allows the employees to make the most efficient use of their time and illustrates an organizational principle known as authority. innovation. division of labor. span of control.
division of labor
what kind of risk is competition
economic
Which of the following is one of the four pillars of a business's social responsibility: Universal responsibility Economic responsibility Media responsibility Political responsibility
economic responsibility
Which type of risk high unemployment rate causes a downturn in the retail sales for the year
economic risk
what kind of risk is inflation
economic risk
Risks that result from changes in overall business conditions
economic risks
institutional framework of formal and informal rules that a society uses to determine what to produce, how to produce and how to distribute goods and services
economic system
Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is a producer creating scarcity increasing distribution economizing
economizing
Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is: economizing increasing distribution creating scarcity a producer
economizing
the ability to do something or produce something without wasting materials, time, or energy
efficiency
what primary economic question is how should goods and services be produced
efficiency
You decide not to take a certain action because you know it's the wrong thing to do. You have made this decision based on your laws ethics regulations peers
ethics
What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments? Distribute Produce Consume Exchange
exchange
A U.S. company would decide to offer its products in other countries as a reason to: subsidize developing countries. sell obsolete, outdated products. provide jobs to people in other countries. expand to new, untapped markets.
expand to new untapped markets
Which is the least risky approach to taking your Business global? Export your product a Joint Venture a Wholly-Owned Subsidiary a Franchise agreement
export your product
In the U.K., prices are expressed in dollars and cents T/F
false
Producers provide what are the most profitable, selling products at the lowest prices the market will bear. T/F
false
With utility, a consumer's or a business's level of satisfaction is measured at any point in time because a level of satisfaction remains constant over time. T/F
false
Which of the following regulatory agencies would be concerned with price fixing and unfair competitive practices: Federal Communications Commission National Labor Relations Board Consumer Product Safety Commission Federal Trade Commission
federal trade commision
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 shared time flextime just-in-time lead time
flextime
Which of the following is an industrial good: Flour for a bakery Matt's cell phone Emily's home computer Holiday flowers for your wife
flour for a bakery
Which is an example of a Manufacturer? Walmart Ford Motor Company Great Clips Target
ford motor
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
An example of performing business activities in an "out of the ordinary" way is when a business begins long-term planning and organization. hires an outside firm to perform its marketing. offers a new product in a popular product line. operates as the link between customers and products.
hires an outside firm to perform its marketing
Which of the following economic resources is responsible for combining the other resources to produce goods and services: Natural resources Nonrenewable resources Human resources Capital goods
human resources
Which 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
which occurs when the supply of individuals who are able and willing to work diminishes capital goods become limited capital goods become unlimited human resources become unlimited human resources become limited
human resources become limited
Risks caused by human errors as well as the unpredictability of customers, employees, or the work environment
human risk
One factor that might limit the human resources available for certain jobs is a/an: good safety record organized training program inadequate pay level appealing company image
inadequate pay level
Which of the following is an outside factor that affects the business environment? Conflict negotiation Industry competition Staff organization Information management
industry competition
What do service businesses sell? Intangible activities Retail merchandise Wholesale merchandise Raw goods
intangible activities
Wholesalers supply the goods that will be sold to other wholesalers to government agencies at a discount to retailers or used by businesses in their operations
intangible activities
Which of the following is a public good that is provided by government: New automobiles Private schools Interstate highways Marketing research
interstate highways
Making sure that a business has enough of a product in stock without having too much on hand is the goal of quality control. production human resources management. inventory management.
inventory management
Unethical business practices may lower a company's stock prices because the government fines unethical companies. unethical companies usually go bankrupt. investors prefer companies they perceive to be ethical. employees resign from unethical companies.
investors prefer companies they perceive to be ethical
A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action benefits the community. is committed by unethical employees is acceptable within the industry is acceptable in foreign cultures
is acceptable within the industry
A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action is not illegal. doesn't hurt anyone benefits the community. is committed by unethical employees.
is not illegal
Which of the following is an advantage of using the divisional organizational structure: It balances conflicting organizational objectives It can create better customer experiences. It's unpredictable in nature. It can encourage competition
it can create better customer experiences
Which of the following describes the functional organizational structure: It includes traditional departments, such as sales and marketing It is a combination of two other organizational structures. It is the newest organizational structure being used. It is separated by divisions, such as product or process
it includes traditional departments such as sales and marketing
Which of the following describes the matrix organizational structure: It is separated by product lines. It includes only traditional departments, such as sales and marketing. It is a combination of two other organizational structures. It is the oldest organizational structure being used.
it is a combination of two other organizational structures
Which of the following is a true statement about breaking the law: It is acceptable in most industries. It may have different consequences than breaching ethics. It is necessary for business success. It will make a company more popular.
it may have different consequences than breaching ethics
Pepsi had decided to build a new manufacturing facility in Brazil. They will own this plant together with a local Brazilian partner. This project is a: Wholly-owned subsidiary Joint venture Franchise Licensing
joint venture
Financial analysis occurs when a business keeps accurate expense records. plans for long-term success. effectively retrieves data. communicates with potential customers.
keeps accurate expense records
One factor that might limit the human resources available for certain jobsis a/an: lack of required skills appealing company image good safety record organized training program
lack of required skills
The amount of teamwork included in an organizational design is often referred to as division of labor delegation. lateral relations staff authority.
lateral relations
Which of the following is a positive effect of government regulation: Unfair competition Legal protection Price controls Increased inflation
legal protection
A restaurant fails to meet government regulations, so it loses its __________ and is no longer allowed to do business. disposable income license price controls tariffs
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 franchising exporting a joint venture.
licensing
A business with poor ethics is likely to lose customers. beat the competition. avoid fines. decrease its financial risk.
lose customers
Which of the following government actions is most likely to stimulate the economy: Raising the prime interest rate Borrowing more money Lowering tax rates Printing less money
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 provide a safe working environment. make a profit. provide the best products. save the environment.
make a profit
Some people believe that a business's only true ethical obligation is to protect the environment. make money provide jobs. contribute to charity.
make money
Economic votes" are cast by consumers each time they Participate in market research Visit a business Respond to a survey Make a purchase
makes a purchase
A producer is someone who sells products. employs others. makes things. is very creative
makes things
A producer is someone who sells products. makes things. employs others. is very creative
makes things
A company that transforms cotton into wearable clothing is considered a builder. service business. raw-goods producer. manufacturer.
manufacturer
A company that transforms cotton into wearable clothing is considered a manufacturer. service business. raw-goods producer. builder.
manufacturer
Most of the decisions in the economy about what to produce, how to produce it and who receives it are made by individuals and firms
market economy
economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources
market economy
The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product? production marketing finance management
marketing
Which of the following represents a primary business activity: Designing Marketing Supervising Scheduling
marketing
When government sets safety standards for the workplace, it is attempting to modernize working environments. minimize risks to employees. control business. prohibit excess standards.
minimize risks
Which of the following is an example of unethical business behavior? Persuading others Questioning standards Identifying target markets Misleading customers
misleading customers
nearly all economies are actually
mixed economy
Risks resulting from natural causes
natural risk
what kind of risk is flood
natural risk
which type of risk Because of a flu epidemic, a local school district must employee additional substitutes
natural risk
Which of the following is a potential consequence of poor business ethics: Negative public image Decreased internal problems Reduced risk of lawsuits Increased customer loyalty
negative public image
A business that exists to fulfill a specific mission or undertaking is called a __________business. nonprofit mission-central focused for-profit
nonprofit
Within a local pizza shop, financial analysis is most likely used to oversee the baking process. develop the best recipe. obtain funding for supplies. attract customers.
obtain funding for supplies
A farmer has 1,000 acres. He decides to plant apple trees on 800 acresand raise cows on the remaining 200 acres. If he wanted to raise morecows, he would have to reduce the amount of land allotted to growingapples. The value associated with reducing the apple crop is an example of: Utility Opportunity cost Distribution Efficiency
opportunity cost
A business can be described as a(n) organized effort to produce goods and services. disorganized method of manufacturing products. unreasonable means for increasing revenues reasonable way to make a profit.
organized effort to produce goods and services
Businesses use organizational design to structure their information, technology, and competitors. people, information, and competitors people, information, and technology technology, people, and competitors
people, information, and technology
One of the reasons that has caused government's role in business to expand is that costs of production have continued to increase. people's attitudes have changed. competition in the marketplace has increased. products have become very technical.
peoples attitudes have changed
A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility. legal economic ethical philanthropic
philanthropic
A major characteristic of a market economy is which type of ownership of property? limited monopolistic government private
private
In order for consumption to occur, goods and services must be Produced Specialized Improved Distributed
produced
Distribution examines how income is divided between producers and economizers consumers and producers consumers and resource owners producers and resource owners
producers and resource owners
Which of the following behaviors best describes the primary business activity of operations: Keeping accurate financial records Planning for future success Producing goods and services Hiring qualified employees
producing goods and services
One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually: helps with the day-to-day operations of the business. evaluates the performance of the business's employees. assumes all legal responsibility for the business's actions. provides experience that increases the business's credibility.
provides experience that increases the business's credibility.
Which of the following is an example of a business's ethical obligation to its stakeholders: Providing safe working environments for employees Allowing the competition to succeed Sharing trade secrets within its industry Doubling investors' money within two years
providing safe working environments for employees
what primary economic question is who consumes the goods and serviced produced in society
public choice
The possibility of loss to a business without any possibility of gain
pure risk
Farms, mines, and lumber companies are examples of raw-goods producers. manufacturers. builders. trade industries
raw goods producers
Farms, mines, and lumber companies are examples of raw-goods producers. manufacturers. trade industries builders.
raw-goods producers
Government can prevent unqualified persons from operating a business by helping their competitors. closing their bank accounts. refusing to grant them a license. raising their taxes.
refusing to grant them a lisence
Government tries to protect competition by regulating monopolies. controlling the prices of products. preventing all monopolies. restricting the production of certain products.
regulating moopolies
Business ethics involve considering issues about what is: positive and negative. right and wrong. safe and unsafe. legal and illegal.
right and wrong
The possibility of a financial loss
risk
The process of managing a business's exposure to risk in order to achieve business objectives
risk management
Consumers are typically most willing to pay more for goods and services that bring them greater trade-offs satisfaction popularity opportunity costs
satisfaction
A gap between unlimited wants and limited resources creates Scarcity Wants Economics Resources
scarcity
Unlimited wants and needs with limited resources
scarcity
condition resulting from the gap between unlimited wants for goods and services and limited resources
scarcity
relatively detailed but not comprehensive, resource allocation decision making by the central government
socialism
transition between capitalism and communism
socialism
Retailing takes place whenever goods are sold at a discount. exchanged for other goods. offered for sale. sold to the ultimate consumer.
sold to the ultimate consumer
Retailing takes place whenever goods are sold at a discount. exchanged for other goods. sold to the ultimate consumer. offered for sale.
sold to the ultimate consumer
Susan is willing to pay a high price for her brand name clothing. This clothing would be classified as a(n) __________ product. industrial shopping specialty convenience
specialty
Risking loss to make a profit
speculative risk
Which of the following activities demonstrates information management: Conducting employee evaluations Storing and retrieving information Hiring appropriate employees Researching customers' needs
storing and retrieving information
Pens and pencils used by a business would be classified as industrial equipment materials supplies parts
supplies
quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period
supply
The two main sources of revenue used to pay the costs of government regulation are taxpayers and nontaxpayers. government and industry. taxes and borrowing. business and labor.
taxes and borrowing
Which factor has aided the most in creating a global business environment? government cultural change technology exchange rate
technology
Which of the following factors has aided the most in creating a global business environment? Exhange rates Cultural changes Technology Government
technology
Which of the following is an example of ethical business behavior? Accepting a bribe from a prominent customer Testing products to ensure they are safe to use Disclosing partial information about products Using advertisements to confuse customers
testing products to ensure they are safe to use
A well-planned organizational design helps a business to better compete because the business is more productive and innovative it cuts down on communication competitors don't have organizational structures. the business has more money.
the business is more productive and innovative
Which of the following activities demonstrates the primary business activity of marketing: The business expects to merge with another business in the industry. The business hires qualified employees to perform complex job duties. The business meets customers' needs by offering appropriate products. The business prepares for long-term success by planning and organizing.
the business meets customers needs by offering appropriate products
Which is a reason that natural resources are considered limited? Technology has advanced faster than training. Some countries are unable to manufacture them. People lack training or skills needed to do a job The earth has certain boundaries.
the earth has certain boundaries
Which of the following situations would most likely indicate the need to adapt to changes in the business environment? The number of your business's competitors has decreased. The business has experienced little employee turnover during the past year. The supply of materials used in manufacturing a product has decreased. The demand for your product is stable.
the supply of materials used in manufacturing a product has decreased
Which of the following is a true statement about business ethics and the law: The two are not the same thing, but they do overlap. The two have nothing to do with each other. Everything that is illegal is also unethical. Everything that is unethical is also illegal.
the two are not the same thing but they overlap
Which of the following is a problem associated with communist command economies? Supply and demand control what will be produced. There are high taxes. Individuals run the risk of losing their business. There is no competition.
there is no competition
What is the purpose of government regulation of business activities that might cause air or water pollution? To conserve the environment To stabilize the economy To protect competition To provide public goods
to conserve their enviornment
Which of the following is a reason that a U.S. company would decide to offer its products in other countries? To expand to new, untapped markets To sell obsolete, outdated products To subsidize developing countries To provide jobs to people in other countries
to expand to new untapped markets
Why does government set and collect taxes? To help businesses grow and prosper To provide economic security To increase the use of technology To help pay the expenses of government
to help pay the expenses
Wholesalers supply the goods that will be sold to government agencies to retailers or used by businesses in their operations at a discount to other wholesalers
to retailers or used by businesses in their operations
Wholesalers supply the goods that will be sold to other wholesalers to government agencies at a discount to retailers or used by businesses in their operations
to retailers or used by businesses in their operations
The desire for which item(s) would be considered a noneconomic want? to watch the sunset golf clubs new clothing a caribbean cruise
to watch the sunset
Rembert works for a grocery store that buys food from producers and sells it to customers. The grocery store is considered a raw-goods producer. trade industry. service business. builder.
trade industry
Rembert works for a grocery store that buys food from producers and sells it to customers. The grocery store is considered a service business. builder. raw-goods producer. trade industry.
trade industry
Which is a natural resource that can be renewed through people's efforts? tree coal water crude oil
tree
All economic systems must determine which goods and services will be available for public use and which for private use.
true
Customers generally willing to pay more for items they highly value. T/F
true
Resource owners must feel that their incomes are large enough so that they will continue to supply resources. T/F
true
Societies must determine how the goods and services will be divided among people. T/F
true
all economic systems must determine how to allocate productive resources true or false
true
Determine whether the following statement is true or false: Government has become an active participant in the world of business. False; government works with businesses only. True; government produces goods and services. True; government helps to start monopolies. False; government doesn't produce any products.
true; government produces goods and services
Which group 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
Which group of words best describes wants? limited, unchanging, and competing limited, changing, and compensating unlimited, unchanging, and compensating unlimited, changing, and competing
unlimited, changing, and competing
What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit? Encouraging the production of wheat Industrializing the economy Encouraging energy conservation Using price supports
using price supports
The usefulness of a product to consumers is referred to as product: consumption utility scarcity allocation
utility
desire for something that may not be required
want
What determines whether an economic product is an industrial product or a consumer product? Who buys and uses the product The price of the product The origin of the product Who produces the product
who buys and uses the product
The two main divisions of the trade industry are manufacturers and wholesalers. wholesalers and producers. producers and retailers. wholesalers and retailers.
wholesalers and retailers
A large corporation is planning to "go global." It intends to build, own, manage and operate new plant in China? This would be a: Licensing Franchise Exporting activity Wholly-owned subsidiary
wholly-owned subsidiary
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 nonrenewable resources. new capital goods
workforce dempgraphics
A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business? Yes, the museum will be a not-for-profit business. No, the museum will not be considered a business. Yes, the museum will be a for-profit business. No, the museum will be a charitable institution.
yes, the mueseum will be a not for profit business
Government provides protection to business owners' property through the use of safety standards. minimum-wage laws. zoning laws. consumer-protection laws.
zoning laws
