Deck 1: Business Now: Change Is the Only Constant

Question 1

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

Answer 1

False

Question 2

Digital natives only spend when a business offers them value.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

The traditional retirement age in the United States is 60.

Question 5

The value of all natural resources tends to rise with low demand, high supply, or both.

Question 6

In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them.

Question 7

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

Question 8

In the context of the history of American business, the industrial revolution era encouraged workers to take individual ownership and personal pride in the production process.

Question 9

Demographic factors include the milestones achieved during the developments in the field of computers, telecommunications, and other digital products.

Question 10

In the context of the competitive environment of business, a product has value when its benefits to the customer are lesser than the price that the customer pays.

Question 11

Speed-to-market is the rate at which a company's competitors copy its product innovations.

Question 12

In the United States, nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined.

Question 13

Millennials outnumber digital natives by one million people.

Question 14

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

Question 15

When business drives up the standard of living for people worldwide, it contributes to a higher quality of life.

Question 16

People can create natural resources by growing and harvesting agricultural products.

Question 17

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

Question 18

In the context of the history of American business, the "hard sell" emerged during the relationship era of marketing.

Question 19

The physiological environment is a key dimension of the business environment.

Question 20

The significance of the social dimension of a business environment is highlighted when a number of states-from Alabama to Nevada-make their local economies more appealing by providing special tax deals to attract new firms.

Question 21

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

A) They represent the smallest customer segment of the population.
B) They refer to those baby boomers who delay their retirement and continue to work even beyond the age of 70.
C) They represent the smallest employee segment of the population.
D) They can be trained and developed to fill the leadership gap that is being created by the retirement of baby boomers.

Question 22

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

A) It is the difference in the number of customers served between two financial years.
B) It is the financial reward that comes from starting and running a business.
C) It is the difference between the stock at the start and end of an inventory reporting period.
D) It is estimated by calculating the total interest amount due when a business has availed multiple loans.

Question 23

Which of the following is a difference between the millennial generation and Generation Z?

A) Unlike the millennial generation, Generation Z is comprised of people born between 1980 and 1995.
B) Unlike the millennial generation, Generation Z tends to be extremely tolerant and inclusive.
C) Unlike the millennial generation, Generation Z approaches adulthood planning to work for success.
D) Unlike the millennial generation, Generation Z feels entitled to a great job after college graduation.

Question 24

Melvin and Neil run a pawnshop in their neighborhood. They offer loans to individuals in exchange for personal items of higher or equal value, which are used as collateral. If an individual is unable to repay the loan, Melvin and Neil then sell these items at higher rates. In this scenario, Melvin and Neil's pawnshop is an example of a _____.

A) subsidy
B) nonprofit organization
C) business
D) charity

Question 25

Which of the following can be considered a business?

A) Albertos, a state-funded firm that specializes in providing free consultations for at-risk teens
B) Mender, a private charity organization that donates clothes and notebooks to orphans
C) Davent, an online shopping portal that offers discounted prices on clothes
D) Javonson, a federal agency that establishes and enforces environmental regulations

Question 26

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

Question 27

In the context of your career choice, your own business skills cannot influence the level of your personal financial success.

Question 28

Which of the following is a characteristic of entrepreneurs?

A) They believe in creating wealth for the underprivileged rather than for themselves.
B) They start a business so that no form of loss is incurred.
C) They have little or no impact on other people in the society.
D) They risk their time, money, and other resources to start and manage their business.

Question 29

Preston, a luthier, used to own a workshop in the 1750s where he produced handmade musical instruments of high quality. However, due to technological advances, musical instruments started being mass-produced in factories, and Preston's business began to decline. Given this information, it can be assumed that Preston belonged to the _____.

A) relationship era
B) production era
C) digital revolution era
D) industrial revolution era

Question 30

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?

A) Employment of skilled artisans who specialized in several tasks by factories
B) Gain of personal pride in the production process
C) Unprecedented production efficiency
D) Increase in individual ownership of the production process

Question 31

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

A) deferral
B) loss
C) depreciation
D) bondage

Question 32

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

A) The balance of power shifted away from producers and toward consumers.
B) The Web and other digital resources were used to gather detailed information about customers to serve them better.
C) Industrial titans created enormous wealth that raised the overall standard of living across the country.
D) The introduction of specialized jobs increased productivity, resulting in lowered costs.

Question 33

In the context of making a career choice, following one's passion guarantees a fat paycheck.

Question 34

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

A) Firms aimed at building long-term relationships with their customers.
B) There was a loss of personal pride in the production process.
C) Production efficiency was at its lowest.
D) There was a creation of individual ownership in the production process.

Question 35

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

Question 36

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.

A) entrepreneurship era
B) relationship era
C) marketing era
D) production era

Question 37

Debbie, along with Mick and Rory, decided to start a new catering business. She invested her time, money, and efforts in the project, and she directly managed the business development process. In this scenario, Debbie is most likely a(n) _____.

A) franchisor
B) entrepreneur
C) client
D) fundraiser

Question 38

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

Question 39

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

A) Firms aimed at building long-term relationships with their customers.
B) There was a gain of personal pride in the production process.
C) Production efficiency was at its lowest.
D) There was a loss of individual ownership in the production process.

Question 40

Which of the following statements is true of successful firms?

A) They overlook the overall sense of well-being experienced by their customers.
B) They focus on the price of a good rather than on the benefits offered.
C) They deliver unsurpassed value to their customers.
D) Their core goal is to generate short-term profits.

Question 41

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

A) Skilled artisan workshops were replaced by huge factories.
B) Major businesses focused on refining the production process and creating greater efficiencies.
C) Large-scale entrepreneurs dominated the market and raised the standard of living across the country.
D) The balance of power shifted away from producers and toward customers.

Question 42

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 _____.

A) production era
B) marketing era
C) industrial revolution era
D) entrepreneurship era

Question 43

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

A) Industrial titans exploited workers and decimated the environment.
B) Large-scale entrepreneurs failed to dominate their markets.
C) The overall standard of living across the country declined rapidly.
D) The balance of power shifted from producers and toward consumers.

Question 44

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.

A) entrepreneurship era
B) relationship era
C) production era
D) industrial era

Question 45

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 _____.

A) political organization
B) paper organization
C) nonprofit organization
D) corporation

Question 46

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

A) An equipment
B) Land
C) An investment
D) Information

Question 47

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

A) many industrial titans forced out their competitors
B) large-scale entrepreneurs failed to dominate their markets
C) the overall standard of living across the country declined rapidly
D) the balance of power shifted from producers and toward consumers

Question 48

Which of the following statements is true of nonprofit organizations?

A) They are usually in the business of financial gains.
B) They employ people and take in revenue.
C) They do not produce goods and services.
D) They are not business-like establishments.

Question 49

Lewis Gretsz, the owner of a small railroad company in the 1860s, started gaining more influence and money as his business started to flourish to a point where he began controlling the entire northern half of railroad services. He followed a ruthless and cunning business strategy that involved exploiting workers and decimating the environment. In the context of the history of American business, Lewis Gretsz most likely belonged to the _____.

A) entrepreneurship era
B) production era
C) marketing era
D) relationship era

Question 50

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

A) Major businesses focused on shifting the balance of power from producers and toward consumers.
B) The method of hard sell was eliminated.
C) The assembly line became standard across major manufacturing industries.
D) Leading-edge firms looked beyond each immediate transaction with a customer and aimed at building a long-term relationship.

Question 51

Nonprofit organizations:

A) are usually in the business of financial gain.
B) do not contribute to a region's economic stability and growth.
C) account for more paid workers than the entire construction industry.
D) are not business-like establishments.

Question 52

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

A) Costicon, a regional retail store that sells goods at discounted prices
B) Hollorg, a community museum that is funded by a trust and is free for public use
C) Tempim, a local newspaper house that sells newspaper at prices lower than its competitors
D) Modashows, a fashion publication house that issues free subscriptions of its weekly magazines to consumers who are yearly subscribers

Question 53

In the _____, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-term ties.

A) marketing era
B) entrepreneurship era
C) relationship era
D) production era

Question 54

Which of the following approaches, which emerged during the marketing era, continues to influence business decisions today as global competition heats up to unprecedented heights?

A) A consumer focus that permeates successful companies in every department, at every level
B) A focus on aggressive persuasion designed to separate consumers from their cash
C) A narrow focus on using digital resources to gather customer information
D) A focus on increasing profits that result in a high standard of living for people across the country

Question 55

In the context of the history of American business, during the _____, businesses began to develop distinctive identities to help customers understand the differences among various products.

A) industrial revolution
B) entrepreneurship era
C) marketing era
D) relationship era

Question 56

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

A) entrepreneurship era
B) production era
C) marketing era
D) relationship era

Question 57

Black Marbles Resort is a resort in Miami. The members of the marketing department of the resort work hard to develop long-term associations with the resort's customers. They call them to receive feedback about their recent visits to the resort and offer huge discounts on their next visit. In the context of the history of American business, the marketing department is most likely using concepts that were popularized during the _____.

A) entrepreneurship era
B) production era
C) relationship era
D) technology era

Question 58

In the context of the relationship era, leading-edge firms believe that:

A) seeking new customers is more profitable than cultivating current customers.
B) closely focusing on each immediate transaction with a customer is more likely to be profitable than building long-term relationships.
C) satisfied customers can promote their business with more speed than promotional campaigns.
D) using digital resources to gather customer data can hinder their quality of service.

Question 59

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 _____.

A) digital information era
B) entrepreneurship era
C) marketing era
D) production era

Question 60

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 _____.

A) relationship era
B) entrepreneurship era
C) production era
D) industrial revolution era

Question 61

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 _____.

A) equity
B) human resources
C) capital
D) natural resources

Question 62

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 _____.

A) assets
B) human resources
C) natural resources
D) capital

Question 63

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 _____.

A) human resources
B) capital resources
C) natural resources
D) man-made resources

Question 64

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 _____.

A) human resources
B) entrepreneurs
C) capital
D) natural resources

Question 65

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

A) rise with high demand, low supply, or both.
B) fall when the demand is high, irrespective of the rate of supply.
C) fall when the supply is low, irrespective of the rate of demand.
D) rise with low demand, high supply, or both.

Question 66

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

A) Abundant availability of natural resources
B) Excess and strict government regulation
C) An increase in global trading
D) Protection from corruption

Question 67

A coal mining company has employed around 250 miners who work 8-hour shifts every day. In the context of factors of production, the miners can be classified as _____.

A) capital
B) natural resources
C) entrepreneurs
D) human resources

Question 68

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

A) They are people who write and establish government policies.
B) They avoid taking the risk of launching and operating their own businesses.
C) They thrive in an environment that supports economic freedom.
D) They are rarely motivated by any profit incentive to run a business.

Question 69

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 _____.

A) man-made resources
B) capital resources
C) human resources
D) natural resources

Question 70

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 _____.

A) factor of production
B) mode of capital
C) loyal advocate
D) cause-related marketer

Question 71

In the context of factors of production, which of the following is most likely to result in a decrease in entrepreneurial activities?

A) High taxation
B) Limited regulation
C) An increase in global trading
D) Private ownership of the means of production

Question 72

Tornio, a steel company, imports iron ore from Marquette iron range in Michigan. In this scenario, the iron ore obtained by Tornio can be classified as _____.

A) natural resources
B) man-made resources
C) human resources
D) capital resources

Question 73

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 _____.

A) natural resources
B) capital
C) human resources
D) equity

Question 74

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.

A) natural resources
B) human resources
C) entrepreneurship
D) capital

Question 75

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) _____.

A) capital good
B) human resource
C) entrepreneur
D) natural resource

Question 76

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 _____.

A) human resources
B) capital resources
C) natural resources
D) man-made resources

Question 77

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

A) They are also referred to as man-made resources.
B) They do not require extraction, purification, or harnessing.
C) Cereal crops are an example of natural resources.
D) The value of all natural resources tends to rise with high demand.

Question 78

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

A) It includes all inputs that offer value in their natural state.
B) It does not include money.
C) It involves the creative contributions of people working within an economy.
D) It is not a fundamental resource for nonprofits.

Question 79

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

A) nonprofits
B) the hard sell
C) capital
D) depositories

Question 80

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

A) decrease in entrepreneurial activities.
B) increase in the level of personal freedom.
C) increase in global trading.
D) social crisis.