Deck 1: The Changing Face of Business

Question 1

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
_____ is the unique combination of organizational abilities,products,and approaches that sets a company apart from competitors in the minds of consumers.

Answer 1

D

Question 2

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
_____ refers to technology,tools,information,and physical facilities.

Answer 2

F

Question 3

List the six eras of business history.Name and describe the era used by businesses today.

Answer 3

The six eras are the Colonial period,the Industrial Revolution,the age of industrial entrepreneurs,the production era,the marketing era,and the relationship era.Today's era,the relationship era,focuses on taking a long-term approach to relationships with customers.Firms seek ways to gain customer loyalty by managing each transaction.

Question 4

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
A person who seeks a profitable opportunity and then devises a plan to achieve that profit is called a(n)_____.

Question 5

Explain how consumers benefit from business competition.

Question 6

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
_____ refers to the standards of conduct and moral values involving decisions made in the work environment.

Question 7

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
A(n)_____ is a name,terms,sign,symbol,design,or combination that identifies the products of one firm.

Question 8

Describe technology as a capital source.

Question 9

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
The right to ______ is the most basic freedom of the private enterprise system.

Question 10

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
A company that contracts with another business to perform functions previously handled by internal staff is participating in _____.

Question 11

Define profit.Explain why you agree or disagree with the following statement: "The success of a business is measured only by the profit it earns."

Question 12

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
To operate effectively,certain inputs called _____ systems are required for all economic systems.

Question 13

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
_____ involves blending different genders,ethnic backgrounds,cultures,religions,ages,and physical and mental abilities in order to enhance a firm's chances of success.

Question 14

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
_____ are businesslike establishments that have primary objectives other than returning profits to their owners.

Question 15

List and describe the four basic rights in the private enterprise system.

Question 16

Explain how business owners enhance productivity by building connections with their customers in the relationship era.

Question 17

Briefly describe the Industrial Revolution and its contribution to the evolution of business.

Question 18

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
_____ is the era in business history defined by the collection of activities that build and maintain ongoing,mutually beneficial ties between a business and its customers and other parties.

Question 19

MATCHING
Complete the following using the terms listed.
a.outsourcing
b.diversity
c.entrepreneur
d.competitive differentiation
e.private property
f.capital
g.vision
h.factors of production
i.brand
j.relationship era
k.not-for-profit organizations
l.business ethics
The ability to perceive future marketplace needs and what an organization can do to satisfy them is referred to as _____.

Question 20

Explain the difference between transaction management and business practices of the relationship era.

Question 21

All of the following statements are correct EXCEPT:

A)Successful businesses seek to meet their social and ethical responsibilities.
B)Business provides goods and services necessary to an economic system.
C)Business is the economic pulse of a nation.
D)Business includes nonprofit organizations that provide services to the public.

Question 22

The factors of production in an economic system are ________.

A)land,rent,capital,and human resources
B)capital,perseverance,natural resources,and human resources
C)rent,wages,interest,and profit
D)natural resources,human resources,capital,and entrepreneurship

Question 23

Describe how the aging population in the United States and abroad directly affects changes in the workforce.

Question 24

Describe offshoring and related trends.

Question 25

At the heart of every business endeavor is what?

A)the exchange between a buyer and seller
B)the creation of a product
C)providing a service
D)none of the above

Question 26

Explain how business ethics differs from social responsibility.

Question 27

A public-sector not-for-profit organization would include which of the following?

A)library
B)museum
C)charitable group
D)labor union

Question 28

Timber Trails,a Northwest lumber company,utilizes ________ as its primary production factor.

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

Question 29

What are the advantages of a diverse workforce?

Question 30

Which of the following are organized for profit and provide goods and services?

A)businesses
B)public schools
C)government
D)churches

Question 31

Describe critical thinking and creativity and why they are important qualities for the 21ˢᵗ century manager.

Question 32

Explain how the marketing era changed marketing so that it was no longer synonymous with just selling.

Question 33

Donovan Corporation's sources of capital can include all of the following EXCEPT ________.

A)cash dividends declared by Donovan's board of directors and paid to the stockholders
B)investments from stockholders
C)reinvested profits
D)loans extended by others

Question 34

What are some examples of external and internal forces that would require a manager to lead organizational change?

Question 35

In the U.S.economy,________ are considered the reward for the risk of entering business.

A)revenues
B)generated income
C)profits
D)sales

Question 36

________ is essential because it serves as a primary incentive for people to start companies,expand them,and provide consistently high-quality competitive goods and services.

A)Vision
B)Profit
C)Market research
D)Philanthropy

Question 37

Define the term vision.Why is vision an important skill today?

Question 38

Explain the new employer-employee relationship in business.

Question 39

All of the following are businesses EXCEPT ________.

A)U.S.Postal Service
B)UPS
C)FedEx
D)AOL

Question 40

All of the following are typically part of the not-for-profit sector EXCEPT ________.

A)labor unions
B)religious organizations
C)hotels
D)museums

Question 41

The right to profit means the ________.

A)risk taker is guaranteed the right to all profits (after taxes)that are earned by the business
B)right to go into or out of business at any point and for any reason
C)government will guarantee a profit
D)right to all benefits resulting from the ownership of property

Question 42

Technology,tools,information,and physical facilities for the operation of a business are examples of ________.

A)profits
B)wages
C)capital
D)interest

Question 43

Tarek,a former middle manager from Alexander Manufacturing,owns and operates a Subway franchise.Tarek is demonstrating ________.

A)social responsibility
B)socialism
C)entrepreneurship
D)pure competition

Question 44

In colonial society,real economic and political power was centered in ________.

A)metropolitan areas
B)areas west of the Mississippi River
C)cities
D)rural areas

Question 45

Businesses that operate in an environment where success or failure is determined by how well they match and counter the offerings of competitors are operating under ________.

A)the private enterprise system
B)a social democracy
C)a monopoly
D)socialism

Question 46

Which of the following is considered to be the most fundamental right of the private enterprise system?

A)the right to private property
B)the right to guaranteed profits
C)freedom of choice
D)the right to fair competition

Question 47

When Greenlawn Inc.finds itself losing contracts because Lo-Price Lawn Co.charges less money,Greenlawn responds by lowering its bids.This reaction demonstrates ________.

A)the invisible hand of competition
B)collision
C)the right to private property
D)social responsibility

Question 48

All of the following are basic rights within a private enterprise system EXCEPT ________.

A)private property
B)guaranteed profits
C)freedom of choice of investment
D)freedom of choice of employment

Question 49

In his book TheWealth of Nations,the Scottish economist Adam Smith was the first person to describe ________.

A)socialism
B)communism
C)capitalism
D)entrepreneurship

Question 50

Citizens in a private enterprise system have the right to choose their employment,purchases,and investments,illustrating their right to ________.

A)private property
B)credit
C)profit
D)freedom of choice

Question 51

The American Industrial Revolution did not make real progress until ________.

A)a good relationship was formed with England
B)a railroad system was built providing fast,economical transportation
C)the introduction of the automobile occurred
D)a reliable system of telephone communication was established

Question 52

By offering a lifetime warranty on its products,Warner Electronics has set itself apart from its competition.This difference is known as Warner Electronics' ___________.

A)private enterprise system
B)competitive differentiation
C)capitalism
D)natural resources

Question 53

Capitalism is founded on ________.

A)the social changes that followed the Industrial Revolution
B)the idea that 80 percent of the nation's wealth should be owned by no more than 20 percent of the people
C)the belief that competition among business firms best serves the needs of society
D)the idea that the government must own all factors of production

Question 54

Which of the following is a benefit of entrepreneurship?

A)low risk
B)flexibility
C)guaranteed profit
D)reduced competition

Question 55

A company that values employees as sources of ideas and innovation is utilizing its _________________.

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

Question 56

Namesh recently sold his Ford Taurus to a personal friend.Namesh's sale of his automobile illustrates the right to ________.

A)freedom of choice
B)private property
C)profit
D)set ground rules for competitive activity

Question 57

The human resources of a firm refer to ________.

A)everyone over 18 years of age
B)everyone who works for the business
C)full-time employees
D)top management

Question 58

Henry Ford is noted in business history for introducing the moving assembly line,which greatly reduced the cost of producing a car.Assembly lines first became common during the ________.

A)relationship era
B)marketing era
C)Industrial Revolution
D)production era

Question 59

The Industrial Revolution in England transformed America's economy by introducing ________.

A)the factory system
B)labor unions
C)the concept of each worker producing one complete product
D)the continuously moving assembly line

Question 60

All of the following are rights granted to citizens and to the government in a private enterprise system EXCEPT the right to ________.

A)fair competition
B)permit price discrimination
C)select from among a variety of goods and services
D)own property

Question 61

Which of the following statements is NOT correct?

A)Workers change jobs less frequently today.
B)The size of the labor pool is decreasing.
C)The U.S.population is getting older.
D)The U.S.population is becoming more diverse.

Question 62

Concentrating on building and promoting products in hopes that enough customers will buy them in order to cover costs and earn acceptable profits is called ________.

A)relationship management
B)marketing management
C)a strategic alliance
D)transaction management

Question 63

When Google opened offices in Tokyo,London,and Sydney,they were utilizing ________ by relocating business processes to lower-cost locations overseas.

A)nearshoring
B)outsourcing
C)offshoring
D)employee sourcing

Question 64

________ is the ability to perceive marketplace needs and what an organization must do to satisfy these needs.

A)critical thinking
B)social responsibility
C)vision
D)creativity

Question 65

The number of people age 65 or over will ________ by 2025.

A)decrease by approximately 10 percent
B)double
C)increase by approximately 50 percent
D)increase by approximately 10 percent

Question 66

The work-comes-first lifestyle is exemplified by:

A)Baby Boomers
B)Generation X
C)Generation Y
D)The EU

Question 67

Inventors such as Robert McCormick and Eli Whitney were part of the ___________.

A)marketing era
B)colonial era
C)age of industrial entrepreneurs
D)relationship era

Question 68

Which of the following is NOT a new trend in hiring and the workforce?

A)telecommuting
B)job sharing
C)rigid job structures
D)increase in part-time and temporary workers

Question 69

Nurturing customer loyalty by gathering knowledge of customer needs and preferences is an approach cultivated in the ____________.

A)relationship era
B)colonial period
C)industrial revolution
D)marketing era

Question 70

When a U.S.company contracts work to Mexico,it is ________.

A)nearshoring
B)nearsourcing
C)exporting
D)offshoring

Question 71

All of the following are true of the production era EXCEPT:

A)focus on internal process rather than external influences
B)marketing was an afterthought
C)Produced more goods through quicker means
D)large focus on consumer wants

Question 72

Outsourcing ________.

A)reduces the diversity of the workforce
B)can make a firm more competitive
C)increases staffing requirements
D)increases costs

Question 73

Diverse employee teams tend to perform ________ and develop ________ than do homogenous employee groups.

A)less effectively;better solutions
B)more effectively;better solutions
C)less effectively;worse solutions
D)more effectively;worse solutions

Question 74

The concept of branding first emerged during the ________.

A)production era
B)relationship era
C)age of the industrial entrepreneur
D)marketing era

Question 75

The relationship era is also the age of connections between:

A)businesses and customers
B)employees and employers
C)separate companies
D)all of the above

Question 76

When a business employs an outside company to handle all customer correspondence and phone calls,the business is ________ its customer service department.

A)outsourcing
B)branding
C)multitasking
D)shrinking

Question 77

The business philosophy that advocates determining what consumers want and need,and then designing products to satisfy those needs,is known as ________.

A)consumer orientation
B)self-sufficiency concept
C)work ethic
D)production concept

Question 78

The new employer-employee partnership has led to all of the following EXCEPT ________.

A)increased job security
B)sharing of financial information with employees
C)increased emphasis on listening to and respecting employees
D)helping employees improve skills and knowledge

Question 79

All are advantages of the relationship era practices EXCEPT:

A)less expensive to service existing customers than find new ones
B)increased production through faster means
C)receive new customer through customer referrals rather than costly marketing
D)improved understanding of what customers need and want

Question 80

Which of the following BEST distinguishes the philosophy of the marketing era from the philosophy of the production era?

A)The marketing era was more consumer-oriented.
B)The production era occurred after World War II.
C)The marketing era advocated price discrimination.
D)The production era was more consumer-oriented.