Deck 1: The Changing Face of Business

Question 1

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
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 _____.

Answer 1

a

Question 2

Describe technology as a capital source.

Answer 2

Technology is a broad term that refers to such machinery and equipment as computers and software,telecommunications,and inventions designed to improve production.Information,frequently improved by technological innovations,is another critical factor because both managers and operating employees require accurate,timely information for effective performance of their assigned tasks.Technology plays an important role in the success of many businesses.Bill Gates is quoted as saying: "Information technology and business are becoming inextricably interwoven.I don't think anyone can talk meaningfully about one without talking about the other." Sometimes technology results in a new product such as the Google self-driving car,which is able to navigate without human input.

Question 3

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
_____ is the collection of activities that build and maintain ongoing,mutually beneficial ties between a business and its customers and other parties.

Answer 3

j

Question 4

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
A partnership formed to create a competitive advantage for the businesses involved is known as a(n)_____.

Question 5

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
A(n)_____ is a name,term,sign,symbol,design,or combination that identifies the products of one firm.

Question 6

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

Question 7

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
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 8

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
_____ refers to technology,tools,information,and physical facilities.

Question 9

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
To operate effectively,certain inputs called _____ are required for all economic systems.

Question 10

Explain the business approach used in the relationship era.

Question 11

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
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 12

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

Question 13

What did Nordstrom do differently to achieve a considerable increase in its annual sales?

Question 14

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
_____ are businesslike establishments that have primary objectives other than returning profits to their owners.

Question 15

Explain the difference between transaction management and relationship management.

Question 16

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
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.

Question 17

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
A person who sees a profitable opportunity and then devises a plan to achieve that profit is called a(n)_____.

Question 18

Explain why competition is important according to Adam Smith?

Question 19

What is profit? Do you agree with the statement,"The success of a business is measured only by the profit it earns"? Explain your answer.

Question 20

Complete the following using these terms.
a.outsourcing
b.Diversity
c.entrepreneur
d.Competitive differentiation
e.strategic alliance
f.Capital
g.vision
h.factors of production
i.brand
j.Relationship management
k.Not-for-profit organizations
l.Business ethics
_____ involves blending individuals of different genders,ethnic backgrounds,cultures,religions,ages,and physical and mental abilities in order to enhance a firm's chances of success.

Question 21

Which of the following statements is true of successful companies?

A)They often adapt to changes in customer tastes.
B)They spend less time on technology-related projects.
C)They refrain from all kinds of competition.
D)They strive to reduce the standards of living of their respective countries.

Question 22

Describe offshoring and its related trends.

Question 23

Which of the following statements is NOT true regarding businesses?

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

Question 24

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

A)revenues
B)concessions
C)profits
D)sales

Question 25

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

Question 26

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 27

Describe critical thinking and creativity and explain why they are important qualities for today's manager.

Question 28

What are the advantages of a diverse workforce?

Question 29

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 30

Describe how the aging populations in the United States and abroad directly affect changes in the workforce.

Question 31

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

Question 32

Explain how business ethics differs from social responsibility.

Question 33

_____ are 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)Coupons
B)Profits
C)Discounts
D)Rebates

Question 34

What is outsourcing? Explain the utility of outsourcing in the United States.

Question 35

Explain strategic alliance with an example.

Question 36

Which of the following is a public sector,not-for-profit organization?

A)Library
B)Museum
C)Charitable group
D)Labor union

Question 37

The Gyvenopolis County Library provides a wide variety of library services to its neighborhood.It also provides free online support to its members,and any fee collected from its members goes directly to charity.The library is an example of a(n)_____.

A)not-for-profit organization
B)corporate organization
C)offshore unit
D)business conglomerate

Question 38

In accounting terms,profits are _____.

A)the difference between revenues and expenses
B)the sum of commissions earned and receipts
C)the difference between sales and expenses
D)the sum of sales and expenses

Question 39

Accountants think of profits as:

A)the overall sales of a company in comparison with its top competitor.
B)the difference between a firm's revenues and the expenses incurred in generating them.
C)the value of the products or services sold during a financial year.
D)the difference between the capital and revenue obtained through selling stocks.

Question 40

Define the term vision.Explain with an example why it is an important managerial quality.

Question 41

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 42

Dizzel Inc.is a small-scale mining company that started its business in 2001.By the year 2008,the firm had to close its operations.The company had been continuously laying off its employees since 2006,which led to the further downsizing of the firm.The decline in the availability of minerals in its operating region since 2004 has contributed vastly to its downfall and also reduced the need to inject new capital since then.Which of the following factors of production has primarily caused the firm to end its operations?

A)Natural resources
B)Capital
C)Human resources
D)Entrepreneurship

Question 43

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 making
D)set ground rules for competitive activity

Question 44

In his book The Wealth of Nations,the economist Adam Smith was the first person to describe _____.

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

Question 45

Ingle is a new recruit at an IT firm.He feels that his compensation is below industry standards,and his colleagues at other firms urge him to switch his employment with a company that pays a better salary.Instead of changing his job,he forms a trade union to ensure fair wages in the firm.Which of the following rights has Ingle exercised?

A)Right to private property
B)Right to competition
C)Right to profits
D)Right to freedom of choice

Question 46

Plum Creek Timber,a northwest lumber company,utilizes _____ as its primary production factor.

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

Question 47

When Greenlawn Inc.finds itself losing contracts because Instillite Inc.charges less money,Greenlawn responds by lowering its bids.According to Adam Smith,this reaction demonstrates _____.

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

Question 48

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

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

Question 49

The human resources of a firm refers to _____.

A)household consumers
B)everyone who works for the business
C)full-time employees
D)top management executives

Question 50

The right to profit means that the _____.

A)owner is legally guaranteed the right to all profits (after taxes)that are earned by a business
B)right to such profits without any form of deduction
C)government will guarantee a profit
D)firm has to earn only profits

Question 51

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 52

Capitalism is founded on _____.

A)the social changes that followed the Industrial Revolution
B)the idea that 80 percent of a nation's wealth should be owned by no more than 20 percent of its people
C)the principles of a private enterprise system
D)the idea that government must own all factors of production

Question 53

Which of the following is a benefit of entrepreneurship?

A)Low risk
B)Flexibility
C)Guaranteed profit
D)Reduced competition

Question 54

According to Adam Smith,competition would lead to consumers receiving the best possible products and prices because _____.

A)government interference in economic activity would be maximized
B)less efficient producers would be driven out of the market
C)increased supply of raw materials would lead to increased production
D)natural resources would be utilized more efficiently

Question 55

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 56

Which of the following allows for a private enterprise system to rely on the potential for citizens to choose their own employment,purchases,and investments?

A)Right to private property
B)Right to profits
C)Freedom of competition
D)Freedom of choice

Question 57

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

A)private enterprise system
B)competitive differentiation
C)capitalism
D)checkoff

Question 58

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)state ownership

Question 59

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)The right to exercise price discrimination
D)The right to fair competition

Question 60

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

A)right to private property
B)right to profits before tax deduction
C)freedom of choice of investment
D)freedom of choice of employment

Question 61

The concept of branding first emerged during the _____.

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

Question 62

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

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

Question 63

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
C)work ethics
D)production enhancement

Question 64

Which of the following is a management challenge associated with broad age diversity?

A)The uniformity in expectations of work
B)The need to accommodate a variety of work lifestyles
C)The decreasing need for advanced skills
D)The increasing reliance on older individuals

Question 65

Customers are central to Dave's business.His fundamental principle is to understand consumer needs and satisfy them in terms of range,quality,and specifications of products.Dave is most likely to have started his business in the _____ era.

A)social
B)production
C)relationship
D)marketing

Question 66

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

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

Question 67

Blogs and social networking use _____ to manage relationships.

A)strategic alliances
B)marketing research analyses
C)technology
D)business etiquette

Question 68

Diverse employee teams tend to perform _____ and develop _____ than do homogeneous employee groups.

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

Question 69

In colonial society,the economic focus was centered on _____.

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

Question 70

Apple iPods sold on Amazon's Web site signify the formation of a _____ to increase profits.

A)transaction alliance
B)brand partnership
C)strategic alliance
D)marketing agreement

Question 71

Which of the following is a trend in the current business workforce?

A)Teenagers are staying longer in their jobs.
B)Seniors are rarely applying for part-time jobs.
C)Seniors are retiring from the workforce sooner.
D)Teenagers are entering the workforce sooner.

Question 72

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)era of industrial revolution
D)production era

Question 73

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

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

Question 74

Colonial society emphasized:

A)customer relationship.
B)product distribution.
C)factory production.
D)agricultural production.

Question 75

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)decoy effect
D)transaction management

Question 76

The collection of activities that build and maintain ongoing,mutually beneficial ties with customers and other parties is known as _____.

A)relationship management
B)transaction management
C)financial management
D)marketing management

Question 77

A partnership is _____.

A)a category of relationship management
B)an affiliation of two or more companies
C)outside the scope of e-business management
D)helpful in eliminating competitive advantage

Question 78

Evlis uses a weblog to sell his products.His blog has generated massive sales for his products.His capital expenditure was the lowest in comparison to most of the other online firms.Which of the following eras is he most likely to be originating from?

A)Production era
B)Social era
C)Industrial era
D)Marketing era

Question 79

Which of the following is necessary in the current business workforce trend?

A)Awareness that businesses are moving toward traditional management practices
B)Increased reliance on employees' intellectual capabilities
C)Increased reliance on natural resources and physical inputs
D)Transition from focus on production to creating a brand

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.