Question 1

In what way does marriage work like a general business partnership?

Accepted Answer

In a general business partnership, each partner is typically responsible for the debts and actions of the other partners, similar to how in a marriage, spouses may be responsible for each other's debts and actions.

Question 2

The U.S. economy favors greater government intervention in the market than socialist economies would favor.

Accepted Answer

Socialist economies typically advocate for more government intervention in the market compared to the U.S. economy, which generally supports a more market-driven approach with less government involvement.

Question 3

Keeping up with technological advances is an inexpensive way for companies to remain competitive.

Accepted Answer

Adopting new technologies often involves significant investment in new tools, training, and potentially restructuring, making it a costly endeavor for companies aiming to stay competitive.

Question 4

As more profit is generated, a company is able to increase its productivity.

Accepted Answer

When a company generates more profit, it can invest in new equipment, hire more employees, develop new products, or expand its operations. All of these factors can lead to increased productivity.

Question 5

Competition arises when two or more businesses contend with one another to attract customers and gain an advantage.

Accepted Answer

This is correct. Competition involves businesses competing with each other to gain customers and an advantage in the market.

Question 6

Real capital refers to the money used to facilitate a business enterprise.

Accepted Answer

Real capital refers to tangible assets such as land, buildings, and equipment that are used to facilitate a business enterprise, not money. The correct term for money used in a business is financial capital.

Question 7

Your life is similar to a small company in that it requires careful planning, precise record keeping, and ________.

Accepted Answer

Similar to a small company, life is unpredictable and constantly changing. Being open to change is important in adapting to unexpected circumstances and adjusting goals accordingly. Precise record keeping may also facilitate this process by providing insight into past decisions and their outcomes. A good memory or outgoing personality may be helpful in some cases, but they are not fundamental to running a successful small company or managing one's personal life. Physical fitness, while important, is not directly related to the management of a small company or personal life.

Question 8

Car insurance is an example of a good.

Accepted Answer

Car insurance is not a good, but rather a type of service or financial product. Goods are physical items that can be purchased, such as a car or a book.

Question 9

Which of the following is NOT a stakeholder of a large athletic equipment manufacturer?

Accepted Answer

A competitor is not considered a stakeholder of a company as they are a part of the external environment and may compete with the company rather than being impacted by its decisions and actions. All the other choices, employees, customers, and suppliers are stakeholders as they have a vested interest in the company's success and are affected by its operations and decisions.

Question 10

To become successful, a company should keep pace with the latest technology.

Accepted Answer

Keeping pace with the latest technology can help a company stay competitive and efficient, leading to increased success. As technology advances, companies that do not adapt may fall behind in their industry.

Question 11

The private enterprise system assumes that competition benefits consumers.

Accepted Answer

The private enterprise system encourages competition as a means of driving innovation and improving quality while keeping prices competitive. This ultimately benefits consumers by providing greater options, lower prices, and better products or services.

Question 12

Globalization is recognized by all as a force for good in the U.S. economy.

Accepted Answer

Globalization has both supporters and critics in the U.S. While some argue it opens up opportunities for trade and investment, others believe it leads to job losses and wage stagnation for American workers.

Question 13

Not all businesses provide a product.

Accepted Answer

The answer of Not all businesses provide a product....

Question 14

Diversity initiatives in businesses are essential to a company's ability to be competitive.

Accepted Answer

Diversity allows for a diverse range of perspectives and ideas, which can lead to innovation, better problem-solving, and a wider range of experiences and backgrounds represented in decision-making processes. This can improve a company's ability to adapt to changes and compete in a diverse marketplace.

Question 15

Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barbara's, are able to expand as they earn more profits.

Accepted Answer

This statement is true. Many businesses are able to expand and open new locations as they earn more profits, as Barbara did with her bakery.

Question 16

A university, an inner city health clinic, and a church are all run specifically to generate profits.

Accepted Answer

A university, an inner city health clinic, and a church are not typically run to generate profits. Universities are usually non-profit institutions that rely on funding from grants and tuition fees. Inner city health clinics may be run by government or non-profit organizations to provide affordable healthcare to low-income individuals. Churches are religious organizations that rely on donations and tithing from members for their operations.

Question 17

When businesses compete, products usually become more expensive.

Accepted Answer

When businesses compete, they often strive to offer products at a lower price point to attract more customers. This can result in products becoming less expensive rather than more expensive.

Question 18

Baby boomers are an unprofitable demographic target for businesses.

Accepted Answer

Baby boomers are actually a highly profitable demographic target for businesses, as they have high levels of disposable income and make up a significant portion of the population.

Question 19

When a business is profitable, the whole society benefits.

Accepted Answer

When a business is profitable, it generates more revenue, pays more taxes, creates jobs, and contributes to the overall economic growth of a society. This ultimately benefits the society as a whole.

Question 20

Which of the following is an example of how today's social environment may affect individuals' lives?

Accepted Answer

Today's social environment, with its emphasis on diversity and inclusion, encourages individuals to interact with people who are different from them in terms of race, ethnicity, gender, sexual orientation, etc. This exposure to different perspectives and ideas can broaden their understanding of the world and help them learn new things.

Quiz 1: Business in the United States