Question 1

A company has competitive advantage when its products are more appealing to its chosen customers.

Accepted Answer

Competitive advantage makes a company's products or the company as a whole more appealing to its chosen customers.

Question 2

Intangible products have a physical presence.

Accepted Answer

Intangible products create value by performing activities that deliver some benefit to the customer. They do not have physical presence.

Question 3

A firm sets up a paper manufacturing factory in a country which has very strict regulations regarding disposal of industrial waste.This increases the cost of production of the firm.This is an example of the social environment of the firm.

Accepted Answer

Every business operates within the broad social environment. Social environment refers to the trends and forces in society at large.

Question 4

The term stakeholders refers only to those people who have invested money in the company's stock.

Accepted Answer

All internal and external groups affected by a company's decisions and activities are referred to as its stakeholders.

Question 5

Profit refers to the money the company brings in through the sale of goods and services.

Accepted Answer

Profit is the amount of money left over after expenses-all the costs involved in doing business-have been deducted from revenue.

Question 6

Businesses add value by transforming lower-value inputs (like paper and ink)into higher-value outputs (like textbooks).

Accepted Answer

Businesses add value by transforming lower-value inputs to higher-value outputs. In other words, they make goods and services more attractive from the buyer's perspective.

Question 7

Forces resulting from the practical application of science to a company's products and processes would best describe its social environment.

Accepted Answer

Every business operates within the broad social environment. Social environment refers to the trends and forces in society at large.

Question 8

A firm uses strategic sourcing techniques to reduce its costs.This is an example of barrier to entry.

Accepted Answer

Barrier to entry refers to any resource or capability a company must have before it can start competing in a given market.

Question 9

Business is any profit-seeking organization that provides goods and services designed to satisfy customers' needs.

Accepted Answer

In a general sense business can be defined as any profit-seeking organization that provides goods and services designed to satisfy customers' needs.

Question 10

A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful.

Accepted Answer

A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful.

Question 11

Businesses can have both positive and negative effects on society.

Accepted Answer

The relationship between business and society is complex and far reaching. Businesses can have both positive and negative effects on society.

Question 12

In a free-market economy,companies generally have limited autonomy in deciding which customers they want to focus on and how they want to compete.

Accepted Answer

In a free-market economy, companies generally have considerable freedom in deciding which customers they want to focus on and how they want to compete.

Question 13

The service sector now dominates the U.S.economy.

Accepted Answer

Over the past few decades, the U.S. economy has undergone a profound transformation from being dominated by manufacturing to being dominated by services.

Question 14

Assets refer to the tangible economic resources owned by a firm.

Accepted Answer

Assets refer to anything of meaningful value, from patents and brand names to real estate and company stock.

Question 15

In general,accounting managers are responsible for planning,while financial managers are responsible for monitoring and reporting.

Accepted Answer

In general, financial managers are responsible for planning, while accounting managers are responsible for monitoring and reporting.

Question 16

R&D fuels new ideas and designs for the company's products and services that allow it to meet customer needs in competitive markets.

Accepted Answer

R&D fuels new ideas and designs for the company's products and services that allow it to meet customer needs in competitive markets.

Question 17

Companies that sell shares of stock to the public are required to have their financial records audited by an outside accounting firm.

Accepted Answer

Companies that sell shares of stock to the public are required to have their financial records audited by an outside accounting firm.

Question 18

Claire holds the position of chief information officer (CIO)position at Celera Inc.,a real estate company.Her position indicates that she is responsible for the preparation of income statements and balance sheets.

Accepted Answer

Accountants and controllers are responsible for the preparation of income statements, balance sheets, and other financial reports.

Question 19

Mark,who works for a toy manufacturing firm,is responsible for creating a branding and marketing strategy.He is most likely to be a part of the firm's operations management team.

Accepted Answer

A person responsible for a company's branding and marketing strategy will be part of strategic management rather than operations management.

Question 20

Difficulty in obtaining business permits or licenses to do a particular business would be an example of a barrier to entry for a firm.

Accepted Answer

Barrier to entry refers to any resource or capability a company must have before it can start competing in a given market.

Quiz 1: Developing a Business Mindset

A company has competitive advantage when its products are more appealing to its chosen customers.

Intangible products have a physical presence.

A firm sets up a paper manufacturing factory in a country which has very strict regulations regarding disposal of industrial waste.This increases the cost of production of the firm.This is an example of the social environment of the firm.

The term stakeholders refers only to those people who have invested money in the company's stock.

Profit refers to the money the company brings in through the sale of goods and services.

Businesses add value by transforming lower-value inputs (like paper and ink)into higher-value outputs (like textbooks).

Forces resulting from the practical application of science to a company's products and processes would best describe its social environment.

A firm uses strategic sourcing techniques to reduce its costs.This is an example of barrier to entry.

Business is any profit-seeking organization that provides goods and services designed to satisfy customers' needs.

A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful.

Businesses can have both positive and negative effects on society.

In a free-market economy,companies generally have limited autonomy in deciding which customers they want to focus on and how they want to compete.

The service sector now dominates the U.S.economy.

Assets refer to the tangible economic resources owned by a firm.

In general,accounting managers are responsible for planning,while financial managers are responsible for monitoring and reporting.

R&D fuels new ideas and designs for the company's products and services that allow it to meet customer needs in competitive markets.

Companies that sell shares of stock to the public are required to have their financial records audited by an outside accounting firm.

Claire holds the position of chief information officer (CIO)position at Celera Inc.,a real estate company.Her position indicates that she is responsible for the preparation of income statements and balance sheets.

Mark,who works for a toy manufacturing firm,is responsible for creating a branding and marketing strategy.He is most likely to be a part of the firm's operations management team.

Difficulty in obtaining business permits or licenses to do a particular business would be an example of a barrier to entry for a firm.