Question 1

To implement a policy of empowerment, the organization will restructure so that:
A) managers have more responsibility and employees learn to follow directions.
B) employees assume more responsibility.
C) workers agree to work overtime without extra pay.
D) an entire level of management is removed from the organization.

Accepted Answer

Empowerment involves giving employees more responsibility, so the best choice is B. Options A and C do not involve empowerment and may not lead to increased employee engagement or job satisfaction. Option D may be a restructuring decision, but it does not necessarily lead to empowerment.

Question 2

Businesses are supporting single-parent families with:
A) Social Security benefits.
B) a more lenient welfare system.
C) more flexible work benefits such as flextime and family leave.
D) limited benefits due to the declining numbers of these families. Five-member families are steadily growing.

Accepted Answer

Businesses are supporting single-parent families by offering more flexible work benefits such as flextime and family leave to better accommodate their needs and responsibilities as caregivers. This allows single parents to balance work and family responsibilities more effectively, leading to improved well-being and productivity. Social Security benefits are provided by the government, not businesses, and a more lenient welfare system is a policy matter that cannot be decided by individual businesses. The choice of D is incorrect as single-parent families are not declining in numbers, and five-member families are not necessarily growing more than single-parent families.

Question 3

The statistical study of human population to learn its size, density, and characteristics is called:
A) psychographics.
B) econometrics.
C) demography.
D) geometry.

Accepted Answer

Demography is the study of human population, including its size, density, and characteristics. Psychographics refers to the study of consumer behavior and attitudes, while econometrics is the application of statistical methods to economic data. Geometry is a branch of mathematics concerned with shapes and spatial relationships.

Question 4

People between the ages of 65 and 74 represent:
A) the unemployed generation.
B) the single-parent family generation.
C) a lucrative market.
D) a group that has never contributed to social security.

Accepted Answer

People between the ages of 65 and 74 represent a growing demographic that is often referred to as the "silver market" or "gray market." This group has significant buying power and represents a lucrative market for businesses. Therefore, choice C is the best answer. Choices A, B, and D are incorrect because they are either inaccurate or do not accurately describe this demographic group.

Question 5

In order to compete well and gain market share, contemporary businesses are changing to be more _________________.
A) customer-driven
B) cash-driven
C) management-driven
D) production-driven

Accepted Answer

In today's business landscape, customers have more power than ever before, so businesses that focus on meeting their needs and demands are more likely to succeed. By being customer-driven, businesses can create products or services that are more closely aligned with customer preferences, leading to higher levels of customer satisfaction and ultimately, greater market share.

Question 6

Due to population shifts,
A) businesses that cater to older consumers will see exceptional growth.
B) businesses that cater to older consumers will see slower growth.
C) businesses that sell electronic devices will see a significant decline.
D) healthcare will emerge as the only business sector that will grow.

Accepted Answer

Population shifts refer to a growing number of older consumers as the baby boomer generation reaches retirement age. This means that businesses that cater to older consumers, such as healthcare, travel, and leisure, will likely see exceptional growth as this demographic becomes a larger portion of the population.

Question 7

Which of the following industries will benefit from an aging population?
A) Financial services to help clients plan for their education
B) Home health care businesses
C) Children's day-care centers
D) Auto industry

Accepted Answer

As the population ages, there will be an increased demand for healthcare services. Home health care businesses are in a position to benefit from this trend by providing care to elderly individuals within their homes. Financial services may also benefit as individuals begin to plan for their retirement and end-of-life care, but this does not directly relate to an aging population's need for services. Children's day-care centers and the auto industry are not likely to benefit from an aging population.

Question 8

The Social Security system,
A) continues to burden businesses due to the fact that businesses must provide and pay for this benefit for their employees.
B) met the needs of our nation when it was conceived, but needs an overhaul.
C) will continue to serve the needs of U.S. citizens into the distant future, due to the fact that there are so few retirees placing a strain on it.
D) is failing because the U.S. government failed to invest the money that employees contributed.

Accepted Answer

The Social Security system was created to provide support to elderly retirees, but it needs an overhaul to ensure its long-term sustainability. Today, there are fewer workers contributing to Social Security compared to the number of beneficiaries receiving it, which puts a strain on the system. Additionally, changes in demographics and the economy have made it harder for the program to meet its original goals. A comprehensive reform is necessary to ensure that the system can continue to provide retirement benefits to future generations.

Question 9

It was 8:00 a.m. on Saturday morning. Liz just learned that her well-meaning cousins were headed over to help her unpack her household. She had just moved back to Chicago from the west coast. Were they really planning to work, or were they expecting brunch? A bagel and pastry shop was just up the road. She would call in a food order. When she arrived to pick up, it was not what she ordered. The store associate quickly made it right, and offered an extra dozen bagels to make-up for the mistake. There was no need to check with the supervisor, as the employee was _______________ to make decisions that translate into good customer service.
A) structured
B) empowered
C) asked by the customer
D) deputized

Accepted Answer

The key phrase in the passage is "There was no need to check with the supervisor, as the employee was empowered to make decisions that translate into good customer service." This means that the employee had the authority and ability to make decisions on their own to improve the customer experience. Therefore, the best choice is B) empowered.

Question 10

Max is in charge of production for a family-owned firm that makes and sells sports gloves including baseball gloves, softball gloves, golf gloves, and more. He has stated that speed of delivery is the most important factor for success in the competitive environment. Which of the following would be the best response to Max?
A) You are right on target, Max. Time is money.
B) You are the man, Max. As long as our price is competitive, speedy delivery will win in today's changing marketplace.
C) Well Max, speed isn't everything. What would exceed our customers' expectations? Some consumers may put more importance on high quality and/or lower prices.
D) Dude, you couldn't be more wrong. Quality is the name of the game. He who has the best product will win in the competitive environment.

Accepted Answer

While speed of delivery is important, it's not the only factor that affects the success of the business. Some customers may prioritize high quality products or lower prices over speedy delivery. It's important to know and understand the needs and preferences of your target market and cater to them accordingly.

Question 11

Lamar is a salesperson for Bi-State Direct. He really appreciates the amount of freedom and authority Bi-State gives its sales people in order to better meet the needs of customers. Lamar's experience suggests that Bi-State practices:
A) centralized management.
B) fast response theory.
C) enfranchisement.
D) empowerment.

Accepted Answer

Lamar's experience suggests that Bi-State practices empowerment, which is giving employees the authority and flexibility to make decisions that better meet the needs of customers. This allows salespeople like Lamar to be more responsive to customer needs and ultimately provide better service.

Question 12

Which of the following statements best describes how firms must treat their front-line workers in order to remain competitive? Front-line workers must be ____________.
A) empowered with the authority to respond quickly to the unmet needs of customers
B) closely supervised to reduce the risk of product liability and discrimination law suits
C) eliminated and replaced with automated equipment whenever possible
D) relieved of any burden to make a customer decision

Accepted Answer

Empowering front-line workers with the authority to respond quickly to the unmet needs of customers is necessary for firms to remain competitive. This allows for quick problem-solving and better customer service. Close supervision can lead to micromanagement and inefficiencies. Eliminating front-line workers completely is not always feasible, and even if it is, it could lead to negative public perception and a lack of personalized service. Relieving them of any burden to make customer decisions could also result in poor customer service.

Question 13

Which of the following statements about the competitive environment is most accurate?
A) Firms that produce a quality product will almost always succeed in the competitive marketplace.
B) Traditional firms will be unable to successfully compete against the new Internet firms unless they immediately create a way to reach customers through this technology.
C) Firms that empower their employees will continue to perform poorly in the competitive environment.
D) Companies now have to offer both high-quality products and outstanding service at competitive prices.

Accepted Answer

In today's competitive environment, customers are looking for a combination of high-quality products, outstanding service, and competitive prices. Simply producing a quality product is not enough to ensure success. Additionally, technology is not the only factor in determining success, as traditional firms can still compete by adapting and innovating. Finally, empowering employees can lead to improved performance and may be a competitive advantage rather than a hindrance.

Question 14

Efforts are underway to serve the needs of a diverse population. Diversity means:
A) selling products to immigrants.
B) dealing sensitively with workers and cultures around the world.
C) providing government programs such as free health care for illegal and legal immigrants.
D) meeting employment quotas so that diverse groups are always represented in your workforce.

Accepted Answer

Diversity refers to a range of differences among people, including but not limited to race, ethnicity, gender, sexual orientation, age, religion, and ability. Serving the needs of a diverse population requires understanding and respecting these differences, and dealing sensitively with workers and cultures around the world. Selling products to immigrants or providing government programs like free healthcare for immigrants are specific actions that may result from efforts to serve a diverse population, but they alone do not fully embody the concept of diversity. Meeting employment quotas to ensure diversity in the workforce is one way to approach diversity, but it may not address the underlying issue of creating an inclusive and equitable environment for all employees.

Question 15

Maintaining a competitive advantage is very important to the success of today's businesses. All of the following strategies will help a firm remain competitive, except:
A) ignoring competitor movements, including new products and services offered by the competition.
B) restructuring internal processes, including the elimination of some jobs.
C) spending funds on customer service training for front-line employees.
D) adhering to a vision of employee empowerment and striving to exceed customer expectations.

Accepted Answer

Ignoring competitor movements is not a strategy that will help a firm remain competitive. In fact, it could lead to falling behind the competition and losing market share. The other options (B, C, and D) are strategies that can help a firm maintain a competitive advantage.

Question 16

Diversity is more than recruiting and keeping minorities. Diversity means appreciating and understanding other differences in our customers and in our workforce. The statement that best describes this difference is:
A) people with disabilities, people with different sexual orientations, religious preferences, and even personality differences such as extroverts and introverts.
B) gender roles.
C) surface level things such as green eyes versus brown eyes.
D) racial differences and gender differences.

Accepted Answer

Diversity goes beyond just focusing on racial and gender differences. It includes appreciating and understanding a variety of differences, such as disabilities, sexual orientations, religious preferences, and personality types.

Question 17

Businesses collect ________ information on where people live, what they buy, and how they spend their time.
A) geometric
B) econometric
C) demographic
D) anthropologic

Accepted Answer

Demographic information includes data on characteristics such as age, gender, income, education, and geographic location. This type of information is commonly collected by businesses to better understand their target market and make strategic decisions based on consumer behavior. Geometric information pertains to shapes, sizes, and spatial relationships; econometric information relates to economic trends and statistical analysis; anthropologic information pertains to cultural and social environments.

Question 18

Empowerment means:
A) giving employees the authority to make decisions.
B) making certain that employees always defer to management when making decisions.
C) hiring employees that do not require training due to the costly nature of this activity.
D) asking employees to write the policies which govern their jobs.

Accepted Answer

Empowerment means giving employees the authority to make decisions, which helps to increase their confidence, job satisfaction, and overall productivity. Option B is incorrect as it undermines the concept of empowerment. Option C is incorrect as it goes against the notion of continuous learning and development. Option D is incorrect as policies need to be guided by management's vision and objectives.

Question 19

Empowerment requires that managers focus more on __________ lower-level employees.
A) directly supervising
B) training
C) simplifying the jobs of
D) controlling and correcting

Accepted Answer

Empowerment involves giving lower-level employees more responsibility and decision-making power. To do so, managers need to invest in training and developing these employees so that they can effectively take on these new roles. Directly supervising, simplifying jobs, and controlling and correcting are less relevant to the concept of empowerment.

Question 20

Greg is working as a marketing trainee for an online music and video retailer. His boss called a meeting for next week with one thing on the agenda: "Bring with you your ideas about how we can gain a competitive advantage." Greg plans to provide the following response:
A) create a management-driven environment with lots of employee training.
B) create a customer-driven environment where we constantly try to create customer value.
C) restructure the organization so that there is always a manager on duty to chat with online customers who are having problems with their orders.
D) always match the promotions of our competitors. Price is the only thing customers care about.

Accepted Answer

Creating a customer-driven environment where the company is constantly trying to create customer value is the best approach to gaining a competitive advantage in the online music and video retail industry. This can involve offering personalized recommendations, creating a seamless purchasing and delivery experience, and providing excellent customer service. Focusing solely on price may attract customers in the short term, but it is not sustainable and will not necessarily lead to long-term success.

Quiz 1: Taking Risks and Making Profits Within the Dynamic Business Environment

To implement a policy of empowerment, the organization will restructure so that:

Businesses are supporting single-parent families with:

The statistical study of human population to learn its size, density, and characteristics is called:

People between the ages of 65 and 74 represent:

In order to compete well and gain market share, contemporary businesses are changing to be more _________________.

Due to population shifts,

Which of the following industries will benefit from an aging population?

The Social Security system,

Lamar is a salesperson for Bi-State Direct. He really appreciates the amount of freedom and authority Bi-State gives its sales people in order to better meet the needs of customers. Lamar's experience suggests that Bi-State practices:

Which of the following statements best describes how firms must treat their front-line workers in order to remain competitive? Front-line workers must be ____________.

Which of the following statements about the competitive environment is most accurate?

Efforts are underway to serve the needs of a diverse population. Diversity means:

Maintaining a competitive advantage is very important to the success of today's businesses. All of the following strategies will help a firm remain competitive, except:

Diversity is more than recruiting and keeping minorities. Diversity means appreciating and understanding other differences in our customers and in our workforce. The statement that best describes this difference is:

Businesses collect ________ information on where people live, what they buy, and how they spend their time.

Empowerment means:

Empowerment requires that managers focus more on __________ lower-level employees.

Greg is working as a marketing trainee for an online music and video retailer. His boss called a meeting for next week with one thing on the agenda: "Bring with you your ideas about how we can gain a competitive advantage." Greg plans to provide the following response: