Question 1

A college has contracted a construction company to build a new bookstore for its college. The heavy machinery and equipment used by the contractor in the construction process is an example of a(n)_____.
A)entrepreneurial resource
B)human resource
C)natural resource
D)capital resource

Accepted Answer

Capital resources refer to the tools, equipment, and machinery used in the production of goods and services. In this case, the heavy machinery and equipment used by the contractor in the construction process are examples of capital resources.

Question 2

Which of the following statements is true of the marketing era?
A)In the marketing era, skilled artisan workshops were replaced by huge factories.
B)In the marketing era, major businesses focused on refining the production process and creating greater efficiencies.
C)In the marketing era, large-scale entrepreneurs dominated the market and raised the standard of living across the country.
D)In the marketing era, the balance of power shifted away from producers and toward consumers.

Accepted Answer

The marketing era, which emerged in the mid-twentieth century, introduced a focus on understanding and satisfying consumer needs, wants, and desires. This shift in emphasis meant that the power dynamic between producers and consumers shifted, allowing consumers to gain more control over the marketplace. Therefore, option D is the correct answer. Options A, B, and C describe earlier eras in economic development.

Question 3

Identify a true statement about nonprofit organizations.
A)They are usually in the business of financial gain.
B)They employ people and take in revenue.
C)They do not produce goods and services.
D)They are not business-like establishments.

Accepted Answer

Nonprofit organizations do employ people and take in revenue. Although they may not have the same goal of financial gain as for-profit businesses, they still need to generate revenue to cover their expenses, pay their employees, and fund their programs and services. Nonprofits may produce goods and services, but their main focus is on fulfilling their social mission rather than maximizing profits. While they may not operate like traditional businesses, they still need to be well-managed and efficient to maximize their impact and serve their community.

Question 4

Identify a true statement about entrepreneurs.
A)They are people who write and establish government policies.
B)They avoid taking the risk of launching and operating their own businesses.
C)They thrive in an environment that supports economic freedom.
D)They are rarely motivated by any profit incentive to run a business.

Accepted Answer

Entrepreneurs thrive in an environment that supports economic freedom, as it provides them with the necessary resources and opportunities to launch and grow their businesses. Options A, B, and D are not true statements about entrepreneurs, as they do not describe their typical roles, characteristics, or motivations.

Question 5

During the_____, businesses began to develop brands to help customers understand the differences among various products.
A)industrial revolution
B)entrepreneurship era
C)marketing era
D)relationship era

Accepted Answer

The marketing era, which started in the early 1900s, marked a shift in focus from production to sales and marketing. During this time, businesses began to use advertising and branding to differentiate their products from those of competitors and to create customer loyalty.

Question 6

Before sales of its IPad 1 reached their peak, Apple launched the IPad 2, which took sales from the IPad 1 but also overtook the sales of its competitors' products. This strategy helped Apple maintain its standing as a leading-edge company in tablet PCs and demonstrates the importance of _____ as a competitive advantage.
A)speed-to-market
B)budgeting
C)event chain methodology
D)elemental cost planning

Accepted Answer

Apple's speed-to-market strategy allowed them to maintain their position in the competitive tablet PC market by quickly releasing new and improved products, taking market share from their competitors and their own previous model.

Question 7

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
A)Economic
B)Technological
C)Competitive
D)Social

Accepted Answer

The social dimension of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people. This includes factors such as demographics, cultural norms, social organizations, and lifestyle trends.

Question 8

Legislation that supports enforceable contracts usually forms part of an organization's _____ environment.
A)competitive
B)cultural
C)economic
D)social

Accepted Answer

Enforceable contracts are directly related to economic factors, such as the legal system and regulations that support and ensure the fulfillment of contracts. Therefore, legislation that supports enforceable contracts usually forms part of an organization's economic environment.

Question 9

Which of the following is most likely to be part of the social dimension of a business environment?
A)Population income
B)Bank lending rates
C)Telecommunication
D)Federal tax laws

Accepted Answer

Population income is related to the social dimension of a business environment as it reflects the purchasing power and consumption patterns of the people who make up a market. Bank lending rates, telecommunication, and federal tax laws are more closely related to the economic, technological, and legal-political dimensions, respectively.

Question 10

Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are on its staff. Its advertisements indicate that Children's Campground relies heavily on its _____ to provide its services.
A)natural resources
B)human resources
C)entrepreneurship
D)capital

Accepted Answer

The advertisements indicate that the program relies heavily on its "highly-trained professionals" who would fall under the category of human resources.

Question 11

Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?
A)Social
B)Technological
C)Cultural
D)Economic

Accepted Answer

When stock markets lose a major portion of their value and when huge, venerable institutions collapse financially, it highlights the economic dimension of the business environment.

Question 12

Identify a true statement about e-commerce.
A)Business-to-consumer selling companies have the larger share of profits arising from the total e-commerce sales.
B)E-commerce has completely eliminated the individualized buying experience.
C)Business-to-business selling companies comprise the vast majority of total e-commerce sales.
D)E-commerce excludes the sales of goods and services through websites or online portals.

Accepted Answer

According to eMarketer, in 2020, B2B e-commerce sales were projected to make up 82% of total e-commerce sales, while B2C e-commerce sales were projected to make up 18%. Therefore, option C is the true statement about e-commerce. Options A and D are false, as B2C companies do not have a larger share of profits, and e-commerce does include sales through websites and online portals. Option B is also false as e-commerce can still provide a personalized buying experience through targeted marketing and recommendations.

Question 13

Too much taxation, an overuse of regulation, and limited choices in the broader business environment are likely to result in:
A)a decrease in entrepreneurial activities.
B)an increase in the level of personal freedom.
C)an increase in global trade.
D)a social crisis.

Accepted Answer

When taxation is too high and regulations are too strict, it becomes difficult for entrepreneurs to start or run a business. This leads to a decrease in entrepreneurial activities, which can have negative effects on the economy. Limited choices in the business environment can also make it difficult for businesses to grow and expand, as they may not have access to the resources they need. This can ultimately result in a social and economic crisis.

Question 14

Which of the following is most likely an example of a nonprofit organization?
A)A regional retail store that sells goods at discount prices
B)A community museum that is funded by a society and is free for public use
C)A local newspaper house that sells newspapers at lower prices than its competitors
D)A fashion publication house that issues free subscriptions of its weekly magazines to consumers who are yearly subscribers

Accepted Answer

A community museum that is funded by a society and is free for public use is most likely an example of a nonprofit organization. Nonprofit organizations are typically focused on a social, environmental or cultural cause and operate to benefit the public. The other options listed focus on generating profit or competing in the market.

Question 15

Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.
A)economic
B)social
C)cultural
D)technological

Accepted Answer

Computers, digital tools, and telecommunications are technology-based tools that fall under the technological dimension of a business environment. This dimension pertains to the application of scientific and engineering knowledge to create new products, services, and systems for businesses.

Question 16

A small-scale consulting firm in Hawaii is struggling financially because it is unable to generate enough capital to run the business. The company then decides to get creative and uses web technology and digital resources to build long-term bonds with its current customers and also to reach new customers. This company is using concepts that primarily originated in the:
A)entrepreneurship era.
B)relationship era.
C)production era.
D)industrial era.

Accepted Answer

The company is using web technology and digital resources to build long-term bonds with customers, which is a key characteristic of the relationship era. In this era, businesses focus on building relationships with customers and creating customer loyalty.

Question 17

Samuel is struggling to run his start-up company in his locality. He is struggling because the local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom of a business environment, which of the following is adversely affecting Samuel's start-up?
A)Lack of freedom of production
B)Lack of freedom of staffing
C)Excessive regulation
D)Excessive taxation

Accepted Answer

The strict codes of conduct regarding certification, accreditation, and insurance obligation set by the local trade associations indicate excessive regulation, which limits the economic freedom of Samuel's start-up by imposing additional costs, administrative burden, and barriers to entry. The lack of freedom of production or staffing, or excessive taxation, may also affect the economic freedom of a business environment, but they are not specified in the context of the scenario.

Question 18

In the context of factors of production, which of the following is an example of a natural resource?
A)An equipment
B)Land
C)An investment
D)Information

Accepted Answer

Land is considered a natural resource because it is a gift of nature and is not created by human beings. An equipment, investment, and information are not natural resources but fall under the categories of capital, entrepreneurship, and labor respectively.

Question 19

Identify a true statement about the production era.
A)Major businesses focused on shifting the balance of power from producers and toward consumers.
B)The method of "hard sell" was eliminated.
C)The assembly line became standard across major manufacturing industries.
D)Leading-edge firms looked beyond each immediate transaction with a customer and aimed to build a long-term relationships.

Accepted Answer

The assembly line became standard across major manufacturing industries during the production era. This allowed for mass production and increased efficiency in manufacturing processes. Option A is incorrect as the production era focused on increasing production and reducing costs rather than shifting power towards consumers. Option B is incorrect as the hard sell method was actually popularized during this era. Option D is incorrect as building long-term relationships with customers was not a key focus during the production era.

Question 20

Fred operates two resorts in the Miami area.His company works hard to develop long-term relationships by calling customers to make sure that they are satisfied with their recent visits to the resorts and with offers to host free. In this case, Fred is most likely using concepts that were popularized during the:
A)entrepreneurship era.
B)production era.
C)relationship era.
D)technology era.

Accepted Answer

Fred's approach of building long-term relationships with customers through follow-up calls and offering free stays is a characteristic of the relationship era. This era emphasizes the importance of building customer relationships and focusing on customer satisfaction to achieve business success.

Quiz 1: Business Now: Change Is the Only Constant

A college has contracted a construction company to build a new bookstore for its college. The heavy machinery and equipment used by the contractor in the construction process is an example of a(n) _____.

Which of the following statements is true of the marketing era?

Identify a true statement about nonprofit organizations.

Identify a true statement about entrepreneurs.

During the_____, businesses began to develop brands to help customers understand the differences among various products.

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?

Legislation that supports enforceable contracts usually forms part of an organization's _____ environment.

Which of the following is most likely to be part of the social dimension of a business environment?

Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?

Identify a true statement about e-commerce.

Too much taxation, an overuse of regulation, and limited choices in the broader business environment are likely to result in:

Which of the following is most likely an example of a nonprofit organization?

Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.

In the context of factors of production, which of the following is an example of a natural resource?

Identify a true statement about the production era.