Question 1

In the context of the history of American business, during the _____, businesses began to develop distinctive identities 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 began in the 1950s, saw businesses focus more on creating unique brands and advertising their products to consumers. This was a shift from the previous era, the entrepreneurship era, where businesses focused on expanding and increasing production.

Question 2

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)The social environment
B)The technological environment
C)The cultural environment
D)The economic environment

Accepted Answer

The economic environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially. It refers to the overall economic conditions and factors that can affect a business, including inflation, recession, exchange rates, interest rates, and other economic indicators.

Question 3

Marsa and Hunare are Asian nations. Jorwen, Kellpit, and Denqor are North American nations. These five nations recently signed a multilateral agreement that allows them to carry out business operations with minimal tax implications. This arrangement would allow Jorwen, Kellpit, and Denqor to import goods from Marsa and Hunare, which have low labor costs and high production quality. This agreement among these five nations is most likely possible because of the _____.
A)Retail Association Cooperative Agreement
B)European Investment Treaty
C)General Agreement on Tariffs and Trade
D)American Free Trade Agreement

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement that aims to promote international trade by reducing trade barriers such as tariffs and quotas. It provides a framework for countries to negotiate and enter into agreements regarding international trade. The agreement among the five nations in the question is most likely possible because of the provisions in the GATT. Both Jorwen, Kellpit, and Denqor and Marsa and Hunare have agreed to reduce or eliminate tariffs on goods traded between them, creating a more favorable environment for business operations.

Question 4

Which of the following is a characteristic of entrepreneurs?
A)They believe in creating wealth for the underprivileged rather than for themselves.
B)They start a business so that no form of loss is incurred.
C)They have little or no impact on other people in the society.
D)They risk their time, money, and other resources to start and manage their business.

Accepted Answer

Entrepreneurs are known to take risks by investing their time, money, and other resources to start and manage a business. This is one of the key characteristics of an entrepreneur. Option A is incorrect as entrepreneurs focus on creating wealth for themselves rather than underprivileged. Option B is incorrect as losses are inevitable in business. Option C is incorrect as entrepreneurs have a significant impact on the society by creating jobs and contributing to economic growth.

Question 5

Which of the following statements is true of profit in a business?
A)It is the difference in the number of customers served between two financial years.
B)It is the financial reward that comes from starting and running a business.
C)It is the difference between the stock at the start and end of an inventory reporting period.
D)It is estimated by calculating the total interest amount due when a business has availed multiple loans.

Accepted Answer

Profit is the financial reward that comes from starting and running a business, which is usually measured as the difference between the revenue generated and the expenses incurred during a certain period of time, such as a fiscal year. The other options do not accurately describe what profit is.

Question 6

Touca Ness, a fantasy movie franchise, was initially created for children in the early 1960s. However, as the franchise started to gain a cult following, the content of the franchise began to include mature themes in order to maintain popularity among its existing consumers. Identify the dimension of the social environment that this scenario exemplifies.
A)Diverse workforce
B)Aging population
C)Ethical policy
D)Social responsibility

Accepted Answer

The answer of Touca Ness, a fantasy movie franchise, was...

Question 7

When Rotomate, a technology solutions company, started producing portable GPS tracking devices in the early 1980s, it faced severe losses because of the lack of a market for its product. Given this information, it can be concluded that Rotomate:
A)was a bleeding-edge firm.
B)used the concept of fast-laning.
C)had a low speed-to-market.
D)was a leading-edge firm.

Accepted Answer

The answer of When Rotomate, a technology solutions company, started...

Question 8

When a business brings in less money than it needs to cover expenses, it incurs a__________.
A)deferral
B)loss
C)depreciation
D)bondage

Accepted Answer

A loss occurs when a business brings in less money than it needs to cover expenses.

Question 9

Mercy's Apparels, a fabric company, was established post World War II with the aim of catering to the demands of consumers looking for affordable quality clothing. To differentiate itself from its competitors, the company developed a distinctive identity as the producer of budget clothing. In the context of the history of American business, Mercy's Apparels was most likely established during the _____.
A)production era
B)marketing era
C)industrial revolution era
D)entrepreneurship era

Accepted Answer

The answer of Mercy's Apparels, a fabric company, was established...

Question 10

Which of the following factors is most likely to be covered by the social environment dimension of a business?
A)Population size
B)Bank interest rates
C)Virtual traffic
D)Federal tax laws

Accepted Answer

The social environment dimension of a business typically covers factors related to the community and society in which the business operates, such as population size, demographics, cultural norms, and social trends. Bank interest rates, virtual traffic, and federal tax laws are more likely to fall under the economic, technological, and legal dimensions of a business, respectively.

Question 11

In the context of the history of American business, which of the following occurred during the entrepreneurship era?
A)The balance of power shifted away from producers and toward consumers.
B)The Web and other digital resources were used to gather detailed information about customers to serve them better.
C)Industrial titans created enormous wealth that raised the overall standard of living across the country.
D)The introduction of specialized jobs increased productivity, resulting in lowered costs.

Accepted Answer

The entrepreneurship era in American business history began in the late 1800s and was characterized by the rise of industrial titans like Andrew Carnegie and John D. Rockefeller. These entrepreneurs created enormous wealth, which contributed to the overall growth of the American economy and raised the standard of living across the country. However, the power shifted away from producers and toward consumers during the consumer era, which began in the 1920s. The use of digital resources and specialized jobs increased productivity during the information era, which began in the 1970s.

Question 12

Unity Prax is a manufacturer of bronze sculptures. It obtains copper ore from the Pima County in Arizona. In this scenario, the copper ore obtained by Unity Prax can be classified as _____.
A)human resources
B)capital resources
C)natural resources
D)man-made resources

Accepted Answer

The copper ore obtained by Unity Prax is a natural resource as it is derived from the earth and is a raw material used in the manufacturing process of bronze sculptures.

Question 13

Zip Zap Inc., a delivery service agency, employs a strict code of conduct that is aimed at minimizing unethical practices within the company. The policy describes the actions that would be taken against anyone who violates the company rules. This ensures that the business faces minimal risk. In this context, which dimension of the business environment is affected the most?
A)The technological environment
B)The economic environment
C)The political environment
D)The global environment

Accepted Answer

The answer of Zip Zap Inc., a delivery service agency,...

Question 14

Ryron Bank, a private bank, introduced Internet banking facilities for its customers after the government demonetized hundred dollar bills. Customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. In this context, which dimension of the business environment is affected the most?
A)The social environment
B)The technological environment
C)The political environment
D)The global environment

Accepted Answer

The introduction of Internet banking facilities by Ryron Bank shows that the technological environment is affected the most. The government's demonetization of hundred dollar bills could also have an impact on the political environment, but the focus of this question is on the dimension that is affected the most, which is the technological environment.

Question 15

Renault and Renoir, a law firm, is infamous for influencing witnesses with the use of bribes. Because of this corruption, the law firm has won many cases that it would have otherwise lost. In this context, which dimension of the business environment is affected the most?
A)The political environment
B)The global environment
C)The technological environment
D)The economic environment

Accepted Answer

The answer of Renault and Renoir, a law firm, is...

Question 16

When Ruben wanted to start a new online news service, he was skeptical about investing in it because of the economic crisis in his country. However, he was put at ease after learning about the government's policy of levying low federal taxes on startup businesses. In this context, which dimension of the business environment is affected the most?
A)The technological environment
B)The social environment
C)The economic environment
D)The competitive environment

Accepted Answer

The economic environment is the most affected dimension, as the government's policy of levying low federal taxes on startup businesses is a direct economic incentive to encourage entrepreneurship and business growth in the midst of an economic crisis.

Question 17

The employees of Carrick Inc., an electronics company, are requesting the management to adopt a new performance appraisal process to allow better transparency between different levels of the company. They propose to have one-on-one feedback sessions that would help reduce various appraisal biases. Identify the dimension of the social environment that this scenario exemplifies.
A)Diversity
B)Ethics
C)Age
D)Income

Accepted Answer

The answer of The employees of Carrick Inc., an electronics...

Quiz 1: Business Now: Change Is the Only Constant

In the context of the history of American business, during the _____, businesses began to develop distinctive identities to help customers understand the differences among various products.

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?

Which of the following is a characteristic of entrepreneurs?

Which of the following statements is true of profit in a business?

When Rotomate, a technology solutions company, started producing portable GPS tracking devices in the early 1980s, it faced severe losses because of the lack of a market for its product. Given this information, it can be concluded that Rotomate:

When a business brings in less money than it needs to cover expenses, it incurs a__________.

Which of the following factors is most likely to be covered by the social environment dimension of a business?

In the context of the history of American business, which of the following occurred during the entrepreneurship era?

Unity Prax is a manufacturer of bronze sculptures. It obtains copper ore from the Pima County in Arizona. In this scenario, the copper ore obtained by Unity Prax can be classified as _____.

Renault and Renoir, a law firm, is infamous for influencing witnesses with the use of bribes. Because of this corruption, the law firm has won many cases that it would have otherwise lost. In this context, which dimension of the business environment is affected the most?