Deck 6: Characteristics of Business

Question 1

Profit is the difference between earned income and costs.

Answer 1

True

Question 2

The number of manufacturing firms far exceeds the number of service firms.

Answer 2

False

Question 3

The demand for a product refers to the number of similar products that will be offered for sale at a particular time and at a particular price.

Answer 3

False

Question 4

Commercial businesses engage in producing things.

Question 5

Wholesalers and retailers are classified as industrial types of businesses.

Question 6

Knowing what customers want is critical to achieving effectiveness rather than efficiency.

Question 7

The term "domestic goods" refers to products made by firms in other countries.

Question 8

With mass production, the cost of goods manufactured increases for each product made.

Question 9

The most challenging way to obtain increased efficiency is through reorganization.

Question 10

More managers are usually needed when workers are empowered.

Question 11

A measure of a nation's wealth is its GDP.

Question 12

An example of the underground economy occurs when a parent gives a child $3 for doing a household chore.

Question 13

The overwhelming majority of workers in this country are employed by large businesses.

Question 14

A franchise is one method of starting a business if a person has limited business experience.

Question 15

The failure rate for nonfranchised businesses is higher than the failure rate for franchised businesses.

Question 16

To be successful, a manager must guide a business to react quickly to the changing nature of society.

Question 17

Innovations rarely affect business operations.

Question 18

An activity must be illegal if it is part of the underground economy.

Question 19

In recent decades, American businesses have been facing more and more competition from foreign businesses.

Question 20

Technological innovations impact only large, high-tech businesses.

Question 21

The demand for a product refers to

A) the number of similar products that will be offered for sale at a particular time and at a particular price
B) the number of similar products that will be bought at a given time at a given price
C) the price at which a product will sell most readily
D) the most competitive price for a product

Question 22

What type of business produces things that other businesses use to make things?

A) goods-producing business
B) small business
C) industry
D) wholesale business

Question 23

A medical office is an example of

A) a goods-producing business
B) a service business
C) an industry
D) a franchise

Question 24

An example of an goods-producing business is a

A) grocery store
B) jewelry wholesaler
C) coal mine
D) fitness center

Question 25

Laying off workers or dropping unprofitable products are examples of

A) specialization
B) global competition
C) downsizing
D) empowerment

Question 26

Allowing workers to specialize typically leads to

A) higher costs
B) greater efficiency
C) higher turnover
D) misuse of resources

Question 27

With mass production, what happens to the cost of each unit produced?

A) decreases
B) increases
C) remains about the same
D) stagnates

Question 28

Which of the following refers to a commitment of excellence?

A) CPI
B) TQM
C) GDP
D) P&L

Question 29

Activities in the underground economy

A) are taxed at a lower rate
B) have decreased in relation to GDP
C) account for one-third of the GDP
D) are not taxed

Question 30

When workers become empowered, what happens to the quality of their work?

A) quality increases
B) quality decreases
C) quality remains about the same
D) none of the responses

Question 31

Elements of total quality management do not include

A) teamwork
B) extensive training
C) cutting corners
D) improved work procedures

Question 32

What is one typical effect of re-engineering?

A) improved work flow
B) production delays
C) job confusion
D) more production steps

Question 33

Which of the following is used as an indicator of a nation's economic wealth?

A) underground economy
B) a TQM chart
C) GDP
D) number of new business start-ups each year

Question 34

The only single country that comes close to the United States in terms of GDP is

A) Japan
B) Germany
C) China
D) India

Question 35

In recent years, the percentage of American families with incomes below the poverty level was about

A) 2 percent
B) 5 percent
C) 11 percent
D) 17 percent

Question 36

In return for payment of franchise fees, a franchisee is given

A) exclusive rights to sell the franchised product
B) a guaranteed profit
C) complete protection from business failure
D) absolute independence

Question 37

In the United States, starting a small business

A) is subject to many government controls
B) is fairly easy
C) requires a physical facility
D) entails a large initial investment

Question 38

In 2014, the GDP for the United States reached just over

A) $17 billion
B) $17 trillion
C) $78 billion
D) $78 trillion

Question 39

A new idea or a new implementation of an existing idea is called a(n)

A) innovation
B) paradigm shift
C) metamorphosis
D) contrivance

Question 40

Match each item with the correct statement below.

-Business activity that deals with all money matters related to running a business.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 41

Match each item with the correct statement below.

-Income that is not recorded in the GDP.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 42

Match each item with the correct statement below.

-Letting workers decide how to perform their work tasks and offer ideas on how to improve the work process.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 43

Match each item with the correct statement below.

-Making the right decisions about what products or services to offer customers and the best ways to produce and deliver them.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 44

Match each item with the correct statement below.

-Producing the largest quantity in the least time by using efficient methods and modern equipment.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 45

Match each item with the correct statement below.

-Products made by firms in other countries.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 46

Match each item with the correct statement below.

-The ability of businesses from one country to compete with similar businesses in other countries.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 47

Match each item with the correct statement below.

-The distributor of a franchised product or service.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 48

Match each item with the correct statement below.

-The quantity, or amount, produced within a given time.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy

Question 49

Match each item with the correct statement below.

-The total market value of all goods produced and services provided in a country in a year.

A)Effectiveness
B)Efficiency
C)Empowerment
D)Entrepreneur
E)finance
F)foreign goods
G)franchisee
H)franchisor
I)global competition
J)gross domestic product
K)industry
L)output
M)productivity
N)underground economy