Deck 1: Business Now: Change Is the Only Constant

Question 1

Successful firms generate long­term profits by delivering unsurpassed value to their customers.

Answer 1

True

Question 2

The production era is also referred to as the era of mass production.

Answer 2

False

Question 3

Business drives up the standard of living for people worldwide, contributing to a higher quality of life.

Answer 3

True

Question 4

When companies introduce innovative products and services worldwide, it increases the standard of living of populations.

Question 5

Businesses are primarily focused on creating profits by offering products and services desired by the consumer.

Question 6

When businesses create more goods and services, their activities increase the standard of living, but have no impact on the quality of life.

Question 7

A firm will experience a loss when its revenue is less than its expenses.

Question 8

Businesses raise the standard of living through the payment of taxes, which can be used by the government to pay for socially desirable projects.

Question 9

During the entrepreneurship era, the government began regulating business to protect the consumer.

Question 10

Successful businesses embrace change and carefully evaluate risks.

Question 11

Businesses will incur a profit when expenses are higher than revenue.

Question 12

During the Industrial Revolution, the production process shifted from skilled artisans working in small workshops to semiskilled workers employed in huge factories.

Question 13

The huge gains in production efficiency during the Industrial Revolution were mainly the result of changes in the nature of the production process that encouraged workers to take more pride and ownership in their work.

Question 14

The Industrial Revolution was characterized by unprecedented production efficiency.

Question 15

The entrepreneurship era contributed in raising the standard of living during the second half of the 1800s.

Question 16

Typically, socially responsible businesses act as advocates for the well­being of the community.

Question 17

Value is the relationship between the price of a good or a service and the benefit that the service offers to the customer.

Question 18

The Industrial Revolution era is recognized for its technological advances.

Question 19

A core goal for successful businesses is to deliver value to customers while generating long­term profits.

Question 20

Profit is the money that a business earns in sales, minus expenses such as the cost of goods and the cost of salaries.

Question 21

Nonprofit organizations can be economic magnets within a community.

Question 22

Nonprofits are business­like establishments, although their primary goal is not to make a profit.

Question 23

Nonprofit organizations contribute to their region's economic stability and growth.

Question 24

Even though nonprofit organizations are not in business for a financial gain, they are still businesses in every other sense.

Question 25

Factors of production are the resources a business needs to achieve its objectives.

Question 26

The marketing era came immediately before the entrepreneurship era.

Question 27

Businesses and nonprofit organizations rely on factors of production to achieve their objectives.

Question 28

During the Industrial Revolution, Henry Ford introduced the assembly line, which quickly became standard across major manufacturing industries.

Question 29

Nonprofit organizations do not play a critical role in economic development.

Question 30

Henry Ford's focus on producing a consistent and quality product represented a shift from the production era to the relationship era.

Question 31

Nonprofit organizations only focus on health, human services, and religion.

Question 32

A typical nonprofit organization's primary goal is to improve the quality of life in society.

Question 33

People employed by nonprofit organizations are voluntary workers and are not paid for their services to the organization.

Question 34

The production era is recognized for creating satisfied customers who act as advocates for business.

Question 35

The four factors of production are natural resources, capital, human resources, and entrepreneurship.

Question 36

A group of concerned community leaders formed Homeless Help, a nonprofit organization providing shelter for homeless individuals. Besides the fact that it doesn't seek a profit, Homeless Help is likely to operate much like a business in many respects.

Question 37

When providing products and services, the primary goal of nonprofit organizations is to ensure community interests are addressed.

Question 38

Nonprofit organizations employ approximately one in ten U.S. workers.

Question 39

The four factors of production come free of charge.

Question 40

One characteristic of all nonprofit organizations is that they do not earn any revenue.

Question 41

The four factors of production are natural resources, capital, money, and ownership.

Question 42

Scott started mowing his neighbor's lawn while he was very young. After completing his education, he started a landscaping business and hired some of his friends. Scott is an entrepreneur.

Question 43

Companies use capital to produce goods and services.

Question 44

There are three key dimensions to the business environment: financial, technical, and ethical.

Question 45

U.S. laws help suppress all domestic corruption in the United States.

Question 46

Education and motivation have become increasingly important to human resource development with the use of technology to replace manual labor jobs.

Question 47

The economic dimension of the U.S. business environment includes U.S. government legislation that supports enforceable contracts.

Question 48

Entrepreneurs are primarily motivated by the desire to help others.

Question 49

Susan is the human resources director at ABC Cosmetics. In her job, she is responsible for recruiting, hiring, and training employees. She is a factor of production for the company.

Question 50

Using corn to create ethanol as an alternative fuel source will likely increase the price of corn products in the grocery store.

Question 51

The government in the United States has helped foster free enterprise and fair competition by reducing the risks of starting and running a business.

Question 52

Human resources is a factor that includes the physical, intellectual, and creative contributions of everyone who works within an economy.

Question 53

The level of corruption and bribery in a country does not affect the running of businesses there.

Question 54

People can create natural resources by growing and harvesting agricultural products.

Question 55

In the context of factors of production, the term capital means the money businesses use to finance their operations.

Question 56

Capital, as a factor of production, includes machines, tools, buildings, information, and technology.

Question 57

Entrepreneurs are individuals willing to take the risk of owning and operating a business

Question 58

Entrepreneurship is the resource that appears to be the most important determinant of economic growth.

Question 59

Capital, as a factor of production includes stocks, bonds, and other investments.

Question 60

China has recently relaxed its strict regulations and done more to support entrepreneurship.

Question 61

Customer satisfaction comes in large part from delivering unsurpassed value.

Question 62

Ath apnro tdhue cpt rhicaes tvhaaltu teh we hc eunst oitms be er npeafyitss. to the customer are equal to or greater

Question 63

Demographics refers to the measurable characteristics of a population including traits such as age, education, and income level.

Question 64

The retirement of the baby boomer generation does not concern U.S companies because there are so many people who need a job and the baby boomers can be easily replaced.

Question 65

Investing in worker satisfaction will not affect profitability of a business.

Question 66

Demographics are measurable characteristics of a population.

Question 67

Demographic factors that affect business include population size and density, as well as specific traits such as age, gender, race, education, and income.

Question 68

The only advantage of technology in business is that it increases the business's effectiveness.

Question 69

Greater levels of customer satisfaction often translate into higher profits.

Question 70

Speed­to­market is the rate at which a company's competitors copy its new product innovations.

Question 71

Satellite systems that are built to enhance wireless communications represent an effective use of business technology.

Question 72

Speed­to­market, the rate at which a firm transforms concepts into actual products, can be an important competitive advantage to a firm.

Question 73

Bleeding­edge firms launch products that fail because they are too far ahead of the market.

Question 74

Growing ethnic populations represent the potential for profits if companies orient their marketing programs to pursue them.

Question 75

Research highlights that successful brands use imagination and innovation to deliver value to their customers.

Question 76

The World Wide Web allows computer users to easily access and share information on the Internet via text, graphics, video, apps, and animation.

Question 77

The ethical meltdowns at major corporations such as Enron can increase the cost of doing business for everyone involved.

Question 78

Diversity, the aging population, rising worker expectations, ethics, and social responsibility are all factors that affect the workforce.

Question 79

Excellent products and superb top management play no role in employee satisfaction.

Question 80

Convincing new customers to try your product for the first time is a lot less expensive than getting current customers to buy more of your product because of the technological implications involved.