Question 1

In Canada,most of the offshoring that occurs is with China.
Most offshoring is with the United States.

Accepted Answer

Most of Canada's offshoring is with countries like India and the Philippines, not primarily with China.

Question 2

Recent studies have shown that the major advantage rich nations have over poor nations is an abundance of land and labour.

Accepted Answer

Recent studies have shown that the major advantage rich nations have over poor nations is their ability to use advanced technology and knowledge to increase overall productivity, rather than just having an abundance of land and labor.

Question 3

A charitable organization,whose goals do not include making a personal profit for its owners or organizers,such as the Red Cross or the Salvation Army,is best classified as a small business.
A charitable organization is not classified as a business since it does not seek a profit.Charities are classified as nonprofit organizations.

Accepted Answer

A charitable organization is classified as a nonprofit organization, not a small business.

Question 4

If they wish to create more wealth,poor nations should focus on policies that increase entrepreneurship and the effective use of knowledge.
Poor nations often have plenty of labour and land,as well as access to capital.However,the absence of entrepreneurship and knowledgeable workers seems to be the reason that most poor countries remain poor.

Accepted Answer

The statement highlights the importance of entrepreneurship and knowledgeable workers for creating wealth in poor nations. It suggests that policies should focus on promoting these factors to overcome the barriers to economic growth.

Question 5

According to management expert Peter Drucker,the most important factor of production in our economy is knowledge.

Accepted Answer

Peter Drucker believed that knowledge is the most important factor of production in our economy, stating that "the most valuable asset of a 21st-century institution, whether business or non-business, will be its knowledge workers and their productivity."

Question 6

Companies have gone from outsourcing production jobs to offshoring research and development.

Accepted Answer

Many companies have started offshoring their research and development to reduce costs and increase efficiency.

Question 7

Starting a business is a riskier path toward business success than working your way up the ranks of a large business.

Accepted Answer

Starting a business involves taking on a higher level of risk as there is no guarantee of success and the entrepreneur is responsible for all aspects of the business. Working your way up in a large business involves a more stable path with less risk, but also typically has less potential for personal financial gain.

Question 8

Money is one of the five factors of production that contribute to the creation of wealth.
see Figure 1.2.

Accepted Answer

Money is not one of the five factors of production. The 5 factors of production are land, labor, capital, entrepreneurship, and knowledge. Money is used as a medium of exchange and store of value, but it is not a factor of production.

Question 9

Mandeep Robin has started her own Internet consulting firm.While she recognizes the risks involved in operating a business,she is still willing to invest her time,effort,and money in hopes of earning a profit.Mandeep Robin is an example of an entrepreneur.
An entrepreneur is someone who risks time and money to start and manage a company.

Accepted Answer

This is the correct definition of an entrepreneur.

Question 10

The two factors of production that are the most important for creating wealth are entrepreneurship and the effective use of knowledge.

Accepted Answer

Entrepreneurship involves identifying opportunities and taking risks to create new businesses and industries, which is crucial for economic growth and wealth creation. The effective use of knowledge, including technological advancements and education, allows for increased productivity and innovation, leading to greater wealth creation.

Question 11

Unlike businesses,employees of nonprofit organizations are not required to learn the business skills of accounting,marketing,or financial management.
In order to achieve their goals,nonprofit organizations need people with many of the same skills required by businesses.For example,even though nonprofit organizations do not seek a profit,they still may deal with large sums of money and must keep financial records.Nonprofit organizations also need people with leadership,marketing,and information management skills.

Accepted Answer

The statement is false. Nonprofit organizations do require employees with business skills such as accounting, marketing, and financial management in order to achieve their goals.

Question 12

An effort to please one group of stakeholders eventually pleases all stakeholders.
Balancing the demands of all stakeholders is a tremendous challenge for organizations.Tradeoffs are common.Actions benefiting one group may have a negative impact on another group of stakeholders.

Accepted Answer

Balancing stakeholder demands often involves trade-offs, and actions that benefit one group may negatively impact another.

Question 13

Tools,machinery,and buildings are all types of capital resources.

Accepted Answer

This statement is true. Capital resources are the long-lasting tools, machines, buildings, and other assets used in the production of goods and services.

Question 14

Business decisions should consider the interests of customers,employees,suppliers,government officials,and stockholders.
All of the groups mentioned stand to gain or lose by the policies and activities of a business.They are referred to as stakeholders.A major challenge of businesses is to improve profits while trying to maintain a balance between the interests of all stakeholders.See Figure 1.1

Accepted Answer

The statement is true.

Question 15

Political and religious freedom,quality education,access to health care,and a clean environment are all factors that contribute to an improved quality of life.
The quality of life focuses on the general well-being of a society,and includes factors such as freedom,security,leisure time,and other factors that go beyond the goods and services people can buy with their incomes.

Accepted Answer

The statement accurately describes the factors that contribute to an improved quality of life, and explains that it extends beyond material possessions.

Question 16

A lesson to learn from the story of Ron Joyce,who became a franchisee in the first Tim Hortons,is that to be a successful entrepreneur you need to find something that you love to do.

Accepted Answer

Ron Joyce's passion for coffee and love for serving customers played a major role in his success as a Tim Hortons franchisee. This highlights the importance of choosing a business venture that aligns with your interests and passions when starting a business.

Question 17

Countries with an inadequately trained work force and few entrepreneurs often achieve the highest levels of income by relying on a large number of workers.
Poor countries often have plenty of labor and access to adequate capital.However,the two factors of production that are most critical in generating national wealth are entrepreneurship and knowledge.A country found lacking in these will experience relatively low levels of income.

Accepted Answer

Countries with inadequately trained workforces and few entrepreneurs typically do not achieve high income levels, as entrepreneurship and knowledge are crucial for generating national wealth.

Question 18

Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society.
Businesses are not the only organizations that produce goods and services.Government agencies,public schools,and charities such as the Salvation Army provide goods or services,but are classified as nonprofit organizations since there is no profit motive.

Accepted Answer

Nonprofit organizations provide goods and services, similar to businesses, but without a profit motive.

Question 19

Entrepreneurship is one of the five factors of production that contribute to the creation of wealth.

Accepted Answer

Entrepreneurship involves taking risks and creating new products, services, and companies, which can lead to economic growth and prosperity. It is considered one of the factors of production along with land, labor, capital, and knowledge.

Question 20

Paid vacations and a generous pension are among the benefits provided by the government to entrepreneurs.

Accepted Answer

There is no such provision of paid vacations or pensions by the government to entrepreneurs. They are responsible for providing these benefits to themselves and their employees.

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

In Canada,most of the offshoring that occurs is with China. Most offshoring is with the United States.