Question 1

In the context of the history of American business, which of the following is a true statement about the industrial revolution?

Accepted Answer

During the industrial revolution, the focus shifted to mass production and efficiency, leading to a loss of personal pride as workers became part of a larger, more impersonal production process.

Question 2

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

Accepted Answer

Online technology actually makes it easier for leading-edge companies to offer customized products at comparable prices to standardized products through personalized online experiences, data analysis, and automation.

Question 3

Which of the following is a true statement about profit in a business?

Accepted Answer

Profit is the financial reward that comes from starting and running a business, representing the surplus after all expenses are deducted from revenues.

Question 4

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.

Accepted Answer

The gains in production efficiency during the industrial revolution were mainly due to technological advancements such as the steam engine, interchangeable parts, and assembly lines. While some workers may have taken pride in their work, this was not the main driver of increased efficiency.

Question 5

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

Accepted Answer

The answer of People can create natural resources by growing...

Question 6

In the context of making business personal, following one's passion doesn't guarantee a fat paycheck, but it does boost one's chances of both financial and personal success.

Accepted Answer

Following one's passion can lead to greater personal fulfillment and productivity, which can ultimately translate into financial success. While it's not a guaranteed path to wealth, passionate individuals often have the drive and commitment to overcome obstacles and create value in their chosen field, leading to greater opportunities and rewards.

Question 7

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.

Accepted Answer

Susan's role in recruiting, hiring, and training employees contributes to the production process of ABC Cosmetics, making her a factor of production for the company.

Question 8

During the _____, jobs became even more specialized, increasing productivity and lowering costs and prices.

Accepted Answer

The production era (also known as the manufacturing era, which took place from the late 1800s to the early 1900s) was characterized by mass production, assembly lines, and the specialization of labor, which resulted in increased productivity and lower costs and prices.

Question 9

Which of the following occurred during the entrepreneurship era?

Accepted Answer

The entrepreneurship era, which occurred in the late 19th and early 20th centuries, was characterized by the rise of industrial titans who created enormous wealth and dominated their markets. This era saw the emergence of business leaders such as John D. Rockefeller, Andrew Carnegie, and J.P. Morgan, who amassed great fortunes through their control of key industries such as oil, steel, and finance.

Option A is incorrect because the balance of power did not shift away from producers during the entrepreneurship era. Rather, it was the producers who held the majority of power and wealth during this time.

Option B is also incorrect because web and digital resources did not exist during the entrepreneurship era.

Option D is incorrect because the entrepreneurship era saw significant economic growth and advancement, which led to an overall increase in the standard of living for many people.

Question 10

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

Accepted Answer

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

Question 11

Which of the following is considered a business?

Accepted Answer

An online shopping portal that offers discounted prices on clothes is a business as it provides goods and services in exchange for money.

Answer: A, B, D 
 None of these options involve a business as they are either funded by the state, private charity, or a federal agency, and do not operate for profit.

Question 12

The broader economy and one's own business skills will influence the level of one's personal financial success.

Accepted Answer

Both the broader economy and one's own business skills can have a significant impact on personal financial success. Economic conditions such as inflation, interest rates, and market volatility can affect investments and incomes, while strong business skills can lead to higher-paying job opportunities or successful entrepreneurship. However, personal financial choices and habits also contribute to overall financial well-being, so it's important to keep both factors in mind.

Question 13

The core goal of successful firms is to:

Accepted Answer

The core goal of successful firms is to generate long-term profits by delivering unsurpassed value to their customers. While having a diverse workforce and meeting rising worker expectations are important, the ultimate goal is to create sustained profitability through customer satisfaction. Free trade is important for economic growth, but it is not the core goal of individual firms.

Question 14

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

Accepted Answer

Capital is one of the four factors of production along with land, labor, and entrepreneurship. It includes physical devices such as machines and tools, buildings, information, and technology.

Question 15

Which of the following statements is a characteristic of entrepreneurs?

Accepted Answer

Entrepreneurs are known for creating innovative products or services that not only benefit themselves, but also have a positive impact on the society by creating job opportunities, improving the standard of living, and boosting the economy. This ripple effect enriches everyone around them. Option A and B are incorrect as entrepreneurs are generally motivated by creating wealth for themselves while also creating value for others. Option C is also incorrect as entrepreneurs can have a significant impact on the society.

Question 16

The significance of the economic dimension of a business environment is highlighted when a number of states-from Alabama to Nevada-make their local economies even more appealing by providing special tax deals to attract new firms.

Accepted Answer

The statement is true. The economic dimension of a business environment refers to the economic conditions that affect a business, such as taxes, regulations, and market factors. Many states offer tax incentives to attract new businesses, which makes the economic dimension particularly important in these cases.

Question 17

Huge factories replaced skilled artisan workshops during the _____.

Accepted Answer

The industrial revolution saw a shift from handcrafted goods produced by skilled artisans to mass-produced goods in factories.

Question 18

Identify a true statement about the entrepreneurship era.

Accepted Answer

During the entrepreneurship era, industrial titans did exploit workers and caused environmental damage as they sought to build their empires and dominate markets.

Question 19

Speed-to-market is the rate at which a company's competitors copy its new product innovations.

Accepted Answer

Speed-to-market refers to the time it takes for a company to develop a product and make it available to customers, not the rate at which competitors copy innovations.

Question 20

In the U.S., nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined.

Accepted Answer

The answer of In the U.S., nonprofits employ about one...

Quiz 1: Business Now: Change Is the Only Constant