Question 1

Sal Garmin's business offers computer support to local not-for-profit organizations. If he is like most entrepreneurs, Sal's primary goal is to create wealth for his community.

Accepted Answer

Most entrepreneurs, including Sal Garmin, are primarily motivated by the goal of creating wealth for themselves or their shareholders, rather than specifically aiming to create wealth for their community.

Question 2

As entrepreneurs create wealth for themselves, they produce a ripple effect that enriches everyone around them.

Accepted Answer

Entrepreneurs create jobs, drive innovation, and increase productivity, which leads to economic growth and benefits for the community at large. Their success can create a ripple effect that spreads throughout the economy, generating new opportunities and improving the standard of living for many people.

Question 3

One characteristic of all not-for-profit organizations is that they do not earn any revenue.

Accepted Answer

Not-for-profit organizations do earn revenue, but they reinvest it back into their mission or use it to cover expenses rather than distributing it to shareholders or owners.

Question 4

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

Accepted Answer

Businesses pay taxes, which contribute to government revenue. This revenue can be used to fund projects that benefit society, such as infrastructure development, education, healthcare, and social welfare programs. These projects help to improve people's lives and raise the standard of living in a community or country. Therefore, businesses do play a role in raising the standard of living through the payment of taxes.

Question 5

Entrepreneurs are motivated to risk their time, money, and other resources in an effort to gain a profit for themselves. But their efforts yield benefits to many others in society, in addition to their personal profits.

Accepted Answer

Entrepreneurs often create new products, services, and jobs that benefit their customers and employees, as well as the larger economy. They can also contribute to social causes or philanthropic initiatives with their wealth. Therefore, their pursuit of profit can have positive externalities for society as a whole.

Question 6

The standard of living reflects the quality and quantity of goods available to a nation's population.

Accepted Answer

The statement is true. The standard of living is a measure of the level of comfort, material goods, and wealth available to a population. It includes factors such as income, education, healthcare, and access to basic necessities such as food, water, and housing. The higher the standard of living, the better the quality of life for the population.

Question 7

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

Accepted Answer

Creating more goods and services can have an impact on the quality of life, such as by providing access to essential goods and services like healthcare, education, and clean water. It can also create jobs and stimulate economic growth, which can improve living standards. However, the impact on quality of life will depend on factors such as how the goods and services are produced, distributed, and consumed, and whether they contribute to sustainable and equitable development.

Question 8

During the entrepreneurship era, government began regulating business to protect the consumer and provide guidelines for products and services.

Accepted Answer

During the entrepreneurship era, which lasted from the late 19th century to the early 20th century, the government began regulating businesses to protect consumers and prevent monopolies. This era saw the rise of consumer protection laws and the establishment of regulatory agencies, such as the FDA and FTC, to oversee various industries.

Question 9

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

Accepted Answer

This is a fundamental principle of business - to generate revenue and profits by providing goods or services that customers want or need.

Question 10

One personality trait shared by most entrepreneurs is the desire to avoid risk.

Accepted Answer

Most entrepreneurs are willing to take risks, as they believe in their business ideas and have confidence in their ability to succeed. They often view risk-taking as an opportunity for growth and innovation.

Question 11

The Industrial Revolution era is recognized for its technological advances.

Accepted Answer

The Industrial Revolution era, which lasted from the late 18th century to the mid-19th century, is known for its significant technological advancements in areas such as manufacturing, transportation, and communication.

Question 12

"Quality of life" is a narrow measure of social welfare that is based exclusively on the quantity and quality of goods and services produced by a society.

Accepted Answer

"Quality of life" is a broad measure of social welfare that takes into account factors such as education, healthcare, environment, and social connections in addition to goods and services produced by a society.

Question 13

Producers today deliver better goods more quickly and cheaply than ever before.

Accepted Answer

Technological advancements and optimized production processes have enabled producers to increase efficiency, reduce costs, and improve the quality of goods. This, in turn, benefits consumers with better products that are more affordable and accessible than ever before.

Question 14

Successful businesses embrace change and carefully evaluate risks.

Accepted Answer

Successful businesses understand that change is inevitable and necessary for growth, and they evaluate risks in order to make informed decisions and minimize potential negative impacts.

Question 15

A core goal for successful businesses is to deliver value to customers while generating long-term profits.

Accepted Answer

This statement accurately reflects a core goal for successful businesses. Ultimately, a company's ability to provide value to customers in a sustainable way directly impacts its long-term profitability.

Question 16

Henry Ford's introduction of the assembly line occurred during the production era.

Accepted Answer

The assembly line was introduced by Henry Ford during the production era of American business history, which focused on increasing efficiency and lowering costs in order to mass-produce products.

Question 17

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

Accepted Answer

This statement is true. If a firm's revenue is less than its expenses, it will not generate a profit and may even experience a loss.

Question 18

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

Accepted Answer

The answer of The production era is also referred to...

Question 19

During the entrepreneurship era, the government began to regulate business practices.

Accepted Answer

During the entrepreneurship era, which spanned from the late 1800s to the early 1900s, governments began to implement regulations to curb the monopolistic practices and unethical behaviors of businesses, aiming to protect consumers and ensure fair competition.

Question 20

Typically, socially responsible businesses act as advocates for the well-being of the community.

Accepted Answer

Socially responsible businesses prioritize the needs and interests of the community, and strive to minimize negative impacts on society and the environment. They often engage in activities such as charitable giving, volunteerism, and sustainable operations to support the well-being of the community.

Quiz 1: Business Now: Change Is the Only Constant