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Chapter 01 - Taking Risks and Making Profits within the Dynamic Business Enironment

Chapter 01

Taking Risks and Making Profits within the Dynamic Business

Environment

TEST PLANNING TABLE FOR CHAPTER 1

Learning GoalLL:1

Knows BasicTerms and Facts

LL:2UnderstandsConcepts and

Principles

LL:3Alies Principles

1. Describe the relationshipbetween profit and risk and showhow bsinesses and nonprofitor!ani"ations can raise thestandard of li#in! for all.

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2. Compare and contrast bein!an entreprener and workin! for

others.

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3. ,nal-"e the affect of theeconomic en#ironment and taeson bsinesses.

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%. Describe the effect oftechnolo!- on bsiness.

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&. Demonstrate how bsinessescan meet and beat competition.

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'. ,nal-"e the social chan!esaffectin! bsiness.

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(. /dentif- what bsinessesmst do to meet the !lobalchallen!e$ which incldes warand terrorism.

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). 0e#iew how past trends arebein! repeated in the presentand what those trends will mean

for tomorrows colle!e !radate.

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1-1

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Total n-./er o0 test ite.s ((&

Trefalse estions are in plain tet.4ltiple choiceestions are in /old te2t35estions on boed material are in /old te2t wit4 a tilde+36ssa-estions are in /old -nderlined te2t34inicase estions are in /old wit4 an asteris5,3

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True !a"se #uestions

1" Businesses proide goods# $o%s# and serices to others"True &a'se

!" Businesses seek to earn a profit %y proiding goods and serices to others"True &a'se

(" Reenue is the amount a %usiness earns a%oe and %eyond what it spends for e)penses andcosts"True &a'se

*" Profit is the amount of money a %usiness earns a%oe and %eyond what it spends forsa'aries and other e)penses"True &a'se

+" ,ince a'' %usinesses make a profit# starting a %usiness is not risky"True &a'se

" .n entrepreneur risks time and money to start and manage a %usiness"True &a'se

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/" f a %usinesss costs and e)penses are greater than its reenue# it wi'' suffer a 'oss"True &a'se

2" Profits of a %usiness inc'ude the sa'aries paid to its emp'oyees"True &a'se

3" Reenue is the tota' amount of money a %usiness takes in during a gien period %y se''inggoods and serices"True &a'se

10" Risk is the chance an entrepreneur takes of 'osing time and money on a %usiness that maynot proe profita%'e"True &a'se

11" The 4nited ,tates has one of the highest standards of 'iing in the wor'd"True &a'se

1!" The term 5standard of 'iing5 refers to the amount of de%t peop'e can incur on a gienincome"True &a'se

1(" 6ea'th care aai'a%i'ity# a c'ean enironment# and good schoo's a'' contri%ute to a high7ua'ity of 'ife"True &a'se

1*" Maintaining a high 7ua'ity of 'ife re7uires the com%ined efforts of %usinesses# nonprofitorgani8ations# and goernment agencies"True &a'se

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1+" ,takeho'ders are a'' the peop'e who stand to gain or 'ose %y the po'icies and actiities of a%usiness"True &a'se

1" ,takeho'ders inc'ude customers# emp'oyees# stockho'ders# supp'iers# dea'ers# %ankers#goernment officia's and enironmenta'ists"True &a'se

1/" 9ften the needs of a firms arious stakeho'ders wi'' conf'ict"True &a'se

12" 9utsourcing means se''ing goods and serices to peop'e in other countries"True &a'se

13" 9utsourcing has caused many comp'ications in many states where $o%s hae %een 'ost tooerseas companies"True &a'se

!0" 5nsourcing5 refers to the practice of g'o%a' companies setting up design and productionfaci'ities in the 4nited ,tates"True &a'se

!1" The know'edge and ski''s 'earned in %usiness courses are se'dom re'eant to students whowork for nonprofit organi8ations or o'unteer groups"True &a'se

!!" Businesses and nonprofit organi8ations often strie to accomp'ish the same o%$ecties"True &a'se

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!(" :onprofit organi8ations use financia' gains to meet stated socia' or educationa' goa's ofthe organi8ation rather than persona' profit"True &a'se

!*" ,ocia' entrepreneurs are peop'e who start and manage organi8ations that are not-for-profit"Their mission is to he'p others improe their 7ua'ity of 'ife"True &a'se

!+" The on'y rea' purpose of a %usiness is to make money for entrepreneurs"True &a'se

!" The on'y way a firm can increase its profits is to increase its sa'es reenue"True &a'se

!/" The amount of profit or 'oss earned %y a %usiness can %e found %y su%tracting the firmse)penses from its reenues"True &a'se

!2" :onprofit organi8ations are simi'ar to %usinesses in that they often proide goods andserices that satisfy the needs of society"True &a'se

!3" 4n'ike %usinesses# emp'oyees of nonprofit organi8ations are not re7uired to 'earn the%usiness ski''s of information management# marketing# or financia' management"True &a'se

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(0" Business decisions shou'd consider the interests of customers# emp'oyees# supp'iers#goernment 'eaders# and stockho'ders"True &a'se

(1" By %a'ancing the demands of customers and stockho'ders# %usinesses satisfy the demandsof a'' stakeho'ders"True &a'se

(!" .n effort to p'ease one group of stakeho'ders eentua''y p'eases a'' stakeho'ders"True &a'se

((" nsourcing creates new $o%s# and he'ps offset the num%er of $o%s %eing outsourced"True &a'se

(*" Ro%in has started her own nternet consu'ting firm" ;hi'e she recogni8es the risksino'ed in operating a %usiness# she is sti'' wi''ing to inest her time# effort# and money inhopes of earning a profit" Ro%in is an e)amp'e of an entrepreneur"True &a'se

(+" Backstreet Books# an ec'ectic %ookstore on a 'arge co''ege campus generated tota'reenues of

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(/" =ohn earned the same amount of money this year as he did 'ast year" Thus# his standard of'iing must %e the same as it was 'ast year"True &a'se

(2" ,usan 7uit her $o% in a %ig city to take a 'ess stressfu' position in a sma'' town 'ocated in ascenic area" ,he earns 'ess money at her new $o% and has had to cut %ack on her purchases ofmateria' goods# %ut she has more 'eisure time and rea''y en$oys the c'ean air and scenic %eautyof her new home" ,usan has accepted a 'ower standard of 'iing in order to en$oy a higher7ua'ity of 'ife"True &a'se

(3" Po'itica' freedom# 7ua'ity education# access to hea'th care# and a c'ean enironment are a''factors that contri%ute to an improed 7ua'ity of 'ife"True &a'se

*0" Peop'e 'iing in ,an =ose# C. on aerage earn more money than peop'e 'iing in ,t">ouis# M9" The citi8ens of ,an =ose en$oy a higher standard of 'iing than the citi8ens of ,t">ouis"True &a'se

*1" The ma$or difference %etween %usinesses and nonprofit organi8ations is that on'y%usinesses can increase the standard of 'iing# whi'e on'y nonprofit organi8ations can improethe 7ua'ity of 'ife"True &a'se

*!" . charita%'e organi8ation# such as the Red Cross or ,a'ation .rmy# is c'assified as a for-profit organi8ation"

True &a'se

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*(" t was reported %y a Bei$ing newspaper that China succeeded in improing its peop'esstandard of 'iing and esta%'ishing a re'atie'y aff'uent society in the past seen years" Thisreport c'ear'y indicates that %oth income 'ee's and the price of goods and serices rosesignificant'y during that time period"

True &a'se

**" ,tarting a %usiness is a riskier path toward %usiness success than working your way up theranks of a 'arge %usiness"True &a'se

*+" ;orking as an entrepreneur is the on'y way to succeed in %usiness"

True &a'se

*" Paid acations and hea'th care insurance are among the %enefits proided %y thegoernment to entrepreneurs"True &a'se

*/" ;omen current'y own 'ess than ten percent of a'' %usinesses"

True &a'se

*2" The num%er of %usinesses owned %y .sians# 6ispanics# and .merican ndians has growndramatica''y"True &a'se

*3" >and# sometimes ca''ed natura' resources# is the most critica' factor of production in

e)p'aining why some countries are poor whi'e others are rich"True &a'se

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+0" Money is one of the fie factors of production that contri%ute to the creation of wea'th"True &a'se

+1" Too's# machinery# and %ui'dings are e)amp'es of capita' resources"True &a'se

+!" The ma$or adantage rich nations hae oer poor nations is an a%undance of 'and and'a%or"True &a'se

+(" Entrepreneurship is one of the fie factors of production that contri%ute to the creation ofwea'th"True &a'se

+*" Business consu'tant Peter Drucker said that the most important factor of production isknow'edge"True &a'se

++" Most %usiness e)perts agree that entrepreneurship and the effectie use of know'edge arethe most important contri%utors to the creation of wea'th"True &a'se

+" The %usiness enironment refers to the surrounding factors that either he'p or hinder thedee'opment of %usinesses"True &a'se

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+/" =ing is a recent 4"," co''ege graduate who is interested in starting an import tea %usiness"f she fo''ows through with her p'ans# she wi'' %e a pioneer# %ecause on'y a handfu' of womenchoose to start %usinesses in the 4","True &a'se

+2" Countries with an inade7uate'y trained work force and few entrepreneurs often achieethe highest 'ee's of income %y re'ying on a 'arge num%er of workers"True &a'se

+3" f they wish to create more wea'th# poor nations shou'd focus on po'icies that increaseentrepreneurship and the effectie use of know'edge"

True &a'se

0" To rea'i8e his passion# .'e) recent'y opened 9rigina' Tunes# nc"# a sma'' state of the artrecording studio in :ashi''e# T:" 6e pro%a%'y cou'd hae set-up shop in seera' ma$or cities#%ut :ashi''e offered him the two most important factors that he 'earned in %usiness schoo'wou'd enhance the creation of wea'th? 'a%or and po'itica' freedom"True &a'se

1" @reg recent'y comp'eted his co''ege degree in construction management" 6e is heading toMe)ico City to start a %usiness dee'oping apartment dwe''ings" .fter researching seera'potentia' areas# he chose Me)ico City due to its high popu'ation" @reg fe't that this factorwou'd create a 'arge 'a%or poo'# the most important of the fie factors of production"True &a'se

!" =ared is supposed to %e cramming for fina's %ut his mind keeps wandering to the Co'orados'opes" ,eera' years ago# his 4nc'e Mike made it %ig and now owns a ski 'odge $ust north of

.spen" 6e promised =ared a management trainee position and the opportunity to %uy into thecompany %y contri%uting a portion of his paycheck each month %ack into the %usiness" .s hedreams a%out the opportunity to %e his own %oss# rea'ity %ites as =ared scans his %usiness %ookand reads# 5freedom to succeed a'so means freedom to fai'"5True &a'se

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(" ;e''-managed %usinesses wi'' grow and prosper regard'ess of the %usiness enironment inwhich they operate"True &a'se

*" Ta)es and goernment regu'ations are part of the economic and 'ega' enironment inwhich %usinesses operate"True &a'se

+" 6igh ta)es and goernment restrictions he'p to encourage entrepreneurs %y proidinggreater incenties for peop'e to work hard and create profit"True &a'se

" 9ne of the %est things the goernments of dee'oping countries can do to increase wea'this to minimi8e interference with the free e)change of goods and serices"True &a'se

/" Countries that proide 'itt'e or no goernment ino'ement proide the %est enironmentfor competitie %usinesses"

True &a'se

2" n an effort to increase wea'th and their countrys standard of 'iing# many goernmentsare taking oer ma$or industries and operating them as nonprofit organi8ations"True &a'se

3" Corruption and i''ega' actiities are e)pected in a capita'ist system and can %e %eneficia'"

True &a'se

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/0" 9ne way for a goernment to actie'y promote entrepreneurship is to esta%'ish a currencythats trada%'e in wor'd markets so that you can %uy and se'' goods anywhere in the wor'dusing that currency"True &a'se

/1" 6onesty# integrity# and high ethica' standards are essentia' to a capita'ist economic system'ike the one that operates in the 4nited ,tates"True &a'se

/!" >aws that a''ow companies to write enforcea%'e contracts decrease the risk of doing%usiness"

True &a'se

/(" n rich countries such as the 4nited ,tates# changes in the 'ee' of ta)ation hae 'itt'eimpact on the incenties of entrepreneurs"True &a'se

/*" The fai'ure to upho'd high ethica' %usiness standards %y a few companies can negatie'y

impact the entire 4"," %usiness community"True &a'se

/+" ,eera' years ago# the goernment of the sma'' nation of .''egro owned the nationste'ephone company and 'and'ines" This re'atie'y poor goernment re'ied on ta)es to dee'opthis industry and proide serice to its citi8ens" f the goernment desired to rapid'y improepeop'es access to phone serice# its %est course of action wou'd ino'e se''ing the te'ephonecompany to priate inestors"True &a'se

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/" The goernment of the nation of Bing'and is trying to achiee a high 7ua'ity of 'ife %yimposing strict regu'ations to protect the enironment and ensure safe working conditions infactories and mines" The goernment a'so has esta%'ished am%itious programs to he'p thepoor# financing them %y setting high ta) rates" These efforts %y Bing'ands goernment shou'd

create an atmosphere that encourages entrepreneurship"True &a'se

//" Though it has receied a 'ot of attention# the dee'opment of the nternet has had 'ess ofan impact on the way %usinesses operate than many other techno'ogica' changes"True &a'se

/2" .n increase in productiity indicates that more can %e produced in a gien time periodwith the same amount of resources"True &a'se

/3" Techno'ogy can he'p %usinesses %ecome more efficient and productie"True &a'se

20" Productiity is the amount of output you generate gien the amount of input such as hoursworked"True &a'se

21" Effectieness means producing goods and serices using the 'east amount of resources"True &a'se

2!" Effectieness means producing the desired resu't"True &a'se

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2(" Techno'ogy affects peop'e in most# %ut not a'' industries"True &a'se

2*" Techno'ogy refers to eerything that makes %usiness operations more effectie# efficient#and productie"True &a'se

2+" E-commerce is the %uying and se''ing of goods oer the nternet"True &a'se

2" The B!B nternet market consists of se''ing goods and serices to consumers"True &a'se

2/" The rise of nternet marketing has %ecome particu'ar'y important in doing %usiness in theB!B markets"True &a'se

22" The %usiness-to-%usiness segment of e-commerce is of 'ess importance than the %usiness-to-consumer segment of e-commerce"True &a'se

23" Techno'ogy a''ows firms to %e more responsie to their customers wants and needs"True &a'se

30" Bar codes are a form of techno'ogy that has enhanced a companys a%i'ity to %e responsieto consumer needs"True &a'se

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31" .n e'ectronic storage fi'e where information is kept is ca''ed a CP4"True &a'se

3!" The data%ases of a %usiness often inc'ude a great dea' of information a%out the firmscustomers"True &a'se

3(" nformation in a data%ase a''ows firms to carry on'y the products that the 'oca' popu'ationwants"True &a'se

3*" dentity theft is when indiidua's or firms access peop'es persona' information and thenuse it for i''ega' purposes and actiities"True &a'se

3+" The main difference %etween B!C and B!B e-commerce is that B!C uses on'y thenternet# whi'e B!B com%ines e-commerce with traditiona' A%ricks-and-mortar out'ets"True &a'se

3" There is 'ess risk ino'ed in starting an e-commerce on'y %usiness than there is in tryingto add e-commerce to a traditiona' A%ricks-and-mortar store"True &a'se

3/" 9ne of the ma$or adantages to firms ino'ed in e-commerce is that the techno'ogy issti'' so new that the nternet-%ased firms face ery 'itt'e competition"

True &a'se

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32" .'though the nternet is e)citing# ery few peop'e hae access to it outside the 4","True &a'se

33" :iki has $oined with seera' other inestors to form a new company that se''s foot careproducts to consumers oer the nternet" :iki has inested in a B!C e-commerce company"True &a'se

100" 9er the past seera' years# workers in the sma'' nation of Rain'and hae en$oyed anincrease in the num%er of ho'idays and a reduction in the aerage 'ength of the workday thathas reduced the tota' num%er of hours they work each year" 6oweer# the output per worker inRain'and is higher now than it was %efore the reduction in hours" These facts suggest that

productiity in Rain'and has increased"True &a'se

101" ,'eek;rap is a company that produces industria' coatings for the stee' industry" 4nti'recent'y it re'ied on who'esa'ers to distri%ute its products to other %usinesses# %ut now it a'sose''s direct'y to its %usiness customers through its we%site" This is an e)amp'e of the 'argestand most important type of e-commerce transaction"True &a'se

10!" .s emerging techno'ogies %ecome widespread# %usinesses tend to find %etter uses forthem" 6oweer# in the case of the nternet# %usinesses that se'' B!B hae not %enefited fromdirect'y se''ing to their %usiness customers in the same way that B!C companies hae done"True &a'se

10(" ;ith the emergence of the nternet# =asmine finds it easy to do a'' her gift %uying on'ine",he takes comfort in the fact that new techno'ogies if insta''ed proper'y are se'dom used in

unethica' ways"True &a'se

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10*" Techno'ogica' innoation has a ripp'e effect" ;ith the adent of the nternet# Ty'er6an'ey# a certified techno-nerd# is %eing courted %y companies to write the ne)t generation ofantiirus software" 6e te''s us its %ig %usinessTrue &a'se

10+" To remain competitie in todays market# firms must produce a 7ua'ity product and offeroutstanding serice at a reasona%'e price"True &a'se

10" Producing a high 7ua'ity product wi'' ensure success in the competitie enironment"True &a'se

10/" ,uccessfu' firms fo''ow a customer-drien strategy# as opposed to the management-drien strategy used in the past"True &a'se

102" ero defects means that there is a company goa' of no mistakes in making products"True &a'se

103" Traditiona' %usinesses hae a manageria' focus rather than a customer focus"True &a'se

110" Competition is fierce 9ne way to respond 7uick'y to customer needs is to dee'op astrategy of empowering emp'oyees"True &a'se

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111" . po'icy of empowerment encourages managers to make decisions 7uick'y for their front'ine emp'oyees"True &a'se

11!" Empowerment means giing front'ine workers the responsi%i'ity# authority# and freedomto respond 7uick'y to customer re7uests"True &a'se

11(" The goa' of empowerment in the work enironment is to preent mistakes" Mistakes can%e preented %y giing management more contro' oer the actions of 'ower-'ee' workers"True &a'se

11*" The primary focus of successfu' firms is designing and producing high 7ua'ity goods".dertising is then used to conince consumers to %uy their superior products"True &a'se

11+" ts important that firms are as efficient as possi%'e" This is done %y %ecomingmanagement-drien for efficiency"

True &a'se

11" Customer-drien organi8ations re7uire managers to c'ose'y direct and contro' theiremp'oyees"True &a'se

11/" Bruno and @ino are worthy competitors in the %akery %usiness in a sma'' upsca'e resort

town" @ino recent'y negotiated a contract with a supp'ier for rea''y cheap cooking oi'" 6eknows that %akery customers want cheap products" n this competitie enironment# keepingthe price down is a'' that matters"True &a'se

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112" Brett runs a 'awn care serice" .'though he and his emp'oyees cou'd serice eighthouseho'ds in one day# he aerages si) yards per crewmem%er# per day" Brett recent'yrestructured his work crew and proided each cutter with an incentie to ac7uire two newcustomers each month through customer referra's" .s a recent %usiness graduate# you te'' him

hes pro%a%'y on the right track"True &a'se

113" The statistica' study of the human popu'ation to descri%e its si8e# age# gender# andincome is known as diersity recognition"True &a'se

1!0" The 4"," popu'ation tends to %uy the same things and spend time in rough'y the sameway as peop'e did a decade ago"True &a'se

1!1" Demographic changes create new %usiness opportunities"True &a'se

1!!" Diersity groups identified in the market today inc'ude e)troerts# introerts# atheists#and the deout"True &a'se

1!(" Companies hae responded to a dierse customer %ase %y hiring a more dierseworkforce"True &a'se

1!*" Current'y peop'e %etween the ages of *+ and +* are the richest group in the 4nited,tates"True &a'se

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1!+" :ew we'fare ru'es hae made it easier for sing'e parents to remain at home with theiryoung chi'dren without %eing re7uired to seek emp'oyment"True &a'se

1!" n some cities the num%er of 'ega' and i''ega' immigrants has caused goernments toadapt %y changing signs to other 'anguages"True &a'se

1!/" The federa' goernment re7uires companies to take diersity ery serious'y# eenrecommending esta%'ishing a chief diersity officer in the e)ecutie suite"True &a'se

1!2" 9ne factor that has had a ma$or effect on %usinesses is the growth of sing'e-parentfami'ies"True &a'se

1!3" Businesses that cater to o'der consumers in the future wi'' 'ike'y not %e successfu'"True &a'se

1(0" ;orkp'ace changes due to the rise of sing'e-parent fami'ies create many $o%opportunities in day care# counse'ing# and other re'ated fie'ds"True &a'se

1(1" Businesses use demographic studies to understand where peop'e 'ie# their 'ifesty'es# andwhat they are 'ike'y to %uy"

True &a'se

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1(!" Diersity management wou'd not %e an issue if firms wou'd treat a'' of their emp'oyeesthe same"True &a'se

1((" Demographic trends suggest that %usinesses wi'' %enefit from offering f'e)i%'e workschedu'es# e'dercare# and chi'dcare to he'p emp'oyees %a'ance the demands of $o% and fami'y"True &a'se

1(*" .''owing todays young peop'e to inest part of their ,ocia' ,ecurity money in persona'saings accounts makes sense since in the future 'ess money wi'' %e coming into ,ocia',ecurity than wi'' %e going out"

True &a'se

1(+" The 5pay-as-you-go5 ,ocia' ,ecurity system wi'' ensure that the young peop'e of todaywi'' hae ,ocia' ,ecurity %enefits in the future when they retire"True &a'se

1(" aier# a recent co''ege graduate# is thinking of inesting in a home hea'th care %usiness"

6e %e'iees this wi'' %e a profita%'e enture %ecause of the increasing num%er of peop'e in the4"," that wi'' %e oer 0 in the near future and more 'ike'y to need this type of serice" Thisaccurate'y descri%es a demographic trend that wi'' affect his %usiness choice"True &a'se

1(/" ,ue is a sing'e mother with two sma'' chi'dren" 6er emp'oyer is considering proidingfami'y 'eae" ,ince ,ue is a sing'e mom with sma'' chi'dren# she is un'ike'y to %enefit fromthis program"True &a'se

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1(2" Ro% is an emergency room nurse at a 'oca' hospita' in Te)as" 9n a week'y %asis# he wi''sere a num%er of patients who are not 'ega''y 4"," citi8ens" Many of them are giing %irth to%a%ies" &ortunate'y# Ro% speaks enough ,panish to communicate with the patients" Ro% ise)periencing the rea'ities of the socia' enironment in some states"

True &a'se

1(3" @'o%a'i8ation has increased among nations"True &a'se

1*0" .n important enironmenta' change in the g'o%a' enironment is the growth ofinternationa' competition"

True &a'se

1*1" mproed distri%ution systems hae 'ed to more g'o%a' trade"True &a'se

1*!" @'o%a' trade has suffered %ecause of increased pro%'ems with the nternet"True &a'se

1*(" @'o%a'i8ation has great'y increased 'iing standards around the wor'd"True &a'se

1**" China and ndia hae %ecome ma$or 4"," competitors"True &a'se

1*+" Companies from the 4nited ,tates are %ui'ding many of their products oerseas# andunfortunate'y foreign companies are not %ui'ding products in the 4nited ,tates"True &a'se

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1*" Because of increased trade# there is now an increased interdependence in the wor'd"True &a'se

1*/" The threat of terrorism increases the costs of operating most %usinesses"True &a'se

1*2" ;ars are cost'y to a'' companies"True &a'se

1*3" 4"," e)ports are e)pected to increase under new trade agreements 'eading to more 4","$o%s"True &a'se

1+0" The war on terrorism has had a significant effect in drawing many resources from the4"," economy and 'ed to many additiona' costs for %usinesses"True &a'se

1+1" n most industries# the on'y producers that pose a serious threat to 4"," manufacturers arethose in =apan and ;estern Europe"True &a'se

1+!" Companies that participate in the defense industry %y making weapons and othercompanies that make armored ehic'es and een food companies do we'' when the 4"," is atwar"True &a'se

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1+(" 9ne of the pro%'ems with g'o%a'i8ation is that distri%ution systems and communicationsystems 'ack efficiency"True &a'se

1+*" The eidence for c'imate change is 7uestiona%'e" ;e''-known 4"," companies are takinga wait-and-see approach toward addressing c'imate change"True &a'se

1++" Car'os @on8a'e8 owns a sma'' manufacturing company that makes enti'ation systemsused in the construction of office %ui'dings" .s the 4"," continues to %e ino'ed in warsaround the g'o%e# Car'os may notice that his %usiness wi'' %e growing more s'ow'y in the

future as more money continues to %e put into the war effort"True &a'se

1+" >ucy owns a restaurant in >os .nge'es" ,he heard on the radio that the home'andsecurity threat 'ee' has %een increased due to anticipated terrorist actiities# especia''y in'arge cities in the 4"," ,he wi'' 'ike'y not %e a%'e to get insurance to coer any 'osses her%usiness may suffer shou'd an attack occur in >"."True &a'se

1+/" .fter seera' years of study as a part-time student# .'e) recent'y earned a degree inmarketing at a 'oca' co''ege" The growth in g'o%a' markets may increase .'e)s $o%opportunities# %ut it wi'' a'so re7uire him to continua''y update his ski''s or seek furthereducation"True &a'se

1+2" Maya is an engineer for ;indy Ridge# nc" a maker of wind tur%ines" Recent'y# a 'arge

company has shown interest in inesting in this sma'' operation" This is not surprising sincefirms that are creating products for a'ternatie sources of energy are attracting the attention ofgoernments and other %usinesses"True &a'se

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1+3" 9er many years the nature of 4"," %usiness has changed ery 'itt'e from century tocentury"True &a'se

10" The num%er of 4"," $o%s in manufacturing has increased in the past fie years"True &a'se

11" Techno'ogy he'ped the manufacturing industry to %ecome more productie"True &a'se

1!" ;hi'e the proportion of workers emp'oyed in agricu'ture has remained re'atie'yconstant# the aerage si8e of farms has steadi'y decreased oer the past century"True &a'se

1(" ncreases in productiity hae a''owed fewer farmers to feed more and more peop'e"True &a'se

1*" The adice proided %y a marriage counse'or is an e)amp'e of the serice industry"True &a'se

1+" .'most a'' of the growth in emp'oyment opportunities since the mid-1320s has %eengenerated %y the serice sector"True &a'se

1" .'though emp'oyment in the serice sector has increased rapid'y in recent years# the astma$ority of workers are sti'' emp'oyed in the goods producing sector"True &a'se

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1/" There are more high-paying $o%s in the serice sector than in the goods-producingsector"True &a'se

12" The %est emp'oyment strategy for todays co''ege graduates is to search for $o%s that arec'ose'y re'ated to their co''ege ma$or"True &a'se

13" The growth in the serice sector in the 4nited ,tates appears to %e giing way to aninformation-%ased g'o%a' era"True &a'se

1/0" The transition from an agricu'tura' economy to a manufacturing economy to a serice%ased economy has resu'ted in a serious increase in 'ong-term unemp'oyment"True &a'se

1/1" 9ne reason gien for the dec'ine in the num%er of 4"," workers emp'oyed inmanufacturing is that manufacturing firms in the 4"," hae %ecome more efficient"

True &a'se

1/!" The continuing increase in the num%er of 4"," workers in the serice sector means thatmore and more workers are emp'oyed in 'ow-wage positions"True &a'se

1/(" 6istorica''y $o%s 'ost in one sector of the economy hae %een rep'aced %y increased

emp'oyment opportunities in other sectors"True &a'se

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1/*" Cee Duction is a financia' p'anner who he'ps peop'e find ways to sae for retirement and'ower their ta)es" Cee is emp'oyed in the serice sector of the economy"True &a'se

1/+" .fter 'osing her manufacturing $o% in the 4"," automo%i'e industry# =uanita has foundthat we'' paid serice sector $o%s re7uire retraining and further education"True &a'se

Mu"tip"e Choice #uestions

1/" .n actiity which seeks to earn a profit %y proiding a good or serice is known as aAn?." industry"B" corporation"C" %usiness"D" serice"

1//" FFFFFFFFFF is the amount a %usiness earns after deducting what it spends for sa'ariesand other e)penses"." Profit

B" ReenueC" nterestD" Diidends

1/2" . %usiness incurs a FFFFFFFFFFF if its costs and e)penses e)ceed its reenues"." 'ossB" 'ia%i'ityC" de%itD" diidend

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1/3" FFFFFFFFFF is the chance a %usiness owner wi'' 'ose the time and money inested in a%usiness that proes to %e unprofita%'e"." DepreciationB" Risk

C" &a''i%i'ityD" Redundancy

120" The tota' amount of money that %usinesses take in %y se''ing goods and serices is ca''edFFFFFFF"." profitB" reenueC" 'ossD" retained earnings

121" .An FFFFFFFFFFFF is a person who assumes the risk of starting a %usiness"." managerB" entrepreneurC" priate inestorD" stakeho'der

12!" ,tarting a %usiness a'ways ino'es FFFFFFF"." profitB" 'ossC" reenueD" risk

12(" 9ften in %usiness the greater the risk# the FFFFFFFFFFF"." greater the potentia' rewardB" 'ower the e)pected reenues

C" 'ower the a'ue proided to societyD" greater the num%er of stakeho'ders

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12*" FFFFFFFFFFF is a measure of the genera' we''-%eing and satisfaction deried from aariety of factors inc'uding po'itica' freedom# safety# education# and a c'ean enironment"." ,tandard of 'iingB" Gua'ity of 'ife

C" @ross nationa' incomeD" ,ocia' satisfaction inde)

12+" The amount of goods and serices peop'e can %uy with the money they hae is ca''edtheir?." nomina' income"B" consumer price inde)"C" profit margin"D" standard of 'iing"

12" The customers# emp'oyees# stockho'ders# supp'iers# creditors# and others who stand togain or 'ose %y the po'icies and actiities of a %usiness represent the firms?." market makers"B" economic enironment"C" stakeho'ders"D" socia' mentors"

12/" The most important difference %etween for-profit %usinesses and nonprofit organi8ationsis that?." %usinesses do not %enefit society"B" nonprofit organi8ations seek to make a profit for its owners and organi8ers"C" nonprofit organi8ations do not seek a profit for its owners or organi8ers"D" nonprofit organi8ations do not fi'e ta) returns"

122" >ast year# .denture Enterprises reported reenues of

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123" . common characteristic of most entrepreneurs is that they?." accept the risks ino'ed in starting and managing a %usiness"B" hae a high 'ee' of scientific and technica' e)pertise"C" possess a great dea' of persona' wea'th"

D" hae e)perience in running 'arge# comp'e) organi8ations"

130" ;hich of the fo''owing is the %est e)amp'e of a %usiness whose goa' is to earn a profitH." . community co''egeB" The ,a'ation .rmyC" Boy ,couts of .mericaD" Best Buy# nc"

131" n order to make an inte''igent inestment decision# entrepreneurs shou'd?." 'imit their options to those %usiness inestments that are %acked %y the 4"," goernment"B" inest in %usinesses that hae generated a sta%'e rate of profit for at 'east the past ten years"C" inest on'y in %usiness opportunities where it is possi%'e to take an actie ro'e inmanagement"D" compare the risks of potentia' inestments to their e)pected profits and find the right%a'ance %etween profit and risk"

13!" Companies that outsource research and dee'opment and design $o%s?." hae a'ways made a wise decision"B" wi'' %e more profita%'e in the 'ong run"C" run the risk of oerseas companies using the information to produce competitie products"D" a'ways inest in the oerseas companies that take on these $o%s"

13(" 6onda and Toyota hae used insourcingfor years to produce cars in the 4nited ,tates"nsourcing?." he'ps offset the num%er of $o%s %eing outsourced"

B" increases the num%er of $o%s %eing outsourced"C" damages the 4nited ,tates economy"D" causes $o%s to %e 'ost to oerseas competitors"

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13*" Pu%'ic schoo's# charities and goernment agencies genera''y FFFFFFFFFF"." are incorporatedB" do not seek to earn a profitC" proide goods rather than serices

D" do not hae any stakeho'ders

13+" &or-profit %usinesses and nonprofit organi8ations are simi'ar in that they %oth?." contri%ute to the we'fare of society"B" seek to earn a profit"C" hae a 'imited 'ife"D" must %e contro''ed %y a %oard of directors"

13" The standard of 'iing for a nations peop'e depends main'y on?." the 7ua'ity of the natura' enironment"B" how much po'itica' freedom they hae"C" their income and the prices of the goods and serices they %uy"D" the amount of 'a%or and capita' aai'a%'e emp'oyed in the manufacturing sector"

13/" ;or'd-c'ass %usinesses attempt to meet the needs of?." their customers# een if it comes at the e)pense of emp'oyees and other stakeho'ders in the

%usiness"B" their emp'oyees# een if it means shortchanging customers %y charging higher prices"C" a'' of their stakeho'ders"D" e)c'usie'y their owners# since they are u'timate'y the ones who pay the %i''s"

132" ,he'%y recent'y started se''ing her inention? . %ed that 'ooks 'ike it f'oats in mid- air"The %ed is actua''y suspended %y magnetic forces" ,he'%y is aAn?." ar%itrageur"B" entrepreneur"

C" specu'ator"D" account manager"

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133" Ross wants to inest some money that he $ust inherited" 6e found that his %ank offers asaings account paying a guaranteed (I rate of return" 6oweer# he wou'd 'ike to earn ahigher return" Ross shou'd keep in mind that to earn a higher return on his money he?." wi'' hae to inest oerseas"

B" shou'd inest in a %usiness that has a ery sta%'e and predicta%'e rate of return"C" wi'' pro%a%'y hae to accept a higher 'ee' of risk"D" wi'' pro%a%'y hae to engage in i''ega' actiities"

!00" ;hich of the fo''owing is the most accurate statement a%out the impact of %usiness onsocietyH." ;hen %usinesses earn a profit for their owners# they usua''y do so at the e)pense of the restof society which proes it is neer a win-win situation"B" ;hi'e %usinesses often improe the standard of 'iing within a society# they can do 'itt'e to

improe the 7ua'ity of 'ife"C" Businesses often improe the 7ua'ity of 'ife# %ut can do 'itt'e to improe the standard of'iing of most peop'e due to inf'ation"D" Businesses can hae a positie impact on %oth the standard of 'iing and the 7ua'ity of 'ifewithin a society"

!01" =anes income has remained sta%'e oer the past few years whi'e the prices of things she%uys hae gone up" :eerthe'ess# =ane fee's %etter off %ecause the enironment is c'eaner# thecrime rate has dec'ined# she has more 'eisure time# and the 7ua'ity of medica' care has

improed" f =anes e)perience is typica'# we can conc'ude that the standard of 'iing has?." increased# %ut the 7ua'ity of 'ife has decreased"B" increased# and so has the 7ua'ity of 'ife"C" dec'ined# %ut the 7ua'ity of 'ife has increased"D" dec'ined# and so has the 7ua'ity of 'ife"

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!0!" Ee and her three co''ege friends en$oy perfumes" .s a specia' gift to each of them 'astho'iday season# Ee found a way to make scented cand'es with each friends faorite perfumescent" The three friends 'oed her gift idea and encouraged Ee to create more and se'' themon the nternet" Recent'y# she is fi''ing orders from her we%site# and turning a profit" Ee is

proof that?." me too %usinesses work"B" when you successfu''y fi'' a market need# you can make money"C" the nternet is a way to distri%ute $ust a%out anything"D" the cost of supp'ies to make cand'es is re'atie'y cheap"

!0(" ;hich of the fo''owing statements a%out socia' entrepreneurs Asuch as MuhammadJunus who won the :o%e' Pri8e descri%es their cha''engeH." ,ocia' entrepreneurs may switch socia' causes seera' times %efore finding their niche"

B" ,ocia' entrepreneurs understand that their %usiness enironments are 'ess dynamic thanother %usinesses# especia''y during a recession"C" ,ocia' entrepreneurs use different %usiness ski''s than entrepreneurs who start other%usinesses" They shou'd focus on a different educationa' curricu'um than other entrepreneurs"D" 4sing the same %usiness ski''s as other entrepreneurs# socia' entrepreneurs dee'op%usinesses to improe the ski''As andKor 7ua'ity of 'ife of others"

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!0*" P'anet Earth Dee'opers is a 'arge nation-wide construction company with home officesin >ansing# M" The 'oca' media often remarks a%out the pristine 'andscaping that surroundsthe home office that sits on a (0-acre comp'e)" .t the %ack end of the comp'e) are seera''arge warehouses and garages that ho'd 'arge e7uipment" The grounds surrounding these

warehouses 'ook 'ike a we''-maintained park" .cross the street from the garages are seera'shops and %usinesses" The CE9# 5P'anet Pau'5 Aas his emp'oyees ca'' him# often ta'ks a%outhow thankfu' he is that the town permits him to store the company e7uipment at that site# andows to a'ways maintain the premises for his neigh%ors Athe other %usinesses that thrie inthat area# not to mention that he asks 100 emp'oyees to come to work there eeryday" ;hichof the fo''owing statements descri%es P'anet Pau's %usiness phi'osophyH." P'anet Pau' is a nice guy whose company made a 'ot of money# so he is wi''ing to spread itaround"B" P'anet Pau' understands that een though it may cost a 'itt'e more# stakeho'derconsiderations are ery important if you want your %usiness to thrie"C" P'anet Pau' is more concerned a%out town po'itics than a%out the company profits" 6e

shou'd ask his emp'oyees if they wou'd rather hae that money in their pockets than on the'awns"D" P'anet Pau' is taking a %usiness risk that his trucks and e7uipment wi'' not make too muchnoise as they enter and e)it the garages"

!0+" The growth of 6ispanic owned %usinesses?." remained re'atie'y constant during the past decade"B" s'ow'y increased during the past decade"C" increased dramatica''y in recent years"

D" decreased s'ight'y compared to other minority groups who hae stared %usinesses"

!0" The num%er of %usinesses owned %y 6ispanics and .sians has?." decreased after the 3-11 terrorist attack"B" s'ow'y increased"C" significant'y increased"D" remained re'atie'y constant"

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!0/" ;hich of the fo''owing entai's the greatest amount of riskH." ;orking for the goernmentB" ;orking for a 'arge %usinessC" ;orking for a sma'' %usiness

D" ,tarting a %usiness

!02" The resources that contri%ute to the creation of wea'th are known as FFFFFFF"." production coefficientsB" factors of productionC" production techno'ogiesD" production aggregates

!03" ;hich of the fo''owing is a factor of productionH." %ondsB" moneyC" know'edgeD" serice

!10" .s a factor of production# the term capita' inc'udes?." stocks and %onds issued %y corporations"

B" natura' resources such as 'and and water"C" too's# machinery# and %ui'dings"D" serices proided %y the goernment that ena%'e %usinesses to %e more productie"

!11" Two factors of production that seem to contri%ute the most to a nations a%i'ity to createwea'th are?." 'and and 'a%or"B" 'and and capita'"C" entrepreneurship and 'a%or"

D" entrepreneurship and know'edge"

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!1!" FFFFFFFFFFFFFFF isKare the e)terna' and interna' circumstances that surround the%usiness"." The %usiness enironmentB" The factors of production

C" The %usiness corra'D" The %usiness discip'ines

!1(" Entrepreneurs weigh the differences %etween the %enefits of starting a %usiness and thosethings that they are 'ike'y to forego %ecause they choose to work for themse'es" ,uch thingsthey are 'ike'y to pass-up on are?." the freedom to make their own decisions"B" 'oca' goernment %enefits such as enterprise 8one ta) credits"C" emp'oyer paid %enefits such as paid acation and hea'th insurance"

D" tickets to sporting eents that trading partners may proide"

!1*" ;hich of the fo''owing is a %enefit of owning your own %usinessH." &reedom to keep the profits from your %usinessB" @oernment supported hea'th insuranceC" More camaraderie with emp'oyeesD" ,horter work hours

!1+" >eanne owns a nursery %usiness" The trucks# handcarts# and fork'ift she purchased for the%usiness are ca''ed FFFFFFFFFF inestments"." natura' resourcesB" intangi%'e resourcesC" current assetD" capita'

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!1" .s you consider the factors of production# which of the fo''owing did managementtheorist# Peter Drucker %e'iee to %e one of the most important contri%uting factors toincreasing our nations wea'thH." >and

B" >a%orC" Lnow'edgeD" Capita'

!1/" ;hen we compare the factors of production in wea'thy and poor nations# we find?." poor nations hae p'enty of 'and and know'edge# %ut ery 'itt'e 'a%or"B" poor and wea'thy nations A%oth hae an a%undance of know'edge# it is the 'and that aries#with rich nations a'ways haing more"C" wea'thy nations hae know'edge and entrepreneuria' opportunities# whi'e poor nations are

often 'acking in these areas"D" wea'thy nations hae 'and and 'a%or# whi'e poor nations hae capita' and entrepreneurship"

!12" . nation progresses socia''y when it has good schoo's# c'ean air and water# and more";hich of the fo''owing statements addresses conditions for socia' progressH." ,ocia' progress wi'' eo'e when capita' is apportioned to eeryone in e7ua' amounts"B" . city# state# or nations socia' progress needs the right %usiness enironment"C" The foundation for socia' progress is a handfu' of wea'thy entrepreneurs wi''ing to spreadthe wea'th"

D" ,ocia' progress can on'y improe when there is a strong 'a%or poo' to draw from"

!13" ;hich of the fo''owing statements a%out factors of production is the most accurateH." The fie factors of production are energy# capita'# 'a%or# 'eadership and money"B" ;ea'th creation in poor nations is s'owed %y chronic shortages of 'a%or"C" Each of the factors of production is e7ua''y important in creating wea'th"D" Entrepreneurship and know'edge are the most important in creating wea'th"

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!!0" :o'iia is a sma'' and poor nation# %ut its current president has a genuine desire to createmore wea'th for :o'iia citi8ens" The president has receied recommendations from seera'of her adisors" ;hich of the fo''owing recommendations is 'ike'y to create the most wea'thfor :o'iiaH

." .c7uire more 'and %y inading a neigh%oring country that is een poorer and weaker than:o'iia"B" 4se foreign aid from other nations to purchase more too's and machinery"C" Esta%'ish a %usiness enironment that promotes and rewards entrepreneurship"D" Esta%'ish %arriers to trade to protect :o'iia %usinesses from foreign competition"

!!1" Ben and Chris com%ined their 'oe of hockey with a %usiness enture" They purchased asma'' porta%'e cart and %egan se''ing hockey memora%i'ia outside of the hometown hockeyarena" Their first year went we''# %ut this past year has %een a rea' strugg'e" Due to poor

economic conditions inc'uding a 'oss of $o%s# ticket sa'es at the arena are down# which hassignificant'y hurt their sa'es as we''" .s a recent %usiness schoo' graduate# you e)p'ain to Benand Chris?." this type of %usiness is a'ways high risk %ecause it is seasona'"B" the %usiness does not fi'' a sufficient need for most peop'e"C" enironmenta' circumstances are dynamic and tough to contro'"D" socia' entrepreneurs are current'y getting most of the attention"

!!!" :ick is a recent finance graduate who has two passions? music and finance" 4pon

graduation# he was offered an opportunity to $oin a strugg'ing rock %and with a 'ot ofpotentia'# or a $o% at a 'arge we''-esta%'ished financia' serices company" By $oining the %and#he wi'' forego which of the fo''owingH." .dded %enefits such as hea'th insurance proided to emp'oyees of 'arge corporations"B" The freedom to contri%ute as an innoator in his work enironment"C" >ong hours at work# whi'e he 'earns the %usiness and contri%utes to making it successfu'"D" =o% protection"

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!!(" China is a nation with a ast amount of 'and and a ery 'arge popu'ation" .nothercharacteristic of this nation is its peop'es affinity for saing money" Referring to the fiefactors of production# the goernment of China has made significant progress in %ui'ding its%usiness enironment %y focusing on factors that needed improement" ts strategy was to?

." increase the supp'y of 'a%or"B" increase sources for capita'"C" increase entrepreneurship"D" encourage neigh%oring nations to proide the necessary 'and for %usiness dee'opment"

!!*" .ccording to the 5$pot"ight on $ma"" Business5 %o) for Chapter 1# >isa Lnoppe Reedstarted a uni7ue %usiness ca''ed 5.rt for a Cause5" ;hich of the fo''owing statementsaccurate'y coneys the c'imate surrounding women-owned %usinessesH." .'though it wou'd make an idea' wor'd# it remains difficu't to make a 'iing when you

com%ine socia' causes and %usiness entures"B" There are sti'' tremendous stigmas a%out women owning %usinesses" The few women whoattempt to run their own %usiness each year is indicatie of these cu'tura' pro%'ems"C" t is difficu't enough for women to %e entrepreneurs" ;hen women com%ine socia' causeswith their %usiness ski''s# the %usiness fai'ure rate intensifies"D" The num%er of women owned %usinesses has increased significant'y" .s a socia'entrepreneur# >isas %usiness mode' proes that one can %e successfu' and a'so improe the'ies of others"

!!+" Ta)es and goernment regu'ations are part of the FFFFFFFFFFFFFFFF enironment of%usiness"." economic and 'ega'B" competitieC" socia'D" techno'ogica'

!!" Businesses faor?." minima' goernment spending %ecause it keeps ta)es to a minimum"

B" more goernment serices %ecause it minimi8es ta) conse7uences"C" ma)imum goernment spending %ecause it raises %usiness profits"D" 'ess goernment spending %ecause it 'owers %usiness profits"

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!!/" n order to create more wea'th and proide %etter serices# some nations recogni8e thatFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF"." raising ta)es %enefits a'' %usinessesB" a good strategy is to minimi8e interference with the free e)change of goods and serices

C" restricting trade with other countries a'ways he'ps domestic %usinessesD" taking contro' of priate'y owned %usinesses and making them goernment -run wi''decrease ta)es and improe the 'ies of eeryone

!!2" n countries where %usinesses are goernment owned?." there is 'ess incentie to work hard"B" the right amount of each good is produced"C" profits tend to %e higher"D" the 7ua'ity of goods is high %ut profits are 'ow"

!!3" 6igh ta) rates tend to?." promote economic dee'opment"B" make a nations currency trada%'e"C" discourage entrepreneurship"D" reduce the amount of money created %y the goernment"

!(0" The capita'ist system re'ies heai'y on?." protectionist po'icies with respect to wor'd markets"B" minimi8ing goernment interention in corrupt %usiness practices"C" making sure that currencies are neer under-a'ued"D" honesty# integrity# and high ethica' %usiness standards"

!(1" Contemporary goernments promote %usiness dee'opment %y?." increasing %usiness regu'ations"B" proiding goernment ownership of %usinesses"

C" permitting %usinesspeop'e to conduct %usiness without the use of contracts"D" esta%'ishing a currency thats trada%'e in wor'd markets"

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!(!" ;hich of the fo''owing po'icies wou'd tend to foster entrepreneurshipH." Minimi8e ta)es and regu'ations"B" Promote more regu'ations to protect the enironment"C" Dee'op po'icies to reduce corruption %etween indiidua's"

D" Encourage pu%'ic ownership of %usinesses"

!((" ;hen corruption is present in the %usiness enironment?." company 'eaders can threaten competitors and minimi8e competition"B" factories are easier to %ui'd without a goernment permit"C" it promotes fair competition"D" 'a%orers can make more money"

!(*" Guestiona%'e %usiness practices such as those fo''owed %y many mortgage 'endingcompanies in the past few years?." encouraged inestors to increase their stock market ho'dings"B" fundamenta''y weakened the entire economic enironment"C" he'ped retired emp'oyees at the e)pense of current emp'oyees"D" resu'ted from too much goernment regu'ation"

!(+" ;hich of the fo''owing goernment po'icies wou'd %e "east'ike'y to encourage

entrepreneurshipH." Passage of 'aws that ena%'e %usinesspeop'e to write enforcea%'e contracts"B" Esta%'ishment of a currency that is trada%'e in wor'd markets"C" Esta%'ishment of strict regu'ations specifying e)act'y how products shou'd %e made toensure safety and afforda%i'ity"D" Passage of 'aws that e'iminate corruption in goernment and %usiness"

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!(" . recent :ew Jork Times artic'e a%out Bernard Madoff and his i''ega' Pon8i schemestated# 5;hen money goes g'o%a'# fraud does too"5 .'though the goa' of inestors who trustedMadoffs inestment company was to earn the highest return possi%'e on their inestments#they turned a %'ind-eye toward the fact that some of those returns were too good to %e true"

ndiidua' inestors# companies# and een charities 'ost 'arge sums of money %y inestingwith Madoffs company" ;hich of the fo''owing statements re'ates to this storyH." The unethica' %ehaior of one company had a wor'dwide ripp'e effect that can impact thewe'' %eing of an economy"B" Too much regu'ation caused the capita'istic nature of Mr" Madoffs %usiness mode' to fai'"C" Peop'e 'ost money %ecause of the f'uctuations in wor'd trading currencies# 7uestioning the'egitimacy of trading a%road"D" nestors did not sign contracts with Mr" Madoffs company" The goernment can on'yprotect indiidua's and companies who sign enforcea%'e contracts"

!(/" .dam Rip'ey se''s custom %icyc'es" .dam %uys seera' %ike parts inc'uding whee's andtires from the @ood Treads Company" .'though seera' goernment-supported regu'ationshe'p .dam in his %usiness# regu'ations that make it easy for .dams %usiness to en$oy goodendor re'ationships are?." 'ower ta)es that %usiness to %usiness customers pay to each other"B" 'aws that permit minima' corruption in %anking institutions"C" 'aws that permit sma'' %usinesses to use the goernment as an intermediary when doing%usiness with other sma'' %usinesses"D" 'aws that support enforcea%'e contracts %etween firms"

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!(2" =ay and =im ,pears own a 'awn irrigation system %usiness" They perform insta''ationsand maintenance of these systems" ,eera' of their customers are go'f courses# %ut they serea 'arge group of residentia' customers as we''" ;hen they started the %usiness ten years ago#they made a pact to a'ways operate within the 'ega' 'imits of the 'aw# %ut 'ate'y# the

competition is eating them a'ie" >oca' competitors hae hired i''ega' immigrants to performthe manua' 'a%or" They do not pay ta)es on these emp'oyees - they $ust pay them in cash at theend of the week" Emp'oyment ta)es are a %urden for sma'' %usinesses" =ay and =im do notwant to hire i''ega' workers" Theres a risk if you permit an i''ega' worker to drie a truck or#if heKshe has an accident on the $o%" Jou hae $ust studied %usiness ethics in your c'ass" Jouinform this partnership that?." Ta)es on'y need to %e paid for the owners"B" They are not on'y taking a chance that a %igger pro%'em may occur# they are indirect'ysetting the ethics code for their firm"C" ,ma'' %usinesses may not %e a%'e to worry a%out ethics codes" These types of documentsare %etter suited for %ig %usiness"

D" t is not unethica' to try to %etter the 'ies of others" Eeryone needs $o%s"

!(3" The nternet and the emergence of an information-%ased economy are important parts ofthe FFFFFFFFFFF enironment in which %usinesses operate"." economic and 'ega'B" techno'ogica'C" competitieD" g'o%a'

!*0" Techno'ogy affects peop'e in?." a'' industries"B" most industries"C" information techno'ogy industries with the e)ception of agricu'ture"D" primari'y high income countries"

!*1" Emp'oyers proide too's and techno'ogy for their emp'oyees in order to?

." increase the cost of production and profita%i'ity"B" improe their efficiency and productiity"C" reduce corruption in %usiness and e'iminate scanda's"D" encourage the priate ownership of %usinesses"

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!*!" Efficiency means?." producing the desired resu't"B" producing goods and serices using the 'east amount of resources"C" the amount of output you generate gien the amount of input"

D" the %uying and se''ing of goods using the most amount of resources"

!*(" FFFFFFFFFFF refers to the amount of output generated with a gien amount of input#e"g"# the num%er of pi88as produced per worker per hour"." EfficiencyB" Techno'ogyC" Te'ecommutingD" Productiity

!**" FFFFFFFFFFF means producing the desired resu't"." EffectienessB" Techno'ogyC" E-productionD" Productiity

!*+" FFFFFFFFFFF means producing items using the 'east amount of resources"

." EfficiencyB" Techno'ogyC" E-productionD" Productiity

!*" The two main types of e-commerce are?." on'ine and off'ine"B" ED and EDC"C" who'esa'e and retai'"

D" B!B and B!C"

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!*/" ;hen %usinesses se'' to other %usinesses oer the nternet# these transactions are knownas?." B!C transactions"B" e-who'esa'e transactions"

C" B!B transactions"D" intermediate e-commerce transactions"

!*2" Companies that se'' goods to consumers oer the nternet are engaging in?." B!C transactions"B" 94 transactions"C" B!B transactions"D" J!L transactions"

!*3" The series of 'ines on a product packaging that the cashier scans when you check out at agrocery store or discount store is ca''ed a?." %ar code"B" 8ip code"C" scan code"D" 'aser code"

!+0" .n e'ectronic storage fi'e where firms keep customer information is known as aAnFFFFFFFFF"." MP( fi'eB" management information systemC" data%aseD" e-mai' serer

!+1" FFFFFFFFFF is i''ega''y o%taining and i''ega''y using priate information a%out a person#such as using someones credit card num%er"

." Petty theftB" dentity theftC" Banking theftD" 9n'ine theft

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!+!" 9ne adantage of a data%ase is?." it permits a retai' store to direct'y gather information on the customers who do %usinesswith its competitors# so it can target promotiona' materia's to those peop'e"B" it creates efficiency in that the store can 7uick'y rep'enish items that are purchased"

C" it preents identity theft"D" it preents stores from e)changing customer information with each other"

!+(" ;hich of the fo''owing is an adantage of uti'i8ing techno'ogyH." Techno'ogy increases the cost of production"B" Techno'ogy reduces the need for a marketing p'an"C" Productiity increases"D" Management %ecomes iso'ated from the demands of stakeho'ders"

!+*" ;hich of the fo''owing %est descri%es the main difference %etween B!B and B!CtransactionsH B!B transactions?." ino'e transactions where the %uyers and se''ers are %oth %usinesses# whi'e B!C ino'estransactions %etween %usinesses and consumers"B" focus on financia' transactions whi'e B!C e-commerce focuses on the sa'e of manufacturedgoods"C" refer to %usiness %etween nonprofit organi8ations whi'e B!C e-commerce is carried out %y%usiness firms seeking to earn a profit"D" ino'e sa'es in foreign markets whi'e B!C e-commerce is restricted to domestic markets"

!++" n recent years# %usinesses in genera' hae e)perienced a 'asting impact due to theemergence of FFFFFFFFFFFF"." motor-re'ated techno'ogiesB" techno'ogies re'ated to %rain studiesC" counterfeit techno'ogiesD" information techno'ogies

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!+" :tercon is an nternet-%ased company that proides on'ine support serices for%usinesses that need he'p in setting up and maintaining their we%sites" :tercon is an e)amp'eof a company that is engaged in?." B!C e-commerce"

B" :!J e-commerce"C" J!L e-commerce"D" B!B e-commerce"

!+/" >ife of >u)ury# nc"# is a mai' order firm that specia'i8es in e)pensie and unusua' giftsfor a'' occasions" The company keeps a 'arge fi'e of information on a'' of its regu'arcustomers# inc'uding names# addresses# type of gifts they hae ordered in the past# and the si8eand fre7uency of their orders" The e'ectronic fi'e which stores this information is aAn?." spreadsheet"

B" MP( fi'e"C" PERT fi'e"D" data%ase"

!+2" ;hich of the fo''owing predictions a%out the impact of e-commerce on traditiona'%usinesses is 'ike'y to %e most accurateH." E-commerce wi'' hae 'itt'e impact on most traditiona' %usinesses# %ecause on'y a fewtypes of products can %e so'd effectie'y oer the nternet"B" Traditiona' %rick-and-mortar firms wi'' enter the e-commerce market %y creating their own

we% sites"C" E-commerce wi'' proe to %e ery successfu' in competing against traditiona' firms in B!Cmarkets# %ut wi'' hae much 'ess success in B!B markets"D" Brick-and-mortar %usinesses wi'' cease to e)ist within twenty years"

!+3" Tyre'' recent'y noticed that he was receiing seera' cata'ogs and direct mai'adertisements than he had in the past een though he had not re7uested any of them" ;hichof the fo''owing %est e)p'ains why this is happeningH." Tyre'' was a ictim of on'ine theft"

B" Tyre'' gae his persona' information to a %usiness# which then traded it to other companiesand these companies then %egan sending him cata'ogs"C" .'' %usinesses routine'y hae a'' customers persona' information"D" Tyre''s accountant gae his information to the direct mai' marketers"

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!0" @a%rie''a wants to compare the price of a designer %ag she saw in a 'oca' departmentstore# with other stores that may hae the same" ,he 'ocates the product on three differentwe%sites on the nternet# and then stum%'es on a site that does the price shopping for her"@a%rie''as 7uest is an e)amp'e of how customers are using FFFFFFFFFF to so'e pro%'ems"

." price shoppingB" data%asesC" information techno'ogyD" socia' networking

!1" Char'es Ma'one recent'y renewed his card mem%ership at DiscountMania" The card hasan annua' imit her purchases with endors that she knows do not store her information in adata%ase"D" >imit her trae's to the 4nited ,tates %ecause identity theft is an internationa' pro%'em"

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!(" .ndy B'ake got a ca'' yesterday from P'anet Bank# the company that issued his creditcard in7uiring a%out an

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!2" To imp'ement a po'icy of empowerment# the organi8ation wi'' restructure so that?." managers hae more responsi%i'ity and emp'oyees 'earn to fo''ow directions"B" emp'oyees assume more responsi%i'ity"C" workers agree to work oertime without e)tra pay"

D" an entire 'ee' of management is remoed from the organi8ation"

!3" ;hich of the fo''owing statements a%out the competitie enironment is most accurateH." &irms that produce a 7ua'ity product wi'' a'most a'ways succeed in the competitiemarketp'ace"B" Traditiona' firms wi'' %e una%'e to successfu''y compete against the new nternet firmsun'ess they immediate'y create a way to reach customers through this techno'ogy"C" &irms that empower their emp'oyees wi'' continue to perform poor'y in the competitieenironment"

D" Companies now hae to offer %oth high-7ua'ity products and outstanding serice atcompetitie prices"

!/0" n order to compete we'' and gain market share# contemporary %usinesses are changingto %e more FFFFFFFFFFFFFFFF"." customer-drienB" cash-drienC" management-drienD" production-drien

!/1" >amar is a sa'esperson for Bi-,tate Direct" 6e rea''y appreciates the amount of freedomand authority Bi-,tate gies its sa'es peop'e in order to %etter meet the needs of customers">amars e)perience suggests that Bi-,tate practices?." Centra'i8ed management"B" &ast response theory"C" Enfranchisement"D" Empowerment"

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!/!" @reg is working as a marketing trainee for an on'ine Music CD and ideo retai'er" 6is%oss ca''ed a meeting for ne)t week with one thing on the agenda? 5Bring with you your ideasa%out how we can gain a competitie adantage"5 @reg p'ans to proide the fo''owingresponse?

." Create a management-drien enironment with 'ots of emp'oyee training"B" Create a customer-drien enironment where we constant'y try to create customer a'ue"C" Restructure the organi8ation so that there is a'ways a manager on duty to chat with on'inecustomers who are haing pro%'ems with their orders"D" .'ways match the promotions of our competitors" Price is the on'y thing customers carea%out"

!/(" ;hich of the fo''owing statements %est descri%es how firms must treat their front-'ineworkers in order to remain competitieH &ront-'ine workers must %e FFFFFFFFFFF"

." empowered with the authority to respond 7uick'y to the unmet needs of customersB" c'ose'y superised to reduce the risk of product 'ia%i'ity and discrimination 'aw suitsC" e'iminated and rep'aced with automated e7uipment wheneer possi%'eD" re'ieed of any %urden to make a customer decision

!/*" Ma) is in charge of production for a fami'y-owned firm that makes and se''s sportsg'oes inc'uding %ase%a'' g'oes# soft%a'' g'oes# go'f g'oes# and more" 6e has stated thatspeed of de'iery is the most important factor for success in the competitie enironment";hich of the fo''owing wou'd %e the %est response to Ma)H

." Jou are right on target# Ma)" Time is money"B" Jou are the man# Ma)" .s 'ong as our price is competitie# speedy de'iery wi'' win intodays changing marketp'ace"C" ;e'' Ma)# speed isnt eerything" ;hat wou'd e)ceed our customers e)pectationsH ,omeconsumers may put more importance on high 7ua'ity andKor 'ower prices"D" Dude# you cou'dnt %e more wrong" Gua'ity is the name of the game" 6e who has the %estproduct wi'' win in the competitie enironment"

!/+" The statistica' study of human popu'ation to 'earn its si8e# density# and characteristics is

ca''ed?." psychographics"B" econometrics"C" demography"D" geometry"

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!/" Businesses co''ect FFFFFFFF information on where peop'e 'ie# what they %uy# and howthey spend their time"." geometricB" econometric

C" demographicD" anthropo'ogic

!//" Diersity is more than recruiting and keeping minorities and women" Diersity meansappreciating and understanding other differences in our customers and in our workforce" Thestatement that %est descri%es this difference is?." disa%i'ities# se)ua' orientation# re'igious preferences# and een persona'ity differences suchas e)troerts and introerts"B" gender ro'es"

C" surface 'ee' things such as green eyes ersus %rown eyes"D" racia' differences and gender differences"

!/2" Efforts are underway to sere the needs of a dierse popu'ation" Diersity means?." se''ing products to immigrants"B" dea'ing sensitie'y with workers and cu'tures around the wor'd"C" proiding goernment programs such as free hea'th care for i''ega' and 'ega' immigrants"D" meeting emp'oyment 7uotas so that dierse groups are a'ways represented in yourworkforce"

!/3" Due to popu'ation shifts#." %usinesses that cater to o'der consumers wi'' see e)ceptiona' growth"B" %usinesses that cater to o'der consumers wi'' see s'ower growth"C" %usinesses that se'' e'ectronic deices wi'' see a significant dec'ine"D" hea'thcare wi'' emerge as the on'y %usiness sector that wi'' grow"

!20" ;hich of the fo''owing industries wi'' %enefit from an aging popu'ationH." &inancia' serices to he'p c'ients p'an for their educationB" 6ome hea'th care %usinessesC" Chi'drens day-care centersD" .uto industry

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!21" The socia' security system#." continues to %urden %usinesses due to the fact that %usinesses must proide and pay for this%enefit for their emp'oyees"B" met the needs of our nation when it was conceied# %ut needs an oerhau'"

C" wi'' continue to sere the needs of 4"," citi8ens into the distant future# due to the fact thatthere are so few retirees p'acing a strain on it"D" is fai'ing %ecause the 4"," goernment fai'ed to inest the money that emp'oyeescontri%uted"

!2!" Peop'e %etween the ages of + and /* represent?." the unemp'oyed generationB" the sing'e-parent fami'y generationC" a 'ucratie market

D" a group that has neer contri%uted to socia' security

!2(" Businesses are supporting sing'e-parent fami'ies with?." socia' security %enefits"B" a more 'enient we'fare system"C" more f'e)i%'e work %enefits such as f'e) time and fami'y 'eae"D" 'imited %enefits due to the dec'ining num%ers of these fami'ies" &ie-mem%er fami'ies aresteadi'y growing"

!2*" ;hich of the statements a%out demography is most accurateH Demographic studies?." focus on factors that hae great po'itica' re'eance# %ut 'itt'e re'eance to %usiness firms"B" suggest that the num%er of sing'e-parent fami'ies wi'' dec'ine in the future"C" proide %usinesses and indiidua's with insights into %usiness and career opportunities forthe future"D" are an important source of information a%out changes in hea'th patterns"

!2+" ;hich of the fo''owing %usiness po'icies wou'd most 'ike'y he'p a sing'e-parent fami'yH." Re7uiring the emp'oyee to work regu'ar'y schedu'ed hours each day"B" .''owing sick 'eae to %e used on'y if the emp'oyee is i''"C" Re7uiring education outside of regu'ar %usiness hours to he'p the emp'oyee adance"D" .''owing fami'y 'eae and f'e)time"

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!2" The immigrant popu'ation A%oth 'ega' and i''ega' is haing a dramatic effect on." car and truck makersB" mining and minera's industryC" schoo's# hospita's and other serices type industries

D" ice cream and confection industry

!2/" Retired peop'e wi'' %e draining the 4"," economy of wea'th" This is due to?." The fact that most hae smoked a'' their 'ies and now are unwi''ing to pay for hea'thcarein order to stay a'ie"B" The fact there are not enough workers in su%se7uent generations to support the ongoingdrain of o'der persons into the socia' security system"C" Their 'ack of interest in supporting restaurants# resorts# educationa' institutions# andserice-intensie companies"

D" The fact that they refuse to use current information techno'ogy to improe efficiency"

!22" =i'' is 'ooking into the possi%i'ity of opening up a day care center in her community#%ecause she is aware of many sing'e-parent fami'ies that need a p'ace for their chi'dren to staywhi'e the parents work" ,he is concerned a%out the 'ong-term prospects for such a %usiness"=i'' %e'iees the future of her center wi'' depend on whether %irth rates and the num%er ofsing'e-parent fami'ies remain high" These concerns i''ustrate how %usinesses can %e affected%y?." econometric trends"

B" demographic trends"C" ho'ographic trends"D" psychometric trends"

!23" ,t" C'aire 6ospita' is considering a program that wou'd a''ow some of its workers to usef'e)time" 9ne group of workers who wou'd pro%a%'y %enefit from f'e)time is?." ;orkers who do not hae access to computers at home"B" ;orkers who hae 'itt'e se'f-motiation to work eight-hour days"C" &ront-'ine workers who fre7uent'y go out to meet with home furnishing designers"

D" ,ing'e-parent fami'ies"

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!30" Preferred Pet Care# nc"# a mo%i'e eterinary care company is p'anning for the future" .sa %usiness student who has studied socia' trends# which of the fo''owing statements ref'ectsthe need for Preferred Pet Cares serice in the futureH." Mo%i'e pet care wi'' not %e needed %ecause the ma$ority of peop'e are working which

means that no%ody is home"B" Peop'e wi'' a'ways prefer to take their pets to the eterinary c'inic"C" The aging popu'ation wi'' %e a si8ea%'e market for this firm"D" Peop'e who wou'd re7uire this serice wou'd %e higher income indiidua's" Retired peop'ewou'd not %e a market for this firm %ecause they do not hae money to care for pets"

!31" The g'o%a' enironment#." is a new frontier"B" is far reaching and affects a'' the other %usiness enironments"

C" is shrinking"D" has not affected the 4nited ,tates due to its strong gross domestic product"

!3!" The threat of terrorism more often FFFFFFFFFF the cost of operating a %usiness"." increasesB" decreasesC" sta%i'i8eD" desta%i'i8es

!3(" The war on terrorism wi''?." improe the confidence 'ee' of most consumers"B" hurt the profita%i'ity of eery %usiness operating in the 4","C" he'p some %usinesses and hurt others"D" sta%i'i8e the %usiness sector"

!3*" .n increase in g'o%a' trade wi''?

." increase prices"B" decrease $o%s"C" increase po'itica' insta%i'ity"D" increase g'o%a' competition"

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!3+" @'o%a'i8ation?." has great'y improed 'iing standards around the wor'd"B" has significant'y reduced 'iing standards around the wor'd"C" has opened doors to on'y a handfu' of markets"

D" has great'y changed companies that hire peop'e to se'' products# %ut not for companies thathire peop'e to proide serices"

!3" @reening refers to?." the need for more car%on dio)ide in our air"B" firms ac7uiring more green %acks A4"," do''ars from wor'd trade"C" finding ways to 'essen the harm on our enironment"D" the agricu'tura' industrys push to dee'op and produce new green egeta%'es to feed thewor'd"

!3/" Efficiency in distri%ution systems around the wor'd has 'ed to?." increased wor'd trade"B" decreased wor'd trade"C" decreased internationa' competition"D" reduced standards of 'iing around the wor'd"

!32" .ir'ine companies around the wor'd are e)periencing increased costs in part due toFFFFFFFFFF"." decreases in the cost of fue'B" decreasing wor'd tradeC" the threat of terrorismD" 'ack of interest in f'ying

!33" The war on terrorism in many parts of the wor'd shou'd 'ead to FFFFF"." a decrease in warring nations

B" consumers spending more %ecause they fee' more patrioticC" an increase in prosperity and peace throughout the wor'dD" consumer and economic hardship due to increased mi'itary spending

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(00" The green moement is?." a trend that started with the 4"," goernment"B" concerned with dep'etion of natura' resources and 'eaing a 'arge car%on footprint"C" dee'oping more green food products to feed the wor'ds poor"

D" our concern with the fact that eerywhere we 'ook# things are remaining green for 'ongerperiods of time"

(01" Mark recent'y graduated with honors from his co''ege" 6e has %ragged to his friends thathis academic performance has prepared him so we'' for a successfu' career that he can forgetschoo' or training in his future" n ea'uating the future of the workp'ace# Mark is?." e)act'y right" 6is past performance shou'd carry him to success"B" comp'ete'y wrong" ,tudies show that a co''ege education has 'itt'e to do with success"C" oer confident" @'o%a' competition means that continuous 'earning wi'' %e needed in the

future to adapt to rapid changes"D" pro%a%'y right" ,pecia'i8ed training today is a key to continued success in the future"

(0!" The threat of terrorism#." %enefits most %usinesses %ecause $ust a%out a'' companies contri%ute toward aerting thesethreats"B" wi'' certain'y affect companies that participate in g'o%a' trade# %ut most 'arge 4","companies do their %usiness domestica''y"C" has increased the 7ua'ity of 'ife of most peop'e %ecause companies emp'oy more workers

when the threat is high# and workers he'p companies increase profits"D" is cost'y to most firms %ecause it is cost'y to goernments who increase ta)es to pay foradded protection"

(0(" >aura and Tim Mc:ash recent'y moed to :orth Caro'ina on a three-acre home site"They purposefu''y purchased their home within %iking distance to the uniersity where theyare %oth emp'oyed# and their %ikes each hae room for two c'oth %ags for groceries if theyneed to purchase food on the way home# a'though they p'an to grow much of their own" >auraand Tim are e)amp'es of a growing num%er of young peop'e who?

." hae dee'oped a hea'th conscious attitude"B" want to change their 'ifesty'e to %e more in tune to saing energy"C" dis'ike ur%an centers and wish to 'ie in the country"D" stay away from ur%an areas due to increased threats of terrorist attacks in those 'oca'ities"

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(0*" ;hich of the fo''owing statements descri%es a recurring theme a%out todays eco'ogica'enironmentH." Most peop'e agree that there is strong eidence that the temperature of the p'anet is goingdown"

B" ,mart %usinesses know that green %usiness is current'y a trend and they shou'd proceedwith caution %ecause most green initiaties are more cost'y than wars and terrorism"C" There is a strong push %y customers that %usinesses dee'op products and serices thatc'ear'y sae energy"D" C'ear'y# the greening issue is an .merican trend that has not captured the attention of theinternationa' %usiness community"

(0+" Ty'er ,amue's recent'y returned from the war in ra7 where he was a mem%er of thehigh'y ski''ed specia' operations forces" 6e is now in the 4nited ,tates where he co''ects the

@"" Bi'' in order to go to schoo'" This is one e)amp'e of?." 6ow an eent such as a war educates young peop'e a%out conditions a%road"B" The cost of war"C" The %enefits of war on education"D" . s7uee8e on emp'oyer %enefits"

(0" During the past 1+0 years# the 4"," has eo'ed from?." .n agrarian economy to an information techno'ogy economy"B" . %usiness to %usiness economy to a %usiness to consumer economy"

C" .n agrarian economy to a manufacturing economy to a serice oriented economy"D" . manufacturing economy to a serice economy# to a cottage economy# and now we aretrending %ack to an agrarian economy"

(0/" Businesses that produce and se'' tangi%'e products such as stee' and machines are part ofthe?." manufacturing industry"B" know'edge-%ased industry"C" serice industry"

D" production sector"

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(02" The serice industry represents FFFFFFFF of the a'ue of the 4"," economy"." a%out (0IB" under +0IC" a%out /0I

D" a%out +0I

(03" 6ea'th care# insurance# recreation and other intangi%'e products are proided %y the?." g'o%a' sector"B" serice industry"C" industria' sector"D" manufacturing industry"

(10" ,ince the %eginning of the 1300s# the agricu'tura' sector of the 4nited ,tates has?." ,een the num%er of fami'y farms more than dou%'e"B" Become 'ess and 'ess competitie in the g'o%a' economy"C" Produced a consistent output per farm"D" E)perienced a significant drop in emp'oyment# main'y %ecause of tremendousimproements in efficiency"

(11" n recent years# a'most a'' new $o% creation in the 4nited ,tates has occurred in the

FFFFFFFFFF sector?." sericeB" manufacturingC" agricu'tura'D" te'ecommunications

(1!" The new era of %usiness is 'ike'y to %e dominated %y the?." serice sector"B" information-%ased sector"

C" manufacturing sector"D" continued dec'ine in productiity"

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(1(" .pp'iance repair firms# ta) consu'tants# 'aw firms# and insurance companies are a''%usiness firms that are part of the?." production sector"B" management sector"

C" neo-industria' sector"D" serice sector"

(1*" n recent years# manufacturing firms in the 4nited ,tates hae 'aid off workers" The %este)p'anation of this trend is that?." firms hae %een trying to weaken unions %y reducing their re'iance on 'a%or"B" workers in the 4"," hae %ecome 'ess productie and are no 'onger a%'e to compete in theg'o%a' economy"C" firms in many industries hae %ecome so efficient that they need fewer workers"

D" the economy has %een in a pro'onged depression that has 'asted more than a decade"

(1+" ;hich of the fo''owing %est descri%es recent $o% growth in the serice sectorH." The serice sector has generated a'most a'' new $o%s in the .merican economy since themid 1320s# %ut the rate of $o% growth in serices has s'owed in recent years"B" =o%s in the serice sector hae increased s'ow'y oer the past decade# %ut most new $o%sare created in the manufacturing industries"C" Emp'oyment in the serice sector has dec'ined in recent years# and this dec'ine is e)pectedto continue"

D" There has %een 'itt'e change in the num%er of $o%s in the serice sector in recent years#howeer emp'oyment is e)pected to increase rapid'y"

(1" ;hich of the fo''owing organi8ations is an e)amp'e of the goods-producing sector of theeconomyH." &ord Motor CompanyB" &'orida ,tate 4niersityC" Chi'drens 6ospita'D" 6 O R B'ock Ta) Consu'ting

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(1/" Certain industries of the 4"," economy such as farming and heay e7uipmentmanufacturing hae e)perienced a significant dec'ine in emp'oyment" ;hich of the fo''owing%est e)p'ains this $o% 'ossH." The cause is a dec'ine in the productiity of 'a%or in these industries"

B" ;orkers 'ost these $o%s %ecause techno'ogica' adances increased productiity"C" The 4"," economy cannot compete in these industries any 'onger"D" @oernment regu'ations hae e'iminated profit opportunities in these industries"

(12" =enna >eigh is an information say# !0-something person who is trying to se'ect%etween two marketing $o% offers" ,he can either $oin a company that makes sma'' hammersand screwdriers for the do-it-yourse'f hardware store %usiness# or she can $oin a companydee'oping the fourth generation ce'' phone serice" ,he is 7uite impressed that the hardware%usiness is growing 7uite nice'y in China# Me)ico# and ndia where peop'e are starting to

e)pand their 'iing spaces" ,he is a'so aware of?." Dec'ines in the te'ecommunications %usiness now that new ce'' phone serice companiesare springing-up eerywhere"B" . dec'ine in the domestic hardware market due to o'der .mericans 'osing interest inkeeping up their 'iing 7uarters"C" .n information-%ased g'o%a' reo'ution that might make her career at ate'ecommunication

Chap 00128

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