True / False
1. As access to technology rises and barriers to trade fall, individual economies around the world have become more independent than ever before.
a. True
b. False
ANSWER: False
2. Despite their huge populations, China and India represent a much smaller opportunity in...
Chapter 1: Business Now: Change Is the Only Constant
True / False
1. Value is the relationship between the price of a good or a service and the benefits that it offers to the customer.
a. True
b. False
ANSWER: True
2. 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.
a. True
b. False
ANSWER: False
3. 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.
a. True
b. False
ANSWER: False
4. People can create natural resources by growing and harvesting agricultural products.
a. True
b. False
ANSWER: False
5. Capital, as a factor of production, includes machines, tools, buildings, information, and technology.
a. True
b. False
ANSWER: True
6. 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.
a. True
b. False
ANSWER: True
7. 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.
a. True
b. False
ANSWER: True
8. Speed-to-market is the rate at which a company's competitors copy its new product innovations.
a. True
b. False
ANSWER: False
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Chapter 1: Business Now: Change Is the Only Constant
9. Online technology prevents leading-edge companies from offering customized products at prices that are comparable to
standardized products.
a. True
b. False
ANSWER: False
10. The broader economy and one's own business skills will influence the level of one's personal financial success.
a. True
b. False
ANSWER: True
11. 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.
a. True
b. False
ANSWER: True
Multiple Choice
12. The core goal of successful firms is to:
a. create a diverse workforce in an organization.
b. generate long-term profits by delivering unsurpassed value to their customers.
c. meet the rising expectations of workers.
d. ensure free trade of goods and services within local and international markets.
ANSWER: b
13. Which of the following is considered a business?
a. A firm funded by the state that specializes in providing free consultations for at-risk teens
b. A private charity that donates clothes and notebooks to orphaned kids
c. An online shopping portal that offers discounted prices on clothes
d. A federal agency that establishes and enforces environmental regulations
ANSWER: c
14. Which of the following is a true statement about profit in a business?
a. It is calculated by subtracting the cost of goods from the sales revenues of a business.
b. It is the financial reward that comes for starting and running a business.
c. It is the goodwill that an organization gains while running a business.
d. It is earned by every business all the time.
ANSWER: b
15. Which of the following statements is a characteristic of entrepreneurs?
a. They are hardly interested in creating wealth for themselves.
b. They create value for themselves at the expense of others.
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Chapter 1: Business Now: Change Is the Only Constant
c. They have little or no impact on other people in the society.
d. They produce a ripple effect that enriches everyone around them.
ANSWER: d
16. In the context of the history of American business, which of the following is a true statement about the industrial
revolution?
a. Firms aimed at building long-term relationships with customers during the industrial revolution.
b. During the industrial revolution, there was a loss of personal pride in the production process.
c. The production efficiency was the lowest during the industrial revolution.
d. During the industrial revolution, there was a creation of individual ownership in the production process.
ANSWER: b
17. Huge factories replaced skilled artisan workshops during the _____.
a. industrial revolution
b. entrepreneurship era
c. production era
d. marketing revolution
ANSWER: a
18. Which of the following occurred during the entrepreneurship era?
a. The balance of power shifted away from producers and toward consumers.
b. Web and digital resources were used to gather detailed information about customers.
c. Industrial titans created enormous wealth and dominated their markets.
d. The standard of living declined at a high rate.
ANSWER: c
19. Identify a true statement about the entrepreneurship era.
a. Industrial titans exploited workers and decimated the environment during the entrepreneurship era.
b. Large-scale entrepreneurs failed to dominate their markets during the entrepreneurship era.
c. During the entrepreneurship era, the overall standard of living across the country declined.
d. During the entrepreneurship era, the balance of power shifted from producers and toward consumers.
ANSWER: a
20. During the _____, jobs became even more specialized, increasing productivity and lowering costs and prices.
a. entrepreneurship era
b. production era
c. marketing era
d. relationship era
ANSWER: b
21. Identify a true statement about the production era.
a. Major businesses focused on shifting the balance of power from producers and toward consumers.
b. The method of "hard sell" was eliminated.
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