Question 1

"Computers are outdated after three years and obsolete after five." What aspect of technology does that statement BEST represent?

Accepted Answer

A) Technological innovations can be used to keep a company well-organized. 
B) Technological innovation is changing the focus of how many businesses are run. 
C) Technological innovation is necessary in order to remain competitive. 
D) Technological innovation is expensive and time-consuming. 
A) Technological innovations can be used to keep a company well-organized. 
B) Technological innovation is changing the focus of how many businesses are run. 
C) Technological innovation is necessary in order to remain competitive. 
D) Technological innovation is expensive and time-consuming. D

Question 2

What is the difference between a general and a limited partnership?

Accepted Answer

In a general partnership, all partners are financially liable and participate in all aspects of the business, including day to day operations and decision-making. In a limited partnership, at least one partner assumes liability and active management of the business, while the limited partners do not participate in the day-to-day operations of the business, nor are they liable for claims against the partnership.

Question 3

How does social networking affect the competitiveness of a business?

Accepted Answer

Companies are increasingly using social networking sites such as Facebook and Twitter to connect to their customers. Through these sites, they can promote their products, offer discounts, and build relationships with people interested in their company. Individual consumers can use social-networking sites to quickly spread the word about very good (or very bad)services or products. If a customer is dissatisfied, word can spread like the speed of light very fast. Thus social networking can affect a business's competitiveness either positively or negatively.

Question 4

To become successful, a company should keep pace with the latest technology.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would MOST likely happen to companies that are less efficient than their competitors?

Accepted Answer

A) They would continue to do business as usual. 
B) They would close down. 
C) They would be taken over by the government. 
D) They would receive additional money from investors. 
A) They would continue to do business as usual. 
B) They would close down. 
C) They would be taken over by the government. 
D) They would receive additional money from investors.

Question 6

Which of the following can be a disadvantage of establishing a corporation?

Accepted Answer

A) A corporate owner's personal assets are not protected. 
B) A corporation can be sued. 
C) A corporation must report business income in a separate tax return. 
D) A corporation can limit profits for tax purposes. 
A) A corporate owner's personal assets are not protected. 
B) A corporation can be sued. 
C) A corporation must report business income in a separate tax return. 
D) A corporation can limit profits for tax purposes.

Question 7

Which of the following statements is true of a nonprofit organization?

Accepted Answer

A) It makes profits. 
B) It does not pay expenses. 
C) It can earn excess revenue. 
D) It cannot operate like a business. 
A) It makes profits. 
B) It does not pay expenses. 
C) It can earn excess revenue. 
D) It cannot operate like a business.

Question 8

A limited partnership protects nonmanaging partners from claims against personal assets.

Accepted Answer

A) True 
 B)False

Question 9

Explain how the social environment can affect business.

Accepted Answer

A social environment is an interconnecte

Question 10

________ is the movement toward a more interconnected and interdependent world economy.

Accepted Answer

A) Globalization 
B) G-20 
C) NAFTA 
D) Multiculturalism 
A) Globalization 
B) G-20 
C) NAFTA 
D) Multiculturalism

Question 11

Profits allow a company to ________.

Accepted Answer

A) increase productivity 
B) lower employee wages 
C) reduce its span of operations 
D) disregard concern about expenses 
A) increase productivity 
B) lower employee wages 
C) reduce its span of operations 
D) disregard concern about expenses

Question 12

Which of the following is NOT a danger to U.S. companies posed by globalization?

Accepted Answer

A) increased competition from international companies 
B) security and patent protection concerns 
C) stabilization in the value of the U.S. dollar 
D) unstable political climates in foreign countries 
A) increased competition from international companies 
B) security and patent protection concerns 
C) stabilization in the value of the U.S. dollar 
D) unstable political climates in foreign countries

Question 13

How does the pace of technological change affect businesses, both positively and negatively?

Accepted Answer

It's a necessity to stay on the cutting

Question 14

Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity?

Accepted Answer

A) Pay for utilities and inventory in advance. 
B) Develop a Web site that would enable customers to place orders online. 
C) Hire more staff. 
D) Create an emergency fund. 
A) Pay for utilities and inventory in advance. 
B) Develop a Web site that would enable customers to place orders online. 
C) Hire more staff. 
D) Create an emergency fund.

Question 15

John runs a chain of grocery stores in Colorado. He has just heard a weather report that a storm is headed for his area a few days from now. What should John do to ensure that the goods he needs for his stores are delivered despite the bad weather?

Accepted Answer

John's business depends on a supply chai

Question 16

A limited liability company blends characteristics of both sole proprietorships and corporations.

Accepted Answer

A) True 
 B)False

Question 17

Providing temporary disability insurance for employees is a federal requirement imposed on companies that operate in the United States.

Accepted Answer

A) True 
 B)False

Question 18

Marc wants to help his friend Alexei start a business, but he doesn't want to leave his current job and devote all his time to the new business. Marc is willing to contribute money and give advice in return for a share of the profits. Which type of business ownership would be best for Marc?

Accepted Answer

A) general partnership 
B) limited partnership 
C) corporate partnership 
D) silent partnership 
A) general partnership 
B) limited partnership 
C) corporate partnership 
D) silent partnership

Question 19

Why is technology such an important factor of production?

Accepted Answer

Effective use of technology can make the

Question 20

Which of the following BEST enables all companies, regardless of size, to compete in the global market?

Accepted Answer

A) effective marketing 
B) a talented workforce 
C) government subsidies 
D) technological advances 
A) effective marketing 
B) a talented workforce 
C) government subsidies 
D) technological advances

Exam 1: Business in the United States

"Computers are outdated after three years and obsolete after five." What aspect of technology does that statement BEST represent?

What is the difference between a general and a limited partnership?

How does social networking affect the competitiveness of a business?

To become successful, a company should keep pace with the latest technology.

Which of the following would MOST likely happen to companies that are less efficient than their competitors?

Which of the following can be a disadvantage of establishing a corporation?

Which of the following statements is true of a nonprofit organization?

A limited partnership protects nonmanaging partners from claims against personal assets.

Explain how the social environment can affect business.

________ is the movement toward a more interconnected and interdependent world economy.

Profits allow a company to ________.

Which of the following is NOT a danger to U.S. companies posed by globalization?

How does the pace of technological change affect businesses, both positively and negatively?

Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity?

John runs a chain of grocery stores in Colorado. He has just heard a weather report that a storm is headed for his area a few days from now. What should John do to ensure that the goods he needs for his stores are delivered despite the bad weather?

A limited liability company blends characteristics of both sole proprietorships and corporations.

Providing temporary disability insurance for employees is a federal requirement imposed on companies that operate in the United States.

Marc wants to help his friend Alexei start a business, but he doesn't want to leave his current job and devote all his time to the new business. Marc is willing to contribute money and give advice in return for a share of the profits. Which type of business ownership would be best for Marc?

Why is technology such an important factor of production?

Which of the following BEST enables all companies, regardless of size, to compete in the global market?

Economics and Banking

Ethics and Social Responsibility

Business in a Global Economy

Entrepreneurs and Small Businesses

Forms of Business Ownership

Functions and Skills of Management

Motivation, Leadership, and Teamwork

Human Resources and Labor Relations

Business Technology: Management Information Systems

Production and Operations Management

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Securities and Investments

Mini E-Commerce

Mini Constructing a Successful Business Plan

Mini Business Communications

Mini Finding Employment

Mini Personal Finance

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