Question 1

When a business is profitable, the whole society benefits.

Accepted Answer

A) True 
 B)False

Question 2

Teresa and Luis are getting married next month. Which of the following elements of their wedding does NOT require a natural resource for its production?

Accepted Answer

A) the wedding rings 
B) the wedding vows 
C) the wedding cake 
D) the bridesmaids' dresses 
A) the wedding rings 
B) the wedding vows 
C) the wedding cake 
D) the bridesmaids' dresses

Question 3

Bill is an information technology manager for a large firm. His company needs to install a new software program, which he orders from his company's online supplier. This is an example of ________ e-commerce.

Accepted Answer

A) business-to-business 
B) business-to-customer 
C) business-to-consumer 
D) business-to-supplier 
A) business-to-business 
B) business-to-customer 
C) business-to-consumer 
D) business-to-supplier

Question 4

Which of the following events would MOST likely change the racial demographic of a population?

Accepted Answer

A) a political scandal 
B) an aging population 
C) an economic slump 
D) an influx of immigrants 
A) a political scandal 
B) an aging population 
C) an economic slump 
D) an influx of immigrants

Question 5

Which of the following types of business ownership could be formed based only on an oral agreement?

Accepted Answer

A) partnership 
B) limited liability company 
C) nonprofit organization 
D) corporation 
A) partnership 
B) limited liability company 
C) nonprofit organization 
D) corporation

Question 6

Which of the following social issues would LEAST affect the environment in which U.S. businesses operate?

Accepted Answer

A) aging population 
B) reality television 
C) increasing diversity 
D) the green movement 
A) aging population 
B) reality television 
C) increasing diversity 
D) the green movement

Question 7

A(n)________ is the process by which products, information, and money move between supplier and consumer.

Accepted Answer

A) operational flow 
B) delivery system 
C) funneling mechanism 
D) supply chain 
A) operational flow 
B) delivery system 
C) funneling mechanism 
D) supply chain

Question 8

Melinda is a store owner who buys items online to sell in her shop. Which of the following factors of production is BEST illustrated in Melinda's use of the Internet?

Accepted Answer

A) capital 
B) labor 
C) technology 
D) entrepreneurs 
A) capital 
B) labor 
C) technology 
D) entrepreneurs

Question 9

Which of the following is NOT a benefit of business competition?

Accepted Answer

A) It may lead to a wider variety of goods and services. 
B) It may lead to higher quality goods and services. 
C) It may lead to a limited variety of goods and services. 
D) It may lead to cheaper goods and services. 
A) It may lead to a wider variety of goods and services. 
B) It may lead to higher quality goods and services. 
C) It may lead to a limited variety of goods and services. 
D) It may lead to cheaper goods and services.

Question 10

What do businesses generally do with profits?

Accepted Answer

As more profit is generated, a

Question 11

When a company's revenue is greater than its expenses, it means that ________.

Accepted Answer

A) the company earns a profit 
B) the company spends more than it earns 
C) the company's income is decreasing 
D) the company needs to increase its spending 
A) the company earns a profit 
B) the company spends more than it earns 
C) the company's income is decreasing 
D) the company needs to increase its spending

Question 12

A ________ is owned by one person and does not need to register with the state.

Accepted Answer

A) sole proprietorship 
B) a corporation 
C) a limited liability company 
D) a partnership 
A) sole proprietorship 
B) a corporation 
C) a limited liability company 
D) a partnership

Question 13

Leroy owns a small hardware store that is known for its high level of customer service. A large chain home improvement store has just opened up in his community. Which of the following would BEST help Leroy deal with his new competitor?

Accepted Answer

A) Pay his employees "under the table" to avoid costly payroll taxes and keep prices lower. 
B) Close the business, since small stores cannot compete effectively with chain stores. 
C) Advertise aggressively to increase consumer awareness of his reputation for service. 
D) Move his store in order to be farther away from the large store. 
A) Pay his employees "under the table" to avoid costly payroll taxes and keep prices lower. 
B) Close the business, since small stores cannot compete effectively with chain stores. 
C) Advertise aggressively to increase consumer awareness of his reputation for service. 
D) Move his store in order to be farther away from the large store.

Question 14

A university, an inner city health clinic, and a church are all run specifically to generate profits.

Accepted Answer

A) True 
 B)False

Question 15

The private enterprise system assumes that competition benefits consumers.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is often imposed by governments on multinational companies operating in their countries?

Accepted Answer

A) laws regarding product diversity 
B) laws regarding tax exemptions 
C) laws regarding minimal profits 
D) laws regarding quality control 
A) laws regarding product diversity 
B) laws regarding tax exemptions 
C) laws regarding minimal profits 
D) laws regarding quality control

Question 17

How does competition benefit consumers? Provide a business example of competition's ability to provide value to consumers.

Accepted Answer

Having to compete for a finite number of

Question 18

Which of the following is an example of how today's social environment may affect individuals' lives?

Accepted Answer

A) It may help them learn from people who are different from them. 
B) It may help them afford less energy-efficient cars. 
C) It may reduce their taxes as demand for government services declines. 
D) It may limit the number of entrepreneurial opportunities. 
A) It may help them learn from people who are different from them. 
B) It may help them afford less energy-efficient cars. 
C) It may reduce their taxes as demand for government services declines. 
D) It may limit the number of entrepreneurial opportunities.

Question 19

Globalization is recognized by all as a force for good in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 20

Globalization is a controversial subject for many people because ________.

Accepted Answer

A) it allows U.S. companies to import and export goods from anywhere in the world 
B) it increases the cost of goods and services in the United States 
C) it results in the closing of some U.S. manufacturing facilities 
D) it allows companies of any size to compete globally 
A) it allows U.S. companies to import and export goods from anywhere in the world 
B) it increases the cost of goods and services in the United States 
C) it results in the closing of some U.S. manufacturing facilities 
D) it allows companies of any size to compete globally

Exam 1: Business in the United States

When a business is profitable, the whole society benefits.

Teresa and Luis are getting married next month. Which of the following elements of their wedding does NOT require a natural resource for its production?

Bill is an information technology manager for a large firm. His company needs to install a new software program, which he orders from his company's online supplier. This is an example of ________ e-commerce.

Which of the following events would MOST likely change the racial demographic of a population?

Which of the following types of business ownership could be formed based only on an oral agreement?

Which of the following social issues would LEAST affect the environment in which U.S. businesses operate?

A(n)________ is the process by which products, information, and money move between supplier and consumer.

Melinda is a store owner who buys items online to sell in her shop. Which of the following factors of production is BEST illustrated in Melinda's use of the Internet?

Which of the following is NOT a benefit of business competition?

What do businesses generally do with profits?

When a company's revenue is greater than its expenses, it means that ________.

A ________ is owned by one person and does not need to register with the state.

Leroy owns a small hardware store that is known for its high level of customer service. A large chain home improvement store has just opened up in his community. Which of the following would BEST help Leroy deal with his new competitor?

A university, an inner city health clinic, and a church are all run specifically to generate profits.

The private enterprise system assumes that competition benefits consumers.

Which of the following is often imposed by governments on multinational companies operating in their countries?

How does competition benefit consumers? Provide a business example of competition's ability to provide value to consumers.

Which of the following is an example of how today's social environment may affect individuals' lives?

Globalization is recognized by all as a force for good in the U.S. economy.

Globalization is a controversial subject for many people because ________.

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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