Question 1

Which of the following BEST describes competition?

Accepted Answer

A)  Two or more companies compete with one another for greater federal, state, and local subsidies. 
B)  Two or more companies compete with one another to attract customers and gain an advantage. 
C)  Two or more companies compete with one another to maintain a monopoly. 
D)  Two or more companies complete with one another to influence trade policy. 
E)  Two or more companies compete with one another to limit the variety of goods and services.

Question 2

Jarvis runs a restaurant that has had a lot of complaints from customers lately.Jarvis is a strict manager and prefers to make all the decisions himself.A concerned friend recommends that Jarvis delegate more decision-making responsibility to his employees.Which of the following would be the MOST likely result of Jarvis' delegating responsibility?

Accepted Answer

A)  Customers will be upset because the restaurant is being run differently. 
B)  Customer satisfaction will improve because employees can be more responsive to customer needs. 
C)  Customer satisfaction will decrease because employees will make the wrong decisions. 
D)  Employees will quit because of the change in Jarvis' management style. 
E)  The restaurant will need to increase its prices.

Question 3

National businesses often serve international markets.

Accepted Answer

A) True 
 B)False

Question 4

The various resources used to create a company's goods and services are collectively referred to as ________.

Accepted Answer

A)  raw materials 
B)  factors of production 
C)  supplies 
D)  inventory 
E)  intellectual property

Question 5

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 
E)  product flow

Question 6

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. 
E)  Raise their prices, to show that their customer service is worth paying a premium for.

Question 7

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 
E)  lower standards of living for the entire society

Question 8

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

Accepted Answer

The answer of How does competition benefit consumers? Provide a...

Question 9

Competition affects companies in all of the following ways EXCEPT ________.

Accepted Answer

A)  forcing them to deliver customer satisfaction 
B)  forcing them to improve their products 
C)  forcing them to aggressively promote their brands 
D)  forcing them to lower their prices 
E)  forcing them to increase their production levels

Question 10

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 
E)  loss of U.S. jobs due to offshoring

Question 11

An Old Navy store is an example of a ________ business.

Accepted Answer

A)  national 
B)  multinational 
C)  local 
D)  regional 
E)  boutique

Question 12

Emma bought an MP3 player and a portable DVD player.These products are called goods because ________.

Accepted Answer

A)  they do a good job of satisfying a customer's needs 
B)  they are physical or tangible products 
C)  they are produced in an economical offshore factory 
D)  they can be sold either in a store or online 
E)  they are good at increasing a company's profit margin

Question 13

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 
E)  the green movement

Question 14

Humberto is a supply chain manager for a multinational company.Which of the following challenges should he be LEAST concerned about?

Accepted Answer

A)  His office is missing certain business supplies. 
B)  Products may get backed up in a long supply chain. 
C)  There is a lack of communication among companies in the chain. 
D)  The number of customer returns is very large. 
E)  Products need to pass through multiple warehouses.

Question 15

What do businesses generally do with profits?

Accepted Answer

The answer of What do businesses generally do with profits?...

Question 16

Real capital refers to the money used to facilitate a business enterprise.

Accepted Answer

A) True 
 B)False

Question 17

In what ways is a multinational corporation,like Google,similar to a local business,such as a Chinese restaurant? In what ways are these two businesses different?

Accepted Answer

The answer of In what ways is a multinational corporation,like...

Question 18

Competition arises when two or more businesses contend with one another to attract customers and gain an advantage.

Accepted Answer

A) True 
 B)False

Question 19

Grace loves working with children and plans to start a school for children with disabilities.She would like to invest at least some of the money she makes after expenses back into the school.What kinds of organization structures should she consider? How would you recommend that Grace structure her school for legal purposes?

Accepted Answer

The answer of Grace loves working with children and plans...

Question 20

Which of the following would MOST likely be part of a company's diversity initiative?

Accepted Answer

A)  ethics training 
B)  a minority network 
C)  360-degree feedback 
D)  corporate history 
E)  sustainability education

Exam 1: Business Basics

Which of the following BEST describes competition?

National businesses often serve international markets.

The various resources used to create a company's goods and services are collectively referred to as ________.

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

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?

Profits allow a company to ________.

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

Competition affects companies in all of the following ways EXCEPT ________.

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

An Old Navy store is an example of a ________ business.

Emma bought an MP3 player and a portable DVD player.These products are called goods because ________.

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

Humberto is a supply chain manager for a multinational company.Which of the following challenges should he be LEAST concerned about?

What do businesses generally do with profits?

Real capital refers to the money used to facilitate a business enterprise.

In what ways is a multinational corporation,like Google,similar to a local business,such as a Chinese restaurant? In what ways are these two businesses different?

Competition arises when two or more businesses contend with one another to attract customers and gain an advantage.

Which of the following would MOST likely be part of a company's diversity initiative?