Question 1

Technology affects people in:

Accepted Answer

A)   all industries.
B)   most industries.
C)   information technology industries with the exception of agriculture.
D)   primarily high-income countries.E) B) and C)
F) All of the above

Question 2

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Accepted Answer

A)   industry.
B)   corporation.
C)   business.
D)   service.E) C) and D)
F) A) and B)

Question 3

The evidence for climate change is highly suspect. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following government policies would be least likely to encourage entrepreneurship?

Accepted Answer

A)   Passage of laws that enable businesspeople to write enforceable contracts
B)   Establishment of a currency that is tradable in world markets
C)   Establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability
D)   Passage of laws that eliminate corruption in government and businessE) A) and D)
F) B) and C)

Question 5

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Accepted Answer

A) True 
 B)False

Question 6

High tax rates tend to:

Accepted Answer

A)   promote economic development.
B)   make a nation's currency tradable.
C)   discourage entrepreneurship.
D)   reduce the amount of money created by the government.E) A) and B)
F) All of the above

Question 7

Elizabeth is a single mother of small children. Her employer is considering providing family leave. Since she is a single mom with two young children, she is unlikely to benefit from this program.

Accepted Answer

A) True 
 B)False

Question 8

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Accepted Answer

A) True 
 B)False

Question 9

Brandford Books, an eclectic bookstore in a Phoenix suburb, generated total revenues of $17 million while incurring expenses of $14 million. By the end of the year, Brandford Books earned a profit of $3 million.

Accepted Answer

A) True 
 B)False

Question 10

Technology can help businesses become more efficient and productive.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

Accepted Answer

A)   empowered with the authority to respond quickly to the unmet needs of customers
B)   closely supervised to reduce the risk of product liability and discrimination lawsuits
C)   eliminated and replaced with automated equipment whenever possible
D)   relieved of any burden to make a customer decisionE) A) and B)
F) B) and D)

Question 12

Health care availability, a clean environment, and good schools all contribute to a high quality of life.

Accepted Answer

A) True 
 B)False

Question 13

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S. business community.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following predictions about the impact of e-commerce on traditional businesses is the most accurate?

Accepted Answer

A)   E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively online.
B)   Traditional brick-and-mortar firms will enter the e-commerce market by creating their own websites.
C)   E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets.
D)   Brick-and-mortar businesses will cease to exist within 20 years.E) C) and D)
F) B) and D)

Question 15

The immigrant population (both legal and illegal)  is having the most dramatic effect on

Accepted Answer

A)   car and truck makers.
B)   mining and minerals industry.
C)   schools, hospitals, and other services industries.
D)   ice cream and confection industry.E) A) and D)
F) B) and D)

Question 16

After losing her manufacturing job in the U.S. automobile industry, Cho has found that well-paid service-sector jobs require retraining and further education.

Accepted Answer

A) True 
 B)False

Question 17

Starting a business is a riskier path toward business success than working your way up the ranks of a large business.

Accepted Answer

A) True 
 B)False

Question 18

Often in business the greater the risk, the ________.

Accepted Answer

A)   greater the potential reward
B)   lower the expected revenues
C)   lower the value provided to society
D)   greater the number of stakeholdersE) A) and B)
F) All of the above

Question 19

Empowerment means:

Accepted Answer

A)   giving employees the authority to make decisions.
B)   making certain that employees always defer to management when making decisions.
C)   hiring employees that do not require training due to the costly nature of this activity.
D)   asking employees to write the policies which govern their jobs.E) None of the above
F) C) and D)

Question 20

Walter Waterson owns a lawn irrigation system business. He manages the installations and maintenance of these systems. Several customers are golf courses, but he serves a large group of residential customers as well. When he started the business 10 years ago, he promised to always operate within the legal limits of the law, but lately, the competition is eating him alive. Large competitors have hired illegal immigrants to perform the manual labor, and they do not pay taxes on these employees-they just pay them in cash at the end of the week. Employment taxes are a burden to him. Walter does not want to hire illegal workers. There's a risk if you permit an illegal worker to drive a truck; or, if he/she has an accident on the job. You have just studied business ethics in your class. You inform Walter that

Accepted Answer

A)   taxes only need to be paid for the owners.
B)   he is not only taking a chance that a bigger problem may occur, he is indirectly setting the ethics code for his business.
C)   small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business.
D)   it is not unethical to try to better the lives of others. Everyone needs jobs.E) B) and D)
F) C) and D)

Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

Which of the following government policies would be least likely to encourage entrepreneurship?

Correct Answer
verified

After losing her manufacturing job in the U.S. automobile industry, Cho has found that well-paid service-sector jobs require retraining and further education.

Correct Answer
verified

Elizabeth is a single mother of small children. Her employer is considering providing family leave. Since she is a single mom with two young children, she is unlikely to benefit from this program.

Correct Answer
verified

Empowerment means:

Correct Answer
verified

Brandford Books, an eclectic bookstore in a Phoenix suburb, generated total revenues of $17 million while incurring expenses of $14 million. By the end of the year, Brandford Books earned a profit of $3 million.

Correct Answer
verified

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Correct Answer
verified

High tax rates tend to:

Correct Answer
verified

The evidence for climate change is highly suspect. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

Correct Answer
verified

Technology can help businesses become more efficient and productive.

Correct Answer
verified

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Correct Answer
verified

Which of the following predictions about the impact of e-commerce on traditional businesses is the most accurate?

Correct Answer
verified

Correct Answer
verified

Starting a business is a riskier path toward business success than working your way up the ranks of a large business.

Correct Answer
verified

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Correct Answer
verified

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S. business community.

Correct Answer
verified

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

Correct Answer
verified

Often in business the greater the risk, the ________.

Correct Answer
verified

The immigrant population (both legal and illegal) is having the most dramatic effect on

Correct Answer
verified

Health care availability, a clean environment, and good schools all contribute to a high quality of life.

Correct Answer
verified

Technology affects people in:

Correct Answer
verified

Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

Which of the following government policies would be least likely to encourage entrepreneurship?

Correct AnswerverifiedShow Answer

After losing her manufacturing job in the U.S. automobile industry, Cho has found that well-paid service-sector jobs require retraining and further education.

Correct AnswerverifiedShow Answer

Elizabeth is a single mother of small children. Her employer is considering providing family leave. Since she is a single mom with two young children, she is unlikely to benefit from this program.

Correct AnswerverifiedShow Answer

Empowerment means:

Correct AnswerverifiedShow Answer

Brandford Books, an eclectic bookstore in a Phoenix suburb, generated total revenues of $17 million while incurring expenses of $14 million. By the end of the year, Brandford Books earned a profit of $3 million.

Correct AnswerverifiedShow Answer

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Correct AnswerverifiedShow Answer

High tax rates tend to:

Correct AnswerverifiedShow Answer

The evidence for climate change is highly suspect. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

Correct AnswerverifiedShow Answer

Technology can help businesses become more efficient and productive.

Correct AnswerverifiedShow Answer

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

Correct AnswerverifiedShow Answer

Which of the following predictions about the impact of e-commerce on traditional businesses is the most accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Starting a business is a riskier path toward business success than working your way up the ranks of a large business.

Correct AnswerverifiedShow Answer

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Correct AnswerverifiedShow Answer

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S. business community.

Correct AnswerverifiedShow Answer

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive? Frontline workers must be ________.

Correct AnswerverifiedShow Answer

Often in business the greater the risk, the ________.

Correct AnswerverifiedShow Answer

The immigrant population (both legal and illegal) is having the most dramatic effect on

Correct AnswerverifiedShow Answer

Health care availability, a clean environment, and good schools all contribute to a high quality of life.

Correct AnswerverifiedShow Answer

Technology affects people in:

Correct AnswerverifiedShow Answer

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