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37 terms

Business review

Businesses that operate in an environment where success or failure is determined by how well they match and counter the offerings of competitors are operating under ________.

a. the private enterprise system
b. a social democracy
c. a monopoly
d. socialism
In the U.S. economy, ________ are considered the reward for the risk of entering business.

a profits
b sales
c generated income amounts
d revenues
In accounting terms, profits are ________.
a the difference between commissions earned and receipts
b the difference between sales and expenses
c the sum of sales and expenses
d the difference between revenues and expenses
When both China and India develop a(n) _____________ huge opportunities will occur in the global economy.
a Agricultural based economy
b Middle-class society
c Wealthy/upper-class society
d Service based economy
There are 3 billion people in the world who lack basic access to Internet technologies and might never catch up to be a part of the new world economy. This problem is called the _________.
a Underprivileged society
b Digitally disconnected
c Disconnected society
d Digital divide
Monetary policy ________.
a is of limited use in controlling inflation
b is of little use in expanding business spending
c uses interest rate variations and availability of funds to influence the nation's economy
d frequently causes taxes to rise
Two major policy tools are available for controlling economic activity. They are ________.
a interest rate and credit policies
b interest rate and taxing policies
c tax and spending policies
d monetary and fiscal policies
The three major types of economic systems are ________.
a capitalism, planned economies, and mixed economies
b capitalism, oligopoly, and planned economies
c capitalism, pure competition, and planned economies
d capitalism, monopoly, and mixed economies
Over the past decade, which of the following countries had the highest annual rate of GDP growth?
United States
Which state is considered the largest exporter to foreign trade?
a New York
b California
c Illinois
d Texas
India has acquired a(n) __________ in software development with its educated workforce and low wage scale.
a favorable exchange rate
b absolute advantage
c balance of trade
d comparative advantage
A trade deficit occurs when __________.
a there is a net flow of money into a country
b imports are sold at low profits
c imports exceed exports
d foreign-aid payments exceed exports
Which of the following statements is correct?
a Pure-play online retailers are generally more profitable than bricks and mortar retailers with online operations.
b Dot-coms have lower costs than bricks and mortar retailers with online operations.
c Retailers that combine online selling with a brick and mortar operation are gaining ground over dot-com retailers.
d Dot-com retailers have more user-friendly Web sites than brick and mortar retailers with online operations.
________ is essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.
a Philanthropy
b Vision
c Market research
d Profit
The factors of production in an economic system are ________.
a land, rent, capital, and human resources
b capital, perseverance, natural resources, and human resources
c natural resources, human resources, capital, and entrepreneurship
d rent, wages, interest, and profit
Which of the following is considered to be the most fundamental right of the private enterprise system?
a The right to guaranteed profits.
b The right to fair competition.
c Freedom of choice.
d The right to private property.
The concept of branding first emerged during the ________.
a production era
b age of the industrial entrepreneur
c marketing era
d relationship era
The relationship era is driven by ________.
a advances in marketing research
b advances in communication technology
c an increase in the number of business transactions
d advances in manufacturing technology
When Google opened offices in Tokyo, London, and Sydney, they were utilizing ________ by relocating business activities to lower-cost locations overseas.
a offshoring
b nearshoring
c outsourcing
d employee sourcing
employee sourcing
________ is the ability to perceive marketplace needs and what an organization must do to satisfy these needs.
a Critical thinking
b Creativity
c Social responsibility
d Vision
Business ethics begins with ________.
a a firm's customers
b a code of conduct
c the individual employee
d the government
During an economic recovery, consumer spending ________ and unemployment ________.
a decreases; increases
b decreases; decreases
c increases; decreases
d increases; increases
Tanisha is a diabetes educator at a local clinic. Recently she was offered a lavish trip by a sales rep who has been pushing the clinic to use his company's diabetes supplies. Tanisha declined the gift. Which ethical challenge did she face?
a cultural consequences
b honesty and integrity
c conflict of interest
d whistle-blowing
How should a businessperson deal with a conflict of interest?
a disclose it
b disclose it or avoid it
c not worry about it
d avoid it
Monopolistic competition has ________.
a only one seller
b many buyers and sellers, none of whom can control prices
c only a few sellers
d many buyers and sellers, and the sellers have some control over price
A country has a strong private sector, along with publicly owned enterprises. Entrepreneurs and private-sector investors are entitled to profits, after taxes, and even state-owned enterprises are expected to at least break even. What type of economic system does this country have?
a mixed economy
b communism
c socialism
d capitalism
Which of the following are considered to be trade restrictions?
a import quotas and embargoes
b import quotas and foreign trade zones
c tariffs and social values
d embargoes and foreign trade zones
Which statement is true about less developed countries?
a They have little access to imports.
b They do not participate in the global marketplace.
c Their share of the world population will increase in the coming years.
d The size of their populations is enough to create a market for goods and services.
During a meeting with government regulators, Nicole voluntarily points out a potential problem with a new product her company is testing. Nicole has shown ________.
a integrity
b loyalty
c honesty
d truthfulness
Worldwide, the number of Internet users is most nearly __________ billion.
a 0.1
b 1.2
c 0.5
d 4
According to consumer surveys, one of the main reasons customers shop online is the __________.
a better selection
b personalization
c security of online ordering
d ease of online ordering
In a global economy, economists consider ________ to be the key economic resource.
a Knowledge
b Capital
c Natural resources
d Financing
What percentage of American (US) companies are service based?
a 70%
b 25%
c 10%
d 90%
Barriers to entry into an industry are highest in ________.
a monopolistic competition
b a monopoly
c an oligopoly
d pure competition
Which of the following is NOT considered a factor of production?
a Capital
b Entrepreneurs
c Motivation
d Knowledge
Organizations must always look for opportunities to create _________ for their customers in order to achieve long-term success.
a Profitability
b Value
c Better products
d Quality
Ashley wants to increase the profits of her business. What two ways can she accomplish her goal of increasing profits?
a Cutting back on expenses and increasing sales
b Increasing the number of employees and increasing sales
c Increasing good expenses and decreasing bad expenses
d Expanding her website and increasing her inventory