POB OBJ 5.03 MC #1

Which represents a natural risk for the owner of a delivery service?

• snowstorm

• accident

• rising prices

• government intervention

For a business, income remaining after payment of expenses is:

• loss.

• profit.

• capital.

• debt.

Who decides how goods and services will be marketed in a private enterprise economic system?

• legislators

• business people

• competitors

• consumers

Which is a problem associated with communist command economies?

• There is no competition

• There are high taxes.

• Supply and demand control what will be produced.

• Individuals run the risk of losing their businesses.\

Which is an example of ethical business behavior?

• testing products to ensure they are safe to use

• accepting a bribe from a prominent customer

• using advertisements to confuse customers

• disclosing partial information about products

Which situation would most likely indicate the need to adapt to changes in the business environment?

• The supply of materials used in manufacturing a product has decreased.

• The number of the business's competitors has decreased.

• The demand for the product is stable.

• The business has experienced little employee turnover during the past year.

Businesses that successfully adapt to current market situations often realize that:

• cutting costs is important.

• more financing is necessary.

• diversification is the key.

• change is an opportunity.