POBF Unit 5 Part II

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

• snowstorm

• accident

• rising prices

• government intervention

A business selects goods or services to sell. Which type of risk is this business using?

• transferring risk

• controlling risk

• bypassing risk

• avoiding risk

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 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

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:

• injunction

• authority

• initiative

• attrition

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

A U.S. company would decide to offer its products in other countries as a reason to:

• subsidize developing countries

• sell obsolete, outdated products

• expand to new, untapped markets

• provide jobs to people in other countries

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

A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business?

• No, the museum will not be considered a business

• No, the museum will be a charitable institution

• Yes, the museum will be a not-for-profit business

• Yes, the museum will be a for-profit business

If a business is not concerned about social responsibility, it is likely to:

• become solvent

• prosper

• grow

• be a failure

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually:

• provides experience that increases the business's credibility

• assumes all legal responsibility for the business's actions

• helps with the day-to-day operations of the business

• evaluates the performance of the business's employees