2.01 - 2.02 Understand the Business Environment Test

A producer is someone who

• sells products

• is very creative

• makes things

• employs others

One way in which a business can show its social responsibility is by ______ its profits.

• dividing

• maximizing

• reducing

• controlling

A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating

• social responsibility

• wholesaling

• voluntary chains

• e-tailing

Farms, mines, and lumber companies are examples of

• builders

• manufacturers

• trade industries

• raw-goods producers

A company that transforms cotton into wearable clothing is considered a

• raw-goods producer

• manufacturer

• service business

• builder

The two main divisions of the trade industry are

• producers and retailers

• manufacturers and wholesalers

• wholesalers and retailers

• wholesalers and producers

What do service businesses sell

• retail merchandise

• raw goods

• wholesale merchandise

• intangible activities

A socially responsible business will attempt to give customers

• lower quality products at reduced prices

• high-quality products at high prices

• the best products at the best prices

• the best products no matter what they cost

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with

• free meals

• a safe, secure working environment

• regular entertainment

• a stress-free atmosphere

A characteristic of human wants is that they are

• limited

• unchanging

• unlimited

• consistent