ENT 1 Unit 2 Review

Which of the following was one of government’s original roles in business:

• Acting as a referee

• Ensuring a business’s profitability

• Protecting the environment

• Regulating technology

Government is involved in settling business disagreements through the use of

• courts.

• fines.

• negotiation.

• force.

Why does government set and collect taxes?

• To help businesses grow and prosper

• To provide economic security

• To increase the use of technology

• To help pay the expenses of government

One of the reasons that has caused government’s role in business to expand is that

• people’s attitudes have changed.

• products have become very technical.

• costs of production have continued to increase.

• competition in the marketplace has increased.

Government has become an active participant in the world of business.

• True; government produces goods and services.

• True; government helps to start monopolies.

• False; government works with businesses only.

• False; government doesn’t produce any products.

The goals of government are to protect the rights of individuals and businesses and to provide a stable environment, but the main goal of business is to

• save the environment.

• provide the best products.

• make a profit.

• provide a safe working environment.

When government sets safety standards for the workplace, it is attempting to

• control business.

• minimize risks to employees.

• prohibit excess standards.

• modernize working environment.

The two main sources of revenue used to pay the costs of government regulation are

• taxes and borrowing.

• government and industry.

• taxpayers and nontaxpayers.

• business and labor.

Environmental scanning

• Collecting information about the environment surrounding your business

• A business’s external, uncontrollable surroundings; consists of elements such as demographics, society and culture, the economy, competition, government, and technology

• Analyze your observations and synthesise them in order to define the core problems

• Surroundings

External environment

• A business’s external, uncontrollable surroundings; consists of elements such as demographics, society and culture, the economy, competition, government, and technology

• A business’s internal, controllable surroundings; consists of elements such as finances, personnel, research and development, production, and marketing

• Collecting information about the environment surrounding your business

• The general direction in which people or events are moving