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WorksheetsBusiness and Entrepreneurship Worksheet
Total questions: 91
Worksheet time: 46mins
Which of the following are ways that governments can foster entrepreneurship and encourage the creation of wealth?
Providing access to funding, reducing regulatory barriers, and offering tax incentives
Increasing import tariffs, restricting business licenses, and raising corporate taxes
Limiting access to education, discouraging innovation, and imposing strict regulations
Promoting monopolies, discouraging competition, and increasing bureaucratic hurdles
Businesses can use technology to be more responsive to customers by:
Automating customer service and using data analytics to understand customer needs.
Reducing communication with customers.
Ignoring customer feedback.
Limiting online presence.
Competition among businesses has never been greater. Which of the following are two ways that businesses can become more competitive?
Improving product quality and reducing costs
Ignoring customer feedback and increasing prices
Decreasing marketing efforts and limiting innovation
Reducing employee training and cutting customer service
Demography is the study of populations. Which of the following are two demographic trends in the United States that will impact businesses?
Aging population and increasing diversity
Decreasing urbanization and declining birth rates
Rising youth population and decreasing immigration
Stable population size and increasing rural migration
Greening and thinking green refer to adopting environmentally friendly practices. Which of the following is NOT a way people and businesses participate in the green movement?
Recycling and reducing waste
Using renewable energy sources
Supporting eco-friendly products
Increasing carbon emissions
The evolution of American business can be traced through key trends. Which of the following best describes these trends and their implications for the future?
Increasing globalization, technological advancement, and focus on sustainability, leading to more competitive and innovative businesses.
Declining use of technology and reduced international trade, resulting in less competition.
A shift away from sustainability and innovation, with businesses focusing only on local markets.
Stable business practices with little change in technology or market focus, leading to predictable outcomes.
An entity that seeks to earn a profit by providing a good or service is known as a(n)
industry.
corporation.
business.
service.
__________ is the amount a business earns after deducting what it spends for salaries and other expenses.
Profit
Revenue
Interest
Dividends
A business incurs a __________ if its costs and expenses exceed its revenues.
loss
profit
revenue
gain
__________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.
Depreciation
Risk
Opportunity
Redundancy
The total amount of money that businesses take in by selling goods and services is called
profit.
revenue.
loss.
retained earnings.
12) A(n) __________ is a person who assumes the risk of starting a business.
entrepreneur
employee
manager
customer
Starting a business always involves
profit.
loss.
revenue.
risk.
Often in business the greater the risk, the ________
greater the potential reward.
lower the expected revenues.
lower the value provided to society.
greater the number of stakeholders.
15) __________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment.
Quality of life
Gross Domestic Product
Inflation Rate
Unemployment Rate
The amount of goods and services people can buy with the money they have is called their
nominal income.
consumer price index.
profit margin.
standard of living.
The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's
market makers.
economic environment.
stakeholders.
social environment.
The most important difference between for-profit businesses and nonprofit organizations is that
For-profit businesses seek to make a profit
Nonprofit organizations aim to fulfill a mission without seeking profit
A common characteristic of most entrepreneurs is that they
accept the risks involved in starting and managing a business.
have a high level of scientific and technical expertise.
possess a great deal of personal wealth.
have experience in running large, complex organizations.
What is the best example of a business whose goal is to earn a profit?
a community college
American Red Cross
League of Women Voters
Amazon
for-profit businesses do not benefit society. nonprofit organizations seek to make a profit for their owners and organizers. nonprofit organizations do not answer to stakeholders.
for-profit businesses do not benefit society.
nonprofit organizations seek to make a profit for their owners and organizers.
nonprofit organizations do not seek a profit for their owners or organizers.
nonprofit organizations do not answer to stakeholders.
Honda and Hyundai have insourced for years to design and manufacture cars in the United States. What statement is accurate about this practice?
Insourcing helps offset the number of jobs being outsourced.
Insourcing increases the number of jobs being outsourced.
Insourcing damages the United States economy.
Insourcing causes jobs to be lost to overseas competitors.
Public schools, charities, and government agencies generally
have the same goals as for-profit businesses.
do not seek to earn a profit.
provide goods rather than services.
do not have any stakeholders.
For-profit businesses and nonprofit organizations are similar in that they both
contribute to the welfare of society.
seek to earn a profit.
have a limited life.
must be controlled by a board of directors.
The standard of living for a nation's people depends mainly on
the quality of the natural environment.
how much political freedom they have.
their income and the prices of the goods and services they can buy.
the amount of labor and capital available employed in the manufacturing sector.
Today’s businesses attempt to meet the needs of
their customers, even if it comes at the expense of employees and other stakeholders.
their employees, even if it means shortchanging customers by charging higher prices.
all stakeholders.
exclusively their owners, since they are ultimately the ones who pay the bills.
What is the most accurate statement about the impact of business on society?
Businesses have no impact on society.
Businesses only benefit their owners.
Businesses contribute to the welfare of society in various ways.
Businesses only seek to earn a profit.
Last year, Jensen Consulting reported revenues of 34millionwhileitstotalexpenseswere 10 million. Based on this information, Jensen reported
profits of $24 million.
profits of $34 million.
losses of $24 million.
losses of $34 million.
Taylor recently started selling her invention: A bed that looks like it floats in mid-air. The bed is actually suspended by magnetic forces. Taylor is a(n)
arbitrageur.
entrepreneur.
speculator.
account manager.
Roman wants to invest some money that he just inherited. His friend Jon wants him to invest in his new food truck business, promising Roman a better return on his investment than a traditional savings account. Roman should keep in mind that to earn a higher return on his money he
will have to invest overseas.
should only invest in a long-standing business.
will probably have to accept a higher level of risk.
will probably have to engage in illegal activities.
Though the prices of things she buys have gone up, Maya's income has remained stable over the past few years. Nevertheless, Maya feels better off because the environment is cleaner, the crime rate has dropped, she has more relaxation time, and the quality of medical care has improved. If Maya's experience is typical, we can assume that the standard of living has
increased, but the quality of life has decreased.
increased, and so has the quality of life.
declined, but the quality of life has increased.
declined, and so has the quality of life.
Hyun and her three college friends enjoy perfumes. As a special gift to each of them last holiday season, Hyun found a way to make scented candles with each friend's favorite perfume scent. The three friends loved her gift idea and encouraged Hyun to create more and sell them online. Recently, she is filling orders from her website, and turning a profit. Hyun is proof that ________
personalized products will always be successful.
when you successfully fill a market need, you can make money.
the Internet is a way to distribute just about anything.
Miranda wants to operate a small catering business out of her home, located in a quiet residential neighborhood. She asks for input from her neighbors, the homeowner's association, her suppliers, and the zoning commission about issues including parking, noise, safety concerns, and operating hours. Before officially opening, Miranda adjusts her business plan based on the feedback she received. Miranda has discovered that
her new business will definitely be successful.
stakeholder considerations are important if you want your business to thrive.
town politics is more important than company profits.
consulting various stakeholders eliminates any risk.
Generally, the greatest amount of risk is involved in
working for the government.
working for a large business.
working for a small business.
starting a business.
The resources that contribute to the creation of wealth are known as
factors of production.
risk takers.
stakeholders.
entrepreneurs.
production coefficients.
factors of production.
production technologies.
production aggregates.
Which is considered a factor of production?
bonds
competition
knowledge
service
As a factor of production, the term capital includes
stocks and bonds issued by corporations.
natural resources such as land and water.
tools, machinery, and buildings.
services provided by the government.
Two factors of production that seem to contribute the most to a nation's ability to create wealth are
Knowledge and entrepreneurship
Land and labor
Capital and machinery
Natural resources and technology
The external and internal circumstances that surround the business are referred to as
the business environment.
the factors of production.
the stakeholders.
the business disciplines.
Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves. Such things they are likely to pass up on are
the freedom to make their own decisions.
local government benefits such as enterprise zone tax credits.
employer-paid benefits such as paid vacation and health insurance.
the opportunity to generate greater wealth.
41) What is a benefit of owning your own business?
You have control over business decisions.
You are guaranteed a high income.
You do not have to work hard.
You avoid all risks.
What is the benefit of having a free market economy?
freedom to keep the profits from your business
government-supplied health insurance
extended paid vacation time
shorter work hours
As you consider the factors of production, what did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth?
land
labor
knowledge
capital
When we compare the factors of production in wealthy versus poor nations, we find
poor nations have plenty of land and knowledge, but very little labor.
poor and wealthy nations (both) have an abundance of knowledge; it is the land that varies, with rich nations always having more.
wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas.
wealthy nations have land and labor, while poor nations have capital and entrepreneurship.
A nation progresses socially when it has good schools, clean air and water, and more. Which statement accurately addresses conditions for social progress?
Social progress will evolve when capital is apportioned to everyone in equal amounts.
A city, state, or nation's social progress needs the right business environment.
The foundation for social progress is a handful of wealthy entrepreneurs willing to spread the wealth.
Social progress can only improve when there is a strong labor pool to draw from.
Which statement about factors of production is the most accurate?
The five factors of production are energy, capital, labor, leadership, and money.
Wealth creation in poor nations is slowed by chronic shortages of labor.
Each of the factors of production is equally important in creating wealth.
Entrepreneurship and knowledge are the most important in creating wealth.
Randall owns a nursery. The trucks, handcarts, and forklift he purchased for the business are called
natural resources.
intangible resources.
knowledge assets.
capital investments.
In a small and poor nation, the current prime minister has a desire to improve conditions for her citizens. The prime minister has received recommendations from several of her advisors. Which recommendation is likely to create the most wealth for the country?
Acquire more land by invading a neighboring country that is even poorer and weaker.
Use foreign aid from other nations to purchase more tools and machinery.
Establish a business environment that promotes and rewards entrepreneurship.
Establish barriers to trade to protect local businesses from foreign competition.
Tom and his dad combined their love of baseball with a business venture. They purchased a small cart and began selling memorabilia outside of their hometown stadium. Their first year went well, but the past two years have been quite a struggle. Due to poor economic conditions and the team's horrible record, ticket sales at the stadium are down, which has significantly hurt their sales as well. As a recent business graduate, you explain to them that
this type of business is always high risk because it is seasonal.
the business does not fill a sufficient need for most people.
environmental circumstances are dynamic and tough to control.
social entrepreneurs are currently getting most of the attention.
China is a nation with a vast amount of land and a very large population. Another characteristic of this nation is its people's affinity for saving money. Referring to the five factors of production, if the government of China wanted to make progress in building its business environment by focusing on factors that needed improvement, its best strategy would be to
increase the amount of land available for farming.
encourage more people to save money in banks.
improve the quality and availability of entrepreneurial talent.
reduce the population growth rate.
Taxes and government regulations are part of the __________ environment of business.
economic and legal
competitive
social
technological
What policies tend to favor business?
minimal government spending because it keeps taxes to a minimum
more government services because it minimizes tax consequences
maximum government spending because it raises business profits
increased regulation because it benefits stakeholders
In order to create more wealth and provide better services, some nations recognize that
increase the supply of labor.
increase sources for capital.
increase entrepreneurship.
encourage neighboring nations to provide land for business development.
A good strategy to promote business development is:
raising taxes benefits all businesses.
a good strategy is to minimize interference with the free exchange of goods and services.
restricting trade with other countries always helps domestic businesses.
taking control of privately owned businesses and making them government-run will improve the lives of everyone.
In countries where businesses are government owned,
there is less incentive to work hard.
the right amount of each good is produced.
profits tend to be higher.
productivity tends to be highest.
High tax rates tend to
promote economic development.
make a nation's currency tradable.
discourage entrepreneurship.
encourage small business ownership.
Contemporary governments promote business development by
promoting economic development.
making a nation's currency tradable.
discouraging entrepreneurship.
encouraging small business ownership.
What policies would tend to foster entrepreneurship?
Minimize taxes and regulations.
Promote more regulations to protect the environment.
Develop policies to reduce corruption between individuals.
Encourage government ownership of businesses.
When corruption is present in the business environment, what often occurs?
Company leaders threaten competitors and minimize competition.
Factories are easier to build without a government permit.
Fair competition thrives.
Laborers can make more money.
Which government policies would be least likely to encourage entrepreneurship?
Minimize taxes and regulations.
Promote more regulations to protect the environment.
Develop policies to reduce corruption between individuals.
Encourage government ownership of businesses.
Which of the following is an example of a government regulation that helps ensure safety and affordability for consumers?
passage of laws that enable businesspeople to write enforceable contracts
establishment of a currency that is tradable in world markets
establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability
passage of laws that eliminate corruption in government and business
When Netflix determined that the lifestyle needs of its customers called for more convenient methods to receive entertainment, it implemented a business model that led to a reduction in the company’s labor costs. The company then passed those savings on to consumers. In comparison, Blockbuster video stores did not pay enough attention to competitor movements, permitting Netflix to quickly capture this market share and as a result, Blockbuster shuttered its doors. Which external environment probably had the least effect on Netflix's success?
social environment
competitive environment
economic and legal environment
technological environment
Jay sells custom bicycles. He buys bike parts from five different suppliers. Although several government-supported regulations help Jay in his business, regulations that make it easy for his business to enjoy good vendor relationships are
lower taxes that business-to-business customers pay to each other.
laws that permit minimal corruption in banking institutions.
laws that permit small businesses to use the government as an intermediary when doing business with other small businesses.
laws that support enforceable contracts between firms.
Daniel owns a lawn irrigation system business. When he started the business 10 years ago, he promised to always operate within the legal limits of the law, but lately, the competition is eating him alive. Large competitors hire undocumented workers to perform the manual labor, and they do not pay taxes on these employees—they just pay them in cash at the end of the week. Daniel does not want to hire illegal workers, but employment taxes are decreasing his profits. There is a risk if you permit an illegal worker to drive a truck, or, if they have an accident on the job. You have just studied business ethics in your class. You inform Daniel that
taxes only need to be paid for the owners.
he is not only taking a chance that a bigger problem may occur, he is indirectly setting the ethics code for his business.
small businesses do not need to worry about ethics codes. This concern is better suited for big business.
it is not unethical to try to provide jobs.
The emergence of an information-based economy are important parts of the __________ environment in which businesses operate.
economic and legal
technological
competitive
social
Technology affects people in
many ways
no ways
only negative ways
only positive ways
Employers provide tools and technology for their employees in order to
increase the cost of production and profitability.
improve their efficiency and productivity.
reduce corruption in business and eliminate scandals.
encourage the private ownership of businesses.
Efficiency means
producing the desired result.
producing goods and services using the least amount of resources.
the amount of output you generate given the amount of input.
the buying and selling of goods using the most amount of resources.
__________ refers to the amount of output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.
Productivity
Profitability
Efficiency
Capacity
__________ means producing the desired result.
Effectiveness
Technology
Efficiency
Productivity
__________ means producing items using the least amount of resources.
Efficiency
Technology
Competence
Productivity
69) The two major types of e-commerce are
B2B and B2C
B2C and C2C
B2B and G2C
C2C and G2B
When businesses sell to other businesses online, these transactions are known as
B2C transactions.
e-wholesale transactions.
B2B transactions.
hidden transactions.
Companies that sell goods to consumers online are engaging in __________ transactions.
B2C
RFP
B2B
Y2K
The series of lines on a product packaging that the cashier scans when you check out at a grocery store or discount store is called a
barcode
receipt
label
coupon
An electronic storage file where firms keep customer information is known as a(n)
app.
management information system.
database.
B2C system.
__________ is illegally obtaining and illegally using private information about a person, such as using someone's credit card number.
Petty theft
Identity theft
Banking theft
Online theft
One advantage of a database is it _________
stores and organizes data efficiently
makes data less secure
increases manual paperwork
slows down data retrieval
What aspect of e-commerce will continue growing in importance to both businesses and consumers?
customer focus groups
cybersecurity
personal selling
alternative currencies
What is an advantage of utilizing technology in business?
Technology increases the cost of production.
Technology reduces the need for a marketing plan.
Productivity increases.
Management can distance itself from the demands of stakeholders.
Which statement best describes the main difference between B2B and B2C transactions?
B2B transactions occur between businesses.
B2C transactions occur between businesses and consumers.
B2B transactions are typically larger in volume than B2C transactions.
B2C transactions are more focused on customer service than B2B transactions.
Which of the following statements best describes the difference between B2B and B2C transactions?
B2B transactions involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.
B2B transactions focus on financial transactions while B2C e-commerce focuses on the sale of manufactured goods.
B2B transactions refer to business between nonprofit organizations while B2C e-commerce is carried out by business firms seeking to earn a profit.
B2B transactions involve sales in foreign markets while B2C e-commerce is restricted to domestic markets.
Businesses like Earth Angel and Bubbly Dynamics described in the "Adapting to Change" box reuse, redistribute, refurbish or recycle products instead of adding them to landfills. This circular economy strategy focuses on using technology to
improve productivity.
create empowerment.
increase sustainability.
develop customer responsiveness.
WebSure is an online company that provides support services for businesses that need help in setting up and maintaining their websites. WebSure is an example of a company that is engaged in __________ e-commerce.
B2C
C2C
Y2K
B2B
Prestige Presents specializes in expensive and unusual gifts for all occasions. It keeps a large file of information on all of its regular customers, including names, addresses, and type of gifts they have ordered in the past, and the size and frequency of their orders. The electronic file which stores this information is a(n)
spreadsheet.
MP3 file.
PERT file.
database.
New orders are coming in quickly for Data Boom, and management is confident that new contracts will take them through the next couple of years. The company has started investing again, but not in people. The number of employees is the same as when the company and its competitors faced recent economic downturns. Most likely due to __________, the company is producing more product and services with less people.
the lack of skilled labor
new competition
social changes
technological advancement
After purchasing a new set of golf clubs, Ray noticed he was receiving e-mail advertisements from various golf resorts even though he had not requested information from any of them. What statement likely explains why this is happening?
Ray's purchase information was shared with third-party advertisers.
Ray accidentally signed up for a golf resort newsletter.
Ray's email was guessed by golf resorts based on his interests.
Ray's computer automatically subscribed him to golf resort emails.
Ray's personal information was collected by a business, which then traded it to other companies, and these companies then began targeting their advertisements.
Ray was a victim of identity theft.
Ray's personal information was collected by a business, which then traded it to other companies, and these companies then began targeting their advertisements.
All businesses routinely have all customers' personal information.
Ray's employer gave his information to the marketers.
Bree wants to compare the price of running shoes she saw at a sporting goods store with other retailers that may have the same shoes. She locates the product on three different websites, including Zappos. Bree's quest is an example of how customers are using __________ to solve problems.
ad comparison
databases
information technology
social networking
Stuart Johnson renewed his membership at Bargain Barn. Shortly after renewing the card, Stuart started receiving calls from collection agencies claiming that he owed money. He quickly learned that another Stuart Johnson also owned a Bargain Barn card and missed many payments. Bargain Barn had linked Stuart's personal information with the other Stuart Johnson's personal information. Stuart experienced ________
buyer's remorse.
database fraud.
purchase tracking.
identity theft.
