Verified Test Bank Chapter 1 The Changing Face Of Business 1 - Contemporary Business 19e | Practice Test Bank by Louis E. Boone. DOCX document preview.

Verified Test Bank Chapter 1 The Changing Face Of Business 1

Package Title: Chapter 1, Testbank

Course Title: Boone, Contemporary Business, 19th Edition

Chapter Number: 1

Question type: Multiple Choice

1) _____ involves blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities in order to enhance a firm’s chances of success.

a) Diversity

b) Competitive differentiation

c) Strategic alliance

d) Relationship management

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

2) _____ refers to technology, tools, information, and physical facilities.

a) Outsourcing

b) Capital

c) Factors of production

d) Brand

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

3) _____ is the unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of consumers.

a) Competitive differentiation

b) Vision

c) Factors of production

d) Brand

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

4) A partnership formed to create a competitive advantage for the businesses involved is known as a(n) _____.

a) outsourcing

b) competitive differentiation

c) strategic alliance

d) vision

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

5) A(n) _____ is a name, term, sign, symbol, design, or combination that identifies the products of one firm.

a) entrepreneur

b) vision

c) brand

d) not-for-profit organization

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

6) The ability to perceive marketplace needs and what an organization can do to satisfy them is referred to as _____.

a) competitive differentiation

b) vision

c) brand management

d) relationship management

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

7) A person who sees a profitable opportunity and then devises a plan to achieve that profit is called a(n) _____.

a) entrepreneur

b) competitive differentiator

c) visionary

d) brand expert

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

8) _____ is/are the collection of activities that build and maintain ongoing, mutually beneficial ties between a business and its customers and other parties.

a) Outsourcing

b) Competitive differentiation

c) Strategic alliance

d) Relationship management

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

9) To operate effectively, certain inputs called _____ are required for all economic systems.

a) competitive differentiation

b) capital

c) vision

d) factors of production

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

10) _____ are businesslike establishments that have primary objectives other than returning profits to their owners.

a) Entrepreneurs

b) Strategic alliances

c) Brands

d) Not-for-profit organizations

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

11) _____ refers to the standards of conduct and moral values involving decisions made in the work environment.

a) Diversity

b) Vision

c) Relationship management

d) Business ethics

Difficulty: Easy

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

12) A company that contracts with another business to perform functions previously handled by internal staff is participating in _____.

a) outsourcing

b) competitive differentiation

c) strategic alliance

d) relationship management

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

13) For successful companies, which of the following statements is true?

a) They often adapt to changes in customer tastes.

b) They spend less time on technology-related projects.

c) They refrain from all kinds of competition.

d) They strive to reduce the standards of living of their respective countries.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

14) Accountants think of profits as:

a) the overall sales of a company in comparison with its top competitor.

b) the difference between a firm’s revenues and the expenses incurred in generating them.

c) the value of the products or services sold during a financial year.

d) the difference between the capital and revenue obtained through selling stocks.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

15) All of these statements are true regarding businesses EXCEPT:

a) Some businesses are not motivated by profit growth.

b) Businesses provide goods and services necessary to an economic system.

c) Businesses are the economic pulse of a nation.

d) Businesses are nonprofit organizations that provide services to the public.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

16) Jason is an accountant. When he is looking at clients’ books, for him, profits are _____.

a) the difference between revenues and expenses

b) the sum of commissions earned and receipts

c) the difference between sales and expenses

d) the sum of sales and expenses

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

17) In the U.S. economy, _____ are considered the reward for the risk of entering a business.

a) revenues

b) concessions

c) profits

d) sales

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

18) Which of these are essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services?

a) Coupons

b) Profits

c) Discounts

d) Rebates

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

19) Which of the following is NOT typically a part of the not-for-profit sector?

a) Labor unions

b) Religious organizations

c) Hotels

d) Museums

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

20) Which of the following is a public sector, not-for-profit organization?

a) Library

b) Museum

c) Charitable group

d) Labor union

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

21) The Allegany County Library provides a wide variety of library services to its neighborhood. It also provides free online support to its members, and any fee collected from its members goes directly to charity. The library is an example of a(n) _____.

a) not-for-profit organization

b) corporate organization

c) offshore unit

d) business conglomerate

Difficulty: Medium

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

22) Which of the following represent the factors of production in an economic system?

a) Land, rent, capital, and human resources

b) Capital, perseverance, natural resources, and human resources

c) Rent, wages, interest, and profit

d) Land, labor, capital, and entrepreneurship

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

23) Timbers Are Us, a lumber company, utilizes _____ as its primary production factor.

a) human resources

b) entrepreneurship

c) capital

d) natural resources

Difficulty: Medium

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

24) Technology, tools, information, and physical facilities for the operation of a business are examples of _____.

a) profits

b) wages

c) capital

d) liability

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

25) A company that values employees as sources of ideas and innovation is utilizing its _____.

a) entrepreneurship

b) natural resources

c) capital

d) labor

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

26) The labor of a firm refers to _____.

a) household consumers

b) everyone who works for the business

c) full-time employees

d) top management executives

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

27) ABC Mining Inc. is a small-scale mining company that started its business in 2011. By the year 2018, the firm had to close its operations. The company had been continuously laying off its employees since 2016, which led to the further downsizing of the firm. The decline in the availability of minerals in its operating region since 2014 has contributed vastly to its downfall and also reduced the need to inject new capital since then. Which of the following factors of production has primarily caused the firm to end its operations?

a) Natural resources

b) Capital

c) Human resources

d) Entrepreneurship

Difficulty: Medium

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

28) Samantha, a former middle manager from Gaylord Manufacturing, owns and operates a 7-Eleven franchise. Samantha is demonstrating _____.

a) social responsibility

b) socialism

c) entrepreneurship

d) pure competition

Difficulty: Medium

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

29) Which of the following describes a for-profit system established, owned, and operated by individuals?

a) The private enterprise system

b) A social democracy

c) A monopoly

d) State ownership

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

30) Capitalism is founded on _____.

a) the social changes that followed the Industrial Revolution

b) the idea that 80 percent of a nation’s wealth should be owned by no more than 20 percent of its people

c) the principles of a private enterprise system

d) the idea that government must own all factors of production

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

31) The economist Adam Smith was the first person to describe _____ in his book The Wealth of Nations.

a) socialism

b) communism

c) capitalism

d) entrepreneurship

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

32) Competition, according to Adam Smith, would lead to consumers receiving the best possible products and prices because _____.

a) government interference in economic activity would be maximized

b) less efficient producers would be driven out of the market

c) increased supply of raw materials would lead to increased production

d) natural resources would be utilized more efficiently

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

33) By offering a lifetime warranty on its products, Savvy Security Systems has set itself apart from its competitors. This difference is known as Warner Electronics’ _____.

a) private enterprise system

b) competitive differentiation

c) capitalism

d) checkoff

Difficulty: Medium

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

34) When Private Jets, Inc. finds itself losing contracts because Global Aviation, Inc. charges less money, Private Jets responds by lowering its bids. According to Adam Smith, this reaction demonstrates _____.

a) the invisible hand of competition

b) collision

c) the right to private property

d) social responsibility

Difficulty: Medium

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

35) Conchita recently sold her Ford Taurus to a personal friend. Conchita’s sale of her automobile illustrates the right to _____.

a) freedom of choice

b) private property

c) profit making

d) set ground rules for competitive activity

Difficulty: Medium

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

36) All of the following are basic rights within a private enterprise system EXCEPT _____.

a) right to private property

b) right to profits before tax deduction

c) freedom of choice of investment

d) freedom of choice of employment

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

37) Which of the following describes the right to profit?

a) Owner is legally guaranteed the right to all profits (after taxes) that are earned by a business

b) Right to such profits without any form of deduction

c) Government will guarantee a profit

d) Firm has to earn only profits

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

38) Which of the following is considered to be the most fundamental right of the private enterprise system?

a) The right to private property

b) The right to guaranteed profits

c) The right to exercise price discrimination

d) The right to fair competition

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

39) Which of the following allows for a private enterprise system to rely on the potential for citizens to choose their own employment, purchases, and investments?

a) Right to private property

b) Right to profits

c) Freedom of competition

d) Freedom of choice

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

40) All of the following are rights granted to citizens and to the government in a private enterprise system EXCEPT the right to _____.

a) fair competition

b) permit price discrimination

c) select from among a variety of goods and services

d) own property

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

41) ______ is a benefit of entrepreneurship.

a) Low risk

b) Innovation

c) Guaranteed profit

d) Reduced competition

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

42) Dakarai is a new recruit at an IT firm. He feels that his compensation is below industry standards, and his colleagues at other firms urge him to switch his employment with a company that pays a better salary. Instead of changing his job, he forms a trade union to ensure fair wages in the firm. Which of the following rights has Dakarai exercised?

a) Right to private property

b) Right to competition

c) Right to profits

d) Right to freedom of choice

Difficulty: Medium

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

43) The economic focus, in colonial society, was centered on _____.

a) metropolitan areas

b) areas west of the Mississippi River

c) rural areas

d) cities

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

44) The Industrial Revolution in England transformed America’s economy by introducing _____.

a) the concept of each worker producing one complete product

b) the concept labor unions

c) the factory system

d) the continuously moving assembly line

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

45) Customers are central to Seung’s business. His fundamental principle is to understand consumer needs and satisfy them in terms of range, quality, and specifications of products. Seung is most likely to have started his business in the _____ era.

a) social

b) production

c) relationship

d) marketing

Difficulty: Medium

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

46) The American Industrial Revolution did not make real progress until _____.

a) a railroad system was built, providing fast, economical transportation

b) a good relationship was formed with England

c) an introduction of the automobile occurred

d) a reliable system of telephonic communication was established

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

47) Inventors such as Robert McCormick and Eli Whitney were part of the _____.

a) marketing era

b) colonial era

c) pre-colonial age

d) age of industrial entrepreneurs

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

48) Henry Ford is noted in business history for introducing the moving assembly line, which greatly reduced the cost of producing a car. Assembly lines first became common during the _____.

a) relationship era

b) marketing era

c) era of the Industrial Revolution

d) production era

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

49) Which of the following BEST distinguishes the philosophy of the marketing era from the philosophy of the production era?

a) The marketing era was more consumer oriented.

b) The production era occurred after World War II.

c) The marketing era advocated price discrimination.

d) The production era was more consumer oriented.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comoprehension

50) The business philosophy that advocates determining what consumers want and need, and then designing products to satisfy those needs, is known as _____.

a) consumer orientation

b) self-sufficiency

c) work ethics

d) production enhancement

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

51) During the _______, the concept of branding first emerged.

a) production era

b) relationship era

c) age of the industrial entrepreneur

d) marketing era

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

52) Blogs and social networking use _____ to manage relationships.

a) strategic alliances

b) marketing research analyses

c) technology

d) business etiquette

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

53) Colonial society emphasized:

a) customer relationship.

b) product distribution.

c) factory production.

d) agricultural production.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

54) Which of the following refers to concentrating on building and promoting products in hopes that enough customers will buy them in order to cover costs and earn acceptable profits?

a) Relationship management

b) Marketing management

c) Decoy effect

d) Transaction management

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

55) Which of these refers to the collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties?

a) Relationship management

b) Transaction management

c) Financial management

d) Marketing management

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

56) Fabian uses a weblog to sell his products. His blog has generated massive sales for his products. His capital expenditure was the lowest in comparison to most of the other online firms. Which of the following eras is he most likely to be originating from?

a) Production era

b) Social era

c) Industrial era

d) Marketing era

Difficulty: Medium

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

57) Which of the following best describes a strategic alliance?

a) A category of relationship management

b) An affiliation of two or more companies

c) Outside the scope of e-business management

d) Helpful in eliminating competitive advantage

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

58) Apple Series 4 watches sold on Amazon’s Web site signify the formation of a _____ to increase profits.

a) transaction alliance

b) brand partnership

c) strategic alliance

d) marketing agreement

Difficulty: Medium

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

59) Which of the following is a concern in the current business workforce trends due to Covid-19?

a) Awareness that businesses are moving toward traditional management practices

b) Increased reliance on employees’ intellectual capabilities

c) How to help development and learning of employees

d) Transition from focus on production to creating a brand

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

60) Which of the following is a management challenge associated with broad age diversity?

a) The uniformity in expectations of work

b) The need to accommodate a variety of work lifestyles

c) The decreasing need for advanced skills

d) The increasing reliance on older individuals

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

61) Diverse employee teams tend to perform _____ and develop _____ than do homogeneous employee groups.

a) less effectively; better solutions

b) more effectively; better solutions

c) less effectively; worse solutions

d) more effectively; worse solutions

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

62) Which of the following is a trend in the current business workforce?

a) Teenagers are staying longer in their jobs.

b) Seniors are rarely applying for part-time jobs.

c) Seniors are retiring from the workforce sooner.

d) Teenagers are entering the workforce sooner.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

63) When a business employs an outside company to handle all customer correspondence and phone calls, the business is _____ its customer service department.

a) outsourcing

b) branding

c) cybersquatting

d) shrinking

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

64) When Microsoft opened offices in Tokyo, London, and Sydney, it was utilizing _____ by relocating business activities to lower-cost locations overseas.

a) nearshoring

b) cybersquatting

c) offshoring

d) employee sourcing

Difficulty: Medium

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

65) Which of the following generations tend to care less about money and the work-comes-first lifestyle?

a) Baby Boomers

b) Generation X

c) Generation Y

d) Millennials

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

66) What do managers of global workforces need to do to retain valued employees?

a) Build and earn trust

b) Share financial information with employees

c) Lay off tenured employees

d) Follow traditional management practices

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

67) When a U.S. company contracts work to a company in Mexico, it is _____.

a) nearshoring

b) nearsourcing

c) exporting

d) offshoring

Difficulty: Medium

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

68) Delco Corp. a multinational corporation located in Chicago is planning to relocate its operations in India. The firm has identified that the labor cost and technology available in India would ensure optimum performance of its business operations. Which of the following strategies has Delco Corp. adopted?

a) Exporting

b) Offshoring

c) Nearshoring

d) Licensing

Difficulty: Medium

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

69) Crowdsourcing allows companies to find:

a) workers for a specific task.

b) potential candidates through a physical job fair.

c) appropriate candidates within the company.

d) candidates specifically for the managerial roles.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

70) Which is the ability to perceive marketplace needs and what an organization must do to satisfy these needs?

a) Critical thinking

b) Social responsibility

c) Vision

d) Creativity

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

71) Ramona works for ABC Pharmaceutical Company and gives a presentation on the need to expand the company’s geriatric division within the next 10 years. Ramona is focusing primarily on establishing the company’s _____.

a) morales

b) ethics

c) vision

d) codes

Difficulty: Medium

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

72) In business, _____ refers to the ability to see better and different ways of doing business.

a) critical thinking

b) social responsibility

c) creativity

d) vision

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

73) Tevasoft, a content management company, introduces a new software tool for quality analysis. This product has been programmed and introduced after several rounds of meticulous analysis that included researching, brainstorming sessions, arguments, and several rounds of testing for the product’s accuracy and authenticity. In this scenario, which of the following has Tevasoft demonstrated?

a) Critical thinking

b) Competitive differentiation

c) Sociability

d) Creativity

Difficulty: Medium

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

74) When 3M managers decided to manufacture Post-it ® notes, a new product was born. This was an example of _____ in action.

a) critical-thinking skills

b) vision

c) social responsibility

d) creativity

Difficulty: Medium

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

75) Himesh is seeking to revitalize his graphic design company with new innovations and has called for a brainstorming meeting with his top designers. Himesh is _____.

a) enacting his company’s vision

b) improving his productivity

c) thinking critically

d) utilizing his creativity

Difficulty: Medium

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

76) Feedback from customers is an example of a(n) _____ that requires organizational change.

a) internal force

b) external force

c) change agent

d) marketing issue

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

77) Which of the following is NOT an example of an internal force that requires organizational change?

a) Labor union demands

b) Production problems

c) New technologies

d) New company goals

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

78) Which of these refers to standards of conduct and moral values of a firm?

a) Creativity

b) Business ethics

c) A social audit

d) A social responsibility

Difficulty: Easy

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

79) “Newman’s Own” is a food product line that gives 100 percent of its after-tax profits to charity. This company is ____.

a) evaluating its business ethics

b) enacting upon its social responsibility

c) creating customer satisfaction

d) using creativity to promote sales

Difficulty: Medium

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

80) When management adheres to a set of standards involving the right and wrong actions arising in the work environment, the management is _____.

a) enacting upon its social responsibility

b) following its business ethics

c) working towards social welfare

d) using creativity to encourage team spirit

Difficulty: Easy

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

81) When ABC Tool’s management decided to preserve the local environment by planting 1,000 trees every year, the company is _____.

a) using creativity to ensure sustained growth

b) following its business ethics

c) working towards social welfare

d) enacting upon its social responsibility

Difficulty: Medium

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

82) Social responsibility would include all of the following EXCEPT _____.

a) supporting the local United Way

b) buying goods and services from minority-owned vendors

c) making campaign contributions to politicians in the hope of obtaining a government contract

d) making contributions to the local public radio station

Difficulty: Medium

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

83) Stewart is a small business owner who runs a local coffee shop and a bakery. For Stewart, _____ represents an earned reward for taking the risks of running the business.

a) government intervention

b) concessions

c) profits

d) long hours

Difficulty: Medium

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

84) A tax law provision granted to not-for-profits by the Internal Revenue Service is called _______.

a) strategic alliance

b) concession

c) consumer orientation

d) section 501(c)(3)

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

85) Which of the following represent corresponding factor payments for labor and capital?

a) Land and rent

b) Perseverance and natural resources

c) Wages and interest

d) Natural resources and entrepreneurship

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

86) _______ represents a natural force that guides free market capitalism.

a) Socialism

b) Communism

c) Competition

d) Government

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

87) Which of these describes the unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers?

a) Private enterprise system

b) Competitive differentiation

c) Capitalism

d) Strategic alliance

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

88) The main characteristic of the ______ era was benefits derived from deep, ongoing links with individual customers, employees, suppliers, and other businesses.

a) marketing

b) social

c) relationship

d) age of industrial entrepreneurs

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

89) The main characteristic of the ______ era is the new ways for businesses and consumers to communicate and share information.

a) marketing

b) social

c) relationship

d) age of industrial entrepreneurs

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

90) The main characteristic of the ______ era was mass production by semiskilled workers, aided by machines.

a) Industrial Revolution

b) social

c) relationship

d) age of industrial entrepreneurs

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

Question type: True/False

91) Companies need to be ethical to succeed in the long run.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

92) In order to remain viable, not-for-profit organizations need to focus on profits even more than the public service they provide.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

93) Just as with a for-profit business, the first priority for a not-for-profit organization is making a profit.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

94) Given that not-for-profit organizations still focus on and make profits, they are commonly required to pay federal, state, and local taxes.

Difficulty: Easy

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

95) Labor encompasses both the physical labor and the intellectual inputs contributed by workers.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

96) Capital usually includes entrepreneurs and human resources.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

97) Land is linked to the factor payment of rent.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

98) Technology is considered to be a form of capital.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

99) Technology and capital are considered as two separate factors of production.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

100) When farmers rent land in order to increase crop production, they are acquiring capital.

Difficulty: Medium

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

101) “Risk-taking” and entrepreneurship are synonymous.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

102) Government intervention is critically important and encouraged in the private enterprise system.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

103) The private enterprise system is enhanced by maximized government participation.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

104) Capitalism is another name for the private enterprise system.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

105) In the private enterprise system, the right to private property is considered the most basic right.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

106) When customers enter a supermarket and select their favorite brand of laundry detergent, they are exercising their right to freedom of choice.

Difficulty: Medium

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

107) In the private enterprise system, government has no role to play in ensuring fair competition.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

108) For a business to be successful, competitive differentiation is highly discouraged.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

109) A common characteristic of most entrepreneurs is finding unique ways to use the factors of production.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

110) During the era of Industrial Revolution, the focus was on agriculture and other rural activities.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

111) The Industrial Revolution began in Germany and quickly spread to the rest of Europe.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

112) The Industrial Revolution introduced a strong emphasis on the factory system.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

113) One factor that led to the Industrial Revolution was the development of the social era.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

114) A key element of the age of industrial entrepreneurs was the use of consumer research.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

115) Assembly lines were introduced during the production era.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

116) In consumer orientation, a company creates a product first and then determines if a consumer is likely to purchase the product.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

117) The Nike swoosh is an example of a brand.

Difficulty: Medium

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

118) Transaction management best describes the current philosophy among managers today.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

119) Transaction management was introduced during the era of Industrial Revolution.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

120) The social era is based on the premise that organizations create value through connections with groups or networks of people with similar goals and interests.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

121) Relationship management refers to ongoing, mutually beneficial ties between an organization and its customers.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

122) Relationship management concentrates on short-term interactions with customers.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

123) If Motorola and Microsoft work on developing an innovative cell phone, then such an arrangement would be an example of a strategic alliance.

Difficulty: Medium

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

124) The need to develop environmentally friendly products and processes is becoming a major new force in business today.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

125) A strategic alliance is a partnership formed to create a competitive advantage for the businesses involved.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

126) During the next few years, the average age of the workforce is expected to decrease.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

127) The supply of jobs is slowly becoming greater than the demand for workers.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

128) According to research, work teams consisting of a diverse group of individuals often are less productive than less diverse work teams.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

129) Even with advances in management and communications, manufacturing still accounts for most of the annual output in the United States.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

130) Outsourcing is the use of outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

131) Millennials, the largest demographic group in today’s workforce, tend to care less about money and the work-comes-first lifestyle.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

132) The managerial quality of vision is the ability to perceive marketplace needs and what an organization must do to satisfy them.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

133) For today’s managers, critical thinking skills and creativity are essential qualities.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

134) In business, creativity refers to the ability to see better and different ways of doing business.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

135) Creativity is the capacity to develop well-tested solutions to common organizational problems.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

136) Physical exercise releases endorphins, which prevents a manager from coming up with creative ideas.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

137) Mental exercises like brainstorming often foster creativity.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

138) Feedback from customers is an example of an internal force that would require change.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

139) Business ethics deal with the right versus wrong actions that arise in a work environment.

Difficulty: Easy

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

140) Participating in nonprofit programs is an example of exhibiting social responsibility.

Difficulty: Easy

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

Question type: Essay

141) Define profit. Your roommate makes the following statement, “The success of a business is measured only by the profit it earns.” Do you agree? Explain your answer.

Difficulty: Medium

Learning Objective 1: 01-01: Define business.

Section Reference 1: What is Business?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

142) Is technology a capital source? Explain.

Difficulty: Easy

Learning Objective 1: 01-02: Identify and describe the economic factors of production.

Section Reference 1: Economic Factors of Production

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

143) Explain why competition is important according to Adam Smith.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

144) What are the four basic rights in the private enterprise system? Briefly describe each right.

Difficulty: Easy

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

145) What did Nordstrom do differently to achieve a considerable increase in its annual sales?

Difficulty: Medium

Learning Objective 1: 01-03: Describe the private enterprise system.

Section Reference 1: The Private Enterprise System

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Analysis

146) What are the seven eras of business history? Name and describe the era used by businesses today.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

147) Describe the business approach used in the relationship era.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

148) Differentiate between transaction management and relationship management.

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

149) Briefly describe the Industrial Revolution. What was its contribution to the evolution of business?

Difficulty: Easy

Learning Objective 1: 01-04: Identify the seven eras in the history of business.

Section Reference 1: Seven Eras in the History of Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

150) Explain strategic alliance with an example.

Difficulty: Medium

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

151) Is a diverse workforce advantageous to businesses? Explain.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

152) Describe offshoring and its related trends.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

153) Define outsourcing. Explain the utility of outsourcing in the United States.

Difficulty: Easy

Learning Objective 1: 01-05: Explain current trends related to business.

Section Reference 1: Current Trends Related to Business

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

154) What is vision? Explain with an example why it is an important managerial quality.

Difficulty: Medium

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

155) Describe critical thinking and creativity. Explain why they are important qualities for today’s manager.

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

156) What are some examples of external and internal forces that would require a manager to lead organizational change?

Difficulty: Easy

Learning Objective 1: 01-06: Identify the skills and attributes needed for today’s manager.

Section Reference 1: Skills and Attributes Needed by Today’s Managers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

157) Differentiate between business ethics and social responsibility.

Difficulty: Easy

Learning Objective 1: 01-07: Outline the characteristics that make for a successful and admirable company.

Section Reference 1: What Makes for a Successful and Admirable Company?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

Document Information

Document Type:
DOCX
Chapter Number:
1
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 1 The Changing Face Of Business 1
Author:
Louis E. Boone

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