QUESTION Which of the following, if true, would strengthen Hugh’s position? A) Consumers benefit from free competition between businesses. B) Businesses that pursue environmental responsibility tend to prosper more. C) Individual citizens are becoming increasingly aware of the need for environmental responsibility. D) Most businesses exist for the primary goal of making profits. E) Businesses […]
QUESTION Which term reflects the leveling of opportunity for established and emerging economies? A) outsourcing B) globalization C) offshoring D) competitive advantage E) social diversity ANSWER Answer: B Explanation: B) Globalization is the trend of the world’s economies becoming more interdependent. This has made the playing fields more level between companies in different locales.
QUESTION Which of the following, if true, would strengthen Mariko’s position? A) Most countries either already have or are moving toward free-market economies. B) Consumers do not always know exactly what they want. C) The quality of life is much lower in countries that have little or no free-market economy. D) Businesses in a free […]
QUESTION Iraq’s burning of the oil wells in Kuwait during the 1991 Gulf War is an example of what kinds of forces impacting what factor of production? What will be an ideal response? ANSWER Answer: global forces impacting natural resources Explanation: The war is an example of global forces affecting the business environment. Burning […]
QUESTION Which of the following, if true, best supports the argument that Parallel Beauty Salon should expand its hours as well as include a snack bar and a childcare service for its customers? A) A recent survey of the salon’s current customers, as well as other area residents, reveals that the town’s demographics include a […]
QUESTION What is important to have in place to ensure that business helps improve people’s lives and society? What will be an ideal response? ANSWER Answer: Legal controls should be in place to help curb abuses. Explanation: Social and legal controls can help limit the impacts of a “profit at any cost” approach to […]
QUESTION Over the past 30 years, much of industrial manufacturing has been automated. How did this affect the value of human resources and capital? What will be an ideal response? ANSWER Answer: The value of human resources decreased and the value of capital increased. Explanation: Automation of the manufacturing process replaces labor (human resources) […]
QUESTION In general, why are entrepreneurs willing to take on the risk of starting a new business? What will be an ideal response? ANSWER Answer: The possible rewards of business success outweigh the risks. Explanation: With statistics showing that many affluent people are self-employed, the potential benefits of entrepreneurship are often considered to be […]
QUESTION Explain why much less of the U.S. population is employed in agriculture than formerly. What will be an ideal response? ANSWER Answer: Advances in technology require less human labor to grow food for U.S. consumption. Explanation: The agriculture industry is largely mechanized and automated nowadays.
QUESTION The collapse of the U.S. housing market and the resulting Great Recession of 2007-2009 produced significant shifts in Americans’ living situations and attitudes about home ownership. Home builders, furniture stores, and appliance manufacturers all adjusted business strategies in response to what main factor? What will be an ideal response? ANSWER Answer: The Great […]
