QUESTION The U.S. Postal Service posted a $5.1 billion loss in the 2011 fiscal year. Analysts attribute much of the system’s financial problems to a marked decline in the volume of mail, since more people are using email. What business force is at play in this example? A) economic B) technological C) demographic D) global […]
QUESTION As part of his high school entrepreneur team, Nathan has been asked to research capital factors of production for their proposed business. Which of the following will Nathan NOT include in his research? A) machines B) tools C) money D) technology E) buildings ANSWER Answer: C Explanation: C) Capital factors of production do […]
QUESTION Minerals, water, and wind are examples of which factor of production? A) intangible resources B) natural resources C) human resources D) capital resources E) technological resources ANSWER Answer: B Explanation: B) Production inputs that are useful just as they appear in nature are called natural resources.
QUESTION Cathy is a one-woman dynamo. She knows her idea for in-home cupcake decorating parties will be a smash. With her energy, personality, and creativity, she’s sure this will make her rich. What should Cathy step back and consider first for her business if she wants to build wealth? A) tax liabilities B) human resources […]
QUESTION Last year, Sara started a business that provides on-site life coaches for overworked executives. Her business has already grown to serve clients in a neighboring state. What could be considered the company’s most important factor of production? A) entrepreneurship B) capital C) human resources D) natural resources E) knowledge ANSWER Answer: C Explanation: […]
QUESTION Which of the following is NOT one of the external forces that can encourage or discourage business development? A) competitive B) personal C) global D) economic E) social ANSWER Answer: B Explanation: B) External factors that may encourage or discourage business development include economic, technological, competitive, global, and social forces.
QUESTION Economic forces that affect business development fundamentally reflect a balance between what two factors? A) freedom and regulation B) input and output C) purchasing power and savings rates D) recession and expansion E) markets and resources ANSWER Answer: A Explanation: A) Economic forces within the business environment reflect ongoing tension between the freedom […]
QUESTION What is the term for the amount of goods and services people can buy with the money they have? A) quality of life B) happiness C) standard of living D) consumer sentiment E) social benefit ANSWER Answer: C Explanation: C) Standard of living is one component of the overall measure of a society’s […]
QUESTION The proliferation of smartphones and tablets in workplace meetings demonstrates the growing importance of which factor of production? A) natural resources B) capital C) human resources D) entrepreneurship E) knowledge ANSWER Answer: E Explanation: E) Smartphones and tablets offer fast access to information in almost any location, enhancing the utilization of knowledge to […]
QUESTION Jenny built an online business selling “dream kits”—plastic boxes filled with glitter and charms. She had been buying empty boxes from a local company, but when she learned about a company in Vietnam offering them at one-third the cost, she pursued this option to lower her costs. What is Jenny practicing? A) global outsourcing […]
