QUESTION Advances in technology always exert positive forces in the business environment. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: One example of a negative technological force is the increased risk to both businesses and consumers from computer hackers who gain access to sensitive information.
QUESTION What is the formula for calculating profit? A) revenue minus loss B) revenue plus costs C) expenses minus revenue D) revenue minus expenses E) expenses plus revenue ANSWER Answer: D Explanation: D) The amount of revenue remaining after all business costs are paid is profit.
QUESTION Businesses facing competitive forces are only concerned with customers. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A company may compete with other businesses for employees in a tight labor market.
QUESTION Last year, Carmela’s florist shop had higher expenses than revenues. Which of the following must be true? A) Carmela is operating a nonprofit organization. B) The florist shop posted a profit for last year. C) The florist shop posted a loss for last year. D) Carmela needs to raise the prices for her goods. […]
QUESTION Recession, currency valuations, and trade pacts are all examples of economic forces impacting the business environment. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Recession, currency valuations, and trade agreements are considered global forces affecting business development.
QUESTION Which of the following is NOT an example of a service? A) yoga classes B) health care C) advertising D) aspirin E) personal training ANSWER Answer: D Explanation: D) Aspirin is a tangible product and is considered a good, not a service.
QUESTION The only grocery store in an isolated rural town has little incentive to improve product variety or quality of service. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: With no pressure from competitive forces, the store does not need to make additional effort or incur further expense to attract […]
QUESTION In the United States, the increased use of store signage in both English and Spanish is a response to global forces in the business environment. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Bilingual signs are a response to the growing number of Hispanics living in the United States. […]
QUESTION The measurable characteristics of a particular population are called demographics. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Demographics include age, race, gender, family composition, and other characteristics, all of which impact the market for goods and services.
QUESTION Managing a business requires balancing the needs and perspectives of a wide variety of stakeholders. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Business management requires balancing the perspectives of various stakeholders, including employees, suppliers, and interest groups.
