QUESTION Businesses that only provide services do not rely on factors of production. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The word production does not imply manufactured goods. Service businesses rely on natural resources, capital, human resources, entrepreneurship, and knowledge—the factors of production.
QUESTION Which of the following factors constrains the globalization of markets? A. Differences in technical standards B. Uniform standard of living C. Cosmopolitan tastes and preferences D. Market segments that transcend national borders E. Convergence of cultures ANSWER A
QUESTION Most natural resource factors of production cannot be created by a business. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Most of these resources are created by nature and must be mined, harvested, harnessed, or purified.
QUESTION Which of the following is true of the influence of economic development on consumer preferences? A. The level of economic development does not impact consumer preferences as much as cultural difference does. B. Firms based in highly developed countries do not build extra performance attributes into their products. C. Consumers in less developed nations […]
QUESTION A recent addition to the traditional factors of production is technology. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Technology is considered a capital factor of production. Knowledge is considered an addition to the four traditional factors.
QUESTION Which strategy refers to the means that a firm chooses for delivering a product to its consumer? A. Pull B. Distribution C. Push D. Communication E. Pricing ANSWER B
QUESTION The term for all the equipment and machines required to help a business operate is technology. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Technology does not just refer to sophisticated tools like tablet computers and electron microscopes; a pickup truck can help a farmer transport goods.
QUESTION Which of the following is a factor that has contributed to greater retail concentration in developed countries? A. A tradition of established local neighborhood stores B. An increase in car ownership C. A retail system that encourages long channel length D. An increase in the number of single-income households E. An increase in the […]
QUESTION Only large enterprises need to be concerned about forces within the business environment. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Businesses of all sizes are impacted by these forces; even a sole proprietor must respond to demographic changes or comply with economic regulations.
QUESTION Only nonprofit organizations provide benefits to society. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Business organizations offer many societal benefits, including an improved quality of life and financial support for government services.
