Self Test: Multiple Choice

You can find the answers on the last page of this text.

1-1 Which of the following are the factors of production?
1. Labor, natural resources, capital, entrepreneurs, technology, and intellectual property
2. Labor, capital, entrepreneurs, motivation, and good ideas
3. Natural resources, entrepreneurs, profits, and creativity
4. Labor, profits, natural resources, technology, and motivation
1-2 Goods are products a business sells like
1. haircuts.
2. conveyer belts.
3. car insurance.
4. health care.
1-3 Which of the following is a current sociocultural trend?
1. A decrease in the overall U.S. population
2. An increase in the population of Americans ages 30 to 45 years old
3. A decrease in the U.S. minority population
4. An increase in the population of Americans ages 65 and older
1-4 A green economy
1. depends on cash on hand.
2. factors ecological concerns into business decisions.
3. uses a more diverse workforce.
4. will not impact the auto industry.
1-5 If a firm decides to shift the production of goods or services to an overseas company, this is called
1. diversifying.
2. offshoring.
3. telecommuting.
4. forming a partnership.
1-6 The four types of businesses are
1. foreign and domestic, large and small.
2. local, regional, national, and multinational.
3. private, public, government, and medical.
4. employee owned, government owned, foreign owned, and bank owned.
1-7 B2B and B2C interactions are
1. common now because of the explosive growth of e-commerce.
2. important only for businesses, not consumers.
3. two different names for the same thing.
4. dominated by sole proprietorships.
1-8 A social environment is an interconnected system of different demographic factors such as
1. climate conditions.
2. globalization and political conditions.
3. gender, age, and income.
4. tax policy and legal restrictions.
1-9 Which of the following is not a common challenge facing most national companies?
1. Undercapitalization
2. A complex supply chain
3. Complying with each state’s different tax rates
4. Differences in state laws
1-10 You are managing your own life like a business when you
1. consider how your expenses, the social environment, and globalization impact your life.
2. create an online avatar.
3. post revealing photos on your Facebook page.
4. None of the above

True/False

You can find the answers on the last page of this text.

1-11 Profit is another word for revenue.
1. □ True or □ False
1-12 Identity theft is mainly a problem for senior citizens.
1. □ True or □ False
1-13 The supply chain is the process by which products, information, and money move between a supplier and the consumer.
1. □ True or □ False
1-14 Globalization poses risks to the U.S. economy because of security and patent protection concerns.
1. □ True or □ False
1-15 A not-for-profit organization uses any revenue to reward the management team.
1. □ True or □ False

Critical Thinking Questions

1-16 Consider all the factors of production: labor, natural resources, capital, entrepreneurs, technology, and knowledge. Is each resource a vital part of the school you attend or the company for which you work? Which factors do you believe are most important to the goods and services provided by your organization?
1-17 It is increasingly important for businesses to have green practices—reducing their carbon footprint, offering green options for consumers, and so on. What examples can you think of where a company’s marketing campaign has highlighted its concern for the environment? What might the costs to a company be for going green? What consequences might a company face if it does not?
1-18 Many businesses now both maintain an online presence and have physical stores. Select a few specific companies and research the options for delivering product to customers. In what way does the online store compete with the physical store? How do the two storefronts support each other?

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Table of Contents for
Self Test: Multiple Choice