Boone Contemporary Business 15e

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Chapter 1—The Changing Face of Business

MATCHING

Complete the following using these terms.

a. outsourcing b. diversity

c. entrepreneur

d. competitive differentiation

e. strategic alliance

f. capital

g. vision

h. factors of production

i. brand

j. relationship management

k. not-for-profit organizations

l. business ethics

1. _____ involves blending different genders, ethnic backgrounds, cultures, religions, ages, and

physical and mental abilities in order to enhance a firm’s chances of success.

2. _____ refers to technology, tools, information, and physical facilities.

. _____ is the uni!ue combination of organizational abilities, products, and approaches that sets a

company apart from competitors in the minds of consumers.

". # partnership formed to create a competitive advantage for the businesses involved is kno$n asa%n& _____.

'. #%n& _____ is a name, terms, sign, symbol, design, or combination that identifies the products of

one firm.

(. )he ability to perceive future marketplace needs and $hat an organization can do to satisfy themis referred to as _____.

*. # person $ho seeks a profitable opportunity and then devises a plan to achieve that profit is

called a%n& _____.

+. _____ is a collection of activities that build and maintain ongoing, mutually beneficial ties

bet$een a business and its customers and other parties.

. )o operate effectively, certain inputs called _____ systems are re!uired for all economic systems.

1. _____ are businesslike establishments that have primary objectives other than returning profits to

their o$ners.

11. _____ refers to the standards of conduct and moral values involving decisions made in the $ork

environment.

12. # company that contracts $ith another business to perform functions previously handled by

internal staff is participating in _____.

1. #/0 b 30 4564 780 1.2 3actors of 9roduction

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2. #/0 f 30 4564 780 1.2 3actors of 9roduction

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. #/0 d 30 4564 780 1.' )oday’s ;usiness =orkforce

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". #/0 e 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

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'. #/0 i 30 4564 780 1. )he 9rivate 5nterprise /ystem9g. + ##:/;0 #nalytic ;)0 <

(. #/0 g 30 4564 780 1.( )he 21st-:entury 4anager

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*. #/0 c 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

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+. #/0 j 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

. #/0 h 30 4564 780 1.' )oday’s ;usiness =orkforce

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1. #/0 k 30 4564 780 1.1 =hat s ;usiness@

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11. #/0 l 30 4564 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 #nalytic ;)0 < 12. #/0 a 30 4564 780 1. )he 9rivate 5nterprise /ystem

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ESSAY

1. efine profit. 5>plain $hy you agree or disagree $ith the follo$ing statement0 A)he success of a

business is measured only by the profit it earns.B

#/0

9rofit is the financial re$ard received by successful businesspeople $ho take the risks involvedin blending people, technology, and information to create and market $ant-satisfying goods and

services. n order to be successful in a private enterprise system, a business must earn a

satisfactory profitC other$ise, the o$ners and investors $ill turn to more attractive opportunities.

?o$ever, businesses today are e>pected to do more than earn a satisfactory profitDthey also

have social and ethical responsibilities. n other $ords, businesses must behave responsibly in

their dealings $ith employees, customers, suppliers, the general public, and even $ith their

competitors.

30 ?#E 780 1.1 =hat s ;usiness@

9g. " ##:/;0 #nalytic ;)0 :

1". escribe technology as a capital source.

#/0

Technology is a broad term that refers to such machinery and e!uipment as computers and

soft$are, telecommunications, and inventions designed to improve production. nformation,

fre!uently improved by technological innovations, is another critical factor because both

managers and operating employees re!uire accurate, timely information for effective performance

of their assigned tasks. )echnology plays an important role in the success of many businesses.

/ometimes technology results in a ne$ product, such as hybrid autos that run on a combination of





gasoline and electricity. 4ost of the major car companies have introduced hybrid models in

recent years.

30 4564 780 1.2 =hat s ;usiness@

9g. ( ##:/;0 #nalytic ;)0 <

1'. 5>plain ho$ consumers benefit from business competition.

#/0

:ompetition forces a business that $ants to continue to be profitable to constantly find acceptable

$ays to satisfy customers’ needs. :ustomers benefit from ne$ products, more services, and moreeconomical strategies and operations that are continuously offered by firms as they strive for

customer acceptance. )hese tactics often bring lo$er prices, better !uality, and more convenience

to the customers. )he ability to buy more raises the standard of living, increases demand, and

subse!uently creates more jobs.

30 ?#E 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 :

1(. 7ist and describe the four basic rights in the private enterprise system.

#/0

)he right to private property guarantees every participant the right to o$n, use, buy, sell, and

be!ueath most forms of property. )he right to profits ensures business o$ners the right to all

profits %after ta>es& they earn through their activities. 3reedom of choice means that a private

enterprise system relies on the potential for citizens to choose their o$n employment, purchases,

and investments. 3inally, the private enterprise system permits fair competition by allo$ing the

public to set rules for competitive activity, including la$s that prohibit AcutthroatB competition.

30 ?#E 780 1. )he 9rivate 5nterprise /ystem

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1*. 7ist the si> eras of business history. ame and describe the era used by businesses today.

#/0

)he si> eras are the :olonial period, the ndustrial Eevolution, the age of industrial entrepreneurs,

the production era, the marketing era, and the relationship era. )oday’s era, the relationship era,

focuses on taking a long-term approach to relationships $ith customers. 3irms seek $ays to gain

customer loyalty by managing each transaction.

30 4564 780 1." /i> 5ras in the ?istory of ;usiness

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1+. 5>plain ho$ business o$ners enhance productivity by building connections $ith their customers

in the relationship era.

#/0

n the relationship era, businesses are taking a different, longer-term approach to their interactions

$ith customers. 3irms no$ seek $ays to actively nurture customer loyalty by carefully managing

every interaction. )hey earn enormous paybacks for their efforts. # company that retains

customers over the long haul reduces its advertising and sales costs. ;ecause customer spending







9g. 12 ##:/;0 )echnology ;)0 :

22. escribe ho$ the aging population in the 6nited /tates and abroad directly affects changes in the

$orkforce.

#/0

5mployers must deal $ith issues such as retirement, disability programs, retraining, andinsurance benefits. #dditionally, teenagers are entering the $orkforce sooner, and some seniorsare staying longer or seeking ne$ careers after retiring from their primary careers.

30 4564 780 1.' )oday’s ;usiness =orkforce9g. 1* ##:/;0 #nalytic ;)0 :

2. =hat are the advantages of a diverse $orkforce@

#/0

/tudies sho$ that diverse employee teams and $orkforces tend to perform tasks more effectively

and develop better solutions to business problems than homogeneous employee groups. #lso, a

diverse $orkforce may improve management’s understanding of customer needs andrelationships $ith consumer groups.

30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 iversity ;)0 <

2". escribe offshoring and related trends.

#/0

8ffshoring is the relocation of business processes to lo$er-cost locations overseas. )his can

include both production and services. n recent years, :hina has emerged as a dominant location

for production offshoring for many firms, $hile ndia has become the key player in offshoring

services. /ome 6./. companies are no$ structured so that entire divisions or functions aredeveloped and staffed overseasDthe jobs $ere never in the 6nited /tates to start $ith.


9g. 1* ##:/;0 #nalytic ;)0 <

2'. 5>plain the ne$ employer-employee relationship in business.

#/0

4any firms no$ recognize the value of a partnership $ith employees that encourages creative

thinking, problem solving, and innovation. 4anagers are being trained to listen to and respect

employees, and companies routinely share financial data and re$ard employees $ith benefits,

such as stock options. #dditionally, employees often receive training geared to$ard career

advancement. Employees are no longer likely to remain with a single company throughout theirentire careers and do not necessarily expect lifetime loyalty from the companies they work for.

They do not expect to give that loyalty either. Instead, they build their own careers however and

wherever they can.


9g. 1* ##:/;0 #nalytic ;)0 :





2(. efine the term vision. =hy is vision an important skill today@

#/0

Fision is the ability to perceive marketplace needs and $hat an organization must do to satisfy

them. Fision and the ability to turn ideas into action enhance a firm’s chances of success.

30 5#/G 780 1.( )he 21st-:entury 4anager 9g. 2 ##:/;0 #nalytic ;)0 :

2*. =hat are some e>amples of e>ternal and internal forces that $ould re!uire a manager to lead

organizational change@

#/0

5>ternal forces might include feedback from customers, developments in the international

marketplace, economic trends, and ne$ technologies. nternal factors might arise from ne$

company goals, emerging employee needs, labor union demands, or production problems.

30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 :

2+. escribe critical thinking and creativity and $hy they are important !ualities for the 21st centurymanager.

#/0:ritical thinking is the ability to analyze and assess information to pinpoint problems or

opportunities. )he critical-thinking process includes activities such as determining the

authenticity, accuracy, and $orth of information, kno$ledge, and arguments. t involves looking

beneath the surface for deeper meaning and connections that can help identify critical issues and

solutions. =ithout critical thinking, a firm may encounter serious problems. :reativity is the

capacity to develop novel solutions to perceived organizational problems. #lthough most people

think of it in relation to $riters, artists, musicians, and inventors, that is a very limited definition.n business, creativity refers to the ability to see better and different $ays of doing business. #

computer engineer $ho solves a glitch in a soft$are program is e>ecuting a creative act.

30 4564 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 5thics ;)0 <

2. 5>plain ho$ business ethics differs from social responsibility.

#/0

;usiness ethics refers to standards of conduct and moral values involving right and $rong actions

in the $ork environment. /ocial responsibility is the actions taken by an organization that lead to

social and economic benefits to society as a $hole, such as supporting charitable organizationsand protecting the environment.

30 4564 780 1.* =hat 4akes a :ompany #dmired@

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MUTI!E CH"ICE





. =hich of the follo$ing are organized for profit and provide goods and services@

a. businesses

b. public schools

c. government

d. churches

#/0 a 30 5#/G 780 1.1 =hat s ;usiness@9g. " ##:/;0 #nalytic ;)0 <

1. #ll of the follo$ing statements are correct E#CE!T0

a. /uccessful businesses seek to meet their social

and ethical responsibilities.

b. ;usiness provides goods and services necessary

to an economic system.

c. ;usiness is the economic pulse of a nation.

d. ;usiness includes nonprofit organizations that

provide services to the public.

#/0 d 30 45 780 1.1 =hat s ;usiness@

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2. n accounting terms, profits are ________.

a. the difference bet$een revenues and e>penses

b. the difference bet$een commissions earned and

receipts

c. the difference bet$een sales and e>penses

d. the sum of sales and e>penses

#/0 a 30 5#/G 780 1.1 =hat s ;usiness@

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. n the 6./. economy, ________ are considered the re$ard for the risk of entering business.

a. revenues

b. generated income

c. profits

d. sales

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9g. " ##:/;0 5thics ;)0 <

". ________ is essential because it serves as a primary incentive for people to start companies,

e>pand them, and provide consistently high-!uality competitive goods and services.a. Fision

b. 9rofit

c. 4arket research

d. 9hilanthropy

#/0 b 30 4564 780 1.1 =hat s ;usiness@

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'. #ll of the follo$ing are businesses E#CE!T ________.

a. 6./. 9ostal /ervice

b. 69/

c. 3ed5>

d. #87 )ime =arner

#/0 a 30 5#/G 780 1.1 =hat s ;usiness@9g. " ##:/;0 #nalytic ;)0 <

(. #ll of the follo$ing are typically part of the not-for-profit sector E#CE!T ________.

a. labor unions

b. religious organizations

c. hotels

d. museums

#/0 c 30 4564 780 1.1 =hat s ;usiness@

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*. # public-sector not-for-profit organization $ould include $hich of the follo$ing@a. library

b. museum

c. charitable group

d. labor union

#/0 d 30 4564 780 1.1 =hat s ;usiness@

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+. )he factors of production in an economic system are ________.

a. land, rent, capital, and human resources

b. capital, perseverance, natural resources, and

human resources

c. rent, $ages, interest, and profit

d. natural resources, human resources, capital, and

entrepreneurship

#/0 d 30 4564 780 1.2 3actors of 9roduction

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. )imber )rails, a orth$est lumber company, utilizes ________ as its primary production factor.

a. human resources

b. entrepreneurship

c. capital

d. natural resources


9g. ( ##:/;0 #nalytic ;)0 <

". onovan :orporation’s sources of capital can include all of the follo$ing E#CE!T ________.

a. cash dividends declared by onovan’s board of

directors and paid to the stockholders





b. investments from stockholders

c. reinvested profits

d. investments from venture capitalists

#/0 a 30 45 780 1.2 3actors of 9roduction

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"1. )echnology, tools, information, and physical facilities for the operation of a business are

e>amples of ________.

a. profits

b. $ages

c. capital

d. interest

#/0 c 30 5#/G 780 1.2 3actors of 9roduction

9g. ( ##:/;0 )echnology ;)0 <

"2. # company that values employees as sources of ideas and innovation is utilizing its _________________.

a. entrepreneurship

b. natural resources

c. capital

d. human resources


9g. ( ##:/;0 )echnology ;)0 <

". )he human resources of a firm refer to ________.

a. everyone over 1+ years of age

b. everyone $ho $orks for the business

c. full-time employees

d. top management

#/0 b 30 5#/G 780 1.2 3actors of 9roduction

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"". )arek, a former middle manager from #le>ander 4anufacturing, o$ns and operates a /ub$ay

franchise. )arek is demonstrating ________.

a. social responsibility

b. socialism

c. entrepreneurship

d. pure competition

#/0 c 30 4564 780 1. )he 9rivate 5nterprise /ystem

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"'. ;usinesses that operate in an environment $here success or failure is determined by ho$ $ell

they match and counter the offerings of competitors are operating under ________.

a. the private enterprise system





b. a social democracy

c. a monopoly

d. socialism

#/0 a 30 4564 780 1. )he 9rivate 5nterprise /ystem

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"(. :apitalism is founded on ________.

a. the social changes that follo$ed the ndustrial

Eevolution

b. the idea that + percent of the nation’s $ealth

should be o$ned by no more than 2 percent of

the people

c. the belief that competition among business firms best serves the needs of society

d. the idea that the government must o$n all

factors of production

#/0 c 30 4564 780 1. )he 9rivate 5nterprise /ystem

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"*. n his book The Wealth of Nations, the /cottish economist #dam /mith $as the first person to

describe ________.

a. socialism

b. communism

c. capitalism

d. entrepreneurship

#/0 c 30 5#/G 780 1. )he 9rivate 5nterprise /ystem9g. + ##:/;0 #nalytic ;)0 <

"+. ;y offering a lifetime $arranty on its products, =arner 5lectronics has set itself apart from itscompetition. )his difference is kno$n as =arner 5lectronics’ ___________.

a. private enterprise system

b. competitive differentiation

c. capitalism

d. natural resources

#/0 b 30 5#/G 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

". =hen Hreenla$n nc. finds itself losing contracts because 7o-9rice 7a$n :o. charges less

money, Hreenla$n responds by lo$ering its bids. )his reaction demonstrates ________.

a. the invisible hand of competition

b. collision

c. the right to private property

d. social responsibility






9g. + ##:/;0 #nalytic ;)0 <

'. amesh recently sold his 3ord )aurus to a personal friend. amesh’s sale of his automobile

illustrates the right to ________.

a. freedom of choice

b. private property

c. profit

d. set ground rules for competitive activity

#/0 b 30 45 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

'1. #ll of the follo$ing are basic rights $ithin a private enterprise system E#CE!T ________.

a. private property

b. guaranteed profits

c. freedom of choice of investment

d. freedom of choice of employment


9g. + ##:/;0 #nalytic ;)0 <

'2. )he right to profit means the ________.

a. risk taker is guaranteed the right to all profits

%after ta>es& that are earned by the business

b. right to go into or out of business at any point

and for any reason

c. government $ill guarantee a profit

d. right to all benefits resulting from the o$nership

of property


9g. + ##:/;0 #nalytic ;)0 <

'. =hich of the follo$ing is considered to be the most fundamental right of the private enterprise

system@

a. the right to private property

b. the right to guaranteed profits

c. freedom of choice

d. the right to fair competition


9g. + ##:/;0 #nalytic ;)0 <

'". :itizens in a private enterprise system have the right to choose their employment, purchases, and

investments, illustrating their right to ________.

a. private property

b. credit

c. profit

d. freedom of choice





#/0 d 30 5#/G 780 1. )he 9rivate 5nterprise /ystem

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''. #ll of the follo$ing are rights granted to citizens and to the government in a private enterprise

system E#CE!T the right to ________.

a. fair competition

b. permit price discrimination

c. select from among a variety of goods and

services

d. o$n property


9g. + ##:/;0 #nalytic ;)0 <

'(. =hich of the follo$ing is a benefit of entrepreneurship@

a. lo$ risk

b. fle>ibility

c. guaranteed profit

d. reduced competition

#/0 b 30 5#/G 780 1. )he 9rivate 5nterprise /ystem

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'*. n colonial society, real economic and political po$er $as centered in ________.

a. metropolitan areas

b. areas $est of the 4ississippi Eiver

c. rural areas

d. cities

#/0 c 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 #nalytic ;)0 <

'+. )he ndustrial Eevolution in 5ngland transformed #merica’s economy by introducing ________.

a. the concept of each $orker producing one

complete product

b. labor unions

c. the factory system

d. the continuously moving assembly line

#/0 c 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

'. )he #merican ndustrial Eevolution did not make real progress until ________.

a. a railroad system $as built providing fast,

economical transportation

b. a good relationship $as formed $ith 5ngland

c. the introduction of the automobile occurred

d. a reliable system of telephone communication

$as established





#/0 a 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

(. nventors such as Eobert 4c:ormick and 5li =hitney $ere part of the ___________.

a. marketing era

b. colonial era

c. relationship era

d. age of industrial entrepreneurs

#/0 d 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

(1. ?enry 3ord is noted in business history for introducing the moving assembly line, $hich greatly

reduced the cost of producing a car. #ssembly lines first became common during the ________.

a. relationship era

b. marketing era

c. ndustrial Eevolution

d. production era


9g. 12 ##:/;0 #nalytic ;)0 <

(2. =hich of the follo$ing BEST distinguishes the philosophy of the marketing era from the

philosophy of the production era@

a. )he marketing era $as more consumer- oriented.

b. )he production era occurred after =orld =ar .

c. )he marketing era advocated price

discrimination.

d. )he production era $as more consumer-oriented.


9g. 12 ##:/;0 #nalytic ;)0 <

(. )he business philosophy that advocates determining $hat consumers $ant and need, and then

designing products to satisfy those needs, is kno$n as ________.

a. consumer orientation

b. self-sufficiency concept

c. $ork ethic

d. production concept


9g. 12 ##:/;0 #nalytic ;)0 <

(". )he concept of branding first emerged during the ________.

a. production era

b. relationship era





c. age of the industrial entrepreneur

d. marketing era


9g. 12 ##:/;0 #nalytic ;)0 <

('. ;logs and social net$orking use __________ to manage relationships.a. strategic alliances

b. marketing research

c. technology

d. business eti!uette


9g. 12 ##:/;0 )echnology ;)0 <

((. )echnology has resulted in all of the follo$ing E#CE!T ________.

a. product obsolescence

b. the creation of ne$ industries

c. the opening of ne$ business opportunitiesd. less business efficiency

#/0 d 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 )echnology ;)0 <

(*. :oncentrating on building and promoting products in hopes that enough customers $ill buy them

in order to cover costs and earn acceptable profits is called ________.

a. relationship management

b. marketing management

c. a strategic alliance

d. transaction management

#/0 d 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

(+. urturing customer loyalty by gathering kno$ledge of customer needs and preferences is an

approach kno$n as ________.

a. relationship management

b. transaction management

c. a strategic alliance

d. marketing management

#/0 a 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 #nalytic ;)0 <

(. # partnership is ________.

a. a category of relationship management

b. an affiliation of t$o or more companies

c. not common in the e-business $orld

d. the same as transaction management





#/0 b 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

*. #pple i9ods sold on #mazon’s =eb site signify the formation of a ________ to increase profits.

a. transaction alliance

b. brand partnership

c. strategic alliance

d. marketing agreement


9g. 12 ##:/;0 #nalytic ;)0 <

*1. =hich of the follo$ing statements is N"T correct@

a. =orkers change jobs less fre!uently today.

b. )he size of the labor pool is decreasing.

c. )he 6./. population is getting older.

d. )he 6./. population is becoming more diverse.

#/0 a 30 5#/G 780 1.' )oday’s ;usiness =orkforce

9g. 1*##:/;0 #nalytic ;)0 <

*2. )he number of people age (' and over $ill ________ by 2.

a. decrease by appro>imately 1 percent

b. double

c. increase by appro>imately ' percent

d. increase by appro>imately 1 percent

#/0 b 30 4564 780 1.' )oday’s ;usiness =orkforce

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*. iverse employee teams tend to perform ________ and develop ________ than do homogenous

employee groups.

a. less effectivelyC better solutions

b. more effectivelyC better solutions

c. less effectivelyC $orse solutions

d. more effectivelyC $orse solutions

#/0 b 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 iversity ;)0 <

*". 8utsourcing ________.

a. reduces the diversity of the $orkforce

b. can make a firm more competitive

c. increases staffing re!uirements

d. increases costs

#/0 b 30 5#/G 780 1.' )oday’s ;usiness =orkforce





9g. 1* ##:/;0 #nalytic ;)0 <

*'. =hen a business employs an outside company to handle all customer correspondence and phone

calls, the business is ________ its customer service department.

a. outsourcing

b. branding

c. multitasking

d. shrinking

#/0 a 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

*(. =hen Hoogle opened offices in )okyo, 7ondon, and /ydney, they $ere utilizing ________ by

relocating business activities to lo$er-cost locations overseas.

a. nearshoring

b. outsourcing

c. offshoring

d. employee sourcing

#/0 c 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

**. )he $ork-comes-first lifestyle can, at times, be e>emplified by0

a. ;aby ;oomers

b. Heneration I

c. Heneration G

d. )he 56


9g. 1* ##:/;0 #nalytic ;)0 <

*+. )he ne$ employer-employee partnership has led to all of the follo$ing E#CE!T ________.

a. increased job security

b. sharing of financial information $ith employees

c. increased emphasis on listening to and

respecting employees

d. helping employees improve skills and

kno$ledge


9g. 1* ##:/;0 #nalytic ;)0 <

*. =hen a 6./. company contracts $ork to 4e>ico, it is ________.a. nearshoring

b. nearsourcing

c. e>proting

d. offshoring

#/0 a 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 :ommunication ;)0 <





+. 3or today’s managers, $hich of the follo$ing is EAST important@

a. the ability to $ork by strict rules

b. vision

c. critical thinking skills

d. creativity

#/0 a 30 5#/G 780 1.( )he 21st-:entury 4anager 9g. 2 ##:/;0 #nalytic ;)0 <

+1. ________ is the ability to perceive marketplace needs and $hat an organization must do to satisfy

these needs.

a. critical thinking

b. social responsibility

c. vision

d. creativity

#/0 c 30 5#/G 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

+2. 5mily $orks for a pharmaceutical company and gives a presentation on the need to e>pand the

company’s geriatric division $ithin the ne>t ten years. 5mily is helping to establish the

company’s ________.

a. creativity

b. productivity

c. vision

d. critical thinking

#/0 c 30 4564 780 1.( )he 21st-:entury 4anager 9g. 2 ##:/;0 #nalytic ;)0 <

+. n business, ________ refers to the ability to see better and different $ays of doing business.a. critical thinking


c. creativity

d. vision

#/0 c 30 5#/G 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

+". Eestating issues in reverse, such as naming $ays to lose customers, is a method of developing

________.

a. critical thinking

b. social responsibilityc. vision

d. creativity

#/0 a 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

+'. =hen 4 managers decided to manufacture 9ost-it notes, a ne$ product $as born. )his $as an

e>ample of ________ in action.





a. critical thinking skills

b. vision

c. social responsibility

d. creativity

#/0 d 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

+(. #lejandro is seeking to revitalize his graphic design company $ith ne$ innovations and has

called a brainstorming meeting $ith his top designers. #lejandro is practicing ________.

a. vision

b. productivity

c. critical thinking

d. creativity

#/0 d 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

+*. 3eedback from customers is an e>ample of a%n& ________ that re!uires organizational change.a. internal force

b. e>ternal force

c. change agent

d. marketing issue

#/0 b 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

++. =hich of the follo$ing is N"T

an e>ample of an internal force that re!uires organizationalchange@

a. labor union demands

b. production problems

c. ne$ technologies

d. ne$ company goals

#/0 c 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

+. ________ refers to standards of conduct and moral values of a firm.

a. creativity

b. business ethics

c. a social audit


#/0 b 30 5#/G 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 5thics ;)0 <

. Ae$man’s 8$nB is a food product line that gives 1 percent of its after-ta> profits to charity.

)his company is practicing ________.

a. business ethics






c. customer satisfaction

d. creativity

#/0 b 30 4564 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 5thics ;)0 <

1. =hen management adheres to a set of standards involving the right and $rong actions arising inthe $ork environment, management is practicing ________.

a. social responsibility

b. business ethics

c. social $elfare

d. creativity

#/0 b 30 5#/G 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 5thics ;)0 <

2. =hen management’s decisions align $ith social and economic issues, the company is practicing

________.a. creativity

b. business ethics

c. social $elfare


#/0 d 30 5#/G 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 5thics ;)0 <

. /ocial responsibility $ould include all of the follo$ing E#CE!T ________.

a. supporting the local 6nited =ay

b. buying goods and services from minority-o$ned

vendorsc. making campaign contributions to politicians in

the hope of obtaining a government contract

d. making contributions to the local public radio

station

#/0 c 30 4564 780 1.* =hat 4akes a :ompany #dmired@

9g0 22 ##:/;0 5thics ;)0 <

T$UE%FASE

". 7arge corporations are defined as businesses, $hereas small companies are more of aninvestment.

#/0 3 30 5#/G 780 1.1 =hat s ;usiness@9g. " ##:/;0 #nalytic ;)0 <

'. :ompanies are not re!uired to be ethical to succeed in the long run.

#/0 3 30 5#/G 780 1.1 =hat s ;usiness@





9g. " ##:/;0 5thics ;)0 <

(. n order to remain viable, not-for-profit organizations need to focus on profits even more than the

public service they provide.

#/0 3 30 4564 780 1.1 =hat s ;usiness@

9g. " ##:/;0 5thics ;)0 <

*. Just as $ith a for-profit business, the first priority for a not-for-profit organization is making a

profit.

#/0 3 30 4564 780 1.1 =hat s ;usiness@

9g. " ##:/;0 #nalytic ;)0 <

+. ot-for-profit organizations are commonly e>empt from federal, state, and local ta>es.

#/0 ) 30 4564 780 1.1 =hat s ;usiness@

9g. " ##:/;0 #nalytic ;)0 <

. #ll factors of production are found in e!ual amounts in all businesses.

#/0 3 30 5#/G 780 1.2 3actors of 9roduction

9g. ( ##:/;0 #nalytic ;)0 <

1. :apital includes money, machines, tools, buildings, and human resources.


9g. ( ##:/;0 #nalytic ;)0 <

11. atural resources are linked to the factor payment of rent.

#/0 ) 30 4564 780 1.2 3actors of 9roduction

9g. ( ##:/;0 #nalytic ;)0 <

12. )echnology is considered to be capital.

#/0 ) 30 5#/G 780 1.2 3actors of 9roduction

9g. ( ##:/;0 )echnology ;)0 <

1. )echnology and capital are considered t$o separate factors of production.

#/0 3 30 4564 780 1.2 3actors of 9roduction9g. ( ##:/;0 )echnology ;)0 <

1". =hen farmers rent land in order to increase crop production, they are ac!uiring capital.


9g. ( ##:/;0 #nalytic ;)0 <

1'. 5ntrepreneurship is synonymous $ith Krisk-taking.’





#/0 ) 30 4564 780 1.2 3actors of 9roduction

9g. ( ##:/;0 )echnology ;)0 <

1(. )he private enterprise system encourages government intervention.

#/0 3 30 5#/G 780 1. )he 9rivate 5nterprise /ystem9g. + ##:/;0 #nalytic ;)0 <

1*. )he private enterprise system is enhanced by ma>imized government participation.

#/0 3 30 5#/G 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

1+. #dam /mith’s Ainvisible handB refers to the battle among businesses for consumer acceptance.

#/0 ) 30 5#/G 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

1. )he private enterprise system is also referred to as capitalism.


9g. + ##:/;0 #nalytic ;)0 <

11. 9rivate property is considered the most important right in the private enterprise system.

#/0 ) 30 4564 780 1. )he 9rivate 5nterprise /ystem9g. + ##:/;0 #nalytic ;)0 <

111. =hen customers enter a supermarket and select their favorite brand of laundry detergent, they are

e>ercising their right to freedom of choice.

#/0 ) 30 4564 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

112. =hen the government sets ground rules for competitive activity, the intent is to increase freedom

of choice for consumers.


9g. + ##:/;0 #nalytic ;)0 <

11. n the private enterprise system, government has no role to play in ensuring fair competition.

#/0 3 30 4564 780 1. )he 9rivate 5nterprise /ystem9g. + ##:/;0 #nalytic ;)0 <

11". :ompetitive differentiation is discouraged in order for a business’ success.

#/0 3 30 4564 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <





11'. 3inding uni!ue $ays to use the factors of production is a common characteristic of most

entrepreneurs.

#/0 ) 30 4564 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

11(. 5ntrepreneurs are very conservative and usually invest only in sure $inners.

#/0 3 30 5#/G 780 1. )he 9rivate 5nterprise /ystem

9g. + ##:/;0 #nalytic ;)0 <

11*. uring the ndustrial era, the focus $as on agriculture and other rural activities.

#/0 3 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

11+. )he ndustrial Eevolution began in Hermany and !uickly spread to the rest of 5urope.

#/0 3 30 4564 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 #nalytic ;)0 <

11. )he ndustrial Eevolution introduced a strong emphasis on the factory system.

#/0 ) 30 4564 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 #nalytic ;)0 <

12. 8ne factor that led to the ndustrial Eevolution $as the mechanization of agriculture.

#/0 ) 30 4564 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

121. # key element of the production era $as the use of consumer research.

#/0 3 30 4564 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 #nalytic ;)0 <

122. #ssembly lines $ere introduced during the production era.


9g. 12 ##:/;0 #nalytic ;)0 <

12. n consumer orientation, a company creates a product first, and then determines if the consumer

$ill likely purchase the product.


9g. 12 ##:/;0 #nalytic ;)0 <

12". )he ike s$oosh is an e>ample of a brand.


9g. 12 ##:/;0 #nalytic ;)0 <





12'. )he current philosophy among managers today is best described as transaction management.

#/0 3 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 #nalytic ;)0 <

12(. )ransaction management $as introduced during the industrial era.


9g. 12 ##:/;0 )echnology ;)0 <

12*. )echnology has revolutionized business communications.

#/0 ) 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness

9g. 12 ##:/;0 )echnology ;)0 <

12+. Eelationship management refers to ongoing, mutually beneficial ties bet$een a company and its

vendors.


9g. 12 ##:/;0 )echnology ;)0 <

12. t is predicted that technology $ill completely eliminate all cubicle jobs.


9g. 12 ##:/;0 )echnology ;)0 <

1. Eelationship management concentrates on short-term interactions $ith customers.


9g. 12 ##:/;0 #nalytic ;)0 <

11. )he number of companies forming partnerships and strategic alliances has gro$n in recent years.


9g. 12 ##:/;0 #nalytic ;)0 <

12. #mazon is an e>ample of a successful e-business.


9g. 12 ##:/;0 )echnology ;)0 <

1. #ssume 4otorola and 4icrosoft $ork on developing a ne$ cell phone that also is a 9#. )his isan e>ample of a strategic alliance.


9g. 12 ##:/;0 #nalytic ;)0 <

1". The need to develop environmentally friendly products and processes is becoming a major new

force in business today.






9g. 12 ##:/;0 #nalytic ;)0 <

1'. # strategic alliance is a partnership formed to create competitive advantage for the businesses

involved.

#/0 ) 30 5#/G 780 1." /i> 5ras in the ?istory of ;usiness9g. 12 ##:/;0 #nalytic ;)0 <

1(. 4anagers are beginning to recognize the different needs of $orkers of different ages.

#/0 ) 30 5#/G 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

1*. uring the ne>t fe$ years, the average age of the $orkforce is e>pected to increase.


9g. 1* ##:/;0 #nalytic ;)0 <

1+. )he supply for jobs is slo$ly becoming greater than the demand for $orkers.

#/0 3 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

1. ?ispanics and #sians represent the fastest gro$ing segments of the 6./. population.


9g. 1* ##:/;0 #nalytic ;)0 <

1". Eesearch indicates that $ork teams consisting of a diverse group of individuals often are more

productive than less diverse $ork teams.

#/0 ) 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 iversity ;)0 <

1"1. 5ven $ith advances in management and communications, manufacturing still accounts for most

of the annual output in the 6nited /tates.

#/0 3 30 5#/G 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

1"2. 8utsourcing is the use of outside vendors to produce goods or fulfill services and functions that

$ere previously handled in-house or in-country.

#/0 ) 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

1". )oday, $orkers are much less likely to remain $ith the same employer throughout their entire

careers.






9g. 1* ##:/;0 #nalytic ;)0 <

1"". )he ne$ employer-employee relationship re!uires firms to establish rigid rules to govern

employee activities.

#/0 3 30 4564 780 1.' )oday’s ;usiness =orkforce

9g. 1* ##:/;0 #nalytic ;)0 <

1"'. )he managerial !uality of vision is the ability to perceive marketplace needs and $hat an

organization must do to satisfy them.

#/0 ) 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

1"(. :ritical thinking skills and creativity are essential !ualities for today’s managers.

#/0 ) 30 5#/G 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

1"*. ot all people have creative skills.

#/0 3 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

1"+. :reativity is the capacity to develop $ell-tested solutions to common organizational problems.


9g. 2 ##:/;0 #nalytic ;)0 <

1". 9hysical e>ercise releases endorphins, $hich can help a manager come up $ith creative ideas.

#/0 ) 30 4564 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

1'. 4ental e>ercises like brainstorming often foster creativity.

#/0 ) 30 5#/G 780 1.( )he 21st-:entury 4anager

9g. 2 ##:/;0 #nalytic ;)0 <

1'1. 3eedback from customers is an e>ample of an internal force that $ould re!uire change.


9g. 2 ##:/;0 #nalytic ;)0 <

1'2. ;usiness ethics deal $ith the right versus $rong actions that arise in a $ork environment.

#/0 ) 30 5#/G 780 1.* =hat 4akes a :ompany #dmired@

9g. 22 ##:/;0 5thics ;)0 <

1'. 9articipating in not-for-profit programs is an e>ample of e>hibiting social responsibility.






9g. 22 ##:/;0 5thics ;)0 <

1'". ;y supporting local charities, a firm is demonstrating social responsibility.


9g. 22 ##:/;0 5thics ;)0 <

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