BUS 120 TEST 1 CHAPTER 1-5 QUESTIONS AND
ANSWERS
In a business, what best describes profit? - Answers - It is the money that a business
earns in sales, minus expenses.
During the production era, in the early part of the 1900s, major businesses focused on: -
Answers - Refining the production process and creating greater efficiencies.
In the context of the history of American business, what is true of the marketing era? -
Answers - Businesses began to develop brands to help customers understand the
differences among various products.
In the context of the history of American business, what is true of the relationship era? -
Answers - Businesses aim to build long-term relationships with customers because
satisfied customers can become advocates for a business.
_____ are business-like establishments that employ people and produce goods and
services with the fundamental goal of contributing to the community rather than
generating a financial gain. - Answers - Nonprofits
_____ are four fundamental resources—natural resources, capital, human resources,
and entrepreneurship—that both businesses and nonprofits rely on. - Answers - Factors
of production
Businesses that strongly focus on customer satisfaction tend to: - Answers - Transform
their current customers into loyal advocates for themselves.
What best describes e-commerce? - Answers - Business transactions conducted online,
typically via the Internet.
In the context of the social environment of the United States, what is true of diversity? -
Answers - The growth in ethnic populations offers robust profit potential for firms
pursuing them.
In the context of the global environment, the _____ has lowered prices and increased
quality across virtually every product category, as competition becomes truly global. -
Answers - Free-Trade Movement
In the context of the global economic crisis in mid-2000, what is true about subprime
loans? - Answers - They were given to borrowers with little or no documentation.
ANSWERS
In a business, what best describes profit? - Answers - It is the money that a business
earns in sales, minus expenses.
During the production era, in the early part of the 1900s, major businesses focused on: -
Answers - Refining the production process and creating greater efficiencies.
In the context of the history of American business, what is true of the marketing era? -
Answers - Businesses began to develop brands to help customers understand the
differences among various products.
In the context of the history of American business, what is true of the relationship era? -
Answers - Businesses aim to build long-term relationships with customers because
satisfied customers can become advocates for a business.
_____ are business-like establishments that employ people and produce goods and
services with the fundamental goal of contributing to the community rather than
generating a financial gain. - Answers - Nonprofits
_____ are four fundamental resources—natural resources, capital, human resources,
and entrepreneurship—that both businesses and nonprofits rely on. - Answers - Factors
of production
Businesses that strongly focus on customer satisfaction tend to: - Answers - Transform
their current customers into loyal advocates for themselves.
What best describes e-commerce? - Answers - Business transactions conducted online,
typically via the Internet.
In the context of the social environment of the United States, what is true of diversity? -
Answers - The growth in ethnic populations offers robust profit potential for firms
pursuing them.
In the context of the global environment, the _____ has lowered prices and increased
quality across virtually every product category, as competition becomes truly global. -
Answers - Free-Trade Movement
In the context of the global economic crisis in mid-2000, what is true about subprime
loans? - Answers - They were given to borrowers with little or no documentation.
