BUS1750 Final Exam- Chapter 1 Test Questions and Correct Answers Updated.

T/F: Differentiation by developing a new product or a product with unique features is an effective strategy to earn higher profits. - Answer True T/F: Money resolved the difficulty of barter, which required trading items of equal value. - Answer True Select all items below that threaten the long-term survival of a company according to Warren Buffett. - Answer - complacency in responding to the changing business environment - bureaucracy that slows efforts to develop new products and services - arrogance that leads to ignoring threats to core businesses T/F: Any individual is limited in the amount of profit they earn by their own labor. The only way to gain extreme wealth is by having people work for you. - Answer True Which of the following are examples of government regulation of businesses in the United States. Select all that apply. - Answer - worker safety - environmental regulations - prohibiting discrimination in hiring employees T/F: The first major application of the concept of Interchangeable Parts was in the manufacture of rifles during the industrial revolution. - Answer True T/F: A monopoly can result when a company buys up competitors and makes exclusive deals with critical suppliers. - Answer True T/F: On average, nearly half of all new businesses fail within 5 years of starting. - Answer True Which of the following makes precious metals a good choice as a material for money? - Answer a,b,&c In the late 1800s and early 1900s, Standard Oil held a petroleum monopoly in the United States. What two factors allowed Standard Oil to garner over 90% of the market? - Answer - Predatory pricing drove out other businesses