97. (p. 15) The databases of a business often include a great deal of information about the firm’s customers.
98. (p. 15) Information in a database allows firms to carry only the products that the local population wants.
99. (p. 15) Identity theft is the obtaining of personal information about people and using this information for
illegal purposes.
100. (p. 14) Niki has joined with several other investors to form a new company that sells foot care products to
consumers over the Internet. Niki has invested in a B2C e-commerce company.
101. (p. 14) Over the past several years, workers in the small nation of Rainland have enjoyed an increase in the
number of holidays and a reduction in the average length of the work day that has reduced the total number of
hours they work each year. However, the output per worker in Rainland is higher now than it was before the
reduction in hours. These facts suggest that productivity in Rainland has increased.
102. (p. 14) The main difference between B2C and B2B e-commerce is that B2C uses only the Internet, while
B2B combines e-commerce with traditional (bricks-and-mortar) outlets.
103. (p. 14–15) There is less risk involved in starting an e-commerce only business than there is in trying to add
e-commerce to a traditional (bricks-and-mortar) store.
104. (p. 14) One of the major advantages to firms involved in e-commerce is that the technology is still so new
that the Internet-based firms face very little competition.
105. (p. 14) Elemints is a company that produces industrial coatings for the steel industry. Until recently it relied
on wholesalers to distribute its products to other businesses, but now it also sells directly to its business
customers through its website. This is an example of the largest and most important type of e-commerce
transaction.
106. (p. 15) To remain competitive in today’s market, firms must produce a quality product and offer outstanding
service at a reasonable price.
107. (p. 15) Producing a high quality product will ensure success in the competitive environment.
108. (p. 16) Successful firms follow a customer-driven strategy, as opposed to the management-driven strategy
used in the past.
109. (p. 15) Zero defects means that there is a company goal of no mistakes in making products.
110. (p. 16, figure 1.4) World-class businesses compete by delighting the customer.
111. (p. 16, figure 1.4) World-class businesses use reactive ethics rather than proactive ethics in their day-to-day
operations.
112. (p. 16, figure 1.4) Traditional businesses have a managerial focus rather than a customer focus.
113. (p. 16) A policy of empowerment empowers managers to make decisions quickly for their front line
employees.
114. (p. 16) Empowerment means giving frontline workers the responsibility, authority, and freedom to respond
quickly to customer requests.
115. (p. 16) To be implemented successfully, empowerment requires that managers train frontline people to
consult them immediately on all decisions.
116. (p. 16) The goal of empowerment in the work environment is to give management more control over the
actions of lower-level workers.
117. (p. 16) Empowerment requires managers to give up some authority and employees to assume more
responsibility.
118. (p. 16) Empowerment has increased the need for managers.
119. (p. 16) The primary focus of successful firms is designing and producing high quality goods. Advertising is
then used to convince consumers to buy their superior products.
120. (p. 16) It’s important that firms are as efficient as possible. This is done by becoming management-driven for
efficiency.
121. (p. 16) Customer-driven organizations require managers to more closely direct and control their employees.
122. (p. 16) The statistical study of the human population to describe its size, age, gender, and income is known as
diversity recognition.
123. (p. 16) The U. S. population tends to buy the same things and spend time in roughly the same way as people
did a decade ago.
124. (p. 17) Demographic changes create new business opportunities.
125. (p. 17) Diversity groups identified by Federated Department Stores include extroverts, introverts, atheists,
and the devout.
126. (p. 17) Companies have responded to a diverse customer base by hiring a more diverse workforce.
127. (p. 17) Currently people between the ages of 45 and 54 are the richest group in the United States.
128. (p. 18) New welfare rules have made it easier for single parents to remain at home with their young children
without being required to seek employment.
129. (p. 17) In some cities the number of legal and illegal immigrants has caused governments to adapt by
changing signs to other languages.
130. (p. 17) Some companies take diversity very seriously, even establishing a chief diversity officer in the
executive suite.
131. (p. 18) One factor that has led to the rapid increase in two-income families is the emphasis on “having it all.”
132. (p. 17) Businesses that cater to older consumers in the future will likely not be very successful.
133. (p. 18) Workplace changes due to the rise of two-income families create many job opportunities in day care,
counseling, and other related fields.
134. (p. 17) In the future, retired people will be adding money to the U.S. economy.
135. (p. 16–17) Businesses use demographic studies to understand where people live, their lifestyles, and what they
are likely to buy.
136. (p. 17) Diversity management would not be an issue if firms would treat all of their employees the same.
137. (p. 18) Demographic trends suggest that businesses will benefit from offering flexible work schedules, elder
care, and child care to help employees balance the demands of job and family.
138. (p. 18) Sue is a single mother with two small children. Her employer is considering providing family leave.
Since Sue is a single mom with small children, she is unlikely to benefit from this program.
139. (p. 18) Allowing today’s young people to invest part of their Social Security money in personal savings
accounts makes sense since in the future less money will be coming into Social Security than will be going out.
140. (p. 17–18) The “pay-as-you-go” Social Security system will ensure that the young people of today will have
Social Security benefits in the future when they retire.
141. (p. 17) Xavier, a recent college graduate, is thinking of investing in a home health care business. He believes
this will be a profitable venture because of the increasing number of people in the U.S. that will be over 60 in
the near future and more likely to need this type of service. This accurately describes a demographic trend that
will affect his business choice.
142. (p. 18) A powerful change in the global environment has been the increase in free trade among nations.
143. (p. 18) An important environmental change in the global environment has been the growth of international
competition.
144. (p. 18) Improved transportation has led to more global trade.
145. (p. 18) Global trade has suffered because of increased problems with the Internet.
146. (p. 18) Globalization has greatly increased living standards around the world.
147. (p. 18) China and India have become major U.S. competitors.
148. (p. 19) Companies from the United States are building many of their products overseas, but many foreign
companies are not building products in the United States.
149. (p. 19) Because of increased trade, there is now an increased interdependence in the world.
150. (p. 19) The threat of terrorism increases the costs of operating a business.
151. (p. 19) Wars cause all companies to grow more slowly.
152. (p. 19–20) U.S. exports are expected to increase under new trade agreements leading to more U.S. jobs.
153. (p. 19) The movement toward democracy in many parts of the world could mean greater prosperity and
peace.
154. (p. 18) In most industries, the only producers that pose a serious threat to U.S. manufacturers are those in
Japan and Western Europe.
155. (p. 19) Carlos Gonzalez owns a small manufacturing company that makes specialty steel pieces used in the
construction of office buildings. As the U.S. continues to be involved in wars around the globe, Carlos may
notice that his business will be growing more slowly in the future as more money continues to be put into the
war effort.
156. (p. 19) Lucy owns a restaurant in Los Angeles. She heard on the radio that the homeland security threat level
has been increased due to anticipated terrorist activities, especially in large cities in the U.S. She will likely not
157. (p. 20) After several years of study as a part-time student, Joan recently earned a degree in marketing at her
local community college. The growth in global markets may increase Joan’s job opportunities, but it will also
require her to continually update her skills or seek further education.
158. (p. 20) Tangible products, such as cars and computers, are called goods.
159. (p. 21) The number of U.S. jobs in manufacturing has increased in the past five years.
160. (p. 21) Technology helped the manufacturing industry to become more productive.
161. (p. 20) While the proportion of workers employed in agriculture has remained relatively constant, the average
size of farms has steadily decreased over the past century.
162. (p. 21) Increases in productivity have allowed fewer farmers to feed more and more people.
163. (p. 22, figure 1.5) The advice provided by a marriage counselor is an example of the service industry.
164. (p. 21) Almost all of the growth in employment opportunities since the mid-1980s has been generated by the
service sector.
165. (p. 21) Although employment in the service sector has increased rapidly in recent years, the vast majority of
workers are still employed in the goods producing sector.
166. (p. 21) There are more high-paying jobs in the service sector than in the goods-producing sector.
167. (p. 21) The best employment strategy for today’s college graduates is to search for jobs that are closely
related to their college major.
168. (p. 21) The growth in the service sector in the United States appears to be giving way to an information-based
169. (p. 21) The transition from an agricultural economy to a manufacturing economy to a service based economy
has resulted in a serious increase in long-term unemployment.
170. (p. 20) One reason given for the decline in the number of U.S. workers employed in manufacturing is that
manufacturing firms in the U.S. have become more efficient.
171. (p. 21) The continuing increase in the number of U.S. workers in the service sector means that more and
more workers are employed in low-wage positions.
172. (p. 22, figure 1.5) Cee Duction is a financial planner who helps people find ways to save for retirement and lower
their taxes. Cee is employed in the service sector of the economy.
173. (p. 21) After losing her manufacturing job in the U.S. automobile industry, Juanita has found that well paid
service sector jobs require retraining and further education.
174. (p. 21) Historically jobs lost in one sector of the economy have been replaced by increased employment
opportunities in other sectors.
175. (p. 4) Any activity which seeks to earn a profit by providing a good or service is known as a(n):
A. industry
176. (p. 4) __________ is the amount a business earns over and above what it spends for salaries and other
expenses.
D. Dividends
177. (p. 4) A business incurs a ___________ if its costs and expenses exceed its revenues.
D. dividend
178. (p. 4) __________ is the chance a business owner will lose the time and money invested in a business that
proves to be unprofitable.
D. Redundancy
179. (p. 4) The total amount of money that businesses earn by selling goods and services is called ________.
D. retained earnings
180. (p. 4) A(n) ____________ is a person who assumes the risk of starting a business.
D. stakeholder
181. (p. 4) According to our text, which of these individuals is the richest person in the world?
A. Sam Walton
182. (p. 4) Starting a business always involves a ________.
A. profit
D. greater the number of stakeholders.
184. (p. 5) Which of the following is the largest private employer?
D. Microsoft
185. (p. 5) A country’s ___________ refers their general well-being and satisfaction derived from a variety of
factors including political freedom, safety, education, and a clean environment.
A. standard of living