Chapter 1 4 Kisa is a production manager at Western Widgets, Inc., a manufacturing corporation that sells its products world wide. Thanks in part to Kisa's efforts

253. (p. 16) To implement a policy of empowerment, the organization sometimes has to restructure so that:

A. managers have more responsibility and employees learn to follow directions.

254. (p. 15–16) Which of the following statements about the competitive environment is most accurate?

A. Firms that simply produce a quality product will almost always succeed in the competitive marketplace.

255. (p. 16) Lamar is a salesperson for Bi-State Direct. He really appreciates the amount of freedom and authority

Bi-State gives its sales people in order to better meet the needs of customers. Lamar’s experience suggests that

Bi-State practices:

A. centralized management.

256. (p. 15) Kisa is a production manager at Western Widgets, Inc., a manufacturing corporation that sells its

products world wide. Thanks in part to Kisa’s efforts, Western Widgets has dramatically improved the quality of

its products. Kisa believes that the high quality of its output will give Western Widgets a competitive edge.

Kisa’s view is:

A. correct. Producing high quality goods is the key to success in the competitive marketplace.

257. (p. 16) Which of the following statements best describes how firms must treat their front-line workers in

order to remain competitive? Front-line workers must be:

D. given partial ownership to minimize their incentive to ask for a pay raise.

258. (p. 15) Max is in charge of production for a family-owned firm that makes and sells gloves. He has stated that

speed of delivery is the most important factor for success in the competitive environment. Which of the

following would be the best response to Max?

A. You are right on target, Max. Time is money.

259. (p. 16) The statistical study of human population to learn its size, density, and characteristics is called:

A. psychographics.

260. (p. 16) ________ provides information to businesses concerning where people live, what they buy, and how

they spend their time.

A. Sociography

261. (p. 17) Diversity has come to mean more than recruiting and keeping minorities and women. Diversity efforts

also include:

C. only the disabled, homosexuals, minorities and women.

D. only homosexuals along with minorities and women.

262. (p. 17) By 2020 this group will be over 23 percent of the U.S. population.

A. people ages 45 to 54

263. (p. 17) The number of legal and illegal immigrants has affected cities in which way?

A. Schools are routinely teaching in both Spanish and English in the classroom.

264. (p. 17) Because the population is aging, which of the following businesses are likely to be opportunities in

the future?

D. educational institutions

265. (p. 17–18) Which of the following is likely to be a problem with Social Security in the future?

D. More money will be coming into Social Security in the future than will be going out.

266. (p. 17) Currently, the richest group in the United States consists of people between the ages of:

A. 25 and 34.

267. (p. 18) The high cost of housing and the desire to “have it all” have contributed to a dramatic growth in:

D. government subsidy programs.

268. (p. 16) Which of the statements about demography is most accurate? Demographic studies:

A. focus on factors that have great political relevance, but little relevance to business firms.

269. (p. 18) Which of the following business policies would most likely help a single-parent family?

A. Requiring the employee to work regularly scheduled hours each day.

270. (p. 16) Jill is looking into the possibility of opening up a day care center in her community, because she is

aware of many two-income families that need a place for their children to stay while the parents work.

However, she is concerned about the long-term prospects for such a business. Jill believes the future of her

center will depend on whether birth rates and the number of two-income families remain high. These concerns

D. psychometric trends.

271. (p. 18) Mostly Mirrors, Inc. is considering a program that would allow some of its workers to use flextime.

One group of workers who would probably benefit from flextime is:

A. workers who do not have access to computers at home.

272. (p. 18) In the current global environment, United States companies have competitors:

D. only in the United States.

273. (p. 19) The threat of terrorism __________ the cost of operating a business.

D. destabilizes.

274. (p. 19) The war on terrorism will:

275. (p. 19–20) An increase in global trade will bring about a(n):

A. increase in prices.

276. (p. 18) More efficient distribution systems around the world have led to:

D. reduced standards of living around the world.

277. (p. 19) U.S: airlines are experiencing increased costs in part due to:

A. increased competition.

278. (p. 19) The movement toward democracy in many parts of the world should lead to:

A. an increasing number of wars in the world.

279. (p. 20) Mark recently graduated with honors from his college. He has bragged to his friends that his fine

academic performance has prepared him so well for a successful career that he can forget school or training in

his future. In evaluating the workplace of the future, Mark is:

A. exactly right. His past performance should carry him to success.

280. (p. 19) The terrorist attack on the World Trade Center on September 11, 2001 dramatically changed the

business environment. The threat of further attacks prompted President Bush to indicate that the war on

terrorism will last a long time. Which of the following indicates the most likely impact on businesses?

D. Businesses and the government will layoff workers and unemployment rates will reach record levels.

281. (p. 20) Tangible products such as computers, food, and cars are examples of:

A. declining industries.

282. (p. 21) Businesses that produce and sell tangible products such as steel and machines are part of the:

D. production sector.

D. manufacturing industry.

284. (p. 20) Since the beginning of the 1900s, the agricultural sector of the United States has:

A. seen the number of family farms more than double.

285. (p. 21) In recent years, almost all new job creation in the United States has occurred in the __________

sector:

D. telecommunications

286. (p. 21) The new era of business is likely to be dominated by the:

D. continued decline in productivity.

287. (p. 21) Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that

are part of the:

A. production sector.

288. (p. 21) In recent years, many manufacturing firms in the United States have laid off workers. The best

explanation of this trend is that:

289. (p. 21) Which of the following best describes recent job growth in the service sector?

D. There has been little change in the number of jobs in the service sector in recent years, however employment

is expected to increase rapidly.

290. (p. 20) Which of the following organizations is an example of the goods-producing sector of the economy?

D. H & R Block Tax Consulting

291. (p. 20–21) Certain sectors of the U.S. economy have experienced a significant decline in employment. Which

of the following best explains this job loss in specific industries?

D. Government regulations have eliminated profit opportunities in these industries.

292. Describe several ways that governments can foster entrepreneurship and encourage the creation of wealth.

293. What is demography? Identify several demographic trends in the United States and discuss how they will

impact U.S. businesses.

294. Competition among businesses has never been greater. Identify and describe several ways that businesses

can compete, both now and in the future.

295. Trace the evolution of American business. Identify the key trends, and discuss the implications these trends

have for the future.

296. Explain what a stakeholder is. Identify the different types of stakeholders.

297. Explain the difference between outsourcing and insourcing.

298. Briefly discuss each of the five elements in the business environment.

299. (p. 4) As he explores his options, Mort has noticed that some opportunities appear to be much riskier than

others. When considering various opportunities, Mort should keep in mind that:

A. he will be better off picking a low risk investment, since the safest investments are usually the most

profitable as well.

300. (p. 16) Mort’s frustration with his lack of freedom and flexibility indicates that Bigbux:

D. is trying to please customers at the expense of other stakeholders.

301. (p. 18) Some friends have approached Mort with a proposal to start a day care center for young children in

his community. Mort does not know much about this type of business and wonders about its long term potential.

An important trend for Mort to consider is that:

A. the service sector is likely to decline in significance in the next few years.

302. (p. 11–12) As he explores his options for starting a new business, Mort has looked into the tax implications and

government regulations that he would encounter. He has discovered that some nearby states offer fewer

regulations and lower taxes than his home state and wonders whether it would be smart to locate his business in

one of these states. These concerns indicate Mort’s decision will be influenced by the:

A. demographic environment.

303. (p. 6) If Mort does start his own business, his firm’s activities and policies will impact many different groups

and individuals, including employees, customers, creditors, suppliers, and people living in the community

where his business is located. Which of the following statements represents how Mort should deal with these

various groups? Mort should:

D. concentrate on maximizing his own profits and let everyone else look out for themselves.

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