200. The resources that contribute to the creation of wealth are known as ______.
201. Which of the following is a factor of production?
202. As a factor of production, the term capital includes:
203. Two factors of production that seem to contribute the most to a nation’s ability to create
wealth are:
204. _______________ is/are the external and internal circumstances that surround the
business.
205. Entrepreneurs weigh the differences between the benefits of starting a business and
those things that they are likely to forego because they choose to work for themselves. Such
things they are likely to pass up on are:
206. Which of the following is a benefit of owning your own business?
207. Leanne owns a nursery. The trucks, handcarts, and forklift she purchased for the
business are called __________ investments.
208. As you consider the factors of production, which of the following did management
theorist Peter Drucker believe to be one of the most important contributing factors to increasing
our nation’s wealth?
209. When we compare the factors of production in wealthy and poor nations, we find:
210. A nation progresses socially when it has good schools, clean air and water, and more.
Which of the following statements addresses conditions for social progress?
211. According to the box, “How a Food Truck Helped Rebuild a Storm-Struck Community,”
Mike Diamond of the Beastie Boys teamed up with friends and started a nonprofit food truck.
What happened after the storm cleared?
212. Which of the following statements about factors of production is the most accurate?
213. Nolivia is a small and poor nation, but its current president has a genuine desire to create
more wealth for Nolivia citizens. The president has received recommendations from several of
her advisors. Which of the following recommendations is likely to create the most wealth for
Nolivia?
214. Ben and Chris combined their love of football with a business venture. They purchased a
small portable cart and began selling football memorabilia outside of the hometown stadium.
Their first year went well, but the past two years have been a real struggle. Due to poor economic
conditions including loss of jobs, ticket sales at the stadium are down, which has significantly
hurt their sales as well. As a recent business school graduate, you explain to Ben and Chris that:
215. Nick is a recent finance graduate who has two passions: music and finance. Upon
graduation, he was offered an opportunity to join a struggling rock band with a lot of potential, or
a job at a large well-established financial services company. By joining the band, he will forego
which of the following?
216. China is a nation with a vast amount of land and a very large population. Another
characteristic of this nation is its people’s affinity for saving money. Referring to the five factors
of production, the government of China has made significant progress in building its business
environment by focusing on factors that needed improvement. Its strategy was to:
217. Taxes and government regulations are part of the ________________ environment of
business.
218. Businesses favor:
219. In order to create more wealth and provide better services, some nations recognize that
_______________________________.
220. In countries where businesses are government owned:
221. High tax rates tend to:
222. The capitalist system relies heavily on:
223. Contemporary governments promote business development by:
224. Which of the following policies would tend to foster entrepreneurship?
225. When corruption is present in the business environment:
226. Questionable business practices such as those followed by many mortgage-lending
companies in the recent past:
227. Which of the following government policies would be least likely to encourage
entrepreneurship?
228. It’s no secret that Blockbuster™ stores have closed, while Netflix™ is still growing. Both
companies participated in the video rental business. Netflix evaluated the lifestyle needs of video
customers, understanding that time, family, and work obligations called for more convenient
methods to receive video entertainment. Netflix embraced the opportunity to utilize the Internet
and smart TVs, to stream videos directly to customers. The company also managed to keep
customer costs down, by passing along the savings it realized in labor. Blockbuster did not keep
its eye on competitor movements, permitting Netflix to quickly capture video market share. In
sizing up the situation, which external environment(s) probably had the least effect on Netflix’s
success?
229. A New York Times article about Bernie Madoff and his illegal Ponzi scheme stated,
“When money goes global, fraud does too.” Although the goal of investors who trusted Madoff’s
investment company was to earn the highest return possible on their investments, they turned a
blind eye toward the fact that some of those returns were too good to be true. Individual
investors, companies, and even charities lost large sums of money by investing with Madoff‘s
company. Which of the following statements relates to this story?
230. Adam Ripley sells custom bicycles. Adam buys several bike parts including wheels and
tires from the Good Treads Company. Although several government-supported regulations help
Adam in his business, regulations that make it easy for Adam’s business to enjoy good vendor
relationships are:
231. Jay and Jim Spears own a lawn irrigation system business. They perform installations and
maintenance of these systems. Several of their customers are golf courses, but they serve a large
group of residential customers as well. When they started the business 10 years ago, they made
a pact to always operate within the legal limits of the law, but lately, the competition is eating
them alive. Local competitors have hired illegal immigrants to perform the manual labor. They do
not pay taxes on these employees; they just pay them in cash at the end of the week.
Employment taxes are a burden for small businesses. Jay and Jim do not want to hire illegal
workers. There’s a risk if you permit an illegal worker to drive a truck, or if he/she has an
accident on the job. You have just studied business ethics in your class. You inform this
partnership that:
232. The Internet and the emergence of an information-based economy are important parts of
the ___________ environment in which businesses operate.
233. Technology affects people in: