Question

1. the business activity that is involved with how goods or services are exchanged between producers and consumers is (a) production, (b) marketing, (c) finance, (d) manufacturing. 2. which is an example of a service business? (a) coal mine, (b) construction company, (c) bank, (d) car manufacturer. 3. which industry employs the most workers in the united states? (a) agriculture, (b) government, (c) health care and social assistance, (d) leisure and hospitality service businesses. 4. an important characteristic of business is that it is (a) large, (b) regulated, (c) profitable, (d) dynamic (experiencing constant change). 5. which of the following refers to a commitment to excellence? (a) esop, (b) tqm, (c) gdp, (d) t&i. 6. which of the following is not a result of mass production? (a) effectiveness, (b) higher cost of goods manufactured, (c) fewer workers, (d) large numbers of items produced. 7. which of the following is not a way to increase efficiency? (a) increased employee wages, (b) specialization of effort, (c) better technology, (d) reorganization of work activities. 8. what effect does advanced technology usually have on the cost of each item produced by a business? (a) cost stays about the same, (b) cost increases, (c) cost decreases, (d) revenue and cost break even. 9. how does the gdp of $12.4 trillion appear when written out? (a) $12,400, (b) $12,004,000, (c) $12,000,400,000, (d) $12,400,000,000,000. 10. in the typical franchise business, the franchisee does not receive (a) help in selecting a location for the business, (b) special training in how to operate efficiently, (c) guaranteed profit, (d) exclusive rights to sell in a specified geographic area. 11. which of the following best describes risk? (a) insurance, (b) possibility of failure, (c) net losses a business suffers, (d) protection. 12. approximately what percentage of all businesses cease operations after five years? (a) 10%, (b) 20%, (c) 35%, (d) 50%. 13. a business that makes athletic shoes is an example of a (a) service business, (b) global business, (c) goods - producing business, (d) domestic business. 14. a word often used to refer to all businesses within a category doing similar work is (a) competition, (b) firm, (c) industry, (d) department. 15. products made outside the united states are called (a) foreign goods, (b) global goods, (c) output goods, (d) domestic goods.

Explanation:

1. Marketing is about the exchange of goods or services between producers and consumers.
2. A bank provides financial services, making it a service - business.
3. Health care and social assistance is a major employer in the US.
4. Business is dynamic as it constantly adapts to changes.
5. Total Quality Management (TQM) is a commitment to excellence.
6. Mass production usually reduces costs, not increases them.
7. Increasing employee wages doesn't necessarily increase efficiency.
8. Advanced technology often reduces the cost per item produced.
9. 1 trillion = 1,000,000,000, so $12.4$ trillion = $12,400,000,000,000$.
10. A franchisee doesn't get guaranteed profit.
11. Risk is the possibility of failure.
12. Approximately 50% of businesses cease operations after five years.
13. A business making athletic shoes is a goods - producing business.
14. The term for all businesses in a category doing similar work is industry.
15. Products made outside the US are called foreign goods.

Answer:

1. c
2. b
3. d
4. c
5. c
6. a