Question 1

The business environment consists of the surrounding factors that either help or hinder the development of business.

Accepted Answer

The statement is true. The business environment includes factors such as economic, social, political, legal, and technological factors, as well as competition and market trends, that affect the growth and success of businesses.

Question 2

An entrepreneur is a person who risks time and money to start and manage a business.

Accepted Answer

This statement accurately describes the role of an entrepreneur. They take on the risk of investing their time and money into a new business venture, with the goal of achieving financial success and independence.

Question 3

Today there are more jobs in the manufacturing sector than in the service producing sector.

Accepted Answer

This statement is false. According to the Bureau of Labor Statistics, in the United States, as of February 2021, there were approximately 12.3 million jobs in the manufacturing sector and approximately 139.2 million jobs in the service-producing sector. Therefore, there are more jobs in the service-producing sector than in the manufacturing sector.

Question 4

Businesses may be classified according to their profit motive.

Accepted Answer

Profit motive is one of the primary reasons businesses exist. It is the drive to generate profits and make money. Therefore, businesses can certainly be classified according to their profit motive.

Question 5

Revenue occurs when a business's expenses are more than its revenues.

Accepted Answer

Revenue occurs when a business's revenues are more than its expenses. If expenses are more than revenues, then the business is operating at a loss.

Question 6

Medium-sized enterprises employ between 50 and 500 individuals.

Accepted Answer

According to most definitions, medium-sized enterprises typically employ between 50 and 500 individuals.

Question 7

After the 1700s most people were self-sustaining and made their own clothing.

Accepted Answer

After the 1700s, there was a significant increase in the production of textiles and clothing, which led to the growth of the textile industry. As a result, most people no longer made their own clothing and purchased them from stores or markets.

Question 8

Businesses that provide intangible products are in the manufacturing sector of the community.

Accepted Answer

Businesses that provide intangible products are not in the manufacturing sector but instead are in the service sector. Manufacturing refers to businesses that produce physical goods.

Question 9

Profit is the amount of money a business earns above and beyond what it spends for goods services,salaries,and other expenses.

Accepted Answer

This statement is true. Profit is typically calculated as revenue minus expenses.

Question 10

Return on investment is the money gained from taking on a business.

Accepted Answer

Return on investment refers to the amount of money gained or lost by investing in a particular business or project. It represents the return earned on an investment relative to the amount of the investment.

Question 11

Profit is the total amount of money a business takes in during a given period by selling goods and services.

Accepted Answer

Profit is not the total amount of money a business takes in, but rather the amount of money left over after all expenses are subtracted from revenue.

Question 12

A stakeholder is an owner of a company.

Accepted Answer

A stakeholder is not necessarily an owner of a company. A stakeholder refers to any person or group that has an interest or concern in an organization or its activities, including shareholders, employees, customers, suppliers, government entities, and community members.

Question 13

The automotive industry is an example of an industry seeing the effects of global outsourcing.

Accepted Answer

The automotive industry has extensively outsourced manufacturing and parts procurement to countries with lower labor costs, such as China and Mexico, causing changes in employment patterns and trade balances.

Question 14

Businesses that provide service are said to be in the service sector of the community.

Accepted Answer

The statement is true. Businesses that provide service are categorized under the service sector.

Question 15

Global competition has affected the future employment and income level of businesses.

Accepted Answer

Global competition has led to the outsourcing of jobs to cheaper labor markets, causing a decrease in employment opportunities and lower wages for workers in certain industries. Additionally, businesses need to stay competitive in the global market, which can put pressure on them to lower prices and cut costs, including employee salaries and benefits.

Question 16

Loss is when a business's revenues are more than its expenses.

Accepted Answer

This statement is incorrect. Loss is actually the opposite - when a business's expenses are more than its revenues.

Question 17

Advances in technology have had little or no effect on businesses' ability to remain competitive.

Accepted Answer

Advances in technology have had a significant impact on businesses' ability to remain competitive. Technology has enabled businesses to streamline operations, reduce costs, and improve customer experience. It has also created new opportunities for businesses to enter new markets and reach a wider audience. Businesses that fail to adopt and adapt to these technological advancements are likely to fall behind their competitors.

Question 18

The United States has long been known for having a high standard of living.

Accepted Answer

The United States is often considered to have a high standard of living in comparisons to many other countries, due to factors such as a strong economy, high levels of innovation and technology, access to education, healthcare, and many other amenities.

Question 19

A business is any person,partnership,or corporation that seeks to provide goods/and or services to others at a profit.

Accepted Answer

This is the standard definition of a business.

Question 20

Standard of living refers to the amount of goods and services people can buy with the money they have.

Accepted Answer

Standard of living is directly related to the purchasing power of individuals, which is determined by their income and the cost of goods and services.

Quiz 1: Introduction