Business Concept (WK 4 Practice Questions)

1.    ________ is essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.

• Vision
• Market Research
• Profit

    Labour Union is a not-for-profit organization

• True
• False

The factors of production in an economic system are ________.

•  land, rent, capital, and human resources
• capital, perseverance, natural resources, and human resources
• natural resources, human resources, capital, and entrepreneurship

Capitalism is founded on ________.

• the belief that competition among business best serves the needs of society

• the social changes that followed the Industrial Revolution

• the idea that 80 percent of the nation’s wealth should be owned by no more than 20 percent of the people

By offering a lifetime warranty on its products, Benco Inc. Electronics has set itself apart from its competition. This difference is known as Benco Inc. Electronics’ ___________.

•  natural resources
• Capitalism
•  competitive differentiation

Stewart recently sold his furniture to his friend. Which freedom does this illustrate in the private enterprise system?

• profit

• private property

• none of the above

Benco Inc. is concentrating on building and promoting products in hopes that enough customers will buy the products, in order to cover the costs of production and earn acceptable profits.  This illustrates the concept of ________.

• strategic alliance
• transaction management
• Relationship management

If Pink Floyd Inc. changed its approach and started nurturing customer loyalty by gathering knowledge of customer needs and preferences in order to serve them better, they would be illustrating the concept of ________.

• relationship management

• strategic alliance with customers

• . transaction management

Opening offices in Tokyo, London, and Sydney, in order to take advantage of lower-cost location overseas means that Google is ________ 

•  nearshoring
• outsourcing
• offshoring

Employee feedback is an ____________ 

• internal force of change
• Marketing force
• external force for change