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301. Mark recently graduated with honors from his college. He has bragged to his friends that his academic performance has prepared him so well for a successful career that he can forget school or training in his future. In evaluating the future of the workplace, Mark is:
A. exactly right. His past performance should carry him to success.
B. completely wrong. Studies show that a college education has little to do with success.
C. over confident. Global competition means that continuous learning will be needed in the future to adapt to rapid changes.
D. probably right. Specialized training today is a key to continued success in the future.

302. The threat of terrorism,
A. benefits most businesses because just about all companies contribute toward averting these threats.
B. will certainly affect companies that participate in global trade, but most large U.S. companies do their business domestically.
C. has increased the quality of life of most people because companies employ more workers when the threat is high, and workers help companies increase profits.
D. is costly to most firms because it is costly to governments who increase taxes to pay for added protection.

303. Laura and Tim McNash recently moved to North Carolina on a three-acre home site. They purposefully purchased their home within biking distance to the university where they are both employed, and their bikes each have room for two cloth bags for groceries if they need to purchase food on the way home, although they plan to grow much of their own. Laura and Tim are examples of a growing number of young people who:
A. have developed a health conscious attitude.
B. want to change their lifestyle to be more in tune to saving energy.
C. dislike urban centers and wish to live in the country.
D. stay away from urban areas due to increased threats of terrorist attacks in those localities.

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304. Which of the following statements describes a recurring theme about today’s ecological environment?
A. Most people agree that there is strong evidence that the temperature of the planet is going down.
B. Smart businesses know that green business is currently a trend and they should proceed with caution because most green initiatives are more costly than wars and terrorism.
C. There is a strong push by customers that businesses develop products and services that clearly save energy.
D. Clearly, the greening issue is an American trend that has not captured the attention of the international business community.

305. Tyler Samuels recently returned from the war in Iraq where he was a member of the highly skilled special operations forces. He is now in the United States where he collects the G.I. Bill in order to go to school. This is one example of:
A. How an event such as a war educates young people about conditions abroad.
B. The cost of war.
C. The benefits of war on education.
D. A squeeze on employer benefits.

306. During the past 150 years, the U.S. has evolved from:
A. An agrarian economy to an information technology economy.
B. A business to business economy to a business to consumer economy.
C. An agrarian economy to a manufacturing economy to a service oriented economy.
D. A manufacturing economy to a service economy, to a cottage economy, and now we are trending back to an agrarian economy.

307. Businesses that produce and sell tangible products such as steel and machines are part of the:
A. manufacturing industry.
B. knowledge-based industry.
C. service industry.
D. production sector.

308. The service industry represents ________ of the value of the U.S. economy.
A. about 30%
B. under 50%
C. about 70%
D. about 50%

309. Health care, insurance, recreation and other intangible products are provided by the:
A. global sector.
B. service industry.
C. industrial sector.
D. manufacturing industry.

310. Since the beginning of the 1900s, the agricultural sector of the United States has:
A. Seen the number of family farms more than double.
B. Become less and less competitive in the global economy.
C. Produced a consistent output per farm.
D. Experienced a significant drop in employment, mainly because of tremendous improvements in efficiency.

311. In recent years, almost all new job creation in the United States has occurred in the __________ sector:
A. service
B. manufacturing
C. agricultural
D. telecommunications

312. The new era of business is likely to be dominated by the:
A. service sector.
B. information-based sector.
C. manufacturing sector.
D. continued decline in productivity.

313. Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the:
A. production sector.
B. management sector.
C. neo-industrial sector.
D. service sector.

314. In recent years, manufacturing firms in the United States have laid off workers. The best explanation of this trend is that:
A. firms have been trying to weaken unions by reducing their reliance on labor.
B. workers in the U.S. have become less productive and are no longer able to compete in the global economy.
C. firms in many industries have become so efficient that they need fewer workers.
D. the economy has been in a prolonged depression that has lasted more than a decade.

315. Which of the following best describes recent job growth in the service sector?
A. The service sector has generated almost all new jobs in the American economy since the mid 1980s, but the rate of job growth in services has slowed in recent years.
B. Jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries.
C. Employment in the service sector has declined in recent years, and this decline is expected to continue.
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.

316. Which of the following organizations is an example of the goods-producing sector of the economy?
A. Ford Motor Company
B. Florida State University
C. Children’s Hospital
D. H & R Block Tax Consulting

317. Certain industries of the U.S. economy such as farming and heavy equipment manufacturing have experienced a significant decline in employment. Which of the following best explains this job loss?
A. The cause is a decline in the productivity of labor in these industries.
B. Workers lost these jobs because technological advances increased productivity.
C. The U.S. economy cannot compete in these industries any longer.
D. Government regulations have eliminated profit opportunities in these industries.

318. Jenna Leigh is an information savvy, 20-something person who is trying to select between two marketing job offers. She can either join a company that makes small hammers and screwdrivers for the do-it-yourself hardware store business, or she can join a company developing the fourth generation cell phone service. She is quite impressed that the hardware business is growing quite nicely in China, Mexico, and India where people are starting to expand their living spaces. She is also aware of:
A. Declines in the telecommunications business now that new cell phone service companies are springing-up everywhere.
B. A decline in the domestic hardware market due to older Americans losing interest in keeping up their living quarters.
C. An information-based global revolution that might make her career at a telecommunications company more lucrative in the long run.
D. An increase in the price of the actual cell phones must indicate that there is still a great demand for phones.

319. The F.B.I. has a DNA database with over 6.7 million samples. It is expected to increase by another 1.2 millions samples by the year 2012. In the past, collection was limited to convicted persons, but now they will begin collecting samples from persons detained and arrested prior to conviction. This includes immigrants. The F.B.I. believes that expanding their collection to include persons presumed innocent will help in the solving of violent crimes. This new strategy is:
A. not considered an invasion of privacy because the government already has most of our information.
B. pointing toward the F.B.I. becoming a private security company and operating for a profit.
C. suspect because DNA is not yet proven to be a definitive way of catching criminals, and it leads us to becoming a genetic surveillance society.
D. an example of an outcome of the information-based revolution discussed in business classes.

Essay Questions

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

321. Describe how businesses can use technology to be more responsive to customers.

322. Competition among businesses has never been greater. Identify and describe several ways that businesses can become more competitive.

323. What is demography? Identify several demographic trends in the United States and discuss how they will impact U.S. businesses.

324. Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement.

325. Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

Multiple Choice Questions

Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio’s favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he’s a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!

326. As he explores his options, Sergio notices that some opportunities appear to be riskier than others. When considering various opportunities, Sergio should keep in mind that:
A. he will be better off picking a low risk business opportunity, since the safest ones are usually the most profitable as well.
B. even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another.
C. high risk business opportunities often have the potential for high returns as well.
D. government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk.

327. Sergio’s frustration with his lack of freedom and flexibility at work indicates that Bigbux:
A. prefers the use of cross-functional teams rather than individual initiative.
B. has not adopted a strategy of empowerment.
C. knows that the best way to ensure good customer service is to closely monitor its lower-level employees.
D. is trying to please customers as well as other stakeholders.

328. Two of his friends approached Sergio with a proposal to start a language school. Sergio is fluent in English and Spanish, and also has an education degree. Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services. He learns that an important demographic trend is:
A. the service sector is likely to decline in significance in the next few years.
B. the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off.
C. the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals in hospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English.
D. the number of retirees is decreasing, making way for a younger generation.

329. As he explores his options for starting a new business, Sergio has looked into the tax implications and government regulations that he would encounter. He wants to maintain an office in a different location from his home. He has discovered that some nearby communities offer tax credits and lower taxes than his town. Sergio’s decision will be influenced by the:
A. demographic environment.
B. technological environment.
C. socio-religious environment.
D. economic and legal environment.

330. If Sergio starts 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 Sergio should deal with these various groups? Sergio should:
A. take the needs of all of these groups into account, and try to satisfy each group as much as possible.
B. concentrate on meeting the needs of his customers, since they are crucial to the success of his business, but ignore the needs of other groups in order to keep costs low.
C. satisfy whichever group complains the loudest, using the “squeaky wheel gets the grease” philosophy.
D. concentrate on maximizing his own profits and let everyone else look out for themselves.

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