chapter 2

Question 1

What is the definition of business?

Answer 1

Any activity that seeks to provide goods and services to others while operating at a profit.

Question 2

What are goods?

Answer 2

Tangible products such as computers, food, clothing, cars, and appliances.

Question 3

What are services?

Answer 3

Intangible products such as education, health care, insurance, recreation, and travel and tourism.

Question 4

What is an entrepreneur?

Answer 4

A person who risks time and money to start and manage a business.

Question 5

______ refers to the total amount of money a business takes in during a given period.

Answer 5

Revenue.

Question 6

What is revenue?

Answer 6

Total amount of money a business takes in during a given period by selling goods and services.

Question 7

What is profit?

Answer 7

Amount of money a business earns above and beyond what it spends for salaries and other expenses.

Question 8

What is a loss?

Answer 8

When a business’s expenses are more than its revenues.

Question 9

What is risk in a business context?

Answer 9

The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

Question 10

What is the relationship between risk and profit?

Answer 10

All businesses take risks, but taking big risks could earn a company big profits.

Question 11

What is the standard of living?

Answer 11

The amount of goods and services people can buy with the money they have.

Question 12

What is quality of life?

Answer 12

The general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards.

Question 13

Who are stakeholders?

Answer 13

All the people who stand to gain or lose by the policies and activities of a business.

Question 14

What is outsourcing?

Answer 14

Contracting with other companies to do some functions of a firm, like production or accounting.

Question 15

What is insourcing?

Answer 15

When foreign companies open design and production facilities in the United States.

Question 16

What is a nonprofit organization?

Answer 16

An organization whose goals do not include making a personal profit for its owners or organizers.

Question 17

What do nonprofit organizations use financial gains for?

Answer 17

To meet social or educational goals.

Question 18

What are the five factors of production?

Answer 18

• Land (or natural resources) * Labor (workers) * Capital * Entrepreneurship * Knowledge

Question 19

What is the business environment?

Answer 19

The surrounding factors that either help or hinder the development of businesses.

Question 20

What are the five elements of the business environment?

Answer 20

• Economic and legal environment * Technological environment * Competitive environment * Social environment * Global business environment

Question 21

How can government promote entrepreneurship?

Answer 21

• Allowing private ownership of businesses * Minimizing interference with the free exchange of goods and services * Passing laws for enforceable contracts * Establishing a tradable currency * Minimizing corruption

Question 22

What is technology in the business context?

Answer 22

From phones to computers, mobile devices, medical imaging machines, robots, the Internet, artificial intelligence, social media, and various software programs.

Question 23

What is e-commerce?

Answer 23

The buying and selling of goods online.

Question 24

What is empowerment in a business context?

Answer 24

Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests.

Question 25

What is demography?

Answer 25

The statistical study of the human population with regard to its size, density, and other characteristics.

Question 26

What are some challenges of managing a diverse workforce?

Answer 26

Adapting to generational demographics and promoting inclusion and belonging.

Question 27

What is the significance of the increase in the number of older citizens?

Answer 27

They are currently the richest demographic group but will drain the economy of wealth due to Social Security.

Question 28

What is the importance of entrepreneurship for a country?

Answer 28

To create wealth for its citizens, it requires the efforts of entrepreneurs and the skill and knowledge to produce goods and services.

Question 29

What are the positives of being an entrepreneur?

Answer 29

* Freedom to succeed * Make own decisions * Possible wealth

Question 30

What are the negatives of being an entrepreneur?

Answer 30

* Freedom to fail * No paid vacations * No health insurance

Question 31

What has encouraged businesses to implement programs such as family leave and flextime?

Answer 31

The growth of single-parent households. ## Footnote This reflects the changing dynamics in family structures and the need for workplace flexibility.

Question 32

What kind of diversity is present in the U.S. workforce?

Answer 32

Ethnic, racial, and age diversity. ## Footnote Managers must adapt to the generational demographics of the workplace.

Question 33

What are some challenges of working with someone much younger or much older than you?

Answer 33

Generational differences in communication, work ethic, and expectations. ## Footnote These differences can lead to misunderstandings and conflicts.

Question 34

What is a significant demographic change in working families?

Answer 34

An increase in single-parent families. ## Footnote Single parents must balance job demands with raising children.

Question 35

What is the birth range for Generation Z?

Answer 35

1995 to 2009. ## Footnote Generation Z will be the largest group of consumers in the world.

Question 36

How do companies compete for the online attention of Gen Z?

Answer 36

By using social media and influencers. ## Footnote Gen Zers rely heavily on platforms like TikTok for product recommendations.

Question 37

What has contributed to the growth of globalization?

Answer 37

Efficient distribution systems and communication systems such as the Internet. ## Footnote Globalization has significant implications for business operations and market reach.

Question 38

What are some risks to the U.S. economy mentioned in the text?

Answer 38

War, terrorism, and increased unrest. ## Footnote These factors create uncertainty in the business environment.

Question 39

What is climate change?

Answer 39

The movement of the temperature of the planet up or down over time. ## Footnote This phenomenon has major implications for the ecological environment and business practices.

Question 40

What is 'greening' in a business context?

Answer 40

The trend toward saving energy and producing products that cause less harm to the environment. ## Footnote Companies are increasingly adopting sustainable practices.

Question 41

Name a unique menu item created by KFC in Trinidad and Tobago.

Answer 41

The Zinger. ## Footnote KFC adapts its offerings to regional tastes around the world.

Question 42

What has driven the increase in employment in the service industry?

Answer 42

The service industry has generated almost all the increases in employment since the mid-1980s. ## Footnote Service industries also provide more high-paying job opportunities.

Question 43

What has significantly altered all sectors of the economy?

Answer 43

The information-based global and technical revolution. ## Footnote This revolution emphasizes the importance of intellectual capital.

Question 44

What is a key focus of this educational content regarding the future in business?

Answer 44

Concepts that make leadership possible. ## Footnote Understanding these concepts is crucial for aspiring business leaders.