Business Management: Chapter 6- Characteristics of Business

What type of business produces things that other businesses use to make things?

Innovations rarely affect business operations.

Commercial businesses engage in producing things.

Wholesalers and retailers are classified as industrial types of businesses.

The overwhelming majority of workers in this country are employed by large businesses.

What is one typical effect of re-engineering?

The price of a product is determined primarily by

Technological innovations impact only large, high-tech businesses.

The demand for a product refers to

In 2014, the GDP for the United States reached just over

To be successful, a manager must guide a business to react quickly to a changing society.

With mass production, the cost of goods manufactured increases for each product made.

Recently, American businesses are facing more and more competition from foreign businesses.

A measure of a nation’s wealth is its GDP.

An activity must be illegal if it is part of the underground economy.

The only single country that comes close to the United States in terms of GDP is

The term “domestic goods” refers to products made by firms in other countries.

An example of underground economy occurs when a parent gives a child $3 for doing a chore.

In return for payment of franchise fees, a franchisee is given

A new idea or a new implementation of an existing idea is called a(n)

Profit is the difference between earned income & cost.

Which of the following refers to a commitment of excellence?

A medical office is an example of

Knowing what customers want is critical to achieving effectiveness rather than efficiency.

More managers are usually needed when workers are empowered.

An example of an goods-producing business is a

Demand for a product is the # of similar products offered for sale at a certain time & price.

When workers become empowered, what happens to the quality of their work?

The failure rate for non-franchised businesses is higher than for franchised businesses.

The most challenging way to obtain increased efficiency is through reorganization.

A franchise is one method of starting a business if a person has limited business experience.

Allowing workers to specialize typically leads to

The number of manufacturing firms exceeds the number of service firms.