Question

I am having trouble with solving this multiple choice questions with my Intro to Business class. I need the solutions to them:

. Not-for-profit organizations do not face any of the challenges that profit-seeking businesses do.

a. True

b. False

2. What is business?

a. Business consists of all profit-seeking activities that provide goods and services necessary to an economic system.

b. Business consists of marketing products that people want.

c. The term business only describes companies that are profitable and excludes government or private organizations.

d. Business is defined as activities that produce the most good for society.

3. How are not-for-profit organizations different from profit-seeking businesses?

a. Not-for-profit organizations operate only in the public sector.

b. Not-for-profit organizations focus on goals other than generating profits.

c. Not-for-profit organizations always have a deficit of funds.

d. Not-for-profit organizations hardly focus on social or ethical responsibilities.

4. Capital includes:

a. money that a firm raises for expansion.

b. employees, both current and future.

c. land, building sites, and mineral deposits.

d. technology, tools, information, and physical facilities.

5. Which of the following inputs would NOT be considered a factor of production?

a. Natural resources

b. Capital

c. Human resources

d. Products

6. The right to _____ is the most basic freedom under the private enterprise system.

a. profits

b. private property

c. competition

d. freedom of choice

7. In which of the following ways does the private enterprise system permit fair competition?

a. By encouraging employees to join labor unions

b. By guaranteeing business owners the right to all profits

c. By designing aggressive practices to eliminate competition

d. By allowing the public to set rules for competitive activity

8. For capitalism to operate effectively, the citizens of a private enterprise economy must have certain rights. Which of the following would NOT be considered part of the private enterprise system?

a. Private property

b. Profits

c. Taxes

d. Competition

9. In addition to creating jobs and selling products, entrepreneurship also is a great source of _____ in the economy.

a. innovation

b. lay-offs

c. education

d. risks

10. Identify the business era during which managers began to pay more attention to what consumers wanted and needed rather than simply to what a firm could produce.

a. The marketing era

b. The production era

c. The relationship era

d. The era of industrial revolution

11. A _____ is a partnership formed to create competitive advantage for the businesses involved.

a. joint venture

b. limited partnership

c. strategic alliance

d. transaction relationship

12. A partnership formed to create a competitive advantage for a business involved is an example of:

a. co-marketing.

b. branding.

c. a shakeout.

d. a strategic alliance.

Answer 1

1. Not-for-profit organizations do not face any of the challenges that profit-seeking businesses do. False
Not-for-profit organizations face some of the same challenges as profit seeking businesses do. Although not-for-profit organizations are not profit-oriented but they do face some of the same challenges as profit-oriented organizations. Challenges are there, whether it may be government organization or private organization, profit-oriented organization or non-profit-oriented organization.
2. a. Business consists of all profit-seeking activities that provide goods and services necessary to an economic system.
A business is simply an activity that results profit. There is no specific organization for involving in business, anybody can do a business, starting from a roadside seller to proprietorship and partnership firms.
3. Not-for-profit organizations different from profit-seeking businesses in the sense that Not-for-profit organizations operate only in the public sector.
Not-for-profit organizations operate only in the public sector, private sector companies are meant for profit, their main goal is to earn profits while doing business.
4. Capital includes : technology, tools, information, and physical facilities.
Capital means the goods that must provide an ongoing service to the business to generate wealth. Technology,tools, information and physical facilities always provide services to business in order to create more wealth.
5. Products would not be considered a factor of production.
Factor of production means inputs to produce outputs. Capital, natural resources and human resources are all inputs using which various outputs can be produced, whereas products are considered as outputs.
6. The right to private property is the most basic freedom under the private enterprise system.
Every private enterprise has the basic right to own, use, buy and sell any forms of private property, including land, macinery, equipment, buildings and patents on inventions.
7. By allowing the public to set rules for competitive activity, the private enterprise system permit fair competition.
In a private enterprise system, public is the main source who helps to earn profit for the private companies. So they should be motivated and given priority.

8. Taxes would NOT be considered part of the private enterprise system.
For capitalism to operate effectively, the citizens of a private enterprise economy must have certain rights, that include private property, profits, freedom of choice and competition.

9. In addition to creating jobs and selling products, entrepreneurship also is a great source of innovation in the economy.
Entrepreneurship is a great source of innovation because it always involves in creating new things which is beneficial for the society.

10. It is the marketing era during which managers began to pay more attention to what consumers wanted and needed rather than simply to what a firm could produce.

In marketing era managers pays more attention to consumers, their needs and requirements, rather than company profits.

11. A strategic alliance is a partnership formed to create competitive advantage for the businesses involved.

A strategic alliance is an agreement between two or more parties to achieve a set of commonly agreed objectives while working as independently.

12. A partnership formed to create a competitive advantage for a business involved is an example of: a strategic alliance.

A strategic alliance is a partnership formed to achieve commonly agreed objectives and create a competitive advantage for the business involved.