ExamI - Exam I Name: Please select the best answer there is...

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Exam I Name: Please select the best answer – there is only one correct one for each (1 point). 1. _________ is a necessary and extremely important by-product of free enterprise. A) Monopoly B) Socialism C) Communism D) Competition E) Poverty 2. Cultural diversity represents A) a business theory that is no longer valid. B) the differences among people in a work force. C) a technical skill. D) a statistical method used to project sales revenues and profits for global companies. E) a religious issue that doesn't affect business organizations. 3. In the mid-1970s, American auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation. This happened because manufacturers A) lost sight of consumers' needs. B) attempted to satisfy consumers' needs. C) followed consumers' wants too closely. D) knew the economy would rise again. E) did not expect a profit. 4. Andrew Cooper decides to become a part owner of a corporation. As a part owner, he expects to receive a profit as payment because he has assumed the risk of A) serious inflation eroding the purchasing power of his investment. B) being paid before the suppliers and employees are paid. C) losing his home, car, and life savings. D) losing the money he has invested in the corporation and not receiving profits. E) the company giving all of the profits to local communities. 5. For a business, stakeholders represent A) investors in the business. B) lenders that have provided loans. C) suppliers that have extended credit to the firm. D) employees who work for the firm. E) all of the different people or groups who are affected in some way by the business. 6. According to economists, natural resources, labor, capital, and entrepreneurship are called A) free resources. B) competitive resources. C) factory resources. D) factors of manufacturing. E) factors of production.
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Use the following to answer questions 7 to 11: Samantha’s Dilemma Samantha graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Julie owned and operated a small business that she started about twenty years ago. Julie, an individual owner of her business, informed Samantha that she could work for her. On one hand, Samantha thought it would have been a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retired. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would have been to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Samantha had some reservations about this choice because she was not sure
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ExamI - Exam I Name: Please select the best answer there is...

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