Business Exam Number 1 Chapters 1, 4, 7

Questions and Answers

During the production era, in the early part of the 1900s, major businesses focused on:

Creating wealth by manipulating prices and exploiting workers.

Customer satisfaction and building long-term relationships with customers.

Refining the production process and creating greater efficiencies. (correct)

Differentiating themselves from their competitors.

_____ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

Credit unions

Plutocracies

Nonprofits (correct)

Restricted mergers

In the context of the history of American business, which of the following statements is true of the marketing era?

Businesses that dominated their markets ousted competitors, manipulated prices, and exploited workers.

Businesses lost individual ownership as large factories emerged to increase production.

Businesses began to develop brands to help customers understand the differences among various products. (correct)

Businesses focused on refining production processes and creating greater efficiencies.

Which of the following are four fundamental resources that businesses and nonprofits rely on?

Factors of production Signup and view all the answers

In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category.

Free-trade movement Signup and view all the answers

In the context of the history of American business, which of the following statements is true of the relationship era?

Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business. Signup and view all the answers

In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources?

Most of them must be extracted, purified, or harnessed. Signup and view all the answers

In a business, which of the following statements best describes profit?

It is the money that a business earns in sales, minus expenses. Signup and view all the answers

In the context of a business environment, which of the following is a key element of the U.S. economic environment?

Legislation that supports enforceable contracts Signup and view all the answers

Businesses that strongly focus on customer satisfaction tend to:

Transform their current customers into loyal advocates for themselves. Signup and view all the answers

Study Notes

Production Era

Focused on refining production processes and creating greater efficiencies in the early 1900s.
Major businesses prioritized increasing output and reducing costs over customer satisfaction.

Nonprofit Organizations

Nonprofits are business-like establishments aimed at contributing to the community rather than pursuing financial gain.

Marketing Era

Brands were developed to help customers recognize differences among products.
Emergence of branding marked a shift in focus from solely production to understanding consumer preferences.

Factors of Production

Fundamental resources: natural resources, capital, human resources, and entrepreneurship.
Both businesses and nonprofits rely on these factors for their operations.

Free-Trade Movement

Global competition has lowered prices and improved quality across product categories.
Facilitates international trade by reducing tariffs and trade barriers.

Relationship Era

Emphasis on building long-term relationships with customers is key for businesses.
Satisfied customers serve as advocates, enhancing customer loyalty and retention.

Natural Resources

Essential materials that must be extracted, purified, or harnessed for business use.
Their value typically increases as demand grows and supply decreases.

Profit Definition

Profit is defined as the money earned from sales, after deducting expenses.
Critical measure of business success and sustainability.

U.S. Economic Environment

Legislation supporting enforceable contracts is a key element of the business environment.
Ensures predictability and security in business transactions.

Customer Satisfaction Focus

Businesses prioritizing customer satisfaction often transform customers into loyal advocates.
Successful strategies involve delivering quality products and fostering strong relationships over mere price competition.

Description

Test your knowledge on key concepts from Business Exam Number 1, focusing on Chapters 1, 4, and 7. This quiz includes flashcards that cover essential definitions and terms related to the production era and strategic business practices. Perfect for students preparing for their exam.