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48 PART 1 The Nature of Contemporary Business
7. Several countries would like business to 9. PPP-based national income level is impor-
maximize stakeholder wealth for all the fol- tant for all of the following reasons except
lowing reasons except a. it is a good measure for comparing poten-
a. it takes into consideration the welfare of tial business opportunities across coun-
all business’s constituents: customers, tries.
employees, suppliers, and society. b. it is a true measure of the size of an econ-
b. it focuses more on long-term benefits omy.
than maximizing shareholder wealth does. c. it is a realistic measure of the wealth of
c. it treats labor as more than a mere factor the citizens of a country.
of production. d. it identifies the value of all goods and
d. it means that employees can be hired and services produced by a country.
fired easily. e. it allows for comparison of GNI between
e. it is more responsible than maximizing countries.
shareholder wealth. 10. The impact of the digital era on business is
8. Business success depends heavily on under- apparent from all of the following facts
standing the consumer, whose consumption except
pattern depends on all of the following a. companies are being transformed on a
except massive scale.
a. how positive consumers feel about them- b. customers are becoming smarter by using
selves and their jobs. the Internet.
b. population demographics. c. business is becoming more nimble.
c. cultural diversity. d. developing countries have been able to
d. inventory levels. adopt the latest technology at lower cost.
e. psychographics. e. developing countries are being left
behind.
self-test
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