Intro to Business Chapter 1

In the context of the technological environment of business, which of the following statements is true of online technology?

Alternative selling strategies give rise to a more individualized buying experience.

In the context of the economic environment of business, which of the following is most likely to reduce the risks of running a business?

A low level of corruption

In the context of the technological environment of business, which of the following statements is true of e-commerce?

Business-to-business selling comprises the vast majority of total e-commerce sales

Which of the following can be considered a business?

Davent, an online shopping portal that offers discounted prices on clothes

In the context of the economic environment of business, which of the following will most likely increase the cost of doing business for everyone involved?

Ethical lapses

During the production era, managers focused mostly on customer satisfaction and not on production efficiency

False

In the context of the history of American business, the "hard sell" emerged during the relationship era of marketing.

False

In the context of the history of American business, the industrial revolution era encouraged workers to take individual ownership and personal pride in the production process.

False

Millennials outnumber digital natives by one million people.

False

People can create natural resources by growing and harvesting agricultural products.

False

Speed-to-market is the rate at which a company's competitors copy its new product innovations

False

The physiological environment is a key dimension of the business environment.

False

In the context of the global environment of business, which of the following was the outcome of Hurricane Katrina in 2005?

It brought the Gulf Coast oil industry to a virtual standstill

In the context of factors of production, which of the following statements is true of capital?

It does not include money.

Restazure, a beauty therapy center, focuses on customer satisfaction and building long-term relationships with customers. The firm ensures that customers are provided with high-quality services, and feedback is collected after every customer visit. It also provides its members with seasonal discounts and points every time they avail any of the center's services. In this context, which dimension of the business environment is affected the most?

The competitive environment

Which of the following is a key dimension of the business environment?

The technological environment

Capital, as a factor of production, includes machines, tools, buildings, information, and technology

True

Digital natives only spend when a business offers them value.

True

Value is the relationship between the price of a good or a service and the benefits that it offers to the customer.

True

When business drives up the standard of living for people worldwide, it contributes to a higher quality of life.

True

In the context of the history of American business, which of the following was a result of rapid industrialization in America from the mid-1700s to the mid-1800s?

Unprecedented production efficiency

Melvin and Neil run a pawnshop in their neighborhood. They offer loans to individuals in exchange for personal items of higher or equal value, which are used as collateral. If an individual is unable to repay the loan, Melvin and Neil then sell these items at higher rates. In this scenario, Melvin and Neil's pawnshop is an example of a _____

business

In the context of the competitive environment of business, customer satisfaction comes in large part from:

delivering unsurpassed value.

In the context of the social environment dimension of business, _____ is the measurable characteristics of a population

demographics

When a business brings in less money than it needs to cover expenses, it incurs a _____.

loss

In the context of the history of American business, during the _____, jobs became more specialized, increasing productivity and lowering costs and prices

production era

In the context of the competitive environment of business, the rate at which a new product moves from conception to commercialization is referred to as _____.

speed-to-market

In the context of the competitive environment of business, which of the following can be a key source of competitive advantage?

Speed-to-market

Leading-edge companies have focused on customer satisfaction, with a goal to develop long-term, mutually beneficial relationships with customers. Which of the following dimensions of a business environment does this illustrate?

The competitive environment

Which of the following statements is true of successful firms?

They deliver unsurpassed value to their customers.

In the context of the history of American business, the _____ emerged in the second half of the 1800s, by building on the foundation of the industrial revolution.

entrepreneurship era

In the context of the business environment, the creation of the World Wide Web is considered a component of the _____.

technological environment

The value of all natural resources tends to rise with low demand, high supply, or both

False

Which of the following statements is true of the economic environment of a business?

It is affected by corruption.

Which of the following statements is true of the technological environment of business?

It represents a rich source of competitive advantage for fast-moving firms.

In the context of factors of production, which of the following is an example of a natural resource?

Land

Which of the following factors is most likely to be covered by the social environment of business?

Population size

Chargon Flasks, a restaurant specializing in Asian cuisine, focuses solely on customer satisfaction. It allows patrons to customize the quantity of their meals and only charges them half the price if their meal is unsatisfactory. The restaurant also has a voluntary service charge policy. In this context, which dimension of the business environment is affected the most?

The competitive environment

Lint Port, an apparel company, offers personalized customer service in all its stores and engages in post-purchase communication to take feedback from its customers. It also gives gift vouchers with customized messages to its customers on their birthdays. The company values the importance of building long-term customer relationships. In this context, which dimension of the business environment is affected the most?

The competitive environment

Zip Zap Inc., a delivery service agency, employs a strict code of conduct that is aimed at minimizing unethical practices within the company. The policy describes the actions that would be taken against anyone who violates the company rules. This ensures that the business faces minimal risk. In this context, which dimension of the business environment is affected the most?

The economic environment

Buba Joe's Pizzeria, a fast food chain, wants to expand its customer base. It introduced a new range of vegan pizzas to cater specifically to the vegan market. It also introduced new flavors to cater especially to Hispanic Americans. In this context, which dimension of the business environment is affected the most?

The social environment

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?

The social environment

Which of the following dimensions of the business environment covers the measurable characteristics of a population?

The social environment

Barter Bate, a wholesale store chain, was the first in the city to launch an online shopping website. Its website allowed customers to select required products and collect them from the nearest Barter Bate outlet. In this context, which of the following dimensions of the business environment is affected the most?

The technological environment

Moat & Meet, a travel agency, wants to widen its customer base. It adopts a strategy that allows customers to visit their favorite destinations through a virtual reality (VR) machine before visiting the place in person. In this context, which dimension of the business environment is affected the most?

The technological environment

Onyi Muro, a boutique restaurant, has dining tables with interactive screens on them. The customers can place their orders, watch their food being prepared, and provide feedback to the chefs using these screens. In this context, which dimension of the business environment is affected the most?

The technological environment

Picxellate, a retail store chain, introduced a new mobile application that allows its customers to make online purchases. It also shows available products at every Picxellate store in the city for customers who wish to collect the products themselves. In this context, which dimension of the business environment is affected the most?

The technological environment

Ryron Bank, a private bank, introduced Internet banking facilities for its customers after the government demonetized hundred dollar bills. Customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. In this context, which dimension of the business environment is affected the most?

The technological environment

Spearhead Flight Academy uses flight simulation games to train its students in the basics of aviation. It uses these games to make its students more effective and efficient. In addition, it also offers six months of flight training. In this context, which of the following dimensions of the business environment is affected the most?

The technological environment

In the context of factors of production, which of the following statements is true of natural resources?

The value of all natural resources tends to rise with high demand.

In the context of the history of American business, which of the following statements is true of the industrial revolution?

There was a loss of individual ownership in the production process

In the context of the history of American business, which of the following statements is true of the industrial revolution?

There was a loss of personal pride in the production process.

In the context of factors of production, which of the following statements is true of entrepreneurs?

They thrive in an environment that supports economic freedom.

In the context of the dimensions of the business environment, which of the following is true of the competitive environment?

Vocal promoters of a firm's products can get the firm new customers effectively.

In the context of the global environment of business, the migration of jobs from the United States relates closely to the global movement toward _____, which is an international economic and political movement designed to help goods and services flow more easily across international boundaries.

free trade

In the context of customer satisfaction, a product has value when:

its benefits to the customer are equal to or greater than the price that the customer pays.

In the context of the history of American business, during the _____, businesses began to develop distinctive identities to help customers understand the differences among various products.

marketing era

In the _____, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-term ties.

relationship era

In the context of a business environment, computers, telecommunications, and other digital tools are considered to be part of the _____.

technological environment