intro to business
The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as
e-buissness
Even though the recession of 2008 ended several years ago, youth unemployment continues to be higher than at most times in our country's modern history. This is an example of youth being impacted by which factor of the business environment?
economic
If you have trouble finding a job because the majority of businesses have falling revenues and profits, you are being impacted by what factor of the business environment?
economic
Legislation that supports enforceable contracts usually forms part of an organization's _____ environment.
economic
Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?
economic
____ is the study of how wealth is created and distributed.
economics
is the study of how wealth is created and distributed.
economics
Franchising is limited only to fast foods.
false
Technological disruption always has a negative impact on businesses.
false
The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.
false
The increase of manufacturing in lower wage countries like China is part of the reason prices for DVD players and televisions have continued to decrease, even as technology has improved. This is a benefit of _____ factors in the business environment.
global
Increased competition from firms in other nations is an example of which factor in the business environment?
global
What do fluctuations in interest rates impact?
Borrowing costs and investment decisions
How can businesses benefit from technological disruption?
By embracing innovative technologies to improve efficiency
How might businesses adjust to higher borrowing costs during periods of rising interest rates?
Delay non-essential projects requiring financing
All of these can have an effect on the business environment except:
Demographic Environment
What is one potential impact of higher interest rates on businesses?
Increased borrowing costs
What affects pricing, market share, and profitability within an industry?
Industry competition
The work performed to produce goods and services is referred to as
labor
A ____ invests money in the business but has no management responsibility.
limited partner
Corporate officers are
appointed by the board of directors
The top governing body of a corporation is known as the
board of directors
Fluctuations in a nation's economy are referred to as its
business cycle
Tim Hughes works at an institutional bakery and is paid a wage dictated by the government. He does not like his job but is not allowed other options. Tim must purchase necessities for his family at fixed prices. The country Tim lives in can be described as a ____ economy.
command
What can societal values and lifestyles affect?
consumer behavior
What do population trends such as age distribution and cultural diversity influence?
consumer behavior
The form of business organization that experiences double taxation is the
corporation
To close a sole proprietorship, the owner must
pay creditors
During which phase of the business cycle would a company like General Electric introduce new products?
peak
All of the following are disadvantages of corporations except
perpetual life
Which of the following is most likely to be part of the social dimension of a business environment?
population income
Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.
recession
Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the ____ stage of the business cycle.
recession
Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.
technological
Amazon is now one of the top 10 largest retailers in the United States, even though they don't have any substantial physical retail presence. This illustrates the impact of _____ factors in the business environment.
technology
Unlimited liability means
the owner is responsible for all business debts
A corporation is an artificial person created by law.
true
Corporations account for about 82 percent of all sales revenues.
true
Economics is the study of how wealth is created and distributed.
true
In a socialist economy, the key industries are owned and controlled by the government.
true
The corporation, partnership, and sole proprietorship are the three most common forms of business ownership in the United States.
true
The main reasons small businesses fail are poor management skills on the part of owners, inadequate capital, and poor planning.
true
Internal drive, one of the characteristics of entrepreneurs, relates to:
the desire to control one's own destiny, which serves as motivation, and the belief that this control can help them take action to overcome setbacks.
An individual's desire to create a new business is referred to as:
the entrepreneurial spirit
During 2016, Just-the-One Jewelry had sales revenues of $1,500,000. This retailer also had expenses that totaled $800,000. What is the firm's profit or loss amount?
$700,000
What is technological disruption?
A slow evolution of technology over time
What does double taxation mean?
Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.
Which of the following is the best example of how technology factors affect the business environment?
Eighty percent of Fortune 500 companies have a presence on Facebook
What is a common effect of technological disruption on the competitive landscape?
Emergence of new players and changes in market leaders
What aspect of the real estate market is likely to be affected by higher mortgage rates due to increased interest rates?
Expansion of affordable housing projects
When the owner of a sole proprietorship dies, what becomes of the business?
It ceases to exist unless the heirs take it over or sell it
How does technological disruption impact the global business environment?
It facilitates global connectivity and market expansion.
Which of the following is not an advantage of a sole proprietorship?
It has unlimited liability.
Natural disasters and pandemics can cause:
Supply chain disruptions
According to economists, inflation is
a general rise in the level of prices.
An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.
market
What does increasing global competition impact within the business environment?
market dynamics and supply chains
The ultimate objective of every firm, such as Apple and Starbucks, must be to
satisfy the needs of its customers
Which of the following is an example of a disruptive technology?
smartphones
An increase in marketing to Hispanic consumers and an expected increase in health care spending in the United States are examples of how _____ factors are impacting the business environment.
social
Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
social
Procter & Gamble added new fragrances to its laundry detergent line in an effort to appeal to Hispanic consumers, a demographic that likes to use fragrances in their homes. This is an example of changing ________ in the business environment.
social factors
Examples of command economies include
socialism and communism
