BA 1500 - Fundamentals of the business world

What are global forces that impact businesses around the world?

Fluctuations in currency exchange rates Military alliances Trade agreements

High volatility in the exchange rate between two countries has made trade between them difficult. What type of force in the business environment is this an example of?

Global

What is the term for the increasing interconnectedness of economies around the world?

Globalization

Kwasi is creating a new line of locally sourced organic juices to market to athletes. How could the production factor of knowledge apply to his business?

He could research athletes' tastes and preferences to come up with the right branding strategy.

What term describes all of the people who have an interest in a business?

Stakeholders

What are examples of global forces that might affect businesses?

A drop in the value of the US dollar An international trade agreement among Asian countries

Which of these companies would be considered a competitor to a plumbing business? A plumbing company that offers higher wages and better hours to its employees A contractor that buys up large quantities of plumbing fixtures, leaving suppliers depleted A manufacturing company that supplies plumbing parts A plumbing company that pays workers less in order to offer rock-bottom prices

A plumbing company that offers higher wages and better hours to its employees A contractor that buys up large quantities of plumbing fixtures, leaving suppliers depleted A plumbing company that pays workers less in order to offer rock-bottom prices

What are examples of the effects of competition in a business context? - A store offers to honor coupons from any other store in the area. - A law firm offers a company car to new hires who graduated from law school with top grades. - A bank lowers its credit card fees to match those of other banks in the area. - A chain store has so many applicants that it offers minimum wage and can still fill jobs.

A store offers to honor coupons from any other store in the area. A law firm offers a company car to new hires who graduated from law school with top grades. A bank lowers its credit card fees to match those of other banks in the area.

How do entrepreneurs most commonly help grow the economy? Multiple choice question.

By starting small businesses that serve an underserved population

Gurpreet works in human resources for an advertising company. She has noticed that other agencies have been hiring account executives from her company by offering them better salaries and benefits. What type of force is this an example of?

Competitive

What term describes a business's effort to provide a service that no one else provides?

Competitive advantage

What forces are most likely at work when a small grocery store closes shortly after a large chain opens nearby with lower prices and more parking?

Competitive forces

An upscale bar called Mulligan's opens down the street from a neighborhood tavern called Sullivan's. What is the best term for these businesses?

Competitors

What are the four ways that businesses can benefit society? Donating funds, goods, and services for community causes Producing goods and services Paying taxes to support government spending Providing paychecks and benefits for employees Collecting taxes

Donating funds, goods, and services for community causes Producing goods and services Paying taxes to support government spending Providing paychecks and benefits for employees

Reynaldo lives in a country with weak contract enforcement. Because of this, he struggles to recoup the monies he is owed from other businesses. What type of force is this an example of?

Economic

A successful entrepreneur helps the economy do what?

Expand/grow

Which businesses are classified as for-profit? Facebook (a social media company) United Auto Workers (a labor union) American Red Cross (a humanitarian organization) Uber (a ride-sharing company)

Facebook (a social media company) Uber (a ride-sharing company)

Which of these are considered global forces on business? Immigration policies Sporting events Military alliances Environmental regulations

Immigration policies Military alliances Environmental regulations

What is the impact on businesses when global forces increase national instability?

International business becomes more risky.

Why is it important for business leaders to be aware of the macroenvironment?

It can affect the success or failure of business decisions.

How can an organization's economic success impact quality of life?

It can raise people's standard of living.

Why is the macroenvironment important?

It influences the success of business development.

Which of these are types of stakeholders that businesses must recognize and satisfy? lenders employees owners competitors

Lenders Employees Owners

What type of factors are at work when the US Environmental Protection Agency enforces a new regulation requiring businesses to meet more stringent pollution standards?

Political

Based on name alone, which organizations are likely classified as nonprofits? Save the Otters! Quality Mechanics Maria's Tamale Shop Food for Families in Need

Save the Otters! Food for Families in Need

Amani owns a lawn-service business that is the only such business in her region to offer a well-known proprietary organic fertilizer. What impact will this competitive advantage most likely have on her business? .

She will increase her market share because she offers a product that is not easily replicable.

What is the best definition of the business environment? - The increasing interconnectedness of economies around the world - The rivals for a business's customers or resources - The arena of forces that encourage or discourage the development of business

The arena of forces that encourage or discourage the development of business

What is the term for the arena of forces that encourage or discourage the development of business?

The business environment

Which of these are examples of political forces that affect business?\ The election of a pro-business senator The passage of a new environmental regulation The emergence of a number of companies providing the same service

The election of a pro-business senator The passage of a new environmental regulation

What is the most accurate definition of globalization?

The growing interdependence of economies around the world

Why are entrepreneurs important to the economy?

They drive product innovation. They serve underserved market segments.

What functions do employees serve for businesses? They provide services. They provide labor. They create the culture. They provide financing.

They provide services. They provide labor. They create the culture.

How do wars, epidemics of disease, and changes in the environment affect global business?

They undermine national stability.

Producing goods and services and paying taxes are two ways that businesses ______.

benefit society

Companies that are pursuing a competitive advantage seek to ______. create an innovative product provide a unique service choose a location that is close to similar businesses forge a culture that is not easily replicated

create an innovative product provide a unique service forge a culture that is not easily replicated

Key stakeholders in a business who provide the labor, create the culture, and provide the service that ultimately makes a business succeed or fail are known as ______.

employees

When businesses have good economic performance, they are able to ______ society's quality of life.

improve

People who own stock in a company are known as ______.

investors

What is the opposite of profit?

loss

Labor laws, elections, and bank regulations are all examples of ______ forces that affect businesses.

political

Denise reported record sales for her organization last month. This reflects an increase in ______.

revenue

What are characteristics of business competitors? They are the distributors that sell the supplies needed to make a product. They sell similar products or services. They have neighboring offices but different types of businesses. They need similar resources for their products or services.

they sell similar products or services. They need similar resources for their products or services.