BUS Chapter 1 Taking Risks and Making Profits within the Dynamic Business Environment
Businesses must monitor the factors in their environment to
ADAPT TO THE CHANGES AROUND THEM
Municipalities have adapted to increased diversity in their populations by:
ADDING LANGUAGES OTHER THAN ENGLISH TO THEIR SIGNS AND WEBSITES
An example of a demographic stastistic would be the:
AVERAGE INCOME LEVEL OF PEOPLE LIVING IN A CERTAIN ZIP CODE
Government policies that favor business are
KEEPING INTERFERENCE TO A MINIMUM, WRITING LAWS THAT SUPPORT WRITING ENFORCABLE CONTRACTS
The internet has affected businesss because the explosion of B2B and B2C transactions means that:
WEBSITES HAVE BECOME AS IMPORTANT AS STORES IN OUR ECONOMY
It may take many years for a company to change its culture and structure to one of empowerment because:
IT INCREASES THE NEED FOR PRODUCTS AND SERVICES TO SERVE THAT POPULATION, IT CREATES OPPORTUNITES FOR NEW PRODUCTS AND SERVICES TO FILL THEIR NEEDS
Expenditures on war and terrorism during a time of economic recession creates much debate because:
IT DRAINS MONEY FROM THE ECONOMY
Minimizing government interference with the free exchange of goods and services can help developing countries. Why?
IT ENCOURAGES ENTREPRENEURS TO START BUSINESSES THAT CREATE JOBS AND WEALTH
Governments can encourage entrepreneurship by allowing private ownership of businesses and by writing ____________ that support writing enforcable contracts
LAWS
An example of the effect of globalization on U.S. consumers is:
MANY GOODS AND SERVICES ARE PROVIDED MORE CHEAPLY BY OUTSOURCING THEIR PRODUCTION TO INDIA OR CHINA
Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that
MANY SMALL BUSINESSES FAIL EVERY YEAR
The business that will succeed in today's economy will be those that are:
MOST RESPONSIVE TO CUSTOMER WANTS AND NEEDS
True or false: A company's decision to outsource work may have to balance the competing stakeholders interests of job loss in a community with shareholder profits.
TRUE
True or false: Cell phones, computers, and fax machines can be categorized as technological changes that make people more productive.
TRUE
True or false: It is important to empower front-line workers because they are the ones responding directly to customer needs.
TRUE
Business agreements such as contracts and warranties are regulated and enforcable in the United States because of the
UNIFORM COMMERCIAL CODE
Unless there are changes in the system, paying for Social Security in the future will draw huge amounts of money from the __________ population.
WORKING
To be more competitive, companies set a goal of _______________ in their production processes because it reduces costs due to wasted materials.
ZERO DEFECTS
Dealing with a diverse workforce requires managers to:
BE SENSITIVE TO WORKERS AND CULTURES AROUND THE WORLD
A business that sells goods and services over the Internet to consumers, but not to other businesses is engaged in:
BUSINESS TO CONSUMER COMMERCE
The ______ in a country are part of an economic system that contributes to the standard of living and quality of life for everyone.
BUSINESSES
One way to reduce international tensions is to foster global economic growth because
BUSINESSES WORK TOGETHER MORE PROFITABLY IN A PEACEFUL ENVIRONMENT
Companies trade databases information so they
CAN SEND YOU DIRECT MAIL ADVERTISING PRODUCTS YOU ARE LIKELY TO WANT, KNOW WHAT CUSTOMERS BUY AND FROM WHOM
Changes in the technological environment include the emergence of Information Technology that includes such tools as
CELL PHONES, THE INTERNET, COMPUTERS
Globalization has improved living standards in developing countries such as:
CHINA AND INDIA
Acting illegally or unethically by bribing an official to get a permit or avoid regulations can threaten the free-market system because it unfairly reduces ______________.
COMPETITION
Changes in the technological environment create increases in world wide ____________ in all sectors of the economy, creating exciting challenges for future leaders.
COMPETITION
Global trade means more markets and opportunities, but there is also more ____________ for those markets.
COMPETITION
Governments reduce the risks of entrepreneurship by passing laws that enable businesspeople to write enforcable
CONTRACTS
Bar codes on products purchased help retailers build a(n) ___________ about customer preferences.
DATABASE
Businesses that send catalogs and direct mail advertising often buy information about consumers that is collected in an electronic _____________ that tells them what customers buy and from whom they buy merchandise.
DATABASE
Businesses can be more successful by responding to customer needs and wants they track using:
DATABASES THAT TRACK A CUSTOMER'S SPECIFIC CHOICES, DATABASES OF CUSTOMER BUYING PREFERENCES
Entrepreneurs take on the challenges and risks of starting a business because it offers the freedom to make their own _______ , opportunities, and wealth.
DECISIONS
The study of the characteristics of human populations such as size, density, age, race gender, and income is known as
DEMOGRAPHY
The buying and selling of goods over the Internet is known as __________
E-COMMERCE
Some of the world's largest firms that believe in climate change are:
JOHNSON AND JOHNSON AND NESTLE, GENERAL ELECTRIC, SHELL, AND COCA-COLA, BRITISH ARIWAYS, DUPONT, AND SHANGHAI ELECTRIC
Businesses are part of a country's
ECONOMIC SYSTEM
Giving front-line workers the responsibility, authority, training, and equipment they need to respond quickly to customers is the definition of:
EMPOWERMENT
The five _____ of _______ and land, labor, capital, entrepreneurship, and knowledge.
FACTORS & PRODUCTION
True or false: The term stakeholders refers only to those who own stock in a company.
FALSE
The purpose of nonprofit organizations include
FILLING A SOCIETAL NEED, FILLING AN EDUCATIONAL NEED
The result of advances in communication and efficient distribution systems using new technologies has been:
GLOBALIZATION OF TRADE
Businesses provide communities with
GOODS AND SERVICES, JOBS, TAXES
Businesses cannot succeed in the future without the cooperation of _________ and social leaders throughout the world.
GOVERNMENT
Entrepreneurs, unlike those who are employed by others
HAVE TO PROVIDE THEIR OWN VACATION TIME AND SICK DAYS
As a result of changes in _________ we are able to communicate with people around the world instantaneously.
TECHNOLOGY
Climate change can be defined as the movement of the _________ of the planet up or down over time.
TEMPERATURE
What us the definition of the standard of living?
THE AMOUNT OF GOODS AND SERVICES PEOPLE CAN BUY WITH THE MONEY THEY HAVE
The definition of productivity is
THE AMOUNT OF OUTPUT YOU GENERATE FOR THE AMOUNT OF INPUT
The global environment affects all of the other environmental influences such as the economic, legal, and social environments because:
THE INCREASE IN FREE TRADE AMONG NATIONS AND TECHNOLOGICAL CHANGES HAVE CREATED GLOBALIZATION AND INCREASED COMPETITION
Examples of the increased organizational costs to businesses caused by wars and terrorism are
INCREASED SECURITY STAFF AND EQUIPMENT, INCREASED INSURANCE
The risks of entrepreneurship are reduced by having laws that support enforcable __________.
CONTRACTS
The increase in the older population by the year 2020 will
CREATE MANY NEW MARKETS FOR GOODS AND SERVICES
A benefit of business expansion to global markets is that it creates new jobs in manufacturing and service businesses. It also:
CREATES GREATER GLOBAL COMPETITION BETWEEN BUSINESSES AND FOR JOBS QQ
It is important for a government to have _____________ that is easily exchanged in world markets
CURRENCY
Listening carefully to customers to determine their wants and needs, then adjusting the organization's products, policies, and practices is indicative of a(n) _______________ organization.
CUSTOMER-DRIVEN
Businesses have responded to the increase in single-parent households by:
IMPLEMENTING SUCH PROGRAMS AS FAMILY LEAVE AND FLEXTIME
Acting with consideration for groups such as seniors, the disabled, homosexuals, and others has expanded our understanding of the term _____________.
DIVERSITY
A country's quality of life includes such elements as
HEALTH CARE AND LEISURE TIME, EDUCATION AND SAFETY, POLITICAL FREEDOM AND NATURAL ENVIRONMENT
In order to be competitive today, companies must offer customers good value, that is:
HIGH-QUALITY PRODUCTS AND SERVICE AT COMPETIVE PRICES
New technologies that connect people all over the world and the increased amount of information available to institutional, wholesale and retail consumers have created:
GREATER LEVELS OF COMPETITION AMONG BUSINESSES THAN EVER BEFORE
Some companies who produce armaments have benefited from the wars in Iraq and Afghanistan, whereas others:
HAVE LOST WORKERS AND ADDED COSTLY SAFETY EQUIPMENT AND PROCEDURES
Public schools and charitable organizations like the United Way are examples of
NONPROFIT ORGANIZATIONS
When Apple, Nike, and other companies contract with companies in other countries to manufacture their products or answer their call centers, it is known as
OUTSOURCING
One way for government to actively promote entrepreneurship is to allow private ____________ of businesses.
OWNERSHIP
Economic well-being and the quality of life improve when businesses create more jobs because
PEOPLE CAN PURCHASE MORE GOODS AND SERVICES
Skills such as information management, leadership, marketing, and financial management are needed to manage
PROFIT AND NONPROFIT ORGANIZATIONS
Private ownership of business promotes entrepreneurship because the owners expect to keep the ___________ in exchange for risking their time and money.
PROFITS
Limiting those to whom you give personal information such as your Social Security number, credit cards, and using antivirus software on your computer:
REDUCES THE POTENTIAL FOR IDENTIFY THEFT
One of the challenges for future leaders is that the information-based global revolution is moving the economy in new directions that:
REQUIRE INNOVATION TO SUCCEED IN GLOBAL MARKETS
The total amount of money a business takes in during a given period of time by selling goods and services is its
REVENUE
The group ages 65-74 is currently the ____________ demographic in the U.S.
RICHEST
The trend called greening is important because it:
SAVES ENERGY, REDUCES HARM TO THE ENVIRONMENT
Consumers today are able to find huge quantities of information about stores and products through the Internet. This is a shift from traditional shopping in a storefront because it:
SHIFTS POWER IN THE MARKETPLACE TO CONSUMERS FROM SELLERS
The decision to outsource requires management to balance the needs of their _________
STAKEHOLDERS
The interests of such stakeholders as employees, communities, suppliers, and governments may be hurt by a company's decisions to outsource functions to other countries. The stakeholders who are most likely to benefit are
STOCKHOLDERS AND CUSTOMERS
The interests of such stakeholders as employees, communities, suppliers, and governments may be hurt by a company's decisions to outsource to other countries. The stakeholders who are most likely to benefit are
STOCKHOLDERS AND CUSTOMERS
One of the problems facing the U.S. government in the near future is paying for Social Security because:
THE RATIO OF PEOPLE IN THE LABOR FORCE FOR EACH RETIREE WILL BE FAR LOWER THAN WHEN THE PROGRAM STARTED IN THE 1940S, THE GOVERNMENT HAS BEEN USING THE SOCIAL SECURITY ACCOUNT FOR OTHER PURPOSES
Coca-Cola is able to do business in China because:
THE UNITED STATES AND CHINA HAVE CURRENCIES THAT ARE EASILY EXCHANGED
Entrepreneurs who invest in starting a business do so hoping to receive a reward for
THEIR INVESTMENT OF TIME AND MONEY
Businesses can become more successful if they are customer-driven because:
THEY ARE MORE LIKELY TO MEET THE CUSTOMER'S NEEDS MORE EFFICIENTLY AND EFFECTIVELY
One result of the wars in Afghanistan and Iraq is that:
THEY HAVE DRAINED THE U.S. ECONOMY OF BILLIONS OF DOLLARS
Many countries have large quantities of one or more factors of production, but have not been successful in accumulating wealth because
THEY LACK ENTREPRENEURSHIP AND KNOWLEDGE TO USE THE OTHER RESOURCES EFFECTIVELY
What is it that entrepreneurs risk losing when they start a business?
TIME AND MONEY
One government policy that helps to reduce the risks for businesses is:
TO PASS LAWS THAT ENABLE BUSINESSPEOPLE TO WRITE ENFORCABLE CONTRACTS