Business Principles 1301- Chapter 1

Millennials outnumber digital natives by one million people.

False

In the context of the diversity in the American population, Caucasians continues to present the largest chunk of the population at 63%

True

The Federal Trade Commission:

Actively promotes fair competitive practices

Ricord Books, a publication house, faced huge losses after 2008. The majority of its readers were born during the late 1950s, whose population was rapidly declining. Most modern readers preferred using e-books rather than reading from hard copies. This resulted in a decrease in the sales of Ricord Books. Identify the dimension of the social environment that this scenario exemplifies.

Aging population

Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are part of its staff. Children's Campground advertisements indicate that the program relies heavily on its _________ factor to provide its services.

Human resources

Torino Mex, a men's fashion boutique, is renowned for creating designer clothes for Latino Americans. However, it introduced a new line of designer clothing that especially caters to young Hispanic Americans to widen its customer base. Which of the following dimensions of the social environment is highlighted in this scenario?

Diversity

Demographic factors include the milestones achieved during the developments in the field of computers, telecommunications, and other digital products.

False

In the United States, nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined.

False

In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them.

False

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

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 product innovations.

False

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

False

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

False

In the context of the workforce advantage in the business environment, finding and holding the best talent will likely become a crucial competitive issue in the next decade as the baby boom generation begins to retire. However, job market contraction may not be an issue, because:

Many baby boomers opt to postpone retirement in the face of inadequate financial resources

Marina, a garments manufacturing company, signed a contract with Tertch Tex, a textile company, to receive 2 million pounds of yarn at a rate of $2 per pound. However, Tertch Tex hikes up the price to $5 per pound just before the day of delivery. Marina files a lawsuit against Tertch Tex for breaking an enforceable contract and receives $100 million in compensation. In this context, which dimension of the business environment is affected the most?

The economic environment

When Ruben wanted to start a new online news service, he was skeptical about investing in it because of the financial crisis in his country. However, he was put at ease after learning about the government's policy of levying low federal taxes on startup businesses. In this context, which dimension of the business environment is affected the most?

The economic environment

Which of the following statements is true of nonprofit organizations?

They employ people and take in revenue.

Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.

True

Digital natives only spend when a business offers them value

True

In the context of your career choice, the broader economy will influence the level of your personal financial success.

True

The central banking system of the United States is the Federal Reserve.

True

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

True

Which of the following is a difference between the millennial generation and Generation Z?

Unlike the millennial generation, Generation Z approaches adulthood planning to work for success.

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