Fashion Business Practices Midterm

Temont Esson, a pharmaceutical company, saw a drastic increase in its sales in 2016 when compared to 2015. A survey showed that the growing percentage of the elderly was directly responsible for improving the company's sales. Identify the dimension of the social environment that this scenario exemplifies.

Aging population

Which can be considered a business?

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

Welterwes, a multinational company, has 15 members in its top management. These executives have to abide by the same company policies as the other employees. However, when it came to light that the executives were not following the appropriate office timings and were abusing their power, the HR department had to pass new policies aimed specifically at the top management. These policies stated that the executives would lose a part of their monthly commission if they failed to abide by the company policies. Identify the dimension of the social environment that this scenario exemplifies.

Ethics

What is the difference between inflation and defaltion?

Inflation is a period of rising average prices across an economy, whereas deflation is a period of falling average prices across the economy.

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.

Small firms tend to be effective innovators for a number of reasons. Most importantly, their very reason for being often ties to:

a brand new-idea

A sole proprietorship is a form of business ownership in which:

a single owner actively manages the company

A business plan is ....

absolutely crucial for obtaining outside funding.

In the context of the various strategies that can help a small business owner succeed, a ____ provides an invaluable way to keep an entrepreneur and his or her team focuses on success; it is also absolutely crucial for obtaining outside funding.

business plan

the economic system of the United States is called ______

capitalism

roggenok, a textile company, owns 15 factories that produce clothing materials. The company has 1500 employees working in shifts. In this scenario, the factories owned by Roggenok can be classified as ______

captial

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

Beyond the sheer value of goods and services they generate, small businesses make a powerful contribution to the U.S. economy in terms of:

creating new jobs.

during an especially difficult year of weakening financial conditions, the government of Geriva, a European nation, borrows money to meet its financial obligations. However, once the borrowed amount reaches a certain limit, the government is not allowed to borrow more money. If this was to happen in the United States, it could be said that this is because the government has hit the _____

debit ceiling

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

demographics

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

entrepreneurship era

Larry is part of the board of governors that manages U.S. monetary policy. He has been elected by the president to serve a single 14-year term. In addition to setting the monetary policy, he is responsible for extending banking services to commercial banks. In this scenario, Larry is most likely part of the _______

federal reserve

Troboli is a North American country. The total value of all final goods and services produced in Troboli in the last fiscal year was 3.3% more than the year before that. This growth placed Troboli in a better position than most of its allies. In this scenario, the total value of all final goods and services through which the economic condition of Troboli was assessed is known as _____

gross domestic product

Microeconomics focuses on:

individual businesses

In the context of fiscal policy, which of the following actions by the government helps boost the economy in the long term?

investing in public assets, such as a national renewable energy grid

the federal reserve...

it manages the monetary policy of the United States.

A ____ is a form of business ownership that offers both restricted responsibility to its owners and flexible tax treatment.

limited liability company

Chloe and Tamara start a vintage fashion boutique. While both invest equally in the store and are entitled to equal profits, it is Tamara who looks after the day-to-day business transactions and manages the store. Chloe does not actively participate in managing the store, and her personal wealth is not at risk in case the business suffers losses. In this scenario, Chloe is a _____.

limited partner

In the context of small business opportunities, because of their size, many small firms can:

offer personal customer service

A ____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

partnership

Monclaire, a chain of luxury hotels, uses social media for promotional purposes. It also maintains a dedicated interactive Web page where customers write detailed reviews and discuss their experiences. In the context of the history of American business, Monclaire most likely belongs to the _____.

relationship era

In the context of price levels, which of the following is sued by the government to evaluate inflation.

the consumer price index

Picexellate, 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 enviroment

Nonprofit organizations

they are not business-like establishments.

Successful firms...

they deliver unsurpassed value to their customers.

What is a true statement about small businesses in the context of the U.S. economy?

they often display a refreshing lack of bureaucracy.

The Difference between Gen Z and millennials is

unlike the millennial generation, generation z approaches adulthood planning to work for success.

When people use the term "corporation" without specifying which type, they are generally referring to a ____

C corporation

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

Joshua and Hubert are the co-owners of a shoe manufacturing company. They have a disagreement over company policies and business methods. Following the discord, Joshua withdraws from the company and comes under the obligation to pay a sum of $10,000-the debts of the firm that are due at the time of his withdrawal. In the given scenario, Joshua and Hubert most likely ______.

have a general partnership

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

loss

In the context of limited partnerships, which of the following statements is true of limited partners?

Their personal wealth is not at risk as long as they do not actively participate in managing the company.

The West Asian country of Quinland is experiencing an economic downturn. There has been a decrease in its gross domestic product for two consecutive quarters. In this scenaior, Quinland is most likely facing an ______

economic recession

Debbie, along with Mick and Rory decide to start a new catering business. She invested her time, money, and efforts in the project, and she directly managed the business development process. In this scenario Debbie is most likely an ____

entrepreneur

Rachel runs a fashion boutique. She employs five seamstresses to help her in her work. She gives them flexible work hours and usually allows them to work from their respective homes. However, Rachel does not provide health-care facilities to her employees, and instead, she uses the financial resources to buy high-quality fabrics. The opportunity of _____ is highlighted in the given scenario.

having lower overhead costs

Ronit has been involved in many start-up projects. However, none of his ventures have been successful because of severe competition in the market and personal issues such as poor health and lack of dedication. Which of the following threats is highlighted in the given scenario?

high risk of failure

Children's Campground is a summer program for school children, it advertises that there is one consoler 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

Macroeconomics involves the study of

the gross domestic product of a country

When buying a franchise, _____

the initial purchase price can be steep

In the context of the statistics provided by the U.S. Small Business Administration (SBA) ____

the opening of new businesses has accounted for over 40% of net new jobs in the U.S. economy over the past two decades

What are the characteristics of entrepreneurs

they risk their time, money, and other resources to start and manage their business.

Which of the following statements is true of entrepreneurs who posses tolerance of failure?

they tend to view nonsuccess as a chance to learn

Which of the following is a characteristic of successful entrepreneurs?

tolerance of uncertainty

An advantage of franchising is the

training and support provided by the franchisor.

Which of the following is a powerful contribution made by small businesses to the U.S. economy?

vitalizing inner cities