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