Exam busniess
By embracing innovative technologies to improve efficiency
How can businesses benefit from technological disruption?
It facilitates global connectivity and market expansion.
How does technological disruption impact the global business environment?
Supply chain disruptions
Natural disasters and pandemics can cause:
social factors
Procter & Gamble added new fragrances to its laundry detergent line in an effort to appeal to Hispanic consumers, a demographic that likes to use fragrances in their homes. This is an example of changing ________ in the business environment.
material
Raw materials, buildings, and machinery are ____ resources.
False
True or False Because e-businesses use the Internet, there is no need to meet the needs of their customers.
Consumer behavior
What can societal values and lifestyles affect?
A slow evolution of technology over time
What is technological disruption?
Social
Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
Smartphones
Which of the following is an example of a disruptive technology?
Eighty percent of Fortune 500 companies have a presence on Facebook
Which of the following is the best example of how technology factors affect the business environment?
technology
Amazon is now one of the top 10 largest retailers in the United States, even though they don't have any substantial physical retail presence. This illustrates the impact of _____ factors in the business environment.
social
An increase in marketing to Hispanic consumers and an expected increase in health care spending in the United States are examples of how _____ factors are impacting the business environment.
business plan.
Before seeking financial backing for his business, Tyler puts together a document explaining the goals, milestones, and projections for the business. Tyler has constructed a(n):
Sales revenues stayed the same while expenses decreased
Bob's Dairy Whip discovers its profits are down from the previous quarter. Which of the following would not be an explanation for the decrease in profits?
inflation may be spiraling out of control.
CPI increased by 10% last month, alarming economists. This news is an indication that:
technological
Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.
Economic
Even though the recession of 2008 ended several years ago, youth unemployment continues to be higher than at most times in our country's modern history. This is an example of youth being impacted by which factor of the business environment?
Economic
If you have trouble finding a job because the majority of businesses have falling revenues and profits, you are being impacted by what factor of the business environment?
the owner is responsible for all business debts and legal liabilities.
In terms of business ownership, unlimited liability means:
Global
Increased competition from firms in other nations is an example of which factor in the business environment?
economic
Legislation that supports enforceable contracts usually forms part of an organization's _____ environment.
mixed
The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a _____ economy.
corporation.
The most effective form of business organization for raising capital is the:
board of directors.
The top governing body of a corporation is known as the:
Economic
Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?
Population income
Which of the following is most likely to be part of the social dimension of a business environment?
Delay non-essential projects requiring financing
How might businesses adjust to higher borrowing costs during periods of rising interest rates?
False
True or False A person must own stock in a corporation to be considered a stakeholder.
True
True or False Economics is the study of how wealth is created and distributed.
True
True or False In order for a business to be successful, it must be organized, it must satisfy needs, and it must make a profit.
True
True or False Statistically, one can expect about 50 percent of new businesses to fail within five years of their founding.
False
True or False The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.
False
True or False The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.
False
True or False The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.
False
True or False Technological disruption always has a negative impact on businesses.
False
True or False. The SBA is a private organization rather than a government agency.
Industry competition
What affects pricing, market share, and profitability within an industry?
Expansion of affordable housing projects
What aspect of the real estate market is likely to be affected by higher mortgage rates due to increased interest rates?
Borrowing costs and investment decisions
What do fluctuations in interest rates impact?
Consumer behavior
What do population trends such as age distribution and cultural diversity influence?
Market dynamics and supply chains
What does increasing global competition impact within the business environment?
Emergence of new players and changes in market leaders
What is a common effect of technological disruption on the competitive landscape?
Increased borrowing costs
What is one potential impact of higher interest rates on businesses?
Sole proprietorship
Which of the following ownership structures holds a business owner personally responsible for all debts of the business?
subject to pass-through taxation.
A limited liability company is:
Recovery Phase
After several years of high unemployment rates, businesses are hiring more employees after reporting several quarters of increased profits. The economy is likely in a:
Demographic Environment
All of these can have an effect on the business environment except:
The increase of manufacturing in lower wage countries like China is part of the reason prices for DVD players and televisions have continued to decrease, even as technology has improved. This is a benefit of _____ factors in the business environment.
The increase of manufacturing in lower wage countries like China is part of the reason prices for DVD players and televisions have continued to decrease, even as technology has improved. This is a benefit of _____ factors in the business environment.
sales revenue - expenses = profit.
The relationship between sales and profits can be written as:
