Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

In rich countries such as the United States, changes in the level of taxation have little impact on the incentives of entrepreneurs.

Blockbuster stores shuttered their doors but Netflix is still growing. Both companies participated in the video rental business. Netflix evaluated the lifestyle needs of video customers, understanding that time, family, and work obligations called for more convenient methods to receive video entertainment. Netflix embraced the opportunity to stream videos directly to customers and create their own content. The company also managed to keep customer costs down, by passing along the savings it realized in labor. Blockbuster did not pay enough attention to competitor movements, permitting Netflix to quickly capture video market share. Which external environment probably had the least effect on Netflix's success?

________ means producing items using the least amount of resources.

China is a nation with a vast amount of land and a very large population. Another characteristic of this nation is its people's affinity for saving money. Referring to the five factors of production, the government of China has made significant progress in building its business environment by focusing on factors that needed improvement. Its best strategy would be to

SmoothCoats produces industrial coatings for the steel industry. Until recently it relied on wholesalers to distribute its products to other businesses, but now it also sells directly to its B2B customers through its website. This is an example of the largest and most important type of e-commerce transaction.

In countries where businesses cannot enter into binding contracts, business owners assume additional risk.

In order to compete well and gain market share, contemporary businesses are changing to be more

War and terrorism have had a significant effect in drawing many resources away from the U.S. economy and led to many additional costs for businesses.

Political freedom, quality education, access to health care, and a clean environment are all factors that contribute to an improved quality of life.

Which of the statements about demography is most accurate? Demographic studies:

The main difference between B2C and B2B e-commerce is that B2C is only used online, while B2B combines e-commerce with traditional (bricks-and-mortar) outlets.

Insourcing creates new jobs, and helps offset the number of jobs being outsourced.

Corruption and illegal activities are expected in a capitalist system and can be beneficial.

As you consider the factors of production, which of the following did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth?

Business decisions should consider the interests of customers, employees, suppliers, government leaders, and stockholders.

In some cities, the number of legal and illegal immigrants has caused governments to adapt by changing signs and forms to other languages.

Due to population shifts,

When we compare the factors of production in wealthy versus poor nations, we find

Empowerment means giving frontline workers the responsibility, authority, and freedom to respond quickly to customer requests.

War and terrorism in many parts of the world should lead to