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

Pets on the Run, Inc., a mobile pet care company, is planning for the future. As a business student who has studied social trends, which of the following statements reflects the need for Pets on the Run's service in the future?

Identity theft is when individuals or firms access people's personal information and then use it for illegal purposes and activities.

An increase in global trade will:

Competition is fierce! One way to respond quickly to customer needs is to develop a strategy of empowering employees.

Outsourcing means selling goods and services to people in other countries.

Starting a business always involves ________.

Tomas recently graduated with honors from his college. He has bragged to his friends that his academic performance has prepared him so well for a successful career that he can find a job with ease and forget school or training in his future. In evaluating the future of the workplace, Tomas is

Eli's frustration with his lack of freedom at work indicates that Second Commercial

Describe three ways that governments can foster entrepreneurship and encourage the creation of wealth.

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?

Natalie has joined several other investors to form a new company that sells cosmetics products to consumers online. Natalie has invested in a B2C e-commerce company. 

Improved distribution systems have led to more global trade.

Which of the following is a benefit of owning your own business?

Companies that participate in the defense industry by making weapons and other companies that make armored vehicles and even food companies do well when the U.S. is at war.

Public schools, charities, and government agencies generally ________.

Juan is a salesperson for Floor Masters, Inc. He really appreciates the amount of freedom and authority the company gives its sales people in order to better meet the needs of customers. Juan's experience suggests that Floor Masters practices 

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

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

Nonprofit organizations use financial gains to meet stated social or educational goals of the organization rather than personal profit.

________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment.