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

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

Diversity management would not be an issue if firms would treat all of their employees the same.

The only way a firm can increase its profits is to increase its sales revenue.

It's no secret that Blockbuster™ stores are closing,while Netflix™ is growing like gangbusters! Both companies participate 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 utilize the Internet,and TVs with special modems,to stream videos directly to customers.The company also managed to keep customer costs down,by passing along the savings it realized in labor.Blockbuster did not keep its eye on competitor movements,permitting Netflix to quickly capture video market share.In sizing up the situation,which external environment(s)probably had the least effect on Netflix's success?

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

The evidence for climate change is questionable.Well-known U.S.companies are taking a wait-and-see approach toward addressing climate change.

Dee Duction is a financial planner who helps people find ways to save for retirement and lower their taxes.Cee is employed in the service sector of the economy.

Starting a business always involves _______.

Carlos Gonzalez owns a small manufacturing company that makes ventilation systems used in the construction of office buildings.As the U.S.continues to be involved in wars around the globe,Carlos may notice that his business will be growing more slowly in the future as more money continues to be put into the war effort.

Businesses favor:

Marla Staples is concerned with identity theft.One of the ways that she can protect her information from leaking-out to the wrong hands is:

The government of the nation of Bingland is trying to achieve a high quality of life by imposing strict regulations to protect the environment and ensure safe working conditions in factories and mines.The government also has established ambitious programs to help the poor,financing them by setting high tax rates.These efforts by Bingland's government should create an atmosphere that encourages entrepreneurship.

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

Though it has received a lot of attention,the development of the Internet has had less of an impact on the way businesses operate than many other technological changes.

Gabriella wants to compare the price of a designer bag she saw in a local department store,with other stores that may have the same.She locates the product on three different websites on the Internet,and then stumbles on a site that does the price shopping for her.Gabriella's quest is an example of how customers are using __________ to solve problems.

One of the best things the governments of developing countries can do to increase wealth is to minimize interference with the free exchange of goods and services.

In recent years,businesses in general have experienced a lasting impact due to the emergence of ____________.

How is the profile of business owners changing?

__________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

Several years ago,the government of the small nation of Allegro owned the nation's telephone company and landlines.This relatively poor government relied on taxes to develop this industry and provide service to its citizens.If the government desired to rapidly improve people's access to phone service,its best course of action would involve selling the telephone company to private investors.