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

Demographic trends suggest that businesses will benefit from offering flexible work schedules,eldercare,and childcare to help employees balance the demands of job and family. The increase in the number of single parent families is a powerful demographic trend.Successful organizations will adjust and accommodate these changes in their social environment.

__________ is the amount a business earns after deducting what it spends for salaries and other expenses.

A recent New York Times article about Bernard Madoff and his illegal Ponzi scheme stated,"When money goes global,fraud does too." Although the goal of investors who trusted Madoff's investment company was to earn the highest return possible on their investments,they turned a blind-eye toward the fact that some of those returns were too good to be true.Individual investors,companies,and even charities lost large sums of money by investing with Madoff's company.Which of the following statements relates to this story?

As emerging technologies become widespread,businesses tend to find better uses for them.However,in the case of the Internet,businesses that sell B2B have not benefited from directly selling to their business customers in the same way that B2C companies have done. The Internet has become an important business tool in both the B2B market and the B2C market.

Business decisions should consider the interests of customers,employees,suppliers,government leaders,and stockholders. All stakeholders stand to gain or lose by the policies and activities of a business.A major challenge of businesses is to improve profits while trying to accommodate the interests of all stakeholders.

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. The war in Iraq has drawn billions of dollars from the American economy.Most companies have lost workers to the armed forces and have grown more slowly as money has been diverted to the war effort.

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.

By balancing the demands of customers and stockholders,businesses satisfy the demands of all stakeholders. Customers are interested in benefiting from the products and/or services produced by businesses.Stockholders are usually profit oriented.Stakeholders encompass customers,suppliers,employees,stockholders,government organizations,environmental groups,and other organizations that are somehow affected by the business in question.

Information in a database allows firms to carry only the products that the local population wants.

Charles Malone recently renewed his card membership at DiscountMania.The card has an annual $40 fee,but Charles believes that it pays for itself because he receives good prices on electronics,contact lenses,and even tires for his car.Shortly after renewing the card,Charles began receiving calls from collection agencies claiming that he owed money.With the help of others,he learned that another Charles Malone also owned a DiscountMania card,and wrote checks with insufficient bank funds when making purchases.DiscountMania had linked Charles' personal information with the other Charles Malone's personal information.Charles experienced ______________.

Public schools,charities and government agencies generally __________.

Which of the following best describes recent job growth in the service sector?

Preferred Pet Care,Inc. ,a mobile veterinary 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 Preferred Pet Care's service in the future?

Successful businesses are keenly focused on their:

Lamar is a salesperson for Bi-State Direct.He really appreciates the amount of freedom and authority Bi-State gives its sales people in order to better meet the needs of customers.Lamar's experience suggests that Bi-State practices:

Which of the following is an advantage of utilizing technology?

The threat of terrorism increases the costs of operating most businesses.

One advantage of a database is:

The U.S.population tends to buy the same things and spend time in roughly the same way as people did a decade ago.

SleekWrap is a company that 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 business customers through its website.This is an example of the largest and most important type of e-commerce transaction. As important as the Internet has been in the consumer market (B2C),it has become even more important in the business-to-business (B2B)market.