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

Competition among businesses has never been greater.Identify and describe several ways that businesses can become more competitive.

Lucy owns a restaurant in Los Angeles.She heard on the radio that the homeland security threat level has been increased due to anticipated terrorist activities,especially in large cities in the U.S.She will likely not be able to get insurance to cover any losses her business may suffer should an attack occur in L.A. Lucy's restaurant is located in a very large U.S.city.Firms have found it difficult to get insurance against terrorist attacks.

Almost all of the growth in employment opportunities since the mid-1980s has been generated by the service sector.

The resources that contribute to the creation of wealth are known as _______.

An activity which seeks to earn a profit by providing a good or service is known as a(n):

Planet Earth Developers is a large nation-wide construction company with home offices in Lansing,MI.The local media often remarks about the pristine landscaping that surrounds the home office that sits on a 30-acre complex.At the back end of the complex are several large warehouses and garages that hold large equipment.The grounds surrounding these warehouses look like a well-maintained park.Across the street from the garages are several shops and businesses.The CEO,"Planet Paul" (as his employees call him),often talks about how thankful he is that the town permits him to store the company equipment at that site,and vows to always maintain the premises for his neighbors (the other businesses that thrive in that area),not to mention that he asks 100 employees to come to work there everyday.Which of the following statements describes Planet Paul's business philosophy?

Mini-Case Sergio Gonzales is employed by Bigbux National Bank,one of the largest banks in the Midwest.He is a loan officer,specializing in home equity loans.Tio Raul,Sergio's favorite (and wealthiest)uncle,passed away last month and left Sergio a sizable amount of money.Sergio is looking at the best way to invest his newly acquired wealth.He is considering many options,ranging from simply putting the money into a savings account to the possibility of starting his own business.Although his bank job pays well and offers pleasant working conditions,Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor.Besides,he's a bit bored and looking for a challenge.He thinks he might get a lot of satisfaction from owning his own business.Sergio has not made a definite decision yet,but has talked to a lot of people searching for a good idea for a new business.If he can come up with an idea he likes,he might just quit his current job and use his inheritance to go into business for himself! -As he explores his options,Sergio notices that some opportunities appear to be riskier than others.When considering various opportunities,Sergio should keep in mind that:

The number of businesses owned by Hispanics and Asians has:

Social entrepreneurs are people who start and manage organizations that are not-for-profit.Their mission is to help others improve their quality of life.

The global environment,

The major difference between businesses and nonprofit organizations is that only businesses can increase the standard of living,while only nonprofit organizations can improve the quality of life. The standard of living refers to the amount of goods people can buy with their money.Both businesses and nonprofit organizations can produce and distribute goods and services,so they both affect the standard of living.Similarly,both businesses and nonprofit organizations can have an impact on the physical environment,health care,and other determinants of the quality of life.

___________ means producing items using the least amount of resources.

An increase in global trade will:

Mini-Case Sergio Gonzales is employed by Bigbux National Bank,one of the largest banks in the Midwest.He is a loan officer,specializing in home equity loans.Tio Raul,Sergio's favorite (and wealthiest)uncle,passed away last month and left Sergio a sizable amount of money.Sergio is looking at the best way to invest his newly acquired wealth.He is considering many options,ranging from simply putting the money into a savings account to the possibility of starting his own business.Although his bank job pays well and offers pleasant working conditions,Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor.Besides,he's a bit bored and looking for a challenge.He thinks he might get a lot of satisfaction from owning his own business.Sergio has not made a definite decision yet,but has talked to a lot of people searching for a good idea for a new business.If he can come up with an idea he likes,he might just quit his current job and use his inheritance to go into business for himself! -Two of his friends approached Sergio with a proposal to start a language school.Sergio is fluent in English and Spanish,and also has an education degree.Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services.He learns that an important demographic trend is:

Efficiency in distribution systems around the world has led to:

Countries with an inadequately trained work force and few entrepreneurs often achieve the highest levels of income by relying on a large number of workers. Poor countries often have plenty of labor and access to adequate capital.However,the two factors of production that are most critical in generating national wealth are entrepreneurship and knowledge.A country found lacking in these will experience relatively low levels of income.

One factor that has had a major effect on businesses is the growth of single-parent families.

The United States has one of the highest standards of living in the world.

Efforts are underway to serve the needs of a diverse population.Diversity means:

Technology refers to everything that makes business operations more effective,efficient,and productive.