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

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S.business community. The textbook provided the example of the failure of mortgage brokers to perform due diligence on their customers.In their quest to capture a large home buying market,they failed to check the credit worthiness of their customers.As interest rates on adjustable rate mortgages increased,some homeowners were unable to pay their mortgages.The ripple effect of these failures led to job loss,which sent many homes into foreclosure.

To implement a policy of empowerment,the organization will restructure so that:

Often the needs of a firm's various stakeholders will conflict.

Businesses provide goods,jobs,and services to others.

China and India have become major U.S.competitors.

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. Although wars are quite costly for most companies,there are some whose revenues and profits grow.These are usually companies with government contracts that support the war effort.

A(n)____________ is a person who assumes the risk of starting a business.

The series of lines on a product packaging that the cashier scans when you check out at a grocery store or discount store is called a:

Profits of a business include the salaries paid to its employees.

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 strategy was to:

Diversity management would not be an issue if firms would treat all of their employees the same. A diverse workforce can consist of minorities,women,the disabled,homosexuals,atheists,and the devout.These differences can be a strength only if management works to meet the needs of each group while achieving the organizational goals.The interaction of these different views can encourage new perspectives and creative approaches to solving problems.

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

Empowerment means:

The green movement is:

Employers provide tools and technology for their employees in order to:

Because of increased trade,there is now an increased interdependence in the world.

The growth of Hispanic owned businesses:

Since all businesses make a profit,starting a business is not risky.

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! -If Sergio starts his own business,his firm's activities and policies will impact many different groups and individuals,including employees,customers,creditors,suppliers,and people living in the community where his business is located.Which of the following statements represents how Sergio should deal with these various groups? Sergio should:

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. Government can actively promote entrepreneurship by encouraging private ownership of businesses.If the government owns the businesses there is little incentive for people to work hard to create profits.