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Chapter 1 Review Questions

Topics: Economics / Pages: 5 (1407 words) / Published: Jan 23rd, 2015
Dusti Austin

Chapter One

Business Now: Change Is the Only Constant

Review Questions

What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?

Factors that contribute to the rapid change of pace in a business include acceleration with entrepreneurships, understanding the market, conducting long term profits, evaluating risks, and also their business avoids pitfalls. The pace for a business will have their ups and down just like any other business, the acceleration of their pace will accelerate when the economy is doing well where people will put their time and money into it, but other times the pace will decrease when the economy isn’t producing enough for people to be able to give what they want to give into a business. So in all, the pace of a business is all in the hands of its consumers.

What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit?

The role that entrepreneurship plays in the economy is that it creates jobs for advertisers and contractors, which is essential for the economy. Entrepreneurship also drives up the standard of living, which leads to a higher quality of life that people can live in. These parties benefit from working together, by means that once the entrepreneurs come into an area to create jobs it then gives business the option to raise prices which led to higher income for them due to the entrepreneurs who are will to pay a certain amount to be able to be where they have to be to succeed.

When did American business begin to concentrate on customer needs? Why?

American businesses began to concentrate on customer needs after WWII because they figured out that customers help make companies successful during the marketing era.

How do nonprofit organizations compare to businesses? What role do nonprofits play in the economy? How do they interact with businesses?

Nonprofit organizations compare to business by the fact that they improve the quality of life in society and that their primary goals are not to make profits like an business, but yet the non-profit organization still employ and make revenue like businesses and spread the organizations nationwide. The role that nonprofits play in the economy are businesses that are charitable. These business help out people in need that are having difficulty paying for normal day to day resources. They interact with business by have businesses donate items, such as a bakery making cupcakes for an event, or even a water company supplying bottles of water at a local food bank.

What are the factors of production? How can economies grow when one or more of the factors is weak?

The factors of production include land, labor, capital and entrepreneurship. Economies grow when one or more of the functions are week because though it is possible for specific factors employed to make specific products to be short in supply. In such circumstances, producers probably would try to offer a substitute for what factors were more available. Other products, you might realize, are not as good once they are replaced, but overall the economy as a whole would still continue to grow only if one of the factors were weak, especially when talking about continuing your saving and investments.

What are the 5 dimensions of the business environment? Discuss the key elements in each area as they relate to U.S.-based businesses.

The 5 dimensions of the business environment include economic environment, political environment, social environment, legal regulatory environment, and technological environment. Economic environment relates mainly to the leadership part of business, it is broken down into 3 parts including the economic system, economic policies, and economic conditions. This sections talks about the right and wrong ways to deal with the leadership position in a business. Political environment deals with the outcome of combinations of various ideologies advocated by different political parties. Social environments deals with the effect of various social factors on a business that is natural. Legal regulatory environment is used to time in order to control and regulate business activities. Finally, Technological environment included the discovery of new methods and implements for the production of goods and services.

What are some key strategies for developing a competitive edge in today’s competitive global market? How important is customer satisfaction?

Some key strategies for developing a competitive edge in today’s competitive global market includes natural resources like land, water, and mineral deposits. Capital, machine, tools, and building are also needed. Information and technology are included, as well as human resources including physical, intellectually, creative contributors. Mainly entrepreneurship because that is the biggest risk you have to take for launching a business on your won. Customer satisfaction is extremely important because your customers are the ones who let everyone know about you, and if they have even the smallest amount of poor customer service, they will let people know about it, so its better to always give great customer service so that you will always have a positive outlook with your customers.

8. How has the rise of the World Wide Web changed business practices? What are the benefits and drawbacks for business? For consumers?

The rise of the world wide web has changed business practices dramatically because of how much more opportunity it giver customers to reach your business. The benefits to this are huge due to if you do put up a website for your business than that gives people all around the world to be able to buy your product. The only downfall to this is that if you’re a business that sells things like perishable goods that can’t be shipped to your house by mail, or you’re a business that can’t afford to get the online businesses going, than people more now a days prefer to go shopping online instead of going and standing in long line, which couldn’t eventually put a damper on your business.

9. How has the definition of diversity changed over time? Can a diverse workforce help a company compete more effectively? How?

The definition of diversity has changed over time by the way people choose to look at the term. Overall diversity has always been about the difference between one another that we as humans see. I believe that a diverse workforce can help a company compete more effectively because it will give the company numerous numbers of opinions on how everyone sees things in their own way. That way hopefully the company can take all that information and put it all into one thing that everyone will agree on and like.

10. How has the global free trade movement impacted business? Who benefits? Why? Who loses? Why?

Businesses are now able to reach more customers thanks to the global free trade movement. The internet has been a crucial factor in the growth of the globe trade. Business that have access to an online version of their business benefits because more people can order items from them, but for they businesses that don’t own a website, this could mean lots of loss for their company.Chapter One
Business Now: Change Is the Only Constant
Review Questions
What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?
What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit?
When did American business begin to concentrate on customer needs? Why?
How do nonprofit organizations compare to businesses? What role do nonprofits play in the economy? How do they interact with businesses?
What are the factors of production? How can economies grow when one or more of the factors is weak?
What are the 5 dimensions of the business environment? Discuss the key elements in each area as they relate to U.S.-based businesses.
What are some key strategies for developing a competitive edge in today’s competitive global market? How important is customer satisfaction?
8. How has the rise of the World Wide Web changed business practices? What are the benefits and drawbacks for business? For consumers?
9. How has the definition of diversity changed over time? Can a diverse workforce help a company compete more effectively? How?
10. How has the global free trade movement impacted business? Who benefits? Why? Who loses? Why?

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