Satellite Communications

Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers. After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer base. He was happy to have this opportunity because it was a dream that he had always had. He had always wanted to make his own decisions about what his company would produce and how. The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success. 20. Refer to Satellite Communications. Jonathan is operating in a ____ because he has the opportunity to decide what and how to do things. a. command economy b. mixed economy c. free-enterprise system d. split economy e. cultural diversity ANS: C PTS: 1 DIF: Mod. REF: p. 4 OBJ: 1-1 NAT: AACSB: Analytic TOP: Scenario Questions 21. Refer to Satellite Communications. When hiring people, Jonathan thinks it is important to consider a. unilateral thinking. b. profit. c. wage increases. d. health benefits. e. cultural diversity. ANS: E PTS: 1 DIF: Easy REF: p. 6 OBJ: 1-1 NAT: AACSB: Reflective Thinking TOP: Scenario Questions 22. Refer to Satellite Communications. Which company has the correct objective? a. Satellite Communications b. Universal Communications c. Both of them d. None of them e. Not enough information is provided. ANS: B PTS: 1 DIF: Mod. REF: p. 10 OBJ: 1-2 NAT: AACSB: Reflective Thinking TOP: Scenario Questions 23. Refer to Satellite Communications. Now that Jonathan plans to open his own business, he needs to look at the factors of production. Which of the following is not a factor of production? a. Labor b. Capital c. Machinery d. Demand e. Entrepreneurship ANS: D PTS: 1 DIF: Diff. REF: p. 12-13 OBJ: 1-3 NAT: AACSB: Analytic TOP: Scenario Questions 24. Refer to Satellite Communications. Jonathan's success will contribute to society. This is referred to as the a. objective. b. market economy. c. business cycle. d. invisible hand. e. standard of living. ANS: D PTS: 1 DIF: Diff. REF: p. 14 OBJ: 1-3 NAT: AACSB: Analytic TOP: Scenario Questions Home Inspirations Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Hailey plans on taking over the business. Hailey is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, any other time, sales are not so good. Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increase, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company. 25. Refer to Home Inspirations. Hailey noticed that when sales were up, the economy was in a a. depression. b. peak period. c. grace period. d. recession. e. stagnant mode. ANS: B PTS: 1 DIF: Mod. REF: p. 20 OBJ: 1-4 NAT: AACSB: Analytic TOP: Scenario Questions 26. Refer to Home Inspirations. Home Inspirations currently operates in a ____ environment. a. purely competitive b. demand c. monopolistic d. command e. supply ANS: C PTS: 1 DIF: Mod. REF: p. 23 OBJ: 1-5 NAT: AACSB: Analytic TOP: Scenario Questions 27. Refer to Home Inspirations. Hailey feels that for productivity to improve, the company must practice a. free enterprise. b. work ethics. c. specialization. d. cultural diversity. e. pure competition. ANS: C PTS: 1 DIF: Easy REF: p. 23 OBJ: 1-6 NAT: AACSB: Reflective Thinking TOP: Scenario Questions