MIE 201 Test 1 Questions with Verified Answers

MIE 201 Test 1 Questions with Verified Answers ___ is the money a company generates through the sale of products and services revenue A(n) _______ is a firm pursing profits that offers products and services projected to fulfill consumers' needs. business The framework that outlines how a firm plans to generate revenue is known as a(n) ____________. business model In a business, after all expenses are paid, the leftover money is called ___________. profit Company LMT competes with other companies in the industry by offering the lowest prices around. By offering products at the lowest possible cost compared with other companies, Company LMT has a(n) ____________. competitive advantage ____________________ attempt to operate efficiently and effectively to accomplish their goals but are not motivated by profits. not-for-profit organizations _____________ create value by making tangible and intangible things. goods-producing business Service businesses create value by performing activities that provide benefits to consumers, such as _____________. enteratainment Every company takes risks in order to conduct business. Which of the following statements linking risk and reward is not correct? A.Without entrepreneurs and companies willing to accept risk, very little would get done in the economy. B. The risk associated with business decisions needs to stay attached to those decisions. C.Businesses take risks in anticipation of future rewards. D. Without rewards, businesses would have no incentives to take risks. E. Any company that believes it can pursue rewards without facing risks has strong decision- making entrepreneurs. E. Any company that believes it can pursue rewards without facing risks has strong decision-making entrepreneurs. The _________ environment involves trends and forces in society, such as population trends affecting companies, changing consumer markets, and fluctuations in the workforce. social The ________ environment involves the application of science to innovations, products, and processes. technological ___________, such as smart phones and social media, fundamentally change the nature of an industry and can be influential enough to create or destroy whole companies. disruptive technologies The _____________ involves the circumstances that form the behavior of consumers and merchants and affect the cost and accessibility of products and services. economic enviroment The _________________ is comprised of specific consumers, influences that affect the purchasing behavior of those consumers, and competitors that sell similar products to those consumers. market enviroment __________ is the functional area in charge of visualizing and creating new products. research and devlopment