MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
social environment - population trends, social values and behaviors, relationship of
society and business AT LARGE (large scale)
stakeholders - internal and external groups affected by a company's decisions and
activities
legal and regulatory environment - laws and regulations that restrain, support, and protect
businesses at local, state, national, and international levels
(some industries are heavily regulated ex: electricity)
business - any profit-seeking organization that provides goods and services designed to
satisfy customers' needs
not-for-profit organizations - organizations whose primary objective is to provide goods
and services to society without the goal of making a profit
- also have to bring in revenue in order to satisfy their stakeholders' needs
, MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
what is the driving force behind most businesses? - the prospects of earning profit and
building assets
what are assets? - can be defined as anything owned by the company that can be of
meaningful value (from patents and brand names to real estate and company stock).
goods-producing businesses - create value by making things most of which are tangible
- tend to be capital intensive
service businesses - create value by performing activities that deliver some benefit to
customers
- tend to be labor intensive
revenue - money that a company brings in through the sale of goods and services
business model - a concise description of how a business intends to generate revenue
, MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
profit - the amount of money left over after expenses (all the costs involved in doing
business) have been deducted from the revenue
expenses - all the costs of doing business that are necessary to earn revenue
competitive advantage - some aspect of a product or company that makes it more
appealing to its target customers
risk and reward relationship - fundamental to modern day economies
- a company needs some promise of reward before it is willing to take the risks involved in
creating/selling products
- risks are attached directly to decisions so bad decision = company suffers
barrier to entry - any resource or capability of a company must have before it can start
competing in a given market (large sum of money, equipment, land, etc.)
, MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
business mindset - a view of business that considers the myriad decisions that must be
made and the many problems that must be overcome before companies can deliver the products
that satisfy customer needs
what to consider using the business mindset? - functionality of products?
- marketing of products?
- image of company?
- price of products?
- availability / where to sell product through?
- services?
relationship b/w business and society - weighing the positive and negative effects
- businesses can benefit communities and nations in multiple ways but they can also negatively
impact society it just depends
major functional areas in a business enterprise - research and development
- information technology
- manufacturing / production / operations
Solutions 100% Solved
social environment - population trends, social values and behaviors, relationship of
society and business AT LARGE (large scale)
stakeholders - internal and external groups affected by a company's decisions and
activities
legal and regulatory environment - laws and regulations that restrain, support, and protect
businesses at local, state, national, and international levels
(some industries are heavily regulated ex: electricity)
business - any profit-seeking organization that provides goods and services designed to
satisfy customers' needs
not-for-profit organizations - organizations whose primary objective is to provide goods
and services to society without the goal of making a profit
- also have to bring in revenue in order to satisfy their stakeholders' needs
, MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
what is the driving force behind most businesses? - the prospects of earning profit and
building assets
what are assets? - can be defined as anything owned by the company that can be of
meaningful value (from patents and brand names to real estate and company stock).
goods-producing businesses - create value by making things most of which are tangible
- tend to be capital intensive
service businesses - create value by performing activities that deliver some benefit to
customers
- tend to be labor intensive
revenue - money that a company brings in through the sale of goods and services
business model - a concise description of how a business intends to generate revenue
, MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
profit - the amount of money left over after expenses (all the costs involved in doing
business) have been deducted from the revenue
expenses - all the costs of doing business that are necessary to earn revenue
competitive advantage - some aspect of a product or company that makes it more
appealing to its target customers
risk and reward relationship - fundamental to modern day economies
- a company needs some promise of reward before it is willing to take the risks involved in
creating/selling products
- risks are attached directly to decisions so bad decision = company suffers
barrier to entry - any resource or capability of a company must have before it can start
competing in a given market (large sum of money, equipment, land, etc.)
, MIE 201 Test #1 – Makanui Questions With
Solutions 100% Solved
business mindset - a view of business that considers the myriad decisions that must be
made and the many problems that must be overcome before companies can deliver the products
that satisfy customer needs
what to consider using the business mindset? - functionality of products?
- marketing of products?
- image of company?
- price of products?
- availability / where to sell product through?
- services?
relationship b/w business and society - weighing the positive and negative effects
- businesses can benefit communities and nations in multiple ways but they can also negatively
impact society it just depends
major functional areas in a business enterprise - research and development
- information technology
- manufacturing / production / operations
