MIE 201 Test #1 - Makanui question n answers graded A+ 2023/2024

MIE 201 Test #1 - Environments of Business - correct answer - economic - market - technological - social - legal and regulatory market environment - correct answer - a company's target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers economic environment - correct answer - conditions and forces that affect the cost and availability of goods, services, and labor and thereby shape the behavior of buyers and sellers - influences almost every decision a business makes technological environment - correct answer - forces resulting from the practical application of science to innovations, products, and processes - changes have the ability to change every facet of business disruptive technologies - correct answer - those that fundamentally change the nature of an industry - can be powerful enough to create or destroy entire companies ex: music recording and playing devices changed the music industry social environment - correct answer - population trends, social values and behaviors, relationship of society and business AT LARGE (large scale) stakeholders - correct answer - internal and external groups affected by a company's decisions and activities legal and regulatory environment - correct answer - laws and regulations that restrain, support, and protect businesses at local, state, national, and international levels (some industries are heavily regulated ex: electricity) business - correct answer - any profit-seeking organization that provides goods and services designed to satisfy customers' needs not-for-profit organizations - correct answer - 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 what is the driving force behind most businesses? - correct answer - the prospects of earning profit and building assets what are assets? - correct answer - 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 - correct answer - create value by making things most of which are tangible - tend to be capital intensive service businesses - correct answer - create value by performing activities that deliver some benefit to customers - tend to be labor intensive revenue - correct answer - money that a company brings in through the sale of goods and services business model - correct answer - a concise description of how a business intends to generate revenue profit - correct answer - the amount of money left over after expenses (all the costs involved in doing business) have been deducted from the revenue