Understanding Business 12th Edition Chapter 1

9. Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling football memorabilia outside of the hometown stadium. Their first year went well, but the past two years have been a real struggle. Due to poor economic conditions including loss of jobs, ticket sales at the stadium are down, which has significantly hurt their sales as well. As a recent business school graduate, you explain to Ben and Chris that: A. this type of business is always high risk because it is seasonal. B. the business does not fill a sufficient need for most people. C. environmental circumstances are dynamic and tough to control. D. social entrepreneurs are currently getting most of the attention.

16. Ntercon is an Internet-based company that provides online support services for businesses that need help in setting up and maintaining their websites. Ntercon is an example of a company that is engaged in: A. B2C e-commerce. B. N2Y e-commerce. C. Y2K e-commerce. D. B2B e-commerce.

19. Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate? A. E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively over the Internet. B. Traditional brick-and-mortar firms will enter the e-commerce market by creating their own web sites. C. E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets. D. Brick-and-mortar businesses will cease to exist within twenty years.

25. Andy Blake got a call yesterday from Planet Bank, the company that issued his credit card inquiring about an $85.00 charge made in Caracas, Venezuela. Upon learning that Andy had not made this purchase, the bank quickly took steps to cancel the card and issue a new one. Given the circumstances that Andy's credit card number had an illegal transaction, Andy may also want to: A. check his computer's firewall to make sure it’s working. B. cancel his account with Planet Bank, altogether and eliminate credit cards from his life. C. check his credit report. D. diversify his spending habits by using one of several credit cards when making purchases.

27. Greg is working as a marketing trainee for an online music and video retailer. His boss called a meeting for next week with one thing on the agenda: "Bring with you your ideas about how we can gain a competitive advantage." Greg plans to provide the following response: A. create a management-driven environment with lots of employee training. B. create a customer-driven environment where we constantly try to create customer value. C. restructure the organization so that there is always a manager on duty to chat with online customers who are having problems with their orders. D. always match the promotions of our competitors. Price is the only thing customers care about.

29. Which of the following statements best describes how firms must treat their front-line workers in order to remain competitive? Front-line workers must be ____________. A. empowered with the authority to respond quickly to the unmet needs of customers B. closely supervised to reduce the risk of product liability and discrimination law suits C. eliminated and replaced with automated equipment whenever possible D. relieved of any burden to make a customer decision

32. Businesses collect ________ information on where people live, what they buy, and how they spend their time. A. geometric B. econometric C. demographic D. anthropologic