Question 1

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-Two of his friends approached Sergio with a proposal to start a language school. Sergio is fluent in English and Spanish, and also has an education degree. Sergio is strongly considering the idea but also wants to know if there is a growing demand for his services. He learns that an important demographic trend is:
A) the service sector is likely to decline in significance in the next few years.
B) the number of young children in the U.S. will decrease significantly over the next few years as the population of the country levels off.
C) the number of immigrants from South and Central America is increasing steadily in his area, and across the nation. Professionals in hospitals and schools need to know how to speak Spanish. Immigrants need to know how to speak English.
D) the number of retirees is decreasing, making way for a younger generation.

Accepted Answer

The growing demand for Spanish and English language instruction due to the increasing number of immigrants from South and Central America make starting a language school a potentially profitable venture for Sergio.

Question 2

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-As he explores his options for starting a new business, Sergio has looked into the tax implications and government regulations that he would encounter. He wants to maintain an office in a different location from his home. He has discovered that some nearby communities offer tax credits and lower taxes than his town. Sergio's decision will be influenced by the:
A) demographic environment.
B) technological environment.
C) socio-religious environment.
D) economic and legal environment.

Accepted Answer

Sergio's decision will be influenced by the economic and legal environment, specifically the tax implications and government regulations he would encounter. The nearby communities offering tax credits and lower taxes also fall under the economic and legal environment. The other options, demographic, technological and socio-religious environments, are not directly related to Sergio's situation in this scenario.

Question 3

Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement.

Accepted Answer

The answer of Describe what we mean by greening and...

Question 4

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-As he explores his options, Sergio notices that some opportunities appear to be riskier than others. When considering various opportunities, Sergio should keep in mind that:
A) he will be better off picking a low risk business opportunity, since the safest ones are usually the most profitable as well.
B) even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another.
C) high risk business opportunities often have the potential for high returns as well.
D) government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk.

Accepted Answer

Sergio should keep in mind that high risk business opportunities often have the potential for high returns as well. While low risk opportunities may be safer, they may not have the same potential for profit as the riskier options. Sergio should carefully consider the level of risk he is willing to take on before making a decision, but he should also recognize that with higher risk comes the potential for higher reward.

Question 5

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-Sergio's frustration with his lack of freedom and flexibility at work indicates that Bigbux:
A) prefers the use of cross-functional teams rather than individual initiative.
B) has not adopted a strategy of empowerment.
C) knows that the best way to ensure good customer service is to closely monitor its lower-level employees.
D) is trying to please customers as well as other stakeholders.

Accepted Answer

Sergio's frustration with his lack of freedom and flexibility at work suggests that Bigbux has not given him the autonomy to make decisions on his own, which is a key aspect of an empowerment strategy. This may indicate that Bigbux prefers a more centralized decision-making approach, rather than allowing individual initiative.

Question 6

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.

Accepted Answer

The answer of Trace the evolution of American business. Identify...

Question 7

Mini-Case
Sergio Gonzales is employed by Bigbux National Bank, one of the largest banks in the Midwest. He is a loan officer, specializing in home equity loans. Tio Raul, Sergio's favorite (and wealthiest) uncle, passed away last month and left Sergio a sizable amount of money. Sergio is looking at the best way to invest his newly acquired wealth. He is considering many options, ranging from simply putting the money into a savings account to the possibility of starting his own business. Although his bank job pays well and offers pleasant working conditions, Sergio is frustrated because he has little freedom or flexibility to deal with customers since every decision he makes must be approved by his supervisor. Besides, he's a bit bored and looking for a challenge. He thinks he might get a lot of satisfaction from owning his own business. Sergio has not made a definite decision yet, but has talked to a lot of people searching for a good idea for a new business. If he can come up with an idea he likes, he might just quit his current job and use his inheritance to go into business for himself!
-If Sergio starts his own business, his firm's activities and policies will impact many different groups and individuals, including employees, customers, creditors, suppliers, and people living in the community where his business is located. Which of the following statements represents how Sergio should deal with these various groups? Sergio should:
A) take the needs of all of these groups into account, and try to satisfy each group as much as possible.
B) concentrate on meeting the needs of his customers, since they are crucial to the success of his business, but ignore the needs of other groups in order to keep costs low.
C) satisfy whichever group complains the loudest, using the "squeaky wheel gets the grease" philosophy.
D) concentrate on maximizing his own profits and let everyone else look out for themselves.

Accepted Answer

Sergio should take the needs of all of these groups into account and try to satisfy each group as much as possible. As a responsible business owner, Sergio should consider the impact of his business on all stakeholders and should strive to create value for each group. Ignoring the needs of some groups or focusing solely on profit maximization can lead to negative consequences and ultimately harm the success of the business in the long run. It is essential to maintain a balance between profit and social responsibility to promote overall sustainability.

Quiz 1: Taking Risks and Making Profits Within the Dynamic Business Environment

Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement.

Trace the evolution of American business. Identify the key trends, and discuss the implications these trends have for the future.