Risks

What is a complex industry characterized by?

• Businesses that are isolated from social or political systems

• Businesses that are intertwined with social or political systems and may profit from maintaining inefficient systems

• Industries that offer only low-end disruptive innovation to customers

• Industries where consumer demand is steadily evaporating

What is a characteristic of an over-served industry?

• Customers consume more of a product or service than needed, often due to high-end innovation

• Customers consume less of a product or service due to a lack of innovation

• Customers consume a product or service that doesn't meet all its features or functionality but meets their needs

• Customers are faced with a surplus of high-quality options

What can be a consequence of a failing industry?

• Rapid technological innovation

• Steady or increasing consumer demand

• Decreasing consumer demand and the emergence of substitutes due to technological innovation

• An increase in the rate of economic growth

What is an example of a risk associated with difficult suppliers?

• Suppliers providing too many materials

• Suppliers offering extremely low prices

• Suppliers providing poor customer service or no experts on the products they provide

• Suppliers that are too friendly and accommodating

What significant event caused the U.S. unemployment rate to jump from 3% to 14% in a matter of weeks in March 2020?

• The introduction of new technology

• The Coronavirus pandemic

• A sudden increase in consumer confidence

• A decrease in the stock market by 1,000 points

What is competitive risk associated with in a business context?

• The risk of new regulations affecting the market

• The chance that competitive forces will prevent you from achieving a goal

• The risk of internal conflicts within a company

• The risk of technological obsolescence

Which of the following is NOT one of the four Ps that comprise the marketing mix?

• Product

• Price

• Promotion

• Performance

What can slow market acceptance of a product lead to for entrepreneurs?

• Increased innovation and development

• Higher customer satisfaction

• Lower profits

• Expanded market share

What is a key way to handle product risk ?

• Ignoring customer feedback

• Product Development

• Decreasing production costs

• Limiting product distribution

What does GAAP stand for?

• General Accounting and Auditing Practices

• Generally Accepted Accounting Principles

• Global Audit and Accounting Procedures

• Governmental Accounting and Assessment Policies