Question

Diana's editorial business was not growing and she sought ways to expand her client list. She recognized that technology provided opportunities to bring on new customers, so she instituted a training program for her employees. Which factor of production is described here?

1. labor
2. capital
3. knowledge
4. economics

#2Juan has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there are laws that govern the type of businesses that private citizens can own and business taxes are high because the government subsidizes many social programs in his nation. In this case, challenges in the _________ environment increase the risk of Juan starting a business.

1. technological
2. competitive
3. economic and legal
4. social

#3 The following chart describes opportunities and challenges in the external environments that surround businesses. Which of the following statements best characterize and fit in the empty cells?

Business Environment	Opportunity			Challenge
Economic and Legal	Freedom to choose and start your own business			High taxes
Technological	The Internet
Social	Wealthy senior citizens			Decrease in Social Security contributions
Global				War and Terrorism

1. Identity theft remains a technological environment challenge, while war and terrorism satisfy opportunities in the global environment due to the fact that they remain a small cost to society.
2. Databases present themselves as a challenge and threat in the technological environment; while globalization has provided for an increase in the standard of living in the global environment.
3. E-commerce is a costly technological environment challenge, while the leisure time of seniors creates an opportunity in the global environment.
4. Identity theft is a challenge in the technological environment of businesses, while the desire for green living presents opportunities for new businesses in the global environment.

Answer 1

#1 Knowledge

Explanation: Because She found a way of increasing business so she is making sure her employees accquire the knowledege so that strategy can be turned into effect.

#2 Economic and Legal

Explanation: The economic and legal environment refers to the different economic conditions and the laws of a country that have effect in business. According to this, Challenges in legal and economic environment can increase the risk of Juan starting a business because of the laws and taxes that are affecting business are part of economic and legal environment.

3) Identity theft is a challenge in the technological environment of business, while the desire for green living presents opportunities for new business in the global environment.

Explanation: With more and more advance in using the internet to gather information and expand business, there has been a significant increase in identity theft. Saving energy and producing product that cause less harm to environment is a new trend called Greening.