Use the Following to Answer Questions

question 25

Multiple Choice

Use the following to answer questions:
Scenario 3-2. Terry's Technology Service is currently conducting a SWOT analysis of the business. Several differing factors have been observed. One of the major strengths of Terry's business is that he has kept current with all the new technologies that have been developing. The ability to adapt the technologies to business applications has been a key feature of the business. A definite weakness of the business is that Terry's cash flow has been strained lately due to the capital investments that are necessary in order to keep up with current technological advances. Owing to Terry's good relationship with his customers, he is getting many referrals for new customers. A recent consideration is his competition. A new business has started in town that is offering similar services.
-In Scenario 3-2 above, Terry is seriously considering dropping his hourly fee. He is doing this in response to which environment?

• A) Economic environment
• B) Legal/regulatory environment
• C) Sociocultural environment
• D) Competitive environment

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Definitions:

Recall

The cognitive process of retrieving information from memory, allowing for the conscious recollection of past experiences and knowledge.

Recognition

The cognitive process of identifying information that has been previously learned or experienced.

Primacy Effect

The tendency to remember items at the beginning of a list better than those in the middle or at the end.

Emotional Impact

The intense effect an event, experience, or information can have on a person’s feelings or emotions.