Joe Sullivan and Mark Holland, Members of the Top Management

question 45

Multiple Choice

Joe Sullivan and Mark Holland, members of the top management at EuAir, an European airlines, were preparing for a meeting to discuss strategies to combat the recent rise in fuel prices. Before the meeting began, Joe and Mark were discussing how oil prices significantly impact the health of the world economy. Joe spoke of how higher oil prices since 1999, partly the result of OPEC supply management policies, contributed to the global economic downturn in 2000-2001. Mark agreed but added that the right kind of strategy can help them overcome and even profitably use this opportunity for hiking fares. Which of the following statements, if true, would weaken the argument that Mark experienced groupshift in the meeting?

• A) Mark was of the opinion that oil suppliers were going to pressure them even more in the future and the company had to resort to alternatives like bio fuels.
• B) Mark believed that most of their clientele was not price sensitive.
• C) Mark felt that implementing a price rise was necessary to recover the costs in operating the flights.
• D) Mark recommended that the company should establish a fuel hedging contract with its key suppliers to ensure protection from fuel price rises.
• E) Mark stated that the company should increase operations but at lower fares so they can regain control over the market share.

Differentiate between various types of entrepreneurs, including classic, lifestyle, and serial entrepreneurs.

Comprehend the global growth and relevance of entrepreneurship.

Acknowledge the importance of resilience and adaptability in entrepreneurship.

Recognize the significance of financial management and planning for entrepreneurs.

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Definitions:

Federal Government

The national government of a federation, responsible for national affairs, distinct from state or local governments.

Bonds

Fixed-income securities that represent loans made by investors to borrowers, typically corporate or governmental, which pay interest over a defined period and return the principal at maturity.

Baby Boomers

The demographic cohort born approximately between 1946 and 1964, experiencing significant political, economic, and social changes.

Social Security Benefits

Payments made from a government program aimed at providing financial support to people who are retired, disabled, or survivors.