Scenario A

question 109

Multiple Choice

Scenario A. Use the information in the following list to answer the four questions that follow. Alice's Antique Jewelry is a small store that specializes in antique jewelry. In analyzing the environment, Alice has uncovered several interesting findings: 1. Alice has recently purchased more inventory than in the past. Her customers are selling most of their jewelry because their children are not interested in this type of jewelry. Also, these customers would prefer to liquidate their jewelry to help them with their daily expenses since they no longer wear most of it.
2. Alice has recently discovered that her business is in a historical preservation district so as she considers remodeling the shop, she has found she must pay attention to the guidelines set forth in the governing laws.
3. Alice's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern jewelry so the customer base to which she sells is shrinking.
4. Alice has been told that she should investigate selling her inventory via the Internet, but she does not own (or understand how to use) a computer.
5. In reading a survey of regional business, Alice discovered that there are no other antique jewelry stores within a 200 mile radius of hers.
-Finding 2 is most closely associated with which element of the macroenvironment?

• A) laws and regulations
• B) the economy
• C) demographics
• D) technology
• E) the natural environment

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Definitions:

First-Time Issues

Refers to the initial offering of securities or stocks to the public by a company.

Securities

Financial instruments representing ownership (stocks), creditor relationships (bonds), or rights to ownership (options).

Primary Market Transaction

Occurs when new securities are sold for the first time to investors, directly impacting the issuing company's capital.

Issuing Corporation

The entity that offers securities for sale to investors, typically through the process of a public offering.