Natalie and Joe are executives for a financial service company based in Cleveland. They have taken notice of m-pesa, a mobile phone-based money transfer micro-financing service, that has had increasing success in Africa and India. They are debating the feasibility of a similar service in the United States. Natalie argues m-pesa will revolutionize the financial service industry and will provide monopolistic advantage for their firm. Joe counters that there is no way that the powerful financial services company will permit a service to render them obsolete and will not allow m-pesa to succeed. Which of the following is the best answer, if true, to strengthen Natalie’s case? A) Credit scandals of large companies like Target have depicted practices that should not be taken. B) Americans by-and-large are a mobile, fast moving people that readily adopt new technology that enhances this mobility, and eases their busy lives C) Through the too big to fail movement, banks showed that they did not have significant power over the economy, and that trends can drastically change the functionality of banks D) Americans have depicted a high level of cynicism following the 2008 recession, and have a high mistrust in financial institutions, and would therefore be happy to help take away a large portion of these companies functionality E) Large financial institutions have fought against the adoption of bitcoins and similar instruments, out of several fears. One of which is security of funds.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Natalie and Joe are executives for a financial service company based in Cleveland. They have taken notice of m-pesa, a mobile phone-based money transfer micro-financing service, that has had increasing success in Africa and India. They are debating the feasibility of a similar service in the United States. Natalie argues m-pesa will revolutionize the financial service industry and will provide monopolistic advantage for their firm. Joe counters that there is no way that the powerful financial services company will permit a service to render them obsolete and will not allow m-pesa to succeed.

Which of the following is the best answer, if true, to strengthen Natalie’s case?

A) Credit scandals of large companies like Target have depicted practices that should not be taken.

B) Americans by-and-large are a mobile, fast moving people that readily adopt new technology that enhances this mobility, and eases their busy lives

C) Through the too big to fail movement, banks showed that they did not have significant power over the economy, and that trends can drastically change the functionality of banks

D) Americans have depicted a high level of cynicism following the 2008 recession, and have a high mistrust in financial institutions, and would therefore be happy to help take away a large portion of these companies functionality

E) Large financial institutions have fought against the adoption of bitcoins and similar instruments, out of several fears. One of which is security of funds.

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