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53 Cards in this Set
- Front
- Back
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Profit is the revenue receive from the sale of a product or service
True or false? |
False
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A non-profit organization is so named so because its revenue is revenues never exceed its expenses
True or False? |
False
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A business can trade in only two products, which are?
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Goods and services
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Five factors are needed for a business to generate a product. Two are?
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Labor and capital
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The dominate model of business in the US is?
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National
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In sole proprietorship, the owner/investor is protected from personal loss.
True or False |
False
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LLC stands for?
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Limited Liability Corp
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A competitive or free-market business environment is a driver of product improvement.
True or false? |
True
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Name one complicating factor outside the organization that affects business practice
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Competition
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A service product is: tangible or intangible?
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Tangible
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Economics is the study of how scarce resources are used to…
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Produce goods and services
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The study of how consumers make resource allocation decisions is this branch of economics
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Microeconomics
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The economic system that exerts the highest level of control over economic choice is…
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Communism
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The type of economic system in the US is…
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Capitalism
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Gross Domestic Product is monitored to determine the economy’s rate of…
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Growth
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The Consumer Price Index is monitored because it is an indicator of…
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Economic stability
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The Federal Reserve System restricts money supply by lowering the lending rate charges to the biggest banks-this rate is called:
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Discount rate
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The shortfall that occurs when government spending exceeds tax revenue is…
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National Debt
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The gov. increases taxes to maintain economic stability by slowing growth. True or False?
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True
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The term for liquid cash in the money supply is
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Easy to convert
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Ethics is…
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The study of moral behavior
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An ethical approach that weighs issues case is called
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Situational ethics
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When you apply the same principles without exception in every case, you abide by…
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An ethical code / code of ethics
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We get our personal sense of ethics from several areas of influence. Name any two of these.
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Family and school
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The term for reporting violations of company policy of illegal or unethical behavior
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Whistleblowing
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A company’s purpose, values, goals, and aspirations is described in this document.
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Missions statement
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Corporate social responsibility is the term for a company’s commitment to charitable giving: true or false.
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False
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Ethical treatment of employees requires fairness in which all of the following?
Wages, hours, workload, hiring practice, access to raises, promotions |
Wages, hours, hiring practice, access to raises, promotions (everything but workload)
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Give one example of environmental pollution of land that is causes by industry practice:
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Dumping chemical waste into rivers.
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Give one example of environmental pollution of the air that is caused by industry practice:
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Putting toxins into the air due to production of glazes.
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Globalization involves the following two aspects, which are
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Global markets, global production
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Government experts and economists agree that free trade is a realistic economic model: true or false
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False
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The term for the cost—in effect, a tax—that countries impose on imported goods is
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Tariff
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The term for government support of domestic production to stay competitive abroad is
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Subsidy
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In addition to levying a charge on imports, the US can also limit imports by imposing a
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Quota
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The World Trade Organization (WTO) is the court of law for international trade disputes: true or false
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False
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The instrument used to guide international trade is GATT, an acronym that stands for …
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General agreement on tariffs and trade
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Currently, the US balance of trade is favorable: true or false
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False
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Give one example of a regional free trade organization
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NAFTA
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In addition to straight exporting, name two other ways to do business abroad
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Franchising, licensing
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An entrepreneur identifies opportunity, organizes a start-up, and assumes the associated risks: true or false
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True
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Holistic thinking is characteristic of an effective entrepreneur: true or false
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True
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One example of a famous highly successful entrepreneur noted in class
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Bill Gates
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A small business is defined by US government as having fewer than ___ employees
1,000 500 100 50 |
500
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Name two of the three ways of entering into ownership of a business
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Start from scratch, franchising.
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An entrepreneur in need of advice and practical assistance can rely on one for these resources
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Score SBA local incubators
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A venture capital company assumes an equity stake in a new company in exchange for start up cash: true or false
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True
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Small businesses have flexibility to try new products and methods: true or false
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True
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Small businesses commonly fail for one of the three reasons
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Bad management
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The financial report that tracks cash flows, expenses and revenues to assure efficient operations is
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Operating budget
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The financial report/budget that monitors long-range needs not met by daily cash flow
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Capital budget
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Even profitable companies need to borrow. Name one borrowing option for large companies
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Debt financing
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The accounting function in a company makes decisions about how to spend money: true or false
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False
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