Business Quiz 1

Front 1

the study of how individual businesses, households, and consumers make decisions to allocate their limited resources in the exchange of goods and services

Back 1

microeconomics

Front 2

the study of the behavior of overall economy

Back 2

macroeconomics

Front 3

number of goods/services consumers buy at a given price at a specific price

Back 3

demand

Front 4

rivalry among businesses for consumers dollars

Back 4

competition

Front 5

distribution of resources and products is determined...

Back 5

supply and demand

Front 6

many small businesses in same product market

Back 6

pure competition

Front 7

small number of businesses, little difference in product

Back 7

monopolistic competition

Front 8

very few businesses selling product

Back 8

oligopoly

Front 9

no competition

Back 9

monopoly

Front 10

economy is growing and consumers are spending money

Back 10

economic expansion

Front 11

spending declines, layoffs, economy slows down

Back 11

economic contraction

Front 12

the sum of all goods and services produced in a country during a year

Back 12

gross domestic product

Front 13

continuing rise in prices

Back 13

inflation

Front 14

decline in production, employment, and income

Back 14

recession

Front 15

unemployment very high, consumer spending low, business output sharply reduced

Back 15

depression

Front 16

percentage of population that wants to work but unable to find jobs

Back 16

unemployment

Front 17

4 stages of business cycle

Back 17

peak, recession, depression, recovery

Front 18

an indentifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

Back 18

ethical issues

Front 19

principals and standards that determined acceptable conduct in business

Back 19

business ethics

Front 20

business obigation is to maximize it's positive impact and minimize it's negative impact on society

Back 20

social responsibility

Front 21

2 laws that encourage businesses to conform to society basic standards, values, and attitudes

Back 21

Sarbones-Oxley Act 2002
Troubled Assets Relief Program

Front 22

antitrust violations, accounting fraud, cybereconomics, unfair competitive practices, tax fraud

Back 22

concerns about legal and ethical issues in business

Front 23

misuse of company resources, abusive and intimidating behaviour, conflict of interest, fairness and honesty, communications, business relationships

Back 23

unethical behavior in business

Front 24

individuals or organizations trying to earn profit by providing products

Back 24

business

Front 25

a good or service with tangible and intangible characteristics that provide satisfaction and benefits

Back 25

product

Front 26

what is the primary goal of business?

Back 26

earn a profit

Front 27

provide goods and services but do not have the fundamental purpose of earning profits

Back 27

nonprofit organization

Front 28

customers, employees, investors, government regulators, community and society. Those that have a stake in the success and outcomes of a business

Back 28

stakeholders

Front 29

-focus on employees
-plan activities, organize staff

Back 29

management

Front 30

-focus on satisfying customers
-determine what they want

Back 30

marketing

Front 31

distribution of resources for the production of goods and services within a social system

Back 31

economics

Front 32

what is the central issue in economics?

Back 32

How to fulfill an unlimited demand for goods and services with a limited supply of resources

Front 33

a society in which the people, without regard to class, own all the nations resources

Back 33

communism

Front 34

system in which the government owns and operates basic industries but individuals own most businesses

Back 34

socialism

Front 35

individuals own and operate most of the businesses
-Australia, Japan, US

Back 35

free enterprise

Front 36

free market, all economic decisions made with out government intervention

Back 36

pure capitalism

Front 37

government intervenes and regulates business to some extent

Back 37

modified capitalism

Front 38

-basic individual and business rights
-right to own property, earn profits, and use them as one wishes

Back 38

The Free Enterprise system

Front 39

-advance personal interest over others interests
-benefit self at the expense of the company

Back 39

conflict of interest

Front 40

the act of taking someone elses work and presenting it as your own without mentioning the source

Back 40

plagiarism

Front 41

-individual standards and values
-managers and co-workers influence
-opportunity: codes and compliance requirements

Back 41

key factors in ethical decisions in an organization

Front 42

formalized rules and standards that describe what a company expects of it's employees

Back 42

code of ethics

Front 43

occurs when an employee exposes an employers wrongdoings to outsiders

Back 43

whistleblowing

Front 44

for dimensions to social responsibility

Back 44

economic
legal
ethical
voluntary

Front 45

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities place on them by their stakeholders

Back 45

corporate citizenship

Front 46

who is primarily concerned with profit or ROI

Back 46

stakeholders

Front 47

who provides a safe workplace and adequate compensation

Back 47

employees

Front 48

activities that independent individuals, groups and organization undertake to protect their rights as consumers

Back 48

consumerism

Front 49

the right to safety, the right to be informbed, the right to choose, the right to be heard

Back 49

Kennedy's Consumer Bill of Rights

Front 50

conducting activities with the long-term well-being of the enatural environment in mind
-nature, individuals, organizations, business, strategies

Back 50

sustainability

Front 51

the buying, selling and trading of goods and services across national boundaries

Back 51

international business

Front 52

why do nations trade?

Back 52

international trade allows for the acquisition of raw materials and goods at favorable prices

Front 53

a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item

Back 53

absolute advantage

Front 54

the basis of the most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost thatn it can produce other items

Back 54

comparative advantage

Front 55

the transferring of manufacturing or other tasks, such as date processing, to countries where labor supplies are less expensive

Back 55

outsourcing

Front 56

the sale of goods and services to fireign markets
-US
-US 1.5 trillion

Back 56

exporting

Front 57

the purchase of goods and services from foreign sources

Back 57

importing

Front 58

-the difference between the flow of money in and out of a country
-balance of trade, foreign investments, foreign aid, loans, tourists dollars, and military expenditures

Back 58

balance of payments

Front 59

barriers to international trade

Back 59

economic
legal
political
social
cultural
technological

Front 60

economic barriers to trade

Back 60

economic development
infrastructure
exchange rates
less-developed countries

Front 61

the physical facilities that support economic activities, including railroads, highways, ports, airfields, utilities, power plants, schools, hospitals, and commercial distribution systems

Back 61

infrastructure

Front 62

the ratio at which one nation's currency can be exchanged for another nation's currency

Back 62

exchange rates

Front 63

-part of a nation's legal structure
-may be established or removed for political reasons

Back 63

tariff and trade restrictions

Front 64

a tax levied by a nation on goods imported into the country

Back 64

import tariff

Front 65

regulations that restrict the amount of currency that can be bought or sold

Back 65

exchange controls

Front 66

a restriction on the number of units of a particular product that can be imported into a country

Back 66

quota

Front 67

a prohibition on trade for a particular product

Back 67

embargo

Front 68

the act of a country or business selling products at less than what it costs to produce them

Back 68

dumping

Front 69

a group of firms or nations that agress to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets

Back 69

cartel

Front 70

general agree on tariff and trade (GATT)

Back 70

-signed by 23 nations in 1947
-forum for tariff negotiations
-place for international trade issue discussion and resolution
-replaced by the World Trade Organization in 1995

Front 71

international organization dealing with the rules of trade between nations

Back 71

world trade organization (WTO)

Front 72

north american free trade agreement (NAFTA)

Back 72

-agree that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among canada, the U.S, and Mexico

Front 73

european union

Back 73

a union of european nations established in 1958 to promote trade among its members
one of the largest single markets today

Front 74

asia-pacific economic cooperation (APEC)

Back 74

an international trade alliance that promotes open trade and economic and technical cooperation among members nations

Front 75

organization that loans money to underdeveloped and developing countries

Back 75

world bank

Front 76

organization that promotes trade among member nations by eliminating trade barriers and fostering financial cooperation

Back 76

international monetary fund

Front 77

-buys goods in one country and sells them to buyers of another country
-handles all activities required to move products from one country to another

Back 77

trading company

Front 78

a trade arrangement where one company allows another company to use its company name, products, patents, brands, trademarks, raw materials and production processes in exchange for a fee or royalty

Back 78

licensing

Front 79

a form of licensing where a company agrees to provide a franchisee a name, logo, operational, guidelines, products, etc. in return for a financial commitment and the agreement to conduct business in accord with the franchiser's standard of operation

Back 79

franchising

Front 80

the hirin of a foreign company to produce a specified volume of the initiating company's product to specification

Back 80

contract manufacturing
-high tech industries, automotive, food, clothing

Front 81

the relocation of a business process by a company or subsidiary to another country

Back 81

offshoring
-appealing because of lower wages, high skills, time zone differences

Front 82

the sharing of costs of operation of a business between a foreign company and a local partner

Back 82

joint venture

Front 83

the ownership of overseas facilities

Back 83

direct investment

Front 84

the highest level of international business involvement

Back 84

multinational corporations

Front 85

a strategy that involves standardizing products (promotion and distribution) for the whole world as if it were a single entity

Back 85

global strategy

Front 86

see Risk Levels for Global Entry

Back 86

x

Front 87

a plan used by international companies that involves customizing products, promotion and distribution according to cultural technological, regional and national differences

Back 87

multinational strategy

Front 88

3 forms of business ownership

Back 88

sole proprietorship
partnership
corporation

Front 89

businesses owned and operated by one individual; the most common form of business organization in the United States

Back 89

Sole Proprietorship
Nearly 3/4 of businesses

Front 90

a form of business organization defined by the Uniform Partnership Act as "an association of two or more persons who carry on as co-owners of a business profit"

Back 90

Partnership
general & limited

Front 91

a partnership that involves a complete sharing in both the management and the liability of the business

Back 91

general partnership

Front 92

a business organization that has at least one general partner, who assumes unlimited liability, and at least one limited partner whose liability is limited to his or her investment in the business

Back 92

limited partnership

Front 93

legal entities created by the state whose assets and liabilities are separate from its owners

Back 93

corporations

Front 94

-have most of the rights of the people
-owned by shareholders and stockholders

Back 94

corporations

Front 95

legal documents filed with basic information about the business with the appropriate state office

Back 95

articles of incorporation

Front 96

a private corporation who wished to go "public" to raise additional capital and expand. The IPO is selling a corporations stock on public markets for the first time

Back 96

initial public offering

Front 97

corporation owned and operated by the federal, state, or local government

Back 97

quasi-public corporation
NASA, U.S. Postal Service

Front 98

a group of individuals, elected by the stockholders to oversee the general operation of the corporation, who set the corporation's long-range objectives

Back 98

board of directors

Front 99

individuals who serve on a board and are employed by the corporation

Back 99

inside directors

Front 100

individuals who are not directly affiliated with the corporation

Back 100

outside directors

Front 101

a special type of stock whose owners, through not generally having a say in running the company, have a claim to profits before other stockholders do

Back 101

preferred stock

Front 102

stock whose owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends

Back 102

common stock

Front 103

form of ownership that provides limited liability ad taxation like a partnership but places fewer restriction on members

Back 103

limited liability company (LLC)

Front 104

when firms that make and sell similar products merge

Back 104

horizontal merger

Front 105

when companies operating at different but related levels of an industry merge

Back 105

vertical merger

Front 106

when firms in unrelated industries merger

Back 106

conglomerate merger

Front 107

a compnay or individual who watns to acquire or take over another company and first offers to buy some or all of its stock at a premium in a tender offer

Back 107

corporate raider

Front 108

the firm allows stockholders to buy more shares of a stock at lower prices than the current market value to head off hostile takeover

Back 108

poison pill

Front 109

management requires a large majority of stockholders to approve a takeover

Back 109

shark repellent

Front 110

a more acceptable firm that is willing to acquire a threatened company

Back 110

white knight

Front 111

being profitable relates to which social responsibility dimension?

Back 111

economic

Front 112

has government ownership of basic industries

Back 112

socialism

Front 113

agricultural commodities are usually sold under which competitive environment

Back 113

pure competition