Business Quiz Chapters 1-4

Front 1

business

Back 1

all profit-seeking activities and services that provide goods and services necessary to an economic system

Front 2

profits

Back 2

represent the rewards for businesspeople who take risks involved in blending people, technology, and information to create and market want-satisfying goods and services.

Front 3

Factors of production

Back 3

refers to the four basic inputs: natural resources, capital, human resources, and entrepreneurship

Front 4

Competitive differentiation

Back 4

the unique combination of organizational abilities, products, or approaches that sets a company apart from competitors in the minds of consumers

Front 5

Entrepreneur

Back 5

a risk taker in the private enterprise system

Front 6

Branding

Back 6

the process of creating an identity in the consumer's mind for a good, service, or company

Front 7

Relationship management

Back 7

the collection of ongoing activities to maintain ongoing, mutually beneficial ties with customers and other parties

Front 8

Partnership/strategic alliance

Back 8

a partnership is an affiliation of two or more companies in order to help each other achieve a common goal. a strategic alliance is a partner ship created in order to give a strategic advantage to the companies involved

Front 9

Outsourcing

Back 9

using outside vendors to produce goods and fulfill services that were previously handled in-country or in-house

Front 10

offshoring

Back 10

the relocation of business processes to lower-cost locations overseas.

Front 11

nearshoring

Back 11

involving outsourcing production or services to locations near a firm's home base

Front 12

Ethics

Back 12

the standard of conduct and moral values governing actions and decisions in the workplace

Front 13

Conflict of interest

Back 13

exists when a businessperson is faced with a situation in which an action benefitting one group has the possibility with harming another

Front 14

Integrity

Back 14

adhering to deeply felt ethical principles in business situations

Front 15

Whistle-blowing

Back 15

an employee's disclosure to company officials, government authorities, or the media off illegal, immoral, or unethical practices

Front 16

Code of conduct

Back 16

formal statement that defines how the organization expects its employees to act.

Front 17

Sexual harassment/sexism

Back 17

sexual harassment referrs to the unwelcome or inappropriate sexual actions in the workplace. sexism referrs to discrimination against members of either sex, but primarily women.

Front 18

Age discrimination

Back 18

discrimination on the basis of age

Front 19

Three-question test

Back 19

used to resolve ethical problems
1) is it legal
2) is it balanced?
3) How does it make me feel?

Front 20

Front-page-of-the-newspaper test

Back 20

"how would this look on the front page of the newspaper?"

Front 21

Utilitarianism

Back 21

the consequences of an act determine whether it is right or wrong

Front 22

Ethical egoism

Back 22

"if it's good for me, then it must be ok"

Front 23

Economics

Back 23

The study of how a society uses scarce resources to produce and distribute goods and services

Front 24

Macroeconomics

Back 24

focus on economy as a whole; considers aggregate data from large groups of people, companies, or products

Front 25

Microeconomics

Back 25

focus on individual parts of economy, such as households or firms

Front 26

Capitalism

Back 26

system which rewards businesses for meeting the needs of customers

Front 27

Mixed economy

Back 27

government-owned firms operate alongside privately-owned firms

Front 28

Socialism

Back 28

government ownership and operation of major industries such as healthcare and communications

Front 29

Command economy/communism

Back 29

government controls determine business ownership, profits, and resource allocation to accomplish government controls rather than those set by individual businesses

Front 30

Pure competition

Back 30

a market structure, like that of small-scale agriculture, in which large numbers of buyers or sellers exchange homogeneous goods and no single participant has a significant influence on price

Front 31

Monopolistic competition

Back 31

a market structure in which large numbers of buyers and sellers exchange relatively well differentiated products, so each participant has some control over price.

Front 32

Oligopoly

Back 32

a market structure in which relatively few sellers compete and high startup costs form barriers to keep out new competitors

Front 33

Monopoly

Back 33

market structure in which a single seller dominates trade in a good or service for which buyers can find no substitute.

Front 34

Productivity

Back 34

the relationship between the goods and services produced in a nation each year and the inputs needed to produce them. Productivity = (output)/(input)

Front 35

GDP/GNP

Back 35

Gross Domestic Product - sum of all goods and services produced in a country during a specific time period

Front 36

Inflation

Back 36

rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production

Front 37

Unemployment rate

Back 37

usually expressed as a percentage of the workforce who are unemployed

Front 38

Monetary policy

Back 38

government’s programs for controlling the amount of money circulating in the economy and interest rates

Front 39

Fiscal policy

Back 39

government’s use of taxation and spending to affect the economy

Front 40

Budget

Back 40

organization's plan for how it will raise and spend money during a given time period

Front 41

Surplus

Back 41

when a company has an amount of a good that is greater than needed

Front 42

Deficit

Back 42

the budget shortfall (when expenses exceed revenues) in a given fiscal year.

Front 43

National debt

Back 43

the combined total of all previous deficits of a nation to foreign countries and manufacturers

Front 44

Absolute and comparative advantage

Back 44

absolute advantage - a country can sell a product at a lower price than any other country, or a country is the only country that can provide a given product.
Comparative advantage - lower prices result from every country specializing in products it can produce most readily and cheaply, trading them for products specialized in by other countries

Front 45

Balance of trade

Back 45

trade surplus vs. trade deficit

Front 46

Balance of payments

Back 46

the difference between total payments to other countries and total receipts from other countries

Front 47

Trade surplus

Back 47

Exports exceed imports

Front 48

Trade deficit

Back 48

Imports exceed exports

Front 49

Exchange rate

Back 49

value of one nations currency relative to the currencies of other countries

Front 50

Tariffs

Back 50

tax imposed on imported goods

Front 51

Quotas

Back 51

limit the amounts of particular goods that countries can import during specified time periods

Front 52

WTO

Back 52

World Trade Organization - 149-member international institution that monitors and promotes international trading. also solves international trading disputes

Front 53

NAFTA

Back 53

agreement between Canada, US, and Mexico to break down tariffs and trade restrictions

Front 54

EU

Back 54

European Union - 25-nation economic alliance

Front 55

Multinational Corporation

Back 55

Can sidestep restrictive trade and licensing restrictions by having headquarters in more than one country.
Can move their operations from one country to the next based on more favorable economic conditions.
Can tap into a vast source of technological expertise by drawing upon the knowledge of a global workforce

Front 56

Devaluation

Back 56

a drop in a currency's value relative to those of other nations or a fixed standard

Front 57

Dumping

Back 57

occurs when a foreign company charges a lower price that those of a country's domestic companies. it drives down the price of domestic companies products

Front 58

Embargo

Back 58

imposes a ban on importing a certain good or even a total halt of trading with a particular company.