Bussiness Quiz # 1

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Business

Back 1

individuals or organizations who try to earn a profit by providing products that atisfy people's needs

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Product

Back 2

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

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Profit

Back 3

the difference between what it costs to make and sell a product and what a customer pays for it

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Nonprofit Organizations

Back 4

Organizations that may provide goods or services but do not have the fundamental purpose of earning profits

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Stakeholders

Back 5

groups that have a stake in the success and outcomes of a business

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Economics

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the study of how resources are distributed for the production of goods and serves within a social system

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Human Resources

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the physical and mental abilities that people use to produce goods and services; also called labor

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Financial Resources

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the funds used to acquire the natural and human resources needed to provide products; also called capital

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Economic System

Back 9

a description of how a particular society distributes its resources to produce goods and services

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Communism

Back 10

first described by Karl Marx as a society in which the people, without regard to class, own all the nation's resources

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Socialism

Back 11

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

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Capitalism, or Free Enterprise

Back 12

an economic system in which individuals own and operate the majority of businesses that provide goods and services

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Free-Market System

Back 13

pure capitalism, in which all economic decisions are made without government intervention

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Mixed Economies

Back 14

economies made up of elements from more than one economic system

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Demand

Back 15

the number of goods and services that consumers are willing to buy at different prices at a specific time

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Supply

Back 16

the number of products--goods and services--that businesses are willing to sell at different prices at a specific time

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Equilibrium Price

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the price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a speciffic point in time

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Competition

Back 18

the rivalry among businesses for consumers' dollars

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Pure Competition

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the market structure that exists when there are fewer businesses than in a pure-competition enviornment and the differences among the goods they sell are small

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Oligopoly

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the market structure that exists when there are very few businesses selling a product

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Monopoly

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the market structure that exists when there is only one business providing a product in a given market

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Economic expansion

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the situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and serves, which in turn stimulates employment

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Inflation

Back 23

a condition characterized by a continuing rise in prices

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Economic Contraction

Back 24

a slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off wokers

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Recession

Back 25

a decline in production, employment, and income

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Unemployment

Back 26

the condition in which a percentage of the population wants to work but its unable to find jobs

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Depression

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a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced

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Gross Domestic Product (GDP)

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

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Budget Deficit

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the condition in which a nation spends more than it takes in from taxes

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Business Ethics

Back 30

principles and standards that determine acceptable conduct in business

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Social Responsibility

Back 31

a business's obligation to maximize its positive impact and minimize its negative impact on society

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Ethical Issue

Back 32

an identifiable problem, stimulation, or opportunity that require a person to choose from among serveral actions that may be evaluated as right or wrong, ethical or unethical

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Bribes

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payments, gifts, or special favors intended to influence the outcome of a decision

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Plagiarism

Back 34

the act of taking someone else's work and presenting it as your own without mentioning the source

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Codes of Ethics

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formalized rules and standards that describe what a company expects of its employees

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Whistleblowing

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the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies

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Corporate Citizenship

Back 37

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

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Consumerism

Back 38

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

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International Business

Back 39

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

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Absolute Advantage

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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

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Comparative Advantage

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

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Outsourcing

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the transferring of manufacturing or other tasks--such as data processing--to countries where labor and supplies are less expensive

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Exporting

Back 43

the sale of goods and services to foreign markets

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Importing

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the purchase of goods and services from foreign sources

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Balance of trade

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the difference in value between a nation's exports and its imports

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Trade Deficit

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a nation's negative balance of trade, which exists when that country immports more products than it exports

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Balance of Payments

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the difference between the flow of money into and out of a country

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Infrastructure

Back 48

the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, comunication systems, and commercial distribution

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Exchange Rate

Back 49

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

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Import Tariff

Back 50

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

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Exchange Controls

Back 51

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

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Quota

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

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Embargo

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a prohibition on trade in a particular product

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Dumping

Back 54

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

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Cartel

Back 55

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

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General Agreement on Tariffts and Trade (GATT)

Back 56

a trade agreement, originally signed by 23 nations in 1974, that provided a forum for tariff negotiations and aplace where international trade problems could be discussed and resolved

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World Trade Organization (WTO)

Back 57

international organization dealing with the rules of trade between nations

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North American Free Trade Agreement (NATO)

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agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the United States, and Mexico

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European Union (EU)

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a union of European nations estrablished in 1958 to promote trade among its members; one of the largest single markets today

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Countertrade Agreements

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foreign trade agreements that involve barering products for other products instead of for currency

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Trading Company

Back 61

a firm that buys goods in one country and sells them to buyers in another country

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Licensing

Back 62

a trade agreement in which one company--the licensor--allows another company--the licesee-- to use its company name, products, patents, brands, trademarkets, raw materials, and /or production processes in exchange for a fee or royalty

Front 63

Franchising

Back 63

a form of licensing in which a company--the franchiser--agrees to provide a franchisee a name, logo, methods of operation, advertising, products, and other elements associated with a tranchiser's business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations

Front 64

Contract Manufacturing

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the hiring of a foreign company to produce a specified volume of the initiating company's product to specification; the final product carries the domestic firm's name

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Joint Venture

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

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Strategic Alliancw

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a partnership formed to create competitive advantage on a worldwide basis

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Direct Investment

Back 67

the ownership of overseas facilities

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Multinational Corporation (MNC)

Back 68

a corporation that operates on a worldwid escale, without significcant ties to any one nation or region

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Multinational Strategy

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

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Global Strategy (Globalization)

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