Intro To Business Exam One

Front 1

Business

Back 1

any activity that seeks to provide goods and services to others while operating at a profit

Front 2

Profit

Back 2

the amount of money a business earns above and beyond what it spends for salaries and other expenses.

Front 3

Revenue

Back 3

the total amount of money a business takes in during a given period by selling goods and services.

Front 4

Loss

Back 4

when a business's expenses are more than its revenues

Front 5

Risk

Back 5

the chance an entrepreneur takes of losing time and money on a business that may not prove profitable

Front 6

Standard of Living

Back 6

the amount of goods and services people can buy with the money they have.

Front 7

Quality of Life

Back 7

the general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time and everything else that leads to satisfaction and joy.

Front 8

Economics

Back 8

the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals

Front 9

Monopoly

Back 9

a market in which there is only one seller for a product or service

Front 10

Oligopoly

Back 10

a form of competition in which just a few sellers dominate the market

Front 11

Microeconomics

Back 11

the part of economics that looks at the behavior of people and organizations in particular markets.

Front 12

Macroeconomics

Back 12

the part of economics that looks at the operation of a nation's economy as a whole.

Front 13

Perfect Competition

Back 13

the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

Front 14

Capitalism

Back 14

an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.

Front 15

Importing

Back 15

buying products from another country

Front 16

Exporting

Back 16

selling products to another country

Front 17

Dumping

Back 17

selling products in a foreign country at lower prices than those charged in the producing country

Front 18

Comparative Advantage

Back 18

theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently.

Front 19

World Trade Organization

Back 19

The international organization that replaced the General Agreement on Tariffs and Trade (GATT), and was assigned the duty to mediate trade disputes among nations.

Front 20

Tariffs

Back 20

taxes imposed on imports

Front 21

Revenue Tariff

Back 21

designed to raise money for the government; commonly used by developing countries to help infant industries compete in global markets.

Front 22

Protective Tariff

Back 22

import taxes; designed to raise the retail price of imported products so that domestic goods are more competitively priced (these tariffs are meant to save jobs for domestic workers and keep industries from closing down bc of foreign competition.

Front 23

Legal

Back 23

refers to laws we have written to protect ourselves from fraud, theft, and violence.

Front 24

Ethical

Back 24

ethics- standards of moral behavior, that is, behavior that is accepted by society as right versus wrong

Front 25

Compliance-based Code of Ethics

Back 25

ethical standards that emphansize preventing unlawful behavior by increasing control and by penalizing wrongdoers

Front 26

Integrity-based Code of Ethics

Back 26

ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

Front 27

Sole Proprietorship

Back 27

a business that is owned, and usually managed, by one person.

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Partnership

Back 28

a legal form of business with two or more owners

Front 29

Corporation

Back 29

a legal entity with authority to act and have liability separate from its owners

Front 30

Joint Venture

Back 30

a partnership in which two or more companies (often from different countries) join to undertake a major project

Front 31

Partnership Agreements

Back 31

General Partnership: a partnership in which all owners share in operating the business and in assuming liability for the business's debts.

Limited partnership: a partnership with one or more general partners and one or more limited partners (general partner has unlimited liability and limited partner invests money but has no responsibility)

Front 32

Limited Liability Partnership

Back 32

a partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision

Front 33

Entrepreneur

Back 33

a person who risks time and money to start and manage a business

Front 34

Intrapreneur

Back 34

creative people who work as entrepreneurs within corporations (the idea is to use a company's existing resources to launch new products and generate new profits)

Front 35

Enterprise Zones

Back 35

specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support.

Front 36

Differences between business and non-profit groups

Back 36

a non-profit organization is an organization whose goals do not include making a personal profit for its owners or organizers. The financial gains are used to meet the stated goals of the organization.

Front 37

Who does a business attempt to meet the needs of?

Back 37

a business provides consumers with necessities like food, clothing, housing, medical care, and transportation, as well as other goods and services that make our lives easier and better.

Front 38

What happens to the price of a product when the supply drastically decreases?

Back 38

when supply is low, the price goes up because the demand will go up.

Front 39

What country is the largest global importer?

Back 39

the united states

(the united states is also the largest exporting nation as well)

Front 40

Sole Proprietorship advantages and disadvantages

Back 40

Advantages: ease of start and ending the business, being own boss, pride of ownership, leaving a legacy, retention of company profit, no special taxes.

Disadvantages: unlimited liability- the risk of personal losses, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited life span

Front 41

Partnerships advantages and disadvantages

Back 41

Advantages: more financial resources, shared management and pooled/complementary skills and knowledge, longer survival, no special taxes.

Disadvantages: unlimited liability, division of profits, disagreements among partners, difficulty of termination.

Front 42

Corporation advantages and disadvantages

Back 42

Advantages: limited liability, more money for investment, size, perpetual life, ease of ownership change, ease of drawing talented employees, separation of ownership from management.

Disadvantages: extensive paperwork, double taxation, two tax returns, size, difficulty of termination, possible conflict with stockholders and board of directors, initial cost

Front 43

What form of business makes up the most business in NUMBER of all businesses combined?

What form of business makes up the most in REVENUE of all businesses combined?

Back 43

most in NUMBERS- sole proprietorships

most in REVENUE- corporations

Front 44

Three Types of Business Mergers

Back 44

1. Vertical Merger- joining of two firms involved in different stages of related business (ex: soft drink company and artificial sweetener company)

2. Horizontal Merger- joins two firms in the same industry and allows them to diversify their products (ex: soft drink company and mineral water company)

3. Conglomerate Merger- the joining of firms in completely unrelated industries (to diversify business operations and investments) (ex: soft drink company and snack company merger)

Front 45

What percent of new jobs do small businesses create in the US?

Back 45

75%

Front 46

What is the key to economic development?

Back 46

Teach a person to start a fish farm, and he or she will be able to feed a village for a lifetime. (Business owners provide jobs and economic growth for their employees and communities as well as for themselves.

Front 47

Is the Enron scandal illegal? Is it unethical?

Back 47

Yes.

Front 48

Corporate Values (Corporate social responsibility?)

Back 48

a business's concern for the welfare of society. It is based on a company's concern for the welfare of all its stakeholders. It is based on a commitment to such basic principles as integrity, fairness, and respect.

Front 49

Situational Ethics

Back 49

depends on the situation(?)

Front 50

What are the primary concerns of someone starting a small business?

Back 50

- many small businesses fail because of the managerial incompetence and inadequate financial planning.