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32 Cards in this Set

  • Front
  • Back
What is the AACSB?


Associate to Advance the Collegiate Schools of Business. (The Lamar University business program accreditation)

Does a career in business meet the definition of a traditional profession?



What are the four models of the BGS relationship, and how do they relate to the two main ideologies of business?
a. The market capitalism model – Based on laissez-faire capitalism (traditional ideology)

b. The dominance model – A favorite of populists.

c. The countervailing forces model – Based on the idea of pluralism.

d. The stakeholder model – A favorite term in managerial ideology (i.e. AACSB)

What is an ideology?
A bundle of values that creates a particular view of whats good, right, true and acceptable.

Two Types of business ideologies?

Traditional: Newer, smaller, poorer

Managerial: Older, bigger, richer

What is the business cycle?

cycle of economic activity usually consisting of recession, recovery, growth, and decline (commonly called the boom-to-bust cycle)

What is inflation and why is it important?
The rate at which the general level of prices for goods and services is rising, and purchasing power is falling.

Is important because the currency amount buys less as inflation increases.

What is meant by laissez-faire capitalism, and does it exist in the U.S. today?
An economic philosophy that rejects government intervention in markets” – page 11

It has not existed in the US since the "New Deal of 1930".

What are the 4 pillars of laissez-faire capitalism?

1. limited role for the government

2. competitive markets

3.private property

4. economic freedom.

Is capitalism an economic or a political system?

Economic system

What are the three economic systems?


2. Socialism

3. Communism

How (and why) does the U.S. government attempt to manage the economy?
How: FDIC tells banks to raise the interest rates.

Why: a. To smooth out the disruptive effects of the business cycle.

b. The Great Depression was too painful and it was blamed on greedy business.

Who were the so-called fathers of capitalism and communism?

a. Capitalism – Adam Smith, author of "A Wealth of Nations"

b. Communism – Karl Marx, author of "Das Kapital" (Capital) and co-author of "The Communist Manifesto."

How do capitalism, socialism, and communism differ?

Capitalism: free market, limited government, private property

Socialism: higher government intervention on market, even distribution of resources, some private property

Communism: highest government intervention on market, even distribution on wealth and resources, no private property

What economic questions do all economic systems answer?
a. What will be produced?

b. How much will be produced?

c. How will it be produced?

d. Who will get what is produced?

What was "supply-side economics," and who is associated with it?
a: Accomplish 3 things: less government regulation of business, less taxation (especially of business), and balanced federal budgets.

b: Associated with President Ronald Reagan (“Reaganomics”). Was the brainchild of Congressman Jack Kemp and California economist Art Laffer.

True or False:

According to Joseph Schumpeter capitalism was bad because of what he called creative destruction.

False. Capitalism was GOOD because of what he called creative destruction (which is the entrepreneurial destruction of old ideas in order to improve)

Who was Exxon Mobile founded by and what did it used to be called?

a. John D. Rockefeller

b. Standard Oil

In 1890 what did Congress do related to Exxon Mobile?

Passed the Sherman Antitrust Act to outlaw its monopoly. They once had more than a 90% market share of the American oil market.

Define business.

Profit-making activity that provides products and services to satisfy human needs

Define government.

Structures and processes in society that authoritatively make and apply policies and rules.

Define society.

A network of human relations composed of ideas, institutions, and material things.

Define idea.

An intangible object of thought.

Define value.

An enduring belief about which fundamental life choices are correct.

Define Institution.

A formal pattern of relations that links people to accomplish a goal.

Define material things.

Tangible artifacts of a society that shape and are shaped by ideas and institutions.
In the BGS field, which of the following establishes the broad duties that businesses must perform to retain society's support?

A) Mercantilism

B) Laissez-faire agreement

C) Social contract

D) Countervailing force

C) Social contract
_____ capitalism is a market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs.

A) Investor

B) Entrepreneurial

C) Managerial

D) Corporate

C) Managerial
____ is an economic philosophy which believes that it is for governments, not businesses, to correct social problems, and therefore, managers should define company interests narrowly, as profitability and efficiency.

A) Laissez-faire

B) Socialism

C) Libertarianism

D) Marxism

A) Laissez-faire
The countervailing forces model:

A) depicts business as operating within a market environment, responding primarily to powerful economic forces.

B) depicts the BGS relationship as a flow of interactions among the major elements of society.

C) shows the corporation at the center of an array of mutual relationships with persons, groups, and entities called stakeholders.

D) is depicted in a pyramidal, hierarchical image of society which primarily represents the perspective of business critics.

B) depicts the BGS relationship as a flow of interactions among the major elements of society.
Strategic management may be defined as:

A) the broad duties that business must perform to retain society's support.

B) actions taken by managers to adapt a company to changes in its market and sociopolitical environments.

C) formal patterns of relations that link people together to accomplish a goal.

D) a network of human relations composed of ideas, institutions, and material things.

B) actions taken by managers to adapt a company to changes in its market and sociopolitical environments.
n addition to creating wealth and bringing in new material comforts, _____ brings risks of economic shocks and imposes burdens on human rights and the environment.

A) Marxism

B) Socialism

C) Managerialism

D) Capitalism

D) Capitalism