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51 Cards in this Set
- Front
- Back
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The basic entrepreneurial strategy is to __
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Make the most profit, with the least amount of risk
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Joe can cut 4 lawns per day, and work 5 days per week. He can charge a rate of $30 a lawn with a total expense of $10 per lawn. Joe would realize a profit each week of ____.
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$400
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Michael Phelps has an accumulated wealth estimated at around $50 million. He spends most of his time practicing to keep up his endurance and speed. The fact that he can afford most luxuries would put him in a high _____ category, but the fact he spends most of his time working might leave us to ponder his ____.
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Standard of Living
Quality of Life |
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When we evaluate the factors of production between 3rd world nations that are still developing their economies, we often find an abundance of _____. However the business environment often discourages _____, which leaves the nations relatively poor.
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Labor and/or Land
Entrepreneurship |
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San Jose is a large metropolitan area crowded with people and not much room. The city provides all sorts of incentives for people with ideas who are willing to take the risk and start a business. At last count, there were 60 small business incubators. In terms of the five factors of production, which two make this city and it's inhabitants wealthy?
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Knowledge and Entrepreneurship
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The economic and legal environment is a key factor in growth of small and large businesses. If the government passes laws to _______, it lessens the risk for people wanting to start a business
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Minimize Corruption
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As a salesperson for Ergo-Tech, Jack enjoys the freedom and flexibility he has to better meet the needs of his customers. Jack's experience suggests that Ergo-Tech's management practices ______.
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Empowerment
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Jill is thinking of starting a senior citizen van company, where she will pick up seniors and take them to doctor appts., hair-stylists etc. Jill believes the future of her service depends upon the number of older people who no longer drive, and the number of community care centers being built. These concerns illustrate how businesses can be affected by _____ trends.
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Demographic
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The technological environment can have positive and negative effects on one's business. Web 2.0 and 3.0 gather customer information to help companies analyze the information, but also opens the door to non-legitimate activities such as _____, where criminals collect personal information and pose as these individuals to make unauthorized purchases
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Identity Theft
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In recent years, almost all new job creation in the US has occurred in the ______ sector. This is also where you would find the higher paying jobs.
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Service
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The "invisible hand" refers to _____
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A business owner's self-directed gain eventually benefiting others as well.
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Reality Entertainment Inc is a major producer of reality TV Programming. With three other major producers of similar shows, Reality controls almost the entire market of reality programming. Their market environment is called _____.
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Oligopoly
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In a free market system, sellers are willing to product a certain amount of goods and consumers are willing to buy a certain amount. Together they negotiate a _____. The crossover point on a graph where the supply for a product/service and the demand is called ____.
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Price
Market Price |
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In nations that practice ______, individuals often wait for several days, and even years, for proper medical attention.
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Socialism.
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Which of the following would favor socialist economy
a) John wants to live in a country with low marginal tax rates b)Robin wants to live in a country that encourages rapid economic growth c)Liz wants to live in a country with limited government regulation d)Fred prefers a country that promotes social equality |
Fred; social equality
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The US Healthcare reform would place more of the financial burden of healthcare on the government. Government mandated healthcare would further serve as an example of how the US operates as a(n) ______ economy
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Mixed Economy
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If we can turn new technology into marketable products and services that provide energy to run our businesses and homes, the US could see a surge in output of goods and services. The Department of Economic Development would document this surge by measuring the _____
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GDP Gross Domestic Product
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If you wanted to investigate inflationary pressures, you would refer to the _____, a key economic indicator that measures rising prices
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CPI Consumer Price Index
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You scan a report that says government spending will again exceed tax revenues in the current year. This means that the _____
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Total National Debt is likely to increase
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The federal Reserve System operates as_____
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a semi-private organization not under direct control of the government
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Unemployment is high, GDP is low. Senator Lee wants Congress to take action to increase its expenditures and cut taxes in order to stimulate the economy. The actions called for are examples of _____
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Fiscal Policy
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"Each nation should sell to other countries those goods that it can produce the most efficiently and effectively, and buy goods from other countries that it does not produce efficiently or effectively" is a description of what?
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Theory of Comparative Advantage
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Free Trade means ____.
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Goods and services can be traded across borders without political and/or economic barriers
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The president of the American Auto Parts Corp. contended that imported auto parts were priced lower than the foreign producers were charging for the same parts in their own countries. She believes these foreign producers are guilty of _____.
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Dumping
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When foreign companies build facilities and produce goods in the US, they are participating in _____, an important strategy to the US economy
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Foreign Direct Investment.
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Pepsi-Cola has a long term contract with a South African beverage business to produce and market Pepsi in South Africa. Pepsi will receive a royalty on each case of soda sold. This is an example of _____
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Licensing
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Liza has a great product she thinks drivers will appreciate, but it is time consuming to make. Her friend has agreed to use his connections in Malaysia to find a business willing to ______ the product at a very cheap cost.
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Contract Manufacture.
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Northwest Orchards sells apples and pears to several Asian countries. Northwest would benefit if the value of the dollar ____ relative to the currencies of the countries where it sells produce
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Fell
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Tyler feels the US culture should represent the model for the rest of the world, and that the America Way of doing things is almost always the best. Tyler is guilty of _____.
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Ethnocentricity
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Under a system of floating exchange rates, changes in the value of the US dollar relative to other currencies usually results from ____
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Changes in the supply of and/or demand for US dollars in the global market for US currency
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A disruption to the health of the US job market is the result of _____, where companies have shifted the manufacturing, design, and architecture processes to other nations in order to reduce labor costs.
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Offshore outsourcing
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Consumers want a firm's ethical behavior to ____
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Go beyond the legal limits of the law
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An ethical dilemma describes a situation where you must _____
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Choose between two equally unsatisfactory alternatives
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As a new supervisor, Marla has to confront a long-time friend for unacceptable work performance that caused others on the shift to pick up the slack. She wanted to convey a sense of fairness to him as well as the rest of the team. As she measured her plan of approach, what question regarding ethical dilemmas would she most likely ask herself?
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"Is my plan balanced?"
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When the actions of management appear indifferent or insensitive to ethical concerns, the effect is often ____.
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mistrust between workers and management.
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When it comes to ethical behavior, "Actions speak louder than words" is an old saying that deserves serious consideration because _____
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employees learn by observing what management does.
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As a part of Raul's regular evening routine he sets the perimeter alarm system before leaving the building and locking the front door. This action is mandatory part of operations and would be incorporated into the company's _____-based ethics code. Managers who fail to perform this function would be penalized.
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Compliance
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Professor Antoine developed a habit of volunteering for committee assignments where he could represent his department in a productive way. Although it is doubtful he would lose his position if he ignored these extra assignments, valued faculty at his institution traditionally contribute this way. This level of participation has become part of the _____-based ethics
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Integrity based ethics
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Some business professionals believe that philanthropic concerns are secondary to creating profits. This reflects concern for _____
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investors
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Businesses have directed their attention to 'corporate social incentives'. These are ______
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positions a firm takes on social and political issues
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Environmental quality is considered to be a 'public good'. The implication is _____
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Everyone enjoys a cleaner environment regardless of who pays for it.
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Blake owns a business that installs hardwood flooring. The company employs a full-time and several part-time employees. The earnings are added to other family earnings for tax purposes, and Blake assumes unlimited liability for the business bills and debt. Blake's form of business ownership is a ______.
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Sole proprietorship
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Greg's band is forming a partnership with each of the members being a partner. His great-uncle plans to provide $30,000, but does not plan to participate in the gigs, only in profits. The band will form a ____.
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Limited Partnership
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Jim and Sherry own a commercial lawn cutting service. They supplement their income with the rentals from apartment buildings they own. They incorporated the lawn care business in order to keep it separate from their other income. As a C-Corporation, if the business fails the couple would _____
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Lose only the funds they originally invested in their company.
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One reason limited liability companies have become so popular is that they ______
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can be taxed either as a corporation or as a partnership -- owners can choose the tax treatment that is most advantageous for their situation
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In a 'leveraged buyout', the managers of a firm, its employees, or other investors ______
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use borrowed funds to buy out the firm's stockholders
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Trans Globe Airlines merged with a financially troubled rival. The firms' mgmt believes the merger will create a stronger company that can offer travelers more flights to wider variety of destinations. This proposed merger is an example of a ________
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Horizontal merger
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Mega Bank's latest acquisition is Windfall Bank Shares, a bank with strong presence in online financial services. Companies will acquire other businesses in order to_____
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Enter new markets
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An evaluation of franchising would conclude that this type of arrangement ______
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appeals to people who want to own a business, but are not comfortable starting a company from scratch.
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Midas Muffler sells franchises to prospective business persons who want to use the Midas name and offer Midas products. In a franchise arrangement, Midas is the _____, and the buyer of the franchise is the _____.
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Franchisor
Franchisee |
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A _______ is an organization that is owned and controlled by the people who use it --- producers, consumers and workers with similar needs who pool their resources for mutual gain
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Cooperative.
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