Principles of Business – Flashcards

During periods of deflation, price drop so demand increases greatly.

The basic economic problem results from not having enough resources.

Top management has little impact on the ethical conduct of a business.

In the United States, all people over the age of 21 who do not have a,paying job are considered "unemployed"

A span of control is a diagram that shows the structure of an organization.

The final step in decision-making process is to select the best choice from among the alternatives.

A joint venture is an agreement between two or more countries to remove duties and trade barriers on products traded among them.

When a larger business opens in an area, other businesses will often locate their to support the larger business.

A country can have an absolute advantage in only one area.

Larry's Trucking Company is located in Columbus, Ohio. The company delivers products to its sole customer, a factory in Toledo, Ohio, twice every day. Both the State of Ohio and the federal government are responsible for regulating the business actions of Larry's Trucking Company.

Generally, a lack of competition will result in lower prices for goods and services.

Most businesses use a functional organizational structure.

A country can have an absolute advantage in only one area.

Business cycles are the recurring ups and downs of gross national product.

By 2012, it is expected that over 60 percent of all jobs in the U.S. economy will be held by women.

Government is the single largest employer in the U.S. economy.

If you write an original song, your work can be protected with a copyright.

The major challenge facing businesses today involves learning how to mange a work force made up of the diverse cultures in society.

Because of international trade, all nations of the world use the same banking system.

Nonprofit corporations do not have to pay corporate income taxes.

Some countries limit the amount of money their citizens can take out of the country when they travel.

All written contracts are legal

Government plays a role in all economic systems.

Socially responsible actions benefit employees and the community while costing the company nothing.

A nation with a trade surplus is said to have a favorable trade position.

It is possible for the United states to have a trade surplus with one country and a trade deficit with another.

Countries that devote most of their economies to agriculture usually provide more and better goods and services for their citizens.

Without foreign trade, all of the items you buy would cost less, because the would not need to be shipped here from other lands.

All businesses make products.

A public utility company collects in cenus can help a businness decide where most of its potential

Things that are required in order to live are known as wants.

Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs.

Few businesses maintain their success for the lifetime of the lifetime of the owner.

Information the government collects in a census can help a business decide where most of its potential customers live.

Economic growth refers to a steady increase in the production of goods and services in an economic system.

Goods and services are purchased by business as well as by individuals.

Only very large businesses can become corporation.

Most U.S. businesses have no employees other than the owner.

The money for capital projects comes from two main sources: stock investments and bonds.

Mikayla is a 14-year-old student. She would not be considered part of the labor force in the United States.

Most business activities occur within a countries own borders.

Communism refers tot he private ownership of resources by individuals, rather than by the government.

Stanley receives a monthly social security check from the US government. This would not be counted when measuring Stanley's personal income.

A person who buys and uses goods and services is called a consumer.

An ability to produce more goods and services makes it possible to reduce the number of hours in a workweek.

One component of gross domestic product is the value of a country's exports plus the value of the imports into the country.

From 1992 to 2002, total employment in the US fell by nearly 17 percent.

The more goods and services produced, the healthier an economy is considered to be.

All economic resources have a limited supply.

When a country has a favorably balance of payments , the value of its currency is usually constant or rising.