business, chapters 1-4 (quiz) – Flashcards
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what term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environments?
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social responsibility
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many governments require that products sold in their particular country be at least partly made there. this policy involves what type of laws?
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local content laws
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which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?
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absolute advantage
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lucy has organized her craft shop as a sole proprietorship. her sister warned lucy about the legal principle holding her responsible for paying off all of the debts of the business. what is the name of this principle?
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unlimited liability
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which environment is not an important dimension of a business organization's external environment?
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the corporate cultural enviornment
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what are specific locations of Ramada, McDonald's, and Subway examples of?
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franchises
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approximately what percent of all US businesses employ 20 or fewer people?
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89 percent
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what are products that are created domestically and transported for sale abroad?
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exports
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which of the following does not represent a degree of competition in a private enterprise system?
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socialism
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what term denotes a nation's basis for allocating its resource among its citizens?
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economic system
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what is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture?
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business plan
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what is a major drawback of sole proprietorship?
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unlimited liability
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what is likely the single most effective step that a company can take to set ethical standards?
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demonstrate support from top management
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in which business sector are cooperatives still important?
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agriculture
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which of the following types of businesses is most common in the united states?
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sole proprietorships
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which of the following refers to the situation when a country's imports exceed its exports?
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trade deficit
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which entity is defined as independent and has little influence on its market?
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small business
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what is the point at which the supply curve and the demand curve intersect on a graph?
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equilibrium price
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which type of business is legally considered a separate entity from its owners and is liable for its own debts?
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corporation
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what is the economic condition characterized by widespread increased prices without increased purchasing power?
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inflation
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what is the term given to groups, individuals, and organizations that are directly affected by the practices of an organization?
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organizational stakeholders
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in a small town of 3000 people, the number of car washes has grown from two to five in the last two months. Which result will likely occur?
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the increase in supply will lead to a decrease in the equilibrium price
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what are profits?
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difference between revenues and expenses
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what are beliefs about what is right and wrong or good and bad called?
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ethics
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what is the most important source of money for new business start ups?
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personal resources
