Busi Test 1 – Flashcards
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which environment is NOT an important dimension of a business organizations external environment?
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The Corporate Cultural Environment
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what term denotes a nations basis for allocating its resources among its citizens?
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Economic System
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what is the process for converting government enterprises into individually owned firms known as?
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Privatization
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what is the point at which the supply curve and the demand curve intersect on the graph?
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Equilibrium Price
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what is the price at the quantity of goods demanded and the quantity of goods supplied are equal?
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The Market Price
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what occurs when the quantity demanded exceeds the quantity supplied?
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Shortage
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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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which of the following exists when an industry or market has only one producer?
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Monopoly
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which term refers to the pattern of short-term ups and downs in an economy?
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Business Cycle
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which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase?
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Standard of Living
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which term refers to the total value of all goods and services produced within a given period by a national economy?
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Gross Domestic Product
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which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas?
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Consumer Price Index
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what does productivity measure?
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How much a system produces with the needed to produce it
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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 condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?
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Stability
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what are profits?
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Difference between revenues and expenses
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a whistle-blower is an outsider who reports publicly on the wrongdoings of companies.
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FALSE
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the consumer bill of rights is backed by numerous federal and state laws.
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TRUE
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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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which of the following should be the first step in assessing ethical behavior in a certain situation?
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Collect facts related to the situation
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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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how do top managers best demonstrate a commitment to ethical business practices?
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By adopting a written codes of ethics
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which statement about codes of ethics is FALSE?
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Fewer and fewer companies are adopting codes of ethics
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which of the following statements is most likely to be included in a company's code of ethics?
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We reward all valuable contributions
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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 environment?
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Social Responsibility
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how often should an organization change its objectives?
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Infrequently
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what is the term given to the groups, individual, and organizations that are directly affected by the practices of an organization?
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Organizational Stakeholders
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advertising for which of the following products is most likely to have ethical ramifications?
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Alcohol
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what must every corporation do in maintaining and reporting its financial status?
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Conform to generally accepted accounting principles
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which of the following occurs when someone uses confidential information to gain from the purchase or sale of stock?
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Insider Trading
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what does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?
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Guarantee the Accuracy of financial reporting
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if a firm hides responsibility for wrongdoing, what types of stance are they taking toward social responsibility?
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Obstructionist
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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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which of the following is the LEAST common goal of entrepreneurs?
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To meet community or social obligations
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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 the most significant disadvantage of owning a franchise?
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Start-Up Costs
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which of the following is the most significant disadvantage of starting a business from scratch?
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The Risk of Failure
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what is the most important source of money for new business start ups?
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Personal Resources
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who constitutes the membership of SCORE?
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Retired Executives
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which of the following represents the fastest-growing segment of minority business ownership?
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African Americans
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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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what percent of a business is the least amount that a master partner will retain?
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50 Percent
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in which business sector are cooperative still important?
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Agriculture
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which form of business ownership generates the most sales in the United States?
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Corporation
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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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who are the owners of a corporation?
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Stockholders
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what are shares in a business that the business sells called?
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Stocks
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suppose BrightLightsOnline Video purchases another company, QuikFlix. what is this an example of?
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Acquisition
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what are the products that are created abroad and then transported and sold domestically?
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Imports
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what are the products that are created domestically and transported for sale abroad?
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Exports
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which country is the worlds largest makertplace and most stable economy?
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The United States
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which country dominates the Pacific Asia region economically?
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Japan
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which organization most likely has the greatest impact on Asian countries?
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ASEAN
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which of the following is the name for the economic value of all of the products that a country exports minus the economic value of its imports?
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Balance of Trade
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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 of the following is the name for the overall flow of money into or out of a country?
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Balance of Payments
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with what type of exchange rate does the value of a country's currency remain constant relative to that of another country?
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Fixed
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when the value of one country's currency relative to that of another varies with market condition, which of the following exists?
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Floating Exchange Rate
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which of the following organizations is a firm that makes products in one country and then distributes and sells them in others?
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Exporter
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which of the following buys products in foreign markets and then sells them for resale in its home country?
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Importer
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ABC Company in the United States has given exclusive rights to XYZ Company in Switzerland?
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A Licensing Arrangement
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The ABC Paint Company in the United States has joined forces with the forces with the 1-2-3 Plastics Company in Italy?
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Strategic Alliance
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what is it called when a company sends some of its own managers overseas to conduct business in a local office?
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Opening a Branch Office
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which of the following denotes the international organization strategy of finding a partner in the country in which a company would like to conduct business?
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Developing a Strategic Alliance
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which business constitutes analyze their competitve environment and plan, organize, direct, and control the operations of their organizations?
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Managers
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which aspect of the management process involves determining what the organization needs to do and how best to get it done?
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Planning
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which type of manager is responsible for implementing the strategies, policies, and decisions made by top managers?
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Middle Manager
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which type of manager spends the most of their time working with and supervising the employees who report to them?
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First-Line Managers
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what type of skills are needed to understand and work well with people in their workplace?
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Human Relations Skills
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which of the following refers to a persons ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present situation?
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Conceptual Skills
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what type of skills requires defining problems and selecting the best course of action to take?
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Decision-Making Skills
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what identifies performance targets used by organizations and their managers to measure success or failure at every level?
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Goals
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if Kodak sets out to increase its share of the 35-mm film market by 10% during the next 8 years, what kind of goal is the organization setting?
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A Long-Term Goal
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when the finance department aims for a 3% increase in return on investment in 3 years, what type of goal is the organization setting?
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An Intermediate Goal
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what does e-partnering involve?
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Buying shares of small companies that provide technology unavailable to the "purchasing" company
