Business Questions/Answers Flashcards
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The system of business in which individuals are free todecide what to produce, how to produce it, and what price to sell it.
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Define Free Enterprise
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He is one of the worlds most respected black business owners. He sells hair care snd cosmetic products
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What does Joe Dudley sell and who is he?
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What can I do that will make employers want to pay me a salary? What skills do I have that employers need? (baby em, I think you could say something with your paintings! because your really good!!!
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What two main questions can impact your carrer
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differences among people in a workforce owing to race, ethnicity, and gender
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Cultural diversity
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1. National Debt 2. High unemployment rate 3. Volatile Stock Market 4. Consumer Pessimism 5. Unstable Economy & Business Environment
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What are some serious problems facing Americans
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1. Focus on one task at a time 2. Make your workload more manageable 3. Organize your work space and your work day 4. Structure your time 5. Give your brain a break
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What are 5 ways to Improve your productivity
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Negative cash flow
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When a firms expenses are greater than its sales revenue the firm has a ______
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product differentation
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______ is the process of developing and promoting the difference between ones produces and other similair products
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lobal Environment
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Increased competition from firms in other nations is an example of the
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conseptual skills
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the ability to think in abstract terms while invisioning the biggere picture falls in the category of _____ deemed importan managment trait
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sales revenue - expenses = profits
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relationship between sales and profits can be written as
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Average level of output per work per hour
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productivity can be described as
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a system of exchange in which goods or services are traded directly for other goods or services without using money
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barter
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the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
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business
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the recurrence of periods of growth and recession in a nation's economic activity
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business cycle
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an economic system in which individuals own and operate the majority of businesses that provide goods and services
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capitalism
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an economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production
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command economy
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rivalry among businesses for sales to potential customers
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competition
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a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
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consumer price index (CPI)
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goods and services purchased by individuals for personal consumption
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consumer products
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differences among people in a workforce owing to race, ethnicity, and gender
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cultural (or workplace) diversity
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a general decrease in the level of prices
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deflation
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the quantity of a product that buyers are willing to purchase at each of various prices
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demand
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a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession
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depression
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a method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur
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domestic system
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the study of how wealth is created and distributed
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economics
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the way in which people deal with the creation and distribution of wealth
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economy
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a person who risks time, effort, and money to start and operate a business
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entrepreneur
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resources used to produce goods and services
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factors of production
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a system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place
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factory system
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a shortfall created when the federal government spends more in a fiscal year than it receives
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federal deficit
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government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
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fiscal policy
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the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it
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free enterprise
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the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period
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gross domestic product (GDP)
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a general rise in the level of prices
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inflation
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a term created by Adam Smith to describe how an individual's personal gain benefits others and a nation's economy
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Invisible hand
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the study of the national economy and the global economy
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macroeconomics
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an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices
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market economy
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the price at which the quantity demanded is exactly equal to the quantity supplied
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market price
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the study of the decisions made by individuals and businesses
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microeconomics
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an economy that exhibits elements of both capitalism and socialism
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mixed economy
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Federal Reserve's decisions that determine the size of the supply of money in the nation and the level of interest rates
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monetary policies
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a market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors
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monopolistic competition
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a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry
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monopoly
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the total of all federal deficits
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national debt
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a market (or industry) in which there are few sellers
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oligopoly
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the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product
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perfect (or pure) competition
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an index that measures prices that producers receive for their finished goods
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producer price index (PPI)
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The process of developing and promoting differences between one's products and all competitive products
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product differentiation
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the average level of output per worker per hour
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productivity
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what remains after all business expenses have been deducted from sales revenue
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profit
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two or more consecutive three-month periods of decline in a country's GDP
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recession
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an economy in which more effort is devoted to the production of services than to the production of goods
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service economy
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the online interaction that allows people and businesses to communicate and share ideas, personal information, and information about products or services
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social media
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The separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
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specialization
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all the different people or groups of people who are affected by an organization's policies, decisions, and activities
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stakeholders
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a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services
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standard of living
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the quantity of a product that producers are willing to sell at each of various prices
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supply
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creating and maintaining the conditions under which humans and nature can exist in productive harmony while fulfilling the social, economic, and other requirements of present and future generations
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sustainability
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the percentage of a nation's labor force unemployed at any time
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unemployment rate
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Individuals are free to decide what to produce, how to produce it, and at what price to sell it
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Free enterprise
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The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
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What Is Business?
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Human Resources, Material Resources, Informational Resources, Financial Resources
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What four things does business need?
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Goods Producing, Keyboards, world wide
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What is manufacturing business?
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Service Providing, health care, regional
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What is service business?
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Buy products from manufacturers and resell
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Marketing intermediaries
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Profit is what remains after all business expenses have been deducted from sales revenue. A loss (negative profit) results when a firm's expenses are greater than its revenues.
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The Relationship Between Sales Revenue and Profit
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Stakeholders are all the different people or groups of people who are affected by the policies and decisions made by an organization. Stakeholders include consumers, marketing intermediaries, stockholders, and employees.
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Stakeholders
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Economics is the study of how wealth (anything of value) is created and distributed.
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Economics
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The study of the decisions made by individuals and businesses
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Microeconomics
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The study of the national and global economies
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Macroeconomics
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The system through which a society creates and distributes wealth
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Economy
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Individuals: Own and operate the majority of businesses that provide goods and services. Privately own resources. Decide what to buy. The market drives supply and price. Role of government is limited.
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Capitalism
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Businesses: Produce goods and services to exchange for revenues (money). Use revenues to purchase factors of production. Households: Consume goods and services. Own resources of some factors of production. Government: Provides public services in exchange for taxes.
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mixed economy
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Government: Decides what will be produced, how it will be produced, and who owns and controls the factors of production. Owns and controls key industries. Workers may choose their own occupations. Goal is to equally distribute income, eliminate poverty, provide social services, and eliminate economic waste. Small-scale private businesses may be permitted.
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Command Economy: Socialism
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Government: Owns and controls all factors of production. Plans production to meet the needs of the state. Dictates occupations, wages, and prices. The goal is to create a classless society where all contribute according to their ability and receive benefits according to their needs. No private businesses are allowed.
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Command Economy: Communism
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The average level of output per worker per hour
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Productivity:
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The total value of all goods and services produced by all people within the boundaries of a country during a one-year period
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Gross Domestic Product (GDP):
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A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
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Consumer Price Index CPI
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An index that measures prices that producers receive for their finished goods Differs from CPI due to: Government subsidies Sales and excise taxes Distribution costs
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Producer Price Index PPI
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The total value of a nation's exports minus the total value of its imports over a specific period of time
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Balance of Trade
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The value of a dollar goes down. Demand rises.
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Inflation
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An economic statistic that tracks the increase in prices of goods and services over a period of time; usually calculated on a monthly or annual basis
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Inflation Rate
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The percentage of a nation's labor force unemployed from January 2002
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Unemployment Rate
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The total amount of profits made by corporations over selected time periods
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Corporate Profits
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The interest rate the Fed offers to member banks who need to borrow money to keep their reserves at or above the minimum.
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Discount Rate
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The lowest interest rate that banks charge their most credit-worthy customers. Also the basis for many home loan programs. Always adjusts based on the discount rate.
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Prime Rate
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Interest rate banks charge one another for the use of Federal funds. The Fed indirectly controls this rate by the way it buys and sells Treasuries to the banks.
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Federal Funds Rate
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Monetary Policies are Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates.
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Monetary Policies
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The Federal Deficit is a shortfall created when the federal government spends more in a fiscal year than it receives.
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Federal Deficit
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The National Debt is the total amount the federal government owes.
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National Debt
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Competition is rivalry among businesses for sales to potential customers. In a capitalistic society, competition ensures only businesses that provide consumers with useful products and services at fair prices will survive.
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Competition
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A single product is involved. There are no restrictions on firms entering the industry. All sellers offer basically the same product. All buyers and sellers know everything there is to know about the market. The overall market is not affected by the actions of any one buyer or seller. The going price is set by forces of supply and demand.
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Conditions for Perfect Competition
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There are many buyers and a large number of sellers. Products are similar in nature and intended to satisfy the same need. Sellers try to gain a competitive edge through product differentiation - unique features, attention-getting brand name, unique packaging, special services.
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Conditions of Monopolistic Competition
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There are few, large sellers. Considerable investment is required to enter market. Market actions of each seller have a considerable effect on competitors' sales and prices.
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Conditions of Oligopoly
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One seller and no close substitute for the product or service sold Barriers to keep others from entering the market Seller must set its price based on the demand
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Conditions of Monopoly
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Software
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Legal (Limited) Monopoly
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Public Utilities
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Natural Monopoly
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Goods and services are directly exchanged.
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Barter System
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Entrepreneur distributes raw materials to homes. Families process materials into a finished good. Entrepreneur sells finished goods.
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Domestic System
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All the materials, machinery, and workers required to manufacture a product are assembled in one place.
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Factory System
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The separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
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Specialization
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The organized effort of individuals to produce and sell through the Internet, for a profit, products and services that satisfy society's needs
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e-Business
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Technology becomes more affordable. Growth of the service economy - economy in which more effort is devoted to the production of services than to the production of goods
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A New Century: 2000 and Beyond
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Product differentiation
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____is the process of developing and promoting the difference between one's products and other similar products.
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loss
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When a firm's expenses are greater than its sales revenue, the firm has a a
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global environment
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Increased competition from firms in other nations is an example of the
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Competition
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____________ is a necessary and extremely important by-product of capitalism.
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values
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When an individual chooses his or her ideal career, it is most likely a reflection of one's
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conceptual skills
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The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deemed an important management trait
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sales revenue- expenses = profits
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The relationship between sales and profits can be written as
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the average level of output per worker per hour
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Productivity can best be described as
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create a monopoly
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If Coke and Pepsi (soft-drink giants) merged, this would
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Repression
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Which of the following is NOT one of the four states included in a typical business cycle?
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Production Capital, Human Capital, Resource Capital Intellectual Capital
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What are four resources that affect business success?
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Sales, being successful, business strategy
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What does every business need to stay in business?
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A stakeholder is anybody who can affect or is affected by an organisation, strategy or project. users, providers, influences, governance
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What is a stakeholder? List four stakeholders in business.
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Losing Money, Personal Sacrifice of time and energy
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What are two risks in owning a business?
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Microeconomics is the study of economics at an individual, group or company level. Macroeconomics, on the other hand, is the study of a national economy as a whole.
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What is the difference between microeconomics and macroeconomics?
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inputs are what is used in the production process in order to produce output—that is, finished goods.
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What are the (inputs) factors of production?
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an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
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Capitalism
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Socialism is a social and economic system characterised by social ownership and/or social control of the means of production and co-operative management of the economy, as well as a political theory and movement that aims at the establishment of such a system.
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Socialism
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is a social, political, and economic ideology and movement whose ultimate goal is the establishment of the communist society,
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Communism
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the total value of goods produced and services provided in a country during one year.
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Define "Gross Domestic Product".
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the total amount of money that a country's government has borrowed, by various means
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Define "National Debt"
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inflation
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What is the term to define general price increases of products and services?
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a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
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What is a recession?
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Fiscal policy is government policy, primarily cutting/increasing taxes and speding money for public works. Its used to increase or decrease consumer demand to prevent a recession or combat inflation
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What is the purpose of the Federal Fiscal policy?
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Monetary policy has two basic goals: to promote "maximum" sustainable output and employment and to promote "stable" prices.
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What is the purpose of the Federal Reserve monetary policy?
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inverse demand curve
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What is the point where the supply and demand curve intercepts?
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perfect competition, monopolistic competition, oligopoly, and monopoly.
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What are the four degrees of competition?
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perfect competition, monopolistic competition, oligopoly, and monopoly.
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What are the four degrees of competition?
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perfect competition, monopolistic competition, oligopoly, and monopoly.
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What are the four degrees of competition?
