question

any profit-seeking organization that provides goods and services designed to satisfy customers' needs

answer

business

question

money a company brings in through the sale of goods and services

answer

revenue

question

a concise description of how a business intends to generate revenue

answer

business model

question

money left over after all the costs involved in doing business have been deducted from revenue

answer

profits

question

all the costs involved in doing business

answer

expenses

question

Why is competition good?

answer

* gives customers a wider range of options * tends to increase quality, improve customer service, and lower prices * competition is so vital to the health of the economy that the US government goes to great lengths to preserve competition in virtually all industries (monopolies).

question

companies generally have considerable freedom in deciding which customers they want to focus on and how they want to compete

answer

free-market economy

question

some aspect of a product or company that makes it more appealing to target customers

answer

competitive advantage

question

What is the driving force of a business?

answer

The driving forces behind most businesses are the prospects of earning profits and building assets.

question

anything of meaningful, from patents and brand names to real estate and company stock

answer

assets

question

Organizations that provide goods and services without having a profit motive. However, they must operate efficiently and effectively to achieve their goals, and successful nonprofits apply many of the business-management principles you'll learn in this course.

answer

non-profit organizations

question

Companies that create value by making "things," most of which are tangible (digital products such as software and music downloads are a notable exception)

answer

goods-producing businesses

question

Companies that create value by performing activities that deliver some benefit to the customer. These businesses tend to be labor-intensive businesses, in that they rely more on human resources than buildings, machinery, and equipment to prosper.

answer

service businesses

question

Over the past few decades, the US economy has undergone a profound transformation from being dominated by manufacturing to being dominated by services. True or False

answer

True

question

What percentage does the service sector now accounts for of nation's economic output?

answer

3/4

question

What type of businesses account for more than half of the 100 largest US companies?

answer

service providers EXAMPLE: IBM is well known as a manufacturer of computers and other technological goods, but 60% of the company's sales revenue now comes from services such as systems design, consulting, product support, and financing.

question

These require large amounts of money, equipment, land, and other resources to get started and to operate. The capital needed to compete in these industries is the barrier to entry, a resource or capability a company must have before it can start competing in a given market.

answer

capital-intensive business

question

List some examples of barriers of entry

answer

* capital needed for startup * government testing and approval * tightly controlled markets * strict licensing procedures * limited supplies of raw materials * need for highly skilled employees

question

A view of business that considers the myriad decisions that must be made and the many problems that must be overcome before companies can deliver the products that satisfy customer needs.

answer

business mindset

question

List some examples of how businesses have the potential to contribute to society.

answer

* Offering valuable goods and services. * Providing employment (US businesses pay out more than $2 trillion in salaries and wages every year) * Paying taxes (US businesses pay roughly a half trillion dollars in taxes every year, money that helps build highways, fund education, further scientific research, enhance public safety and national defense, and support other vital functions of government.) * Contributing to national growth, stability, and security. Beyond the mere dollar of taxes paid, a strong economy helps ensure a strong country.

question

List some negative affects businesses can have on society.

answer

Generating pollution and creating waste Creating health and safety risks Disrupting communities Causing financial instability (The recent credit market collapse demonstrates how a single industry can throw the entire global economy into chaos. In addition, poorly managed companies in any industry can become a liability to society if they are unable to meet their financial obligations and need assistance from the government.)

question

Directly or indirectly, virtually every decision a company makes is influence by the economic environment. True or False

answer

True

question

The conditions and forces that (a) affect the cost and availability of goods, services, and labor and (b) thereby shape the behavior of buyers and sellers.

answer

economic environment

question

Within the overall economic environment, every company operates within a market environment composed of which three important groups?

answer

1. target customers 2. buying influences (that shape the behavior of those customers) -- fades in fashion change 3. competitors (other companies that market similar products to those customers)

question

laws and regulations at the local, state, national, and even international level

answer

legal and regulatory environment

question

Trends and forces in society at large.

answer

social environment

question

Give an example of social environment.

answer

One great example of social environmental trends is the so-called Baby Boom generation, a generational " bulge" in the population made up of people born between 1946 and 1964. This generation has affected business in numerous ways as it has moved through childhood, then into adulthood as consumers and workers, and finally back out of the workforce as the first wave of boomers reach retirement age.

question

Technological changes have the potential to change every facet of business, from altering internal processes to creating — or destroying— market opportunities. With recorded music, for instance, digital file technology has adversely affected every aspect of CD album sales, from the chemicals used in the manufacture of blank CDs to retail stores that sell CDs to all the products associated with CDs ( such as CD players and storage cases).

answer

technological environment

question

FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE Functional area responsible for conceiving and designing new products.

answer

Research and Development

question

FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE This area is where the company makes whatever it makes or does whatever it does (for service companies).

answer

Manufacturing, Production and Operations

question

FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE Charged with identifying opportunities in the marketplace, working with R&D to develop the products to address those opportunities, creating branding and advertising strategies to communicate with potential customers, and setting prices; develops relationships with potential customers and persuades customers, transaction by transaction, to buy the company's goods and services.

answer

Marketing, Sales, Distribution and Customer Support

question

Which aspect of business has been changed most dramatically by recent technological advances?

answer

Marketing, Sales, Distribution and Customer Support

question

List some examples of recent technological advances in marketing, sales, distribution and customer support.

answer

social media = blogs and user-generated-content sites websites = allows customers to compare prices and read product reviews The result is a profound power shift that puts buyers on much more equal footing with sellers

question

FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE Responsible for virtually every aspect of the firm's finances, including ensuring that the company has the funds it needs to operate, monitoring and controlling how those funds are spent, and drafting reports for company management and outside audiences such as investors and government regulators.

answer

Finance and Accounting

question

FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE Responsible for recruiting, hiring, developing, and supporting employees; usually oversees these processes and supports the other departments as needed; charged with making sure the company is in compliance with laws concerning employee rights and workplace safety.

answer

Human Resources

question

FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE Helps companies with specific needs in accounting, law, banking, real estate, and other areas; these services can be performed by in-house staff, external firms, or a combination of the two.

answer

Business Services

question

CAREERS IN BUSINESS Encompasses all the people and processes used to create the goods and services that a company sells. (May include production engineering, assembly, testing, scheduling, quality assurance, information technology, forecasting, finance, logistics, and customer support.)

answer

Operations Manager

question

CAREERS IN BUSINESS Plan and direct human resource activities that include recruiting, training and development, compensation and benefits, employee and labor relations, and health and safety.

answer

Human Resource Specialist

question

CAREERS IN BUSINESS This role is evolving from a tactical support function to a critical strategic component; design, implement, and maintain systems that help deliver the right information at the right time to the right people in the organization. Jobs in this role typically require a degree in a technical field, but an understanding of business processes, finance, and management is also important -- particularly as you progress up through the ranks of IT management. Many managers and executives in this field also have a business degree, although not all companies require one.

answer

Information Technology Manager

question

CAREERS IN BUSINESS Identifying and understanding market opportunities and shaping the product, pricing, and promotional strategies needed to pursue those opportunities.

answer

Marketing Specialist

question

CAREERS IN BUSINESS Responsible for building relationships with customers and helping them make purchase decisions.

answer

Sales Professional

question

CAREERS IN BUSINESS Tasks vary by job and industry, but in general, professionals in this role are responsible for collecting, analyzing, and reporting on financial matters— such as analyzing budgets, assessing the manufacturing costs of new products, and preparing state and federal tax returns.

answer

Accountant

question

CAREERS IN BUSINESS Develops and implements the firm's financial plan and determines the most appropriate sources and uses of funds

answer

Financial Manager

question

the quality of performing at a high level and conducting oneself with purpose and pride; True professionals who have this exhibit seven distinct traits: striving to excel, being dependable and accountable, being a team player, communicating effectively, demonstrating a sense of etiquette, making ethical decisions, and maintaining a positive outlook.

answer

professionalism

question

One of the tenets of doing business in a competitive business is, "Without ________, there is no reward." A) risk B) competitive advantage C) profit D) entrepreneurship E) service

answer

E) service

question

All of the following would be potentially negative effects that a business can have on society EXCEPT ________. A) an inability to meet its financial obligations B) laying off workers in an economic downturn C) creating health and safety risks to employees D) generating pollution and causing waste E) paying state and federal taxes

answer

B) laying off workers in an economic downturn

question

________ is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens. A) Trade-offs B) Economics C) Entrepreneurship D) Allocation E) Productivity

answer

D) Allocation

question

The means by which a society distributes its resources in order to satisfy the needs of its citizens is a(n) ________. A) distribution system. B) supply system. C) opportunistic system. D) economic system. E) sociopolitical system.

answer

B) supply system

question

An economic system where individuals own and operate the majority of businesses with limited economic intervention by the government is characteristic of a ________ economy. A) socialist B) mixed-market C) communist D) planned E) free-market

answer

A) socialist

question

All of the following are disadvantages of sole proprietorships EXCEPT ________. A) single layer of taxation B) unlimited liability C) finite life span D) limited managerial perspective E) resource limitations

answer

B) unlimited liability

question

Roger helps his brother's small business by contributing money, but he lets his brother take care of the daily operations of the business. and is protected from unlimited liability. Roger is likely a ________. A) general partner B) limited partner C) employee D) sole proprietor E) stockholder

answer

D) sole proprietor

question

Many law firms are established as ________, in which the partners have unlimited liability for their own actions but only limited liability for the partnership as a whole. A) master limited partnerships B) general partnerships C) limited partnerships D) limited liability partnerships E) sole proprietorships

answer

E) sole proprietorships

question

A small business is all but which of the following? A) operated for profit B) demanding of its owner's time and attention C) often a lifestyle businesses D) independently owned E) dominant in its field of operation

answer

A) operated for profit

question

Three factors contributing to the increased number of small businesses are downsizing/outsourcing, growing diversity in entrepreneurship, and ________. A) technologies such as e-commerce B) lifestyle enterprises C) increased ease in taking a company public D) tax advantages E) new business failure rates

answer

C) increased ease in taking a company public

question

All of the following would be qualities of successful entrepreneurs EXCEPT ________. A) They are highly adaptable in terms of pursuing new opportunities B) They are driven by a passion to succeed C) They thrive in high-risk situations D) They learn from their mistakes and view their failures as opportunities to improve E) They are highly disciplined and willing to make sacrifices to succeed

answer

D) They learn from their mistakes and view their failures as opportunities to improve

question

Managerial roles fall into one of three categories: interpersonal, informational, and ________. A) instructional B) directional C) conceptual D) decisional E) influential

answer

[answer unknown]

question

Establishing organizational goals and determining the best methods for accomplishing those goals would be part of the ________ function of management. A) organizing B) leading C) planning D) analytical E) planning

answer

C) planning

question

A ________ is an outline of the fundamental purposes of the organization - in other words, why the company exists. A) strategic plan B) vision statement C) mission statement D) competitive strategy E) tactical plan

answer

C) mission statement

question

An individual who became a Microsoft Certified Software Engineer has a ________ in certain Microsoft networks and systems. A) absolute advantage B) core competency C) span of management D) comparative advantage E) work specialization

answer

B) core competency

question

A manager in an organization who provides support, advice and specialized services to line managers would likely have a(n) ________ position. A) bureaucratic B) authoritative C) staff D) hierarchical E) directive

answer

C) staff

Business in Action – Chapter 1 – Developing a Business Mindset – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards