question

Suppliers do NOT organize, manage, and assume the risks of the business.

answer

do not organize, manage, and assume the risks of the business.

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The goal of a firm's management

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is to maximize the firm's value, which is in the best interests of the firm's owners

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A firm must satisfy its customers by

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providing the products or services that customers desire at a reasonable price.

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Firms typically do not repay loans with

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Their Stock

question

An Enterprise that provides products or services that customers desire is a(n)

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A business

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The ____ of a business are typically responsible for creating the business idea

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Owners

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Most business owners would agree that the following characteristics motivated them to start their own business except

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Risk

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The stakeholders of a firm include all of the following:

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Owners, Creditors, Employees and suppliers

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A certificate of ownership of a business is a

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Stock

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When investors invest in the business, they become

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Stockholders

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Many firms that need funds borrow from financial institutions or individuals called

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creditors

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Employees responsible for making key business decisions are

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Manager

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A nonprofit organization is one that

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serves a specific cause

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Business decisions regarding which products are created, priced, distributed, and promoted to customers are _____ decisions

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Marketing

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The expenses associated with transactions between firms have been reduced by:

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business-to-business e-commerce

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business decisions involving the efficient use of employees and other resources (such as machinery) are ______ decisions

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Management

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business decisions that focus on strategies to make the product more appealing to customers and improve the firm's revenues are _______ decisions

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Marketing

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_____ gather information about a firm then provide that information to management for use in decision making

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Information Systems

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_______ summarize(s) the firm's financial condition for use in making various business decisions

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Accounting

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Business decisions involving how to obtain the necessary funds to be used by the firm are ______ decisions

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Finance

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Managers rely on _______ to detect the inefficient use of resources

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Accounting data

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the purpose of an industry environment assessment is to determine the:

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Degree of competition

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The _______ environment includes changes in consumer preferences overtime

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Social

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The profit motive is influenced by the government because

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governments of free-market economies encourage the profit motive

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Finance is the means

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by which firms obtain and use funds for their business operations

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Profit

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is the difference between the revenue and expenses of a business

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Demographics

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refer to characteristics of a population

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Creditors are

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Institutions that provide loans to a business

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Human resources are

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the people who are able to perform work for a business

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E-business

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is the use of electronic communications to produce or sell products and services

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Entrepreneurship

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involves the creation of a business idea and the willingness to accept risk

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The responsibility of firms towards their customers

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can be encouraged by specific groups of consumers

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The government protects consumers by

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regulating the quality of some products that firms produce

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Deregulation results in

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lower prices for consumers

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The clayton act is NOT intended to

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restrict competitions

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U.S firms that conduct business in foreign countries

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are subject to the rules enforced by the local gov't

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In recent years, stockholders have been active in

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trying to influence a firm's management practices

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An attempt by a firm to maximize social responsibility to the community may

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reduce the firm's ability to provide products at a reasonable price to consumers

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In recent years pollution laws

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have become more stringent

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The recognition of how a firm's business decisions can affect society is its

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Social responsibility

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A firm's ______ is measured by its stock price, which can be negatively affected by unethical business practices

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Value

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Many U.s Firm provide guidelines of behavior to employees through a code of

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responsibilities and ethics

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Firms can ensure responsibility to customers by

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Full financial disclosure

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______ represents the collective consumer demand that businesses satisfy their needs

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Consumerism

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The act that prohibits unfair methods of competition is the

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The federal trade commission act

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Tying agreements, binding contracts, and interlocking directorates are prohibited by the

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Clayton Act

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The act that prohibits mergers between firms that reduce competition within an industry is the

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Celler-Kefauver Act

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Which of the following represents legislation passed to prevent firms from entering into agreements to set prices and avoid competition

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Antitrust laws

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If a firm is the sole provider of a good or service, it is a(n)

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Monopoly

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Industries have been deregulated, allowing more firms to enter the industry except

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Railroads

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The act that prohibits price differences on promotional allowances that reduce competition within an industry is the

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Robinson-Patman Act

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The Act that encourages competition and prevents monopolies is the

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Sherman Antitrust Act

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Unwelcome comments or actions of a sexual nature are examples of

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Sexual harassment

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Which of the following terms describes a set of activities intended to increase opportunities for minorities and women

answer

Affirmative Action

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The act that prohibits discrimination due to national origin, race, gender or religion is the

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Civil Rights Act of 1964

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On example of a firms attempt to ensure the proper and equal treatment of all employees is the establishment of a

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Grievance procedure

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An active role by stockholders in influencing a firm's management policies is called

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Shareholder Activism

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Shareholder activism is most commonly practiced by

answer

Institutional investors

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If a Firm fails to meet it's responsibilities to _____ it may be forced into bankruptcy

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It's creditors

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_____ financial institutions that purchase large amounts of stock

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institutional investors represent

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Business responsibilities

answer

A code of _____________ sets guidelines for product quality, as well as guidelines for how employees, customers and owners should be treated

Intro to Business Chap 1-2 – Flashcards

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