Quiz 1 business 101

Flashcard maker : Lily Taylor
Business
the activity of providing goods and services involving financial and commercial and industrial aspects
Free Enterprise System
An economic system in which individuals depend on supply and demand and the profit margin to determine what to produce, how to produce, how much to produce, and for whom to produce. The quest for improvement financially and materially motivates consumers and producers.
Communism
a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government
Pure Competition
a market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition; a market characterized by a very large number of buyers and sellers
Monopolistic Competition
market situation in which a large number of sellers offer similar but slightly different products and in which each has some control over price
Oligopoly
A market structure in which a few large firms dominate a market
Monopoly
control of a product or service by one company
Anti-Trust Law
law intended to promote free competition in the market place by outlawing monopolies
Natural Monopoly
a market that runs most efficiently when one large firm supplies all of the output
Supply Curve
a curve that shows the relationship between the price of a product and the quantity of the product supplied.
Demand Curve
a curve that shows the relationship between the price of a product and the quantity of the product demanded
Supply and Demand
An economic concept that states that the price of a good rises and falls depending on how many people want it (demand) and depending on how much of the good is available (supply).
Globalization of Markets
Moving Away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national markets are merging into one global market
Globalization of Production
Sourcing goods and services from locations around the globe to take advantage of national differences in the cost and quality of various factors of production
Exchange Rates
a measurement of the value of one nation’s currency relative to the currency of other nations
Tariffs
taxes imposed by a government on imported or exported goods
World Trade Organization
An international agency which encourages trade between member nations, administers global trade agreements and resolves disputes when they arise.
Nafta
A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.
European Union
international organization comprised of Western European countries to promote free trade among members
Social Responsibility
a business’s obligation to pursue policies, make decisions, and take actions that benefit society
Sexual Harassment
comments, gestures, or physical contacts of a sexual nature that are deliberate, repeated, and unwelcome
Ethics
the philosophical study of moral values and rules
Immoral Management
A posture that not only is devoid of ethical principles or precepts but also implies a positive and active opposition to what is ethical.
Amoral Management
management is neither moral nor immoral, but decisions lie outside the sphere to which moral judgments apply.
Moral Management
Wide-ranging method of treatment that focuses on a patient’s social, individual, and occupational needs.
Sole Proprietorship
a business owned and managed by a single individual
Partnership
a contract between two or more persons who agree to pool talent and money and share profits or losses
Corporation
a business owned by stockholders who share in its profits but are not personally responsible for its debts
Limited Partnership
form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership’s debt is restricted to the amount invested in the business
S-Corporation
a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
Limited Liability Company
type of business enterprise that protects members against losing all of their personal wealth; members are taxed as if they were in a partnership
Limited Liability
the liability of a firm’s owners for no more than the capital they have invested in the firm
Board of Directors
A group of people elected by the stockholders of a corporation to set the policies for the corporation.
Partnership Agreement
a written agreement among all owners detailing the rules and procedures that guide ownership and operations
Corporate Charter
a legal document that the state issues to a company based on information the company provides in the articles of incorporation
Double taxation
Situation in which taxes may be payable both by a corporation on its profits and by shareholders on dividend incomes
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
Entrepreneur
a person who organizes, manages, and takes on the risks of a business
Small Business
any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people

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