Survey of Business Final – Flashcards
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Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves. Such things they are likely to pass-up on are:
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employer paid benefits such as paid vacation and health insurance.
Entrepreneurs and small business owners do not receive the employer paid benefits that a large firm can offer, including such things as paid vacations and health insurance benefits. They give-up these opportunities for the freedom to work for themselves and keep the profits that their businesses realize.
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Ross wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed 3% rate of return. However, he would like to earn a higher return. Ross should keep in mind that to earn a higher return on his money he:
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will probably have to accept a higher level of risk.
Response Feedback:
Investing in a savings account (certificate of deposit) at a bank entails very little risk, but earns a relatively small return. Business opportunities that offer the potential for high profits are often associated with a high level of risk. An investor must weigh the potential profit of an investment with its risk.
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Empowerment requires that managers focus more on __________ lower-level employees.
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training
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Due to population shifts,
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businesses that cater to older consumers will see exceptional growth.
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Which of the following statements about social entrepreneurs (such as Muhammad Yunus who won the Nobel Prize) describes their challenge?
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Using the same business skills as other entrepreneurs, social entrepreneurs develop businesses to improve the skill(s) and/or quality of life of others.
Response Feedback:
Social entrepreneurs develop businesses to improve the skills and quality of life of others. Many of these businesses are organized as non-profit companies.
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Which of the following statements describes a recurring theme about today's ecological environment?
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There is a strong push by customers that businesses develop products and services that clearly save energy.
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Ecologically, customers want businesses to sell products and services that do not leave a carbon footprint. The greening movement is a well-respected movement with global implications.
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When corruption is present in the business environment:
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company leaders can threaten competitors and minimize competition.
Response Feedback:
Governments should help to minimize corruption in business for several reasons. It's hard to do business in many poor countries because the governments ignore corruption among businesses and the governments are also corrupt. It's very difficult in such countries to get permission to build a factory or open a store without a government permit, which is obtained largely through bribery of public officials. Among businesses themselves, leaders can threaten competitors and minimize competition.
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Employers provide tools and technology for their employees in order to:
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improve their efficiency and productivity.
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The resources that contribute to the creation of wealth are known as _______.
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factors of production
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For-profit businesses and nonprofit organizations are similar in that they both:
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contribute to the welfare of society.
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A business is an activity that seeks to profit by providing goods and services to others. Nonprofit organizations, such as charities and government agencies, also provide goods and services in order to satisfy the needs of people within a society, but they do not seek a profit.
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Starting a business always involves _______.
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Risk
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The two main types of e-commerce are:
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B2B and B2C.
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Efforts are underway to serve the needs of a diverse population. Diversity means:
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dealing sensitively with workers and cultures around the world.
