BUSINESS FINAL

Question 1

Definition of Mission

Answer 1

Purpose of being in business

Question 2

Definition of Vision

Answer 2

What business aspires to be in future

Question 3

Definition of GDP

Answer 3

Gross Domestic Product: Total value of goods and services in economy

Question 4

Definition of Skin in the Game

Answer 4

Putting one’s own money in to start up business. Shows investors that the entrepreneur has something to lose if it doesn’t work out

Question 5

Definition of Employee Empowerment

Answer 5

Power from higher ups is lent to lower levels to make decisions for themselves based on their training. Increases business autonomy in addition to customer AND employee satisfaction

Question 6

Definition of Diversification

Answer 6

Investing in a bunch of different things so money doesn’t all fail at once if one method doesn’t work out

Question 7

Definition of Business Cycle

Answer 7

Ups and down of economy (Expansion and Contraction)

Question 8

Definition of Fiscal Policy

Answer 8

How much money government spends and taxes

Question 9

Definition of Supply

Definition of Demand

Answer 9

Quantity of good/service based on specific price

How much people want a good/service based on specific price

Question 10

Definition of CSR

Answer 10

Corporate Social Responsibility: Companies owe the community more than just jobs and economic value; outreach

Question 11

Definition of Economies of Scale

Answer 11

The benefits companies gain from expanding (price per unit is cheaper, big down payments on things that will eventually bring down costs is more feasible, etc.)

Question 12

Definition of Productivity

Answer 12

Doing more with less, efficiently using resources to get more done

Question 13

Definition of Efficiency

Definition of Effectiveness

Answer 13

Efficiency: Doing things the right way; using the least amount of resources (time, energy) to get something done
Effectiveness: Ability to get something done

Question 14

Percentage of business economy goods vs service

Answer 14

Services is bigger

Question 15

Motivating

Answer 15

People are motivated differently; must find out what makes them tick to make them WANT to work and get things done

Question 16

Average inflation

Answer 16

2.5% annually

Question 17

Why do performance appraisals matter

Answer 17

Determines future promotions and pay raises

Question 18

Cause of Great Recession

Answer 18

People were speculating houses and thought they were getting good deals on homes with low interest rates. But they were given adjustable rate mortgages and didn’t realize how bad it would get. When rates rose, people defaulted and banks stopped lending. Companies laid people off so consumers stopped spending and the economy went into freefall

Question 19

Social Security payments

Answer 19

$2,000 monthly at 66 years old

Question 20

Danger of job becoming obsolete

Answer 20

Structural unemployment. You need to have a set of skills that are going to be in demand in the coming years. Anything that can be covered by automation is in trouble

Question 21

Funds to start a business

Answer 21

Capital

Question 22

Primary Economic Systems and what most countries have

Answer 22

Capitalism
Communism
Socialism
Mixed economy

Question 23

Balance of US government budget

Answer 23

Deficit of $1 trillion

Question 24

Cummulative debt of US government

Answer 24

$28 trillion

Question 25

China’s economy vs US

Answer 25

China will pass US by 2030

Question 26

Federal Reserve’s mission

Answer 26

Price stability

Maximum sustainable employment

Question 27

Why entrepreneurs start businesses

Answer 27

Make money
Have control over work life
Make a social impact

Question 28

Characteristics of entrepreneurs

Answer 28

Motivation
Vision
Grit

Question 29

US balance of trade

Answer 29

Imports > Exports

Question 30

Why develop a business plan

Answer 30

It convinces investors to help in startup

Way to get capital