Chapter 1 Flashcards
When a company’s revenus is greater than it’s expenses, it means that
The company earns a profit
The physical products that a business offers are called…
Good
Profits allow a company to…
Increase productivity
What can a not-for-profit organization earn?
It can earn excess revenue.
The various resources used to create a company’s goods and service are collectively referred to as…
Factors of production
Labor is a factor of production that refers to any physical or … or work people contribute or o a business’s production
Intellectual
The economy of the United States is BEST described as…
Market-based
What is NOT a benefit of business competition
It may lead to a limited variety of goods and services.
What BEST describes competition
Two or more companies compete with one another to attract customers and gain an advantage.
What refers to an interconnected system of different demographic factors
Social environment
What social issues would LEAST affect the environment in which U.S. businesses operate
The popularity of reality television
What refers to a company’s choice to relocate its production facilities overseas or subcontract at least some of the components to foreign companies at low costs.
Offshoring
What is NOT a danger to U.S. companies posted by globalization
Stabilization in the value of the U.S. dollar
What is NOT an advantage of technology
Fosters a more personal work environment
What BEST explains why a specialty shop is often classified as a local business?
It is a one of a kind operation and relies on local consumers to generate business.
