Chapter 1

Question 1

What is Business?

Answer 1

All profit seeking activities and enterprises that provide goods and services necessary to an economic system.

Question 2

What is Not-For-Profit Organizations objectives?

Answer 2

Businesslike establishment that has primary objectives other than returning profits to owners.

Question 3

Examples of PRIVATE-SECTOR Not-For-Profit Organizations? (5)

Answer 3

Museums
Libraries
Trade Associations
Charity Organizations
Religious Organizations

Question 4

Examples of PUBLIC-SECTOR Not-For-Profit Organizations? (3)

Answer 4

Government Agencies
Political Parties
Labor Unions

Question 5

For profit company objectives? (4)

Answer 5

1. Payment of Dividends
2. Capital Appreciation
3. Growth
4. Reward Employees

Question 6

Factors of PRODUCTION? (4)

Answer 6

1. Natural Resources
2. Capital
3. Human Resources
4. Entrpreneurship

Question 7

Natural Resources (5)

Answer 7

1. Building Site
2. Mineral Rights
3. Water
4. Wind
5. Agricultural Land

Question 8

Capital Examples (4)

Answer 8

1. Technology
2. Tools
3. Information
4. Physical Facilities

Question 9

Human Resources (4)

Answer 9

1. Recruiting
2. Hiring
3. Training
4. Promotion

Question 10

Entrepreneurship

Answer 10

Ability to see an opportunity and take a risk.

Question 11

Who is the father of Capitalism?

Answer 11

Adam Smith

Question 12

What is the “invisible hand” concept?

Answer 12

The battle among businesses for consumer acceptance.

Question 13

Capital Structure Theory

Answer 13

Company decisions how to acquire funds.

Question 14

Ways for companies to acquire funds? (4)

Answer 14

1. Retained Earnings
2. Selling Bonds
3. Sell Stock
4. Take out Loans

Question 15

What is capitalism?

Answer 15

Economic system determines business ownership, profits, and resources.

Question 16

Another name for Capitalism?

Answer 16

Private Enterprise System

Question 17

Private Enterprise System

Answer 17

Rewards firms for their ability to serve the needs of consumers. AND minimizes government interference.

Question 18

Constitutional Guaranteed Basic Rights (4)

Answer 18

1. Private Property
2. Fair Competition
3. Profits
4. Freedom of Choice

Question 19

Six Era’s in History of U.S. Business

Answer 19

1. Colonial Era
2. Industrial Revolution Era
3. Industrial Entrepreneurs Era
4. Production Era
5. Marketing Era
6. Relationship Era

Question 20

Colonial Era

Answer 20

Prior to 1776

Emphasized Agricultural Production

Question 21

Industrial Revolution Era

Answer 21

1760-1850

Mass production by semiskilled workers; aided by machines.

Question 22

Industrial Entrepreneurs Era

Answer 22

Late 1800’s

Advances in technology lead to more entrepreneurial opportunities.

Question 23

Production Era

Answer 23

Through the 1920’s

Emphasis on producing more goods faster.

Question 24

Marketing Era

Answer 24

Since 1950

Consumer orientated, seeking to satisfy needs of a customer.

Question 25

Relationship Era

Answer 25

Began in 1990

Benefits derived from deep ongoing links with customers, employees, suppliers, and other businesses.

Question 26

Today’s Workforce (4)

Answer 26

1. Dedicated
2. Capable of High Quality Production
3. Able to compete in Global Markets
4. Tech Savy

Question 27

Two Problems with Workforce

Answer 27

1. Baby Boomers still working.

2. Shortage of trained, educated, experience workers to replace Baby Boomers.

Question 28

The 21st Century Manager Attributes (4)

Answer 28

1. Critical Thinking
2. Creativity
3. Ability to lead change.
4. Vision

Question 29

Critical Thinking

Answer 29

Is the ability to analyze and assess information to pinpoint problems or opportunities.

Question 30

Creativity

Answer 30

Is the capacity to develop novel solutions to perceived organizational problems.

Question 31

What makes a company ADMIRED? (5)

Answer 31

1. Solid Profits
2. Stable Growth
3. Safe & Challenging Work Environment
4. High Quality Goods and Services
5. Business Ethics and Social Responcibility