Chapter 1 The Foundations Of Business

Question 0

Difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.

Answer 0

PROFIT

Question 1

Activity that provides goods or services to consumers for the purpose of making a profit.

Answer 1

BUSINESS

Question 2

Organization that has a purpose other than returning profit to owners.

Answer 2

NOT-FOR-PROFIT (or NONPROFIT) ORGANIZATION

Question 3

Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.

Answer 3

MANAGEMENT

Question 4

Person who designs and oversees the process that converts resources into goods and services.

Answer 4

OPERATIONS MANAGER

Question 5

Financial advisor responsible for measuring, summarizing, and communicating financial and managerial information.

Answer 5

ACCOUNTANT

Question 6

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Answer 6

MARKETING

Question 7

Activities involved in planning for, obtaining, and managing a company’s funds.

Answer 7

FINANCE

Question 8

Study of how scarce resources are used to produce outputs - goods and services - that are distributed among people.

Answer 8

ECONOMICS

Question 9

Inputs used to produce outputs.

Answer 9

RESOURCES

Question 10

Resources consisting of land, labor, capital (money, buildings, equipment), and entrepreneurial skills conbined to produce goods and services.

Answer 10

FACTORS OF PRODUCTION

Question 11

Means by which a society makes decisions about allocating resources to produce and distribute products.

Answer 11

ECONOMIC SYSTEM

Question 12

Economic system featuring the highest level of government control over allocation and distribution.

Answer 12

COMMUNISM

Question 13

Economic system falling between communism and capitalism in terms of government control over allocation and distribution.

Answer 13

SOCIALISM

Question 14

Economic system in which most business are owned and operated by individuals.

Answer 14

FREE-MARKET SYSTEM

Question 15

Economic system featuring the lowest level of government control over allocation and distribution.

Answer 15

CAPITALISM

Question 16

Economic system that relies on both markets and government to allocate resources.

Answer 16

MIXED MARKET ECONOMY

Question 17

Process of converting government-owned businesses to private ownership.

Answer 17

PRIVATIZATION

Question 18

Market in which many consumers buy standardized products from numerous small businesses.

Answer 18

PERFECT COMPETITION

Question 19

Quantity of a product that buyers are willing to purchase at various prices.

Answer 19

DEMAND

Question 20

Graph showing the quantity of a product that will be bought at certain prices.

Answer 20

DEMAND CURVE

Question 21

Quantity of a product that sellers are willing to sell at various prices.

Answer 21

SUPPLY

Question 22

Graph showing the quantity of a product that will be offered for sale at certain prices.

Answer 22

SUPPLY CURVE

Question 23

Price at which buyers are will to buy exactly the amount that sellers are willing to sell.

Answer 23

EQUILIBRIUM PRICE

Question 24

Market in which many sellers supply differentiated products.

Answer 24

MONOPOLISTIC COMPETITION

Question 25

Market in which a few sellers supply a large portion of all the products sold in the marketplace.

Answer 25

OLIGOPOLY

Question 26

Market in which there is only one seller supplying products at regulated prices.

Answer 26

MONOPOLY

Question 27

Monopoly in which, because of the industry’s importance to society, one seller is permitted to sell products without competition.

Answer 27

NATURAL MONOPOLY

Question 28

Monopoly in which one seller supplies a product or technology to which it holds a patent.

Answer 28

LEGAL MONOPOLY

Question 29

Measure of the market value of all goods and services produced by a nation’s economy in a given year.

Answer 29

GROSS DOMESTIC PRODUCT (GDP)

Question 30

Patten of expansion and contraction in an economy.

Answer 30

BUSINESS CYCLE

Question 31

Economic slowdown measured by a decline in gross domestic productivity.

Answer 31

RECESSION

Question 32

Severe, long-lasting recession.

Answer 32

DEPRESSION

Question 33

Condition under which about 95 percent of those who want to work are employed.

Answer 33

FULL EMPLOYMENT

Question 34

Percentage of the total labor force that’s currently unemployed and actively seeking work.

Answer 34

UNEMPLOYMENT RATE

Question 35

Conditions under which the prices for products remain fairly constant.

Answer 35

PRICE STABILITY

Question 36

Rise in the overall price level.

Answer 36

INFLATION

Question 37

Decrease in the overall price level.

Answer 37

DEFLATION

Question 38

Index that measures inflation by measuring the prices of goods purchased by a typical consumer.

Answer 38

CONSUMER PRICE INDEX (CPI)

Question 39

Statistic that provides information about trends in the economy.

Answer 39

ECONOMIC INDICATOR

Question 40

Statistical data that measure economic trends after the overall economy has changed.

Answer 40

LAGGING ECONOMIC INDICATOR

Question 41

Statistical data that predict the status of the economy three to twelve months in the future.

Answer 41

LEADING ECONOMIC INDICATOR

Question 42

Measure of optimism that consumers express about the economy as they go about their everyday lives.

Answer 42

CONSUMER CONFIDENCE INDEX

Question 43

Efforts exerted by the Federal Reserve System (“the Fed”) to regulate the nation’s money supply.

Answer 43

MONETARY POLICY

Question 44

Governmental use of taxation and spending to influence economic conditions.

Answer 44

FISCAL POLICY

Question 45

Total amount of money owed by the federal government.

Answer 45

NATIONAL DEBT