Chapters 1-4: Lookong At The Business Environment

Question 1

What are the Factors of production?

Answer 1

Labor, Natural Resources, Capital, Technology, Entrepreneurial talent

Question 2

What are goods?

Answer 2

Tangible products sold by a company

Question 3

What are services?

Answer 3

Intangible products EX: Haircut

Question 4

What is offshoring?

Answer 4

Business relocate their production facilities overseas or sub-contract at least some of the company’s components of their products

Question 5

What is a Monopoly?

Answer 5

Single company dominates the industry

Question 6

What is a Duopoly?

Answer 6

2 Suppliers exist in an industry

Question 7

What is a Oligopoly?

Answer 7

Few sellers exist each owning a large share of the market

Question 8

What is Monopolistic Competition?

Answer 8

Many buyers and seller with identical products EX: Coffee

Question 9

What are the benefits of competition?

Answer 9

Cheaper consumer prices, many options

Question 10

What is Globalization?

Answer 10

Movement toward a more interconnected and interdependent world economy

Question 11

What is Technology?

Answer 11

Items or services that make businesses more efficient and productive EX: Software and Phones

Question 12

What is a Local Business?

Answer 12

Rely on the local consumers to generate business

Question 13

What is a Regional Business?

Answer 13

Companies that serve a wider area that local businesses but do nor serve nationaly

Question 14

What is a National Business?

Answer 14

Several outlets throughout a country, no international business

Question 15

What are the four types of business?

Answer 15

Local, Regional, National, Multi-National

Question 16

B2B and B2C are?

Answer 16

Business interactions

Question 17

How much Capital must a business owner possess when opening a business?

Answer 17

Enough to cover the first year

Question 18

What is one challenge facing National Companies?

Answer 18

Undercapitalization

Question 19

What are Profits?

Answer 19

Left over money after subtracting expenses

Question 20

How do you calculate Profit?

Answer 20

Revenue - Expenses = Profit

Question 21

What is a business?

Answer 21

Entities that offer goods and services to make a profit

Question 22

What is E-commerce?

Answer 22

buying and selling foods and services online

Question 23

What is an Entrepreneur?

Answer 23

Someone who assumes the risk of creating, organizing and operating a business and direct all of its resources

Question 24

What is financial capital?

Answer 24

Money used to facilitate a business enterprise

Question 25

What is Identity theft?

Answer 25

Illegal gain and use of someone else’s personal information

Question 26

What is a supply chain?

Answer 26

Process in which products, information and money move between supplier and consumer

Question 27

What is Telecommuting?

Answer 27

Working from home using the internet of phone to access papers and documents

Question 28

Describe a Not-For-Profit Organization.

Answer 28

Business that uses profits to benefit the organization not its leaders of executives

Question 29

What is Economics?

Answer 29

Study of the economy as a whole

Question 30

What is socialism?

Answer 30

Economic system where the government controls many basic businesses and services where the profits are shared among the people

Question 31

What is Communism?

Answer 31

Economic system where a states government makes off economic decisions and controls all social services

Question 32

What is a Mixed economy?

Answer 32

Blend of market and planed economies

Question 33

What are complementary goods and services?

Answer 33

Products that go with each other and are consumed together

Question 34

What is currency?

Answer 34

Unit of exchange for transfer of goods and services

Question 35

What is the Discount Rate?

Answer 35

Interest that the FED charge banks when they borrow money

Question 36

What is the Federal Funds Rate?

Answer 36

Interest rate banks charge other banks when thy borrow money overnight from one another

Question 37

What is Macroeconomics?

Answer 37

Study of the behavior of the overall economy

Question 38

What is Microeconomics?

Answer 38

Study of individual businesses and consumers make decisions to allocate their limited resources

Question 39

What is Deflation?

Answer 39

Decrease in prices over time

Question 40

What is Under-capitalization?

Answer 40

Occurs when a business owner cannot gain access to adequate funding

Question 41

What is Real Capital?

Answer 41

Physical facilities used to produce goods and services

Question 42

What is a Social Environment?

Answer 42

Interconnected system of different demographic factors such as race, ethnicity, gender, age, income, sexual orientation ect.

Question 43

What is a Demand Curve?

Answer 43

Shows relationship between demand and price

Question 44

What is a Supply Curve?

Answer 44

Shows relationship between supply and price

Question 45

What is Depression?

Answer 45

Very long Recession

Question 46

What are the determinants of demand?

Answer 46

Income changes, Population changes, Consumer preferences, Complementary goods, Substitute goods

Question 47

What are the determinants of supply?

Answer 47

Technology changes, Resource prices, Price expectations, Number of suppliers, Price of substitute goods