Chapters 1-4: Lookong At The Business Environment Flashcards
What are the Factors of production?
Labor, Natural Resources, Capital, Technology, Entrepreneurial talent
What are goods?
Tangible products sold by a company
What are services?
Intangible products EX: Haircut
What is offshoring?
Business relocate their production facilities overseas or sub-contract at least some of the company’s components of their products
What is a Monopoly?
Single company dominates the industry
What is a Duopoly?
2 Suppliers exist in an industry
What is a Oligopoly?
Few sellers exist each owning a large share of the market
What is Monopolistic Competition?
Many buyers and seller with identical products EX: Coffee
What are the benefits of competition?
Cheaper consumer prices, many options
What is Globalization?
Movement toward a more interconnected and interdependent world economy
What is Technology?
Items or services that make businesses more efficient and productive EX: Software and Phones
What is a Local Business?
Rely on the local consumers to generate business
What is a Regional Business?
Companies that serve a wider area that local businesses but do nor serve nationaly
What is a National Business?
Several outlets throughout a country, no international business
What are the four types of business?
Local, Regional, National, Multi-National
B2B and B2C are?
Business interactions
How much Capital must a business owner possess when opening a business?
Enough to cover the first year
What is one challenge facing National Companies?
Undercapitalization
What are Profits?
Left over money after subtracting expenses
How do you calculate Profit?
Revenue - Expenses = Profit
What is a business?
Entities that offer goods and services to make a profit
What is E-commerce?
buying and selling foods and services online
What is an Entrepreneur?
Someone who assumes the risk of creating, organizing and operating a business and direct all of its resources
What is financial capital?
Money used to facilitate a business enterprise
What is Identity theft?
Illegal gain and use of someone else’s personal information
What is a supply chain?
Process in which products, information and money move between supplier and consumer
What is Telecommuting?
Working from home using the internet of phone to access papers and documents
Describe a Not-For-Profit Organization.
Business that uses profits to benefit the organization not its leaders of executives
What is Economics?
Study of the economy as a whole
What is socialism?
Economic system where the government controls many basic businesses and services where the profits are shared among the people
What is Communism?
Economic system where a states government makes off economic decisions and controls all social services
What is a Mixed economy?
Blend of market and planed economies
What are complementary goods and services?
Products that go with each other and are consumed together
What is currency?
Unit of exchange for transfer of goods and services
What is the Discount Rate?
Interest that the FED charge banks when they borrow money
What is the Federal Funds Rate?
Interest rate banks charge other banks when thy borrow money overnight from one another
What is Macroeconomics?
Study of the behavior of the overall economy
What is Microeconomics?
Study of individual businesses and consumers make decisions to allocate their limited resources
What is Deflation?
Decrease in prices over time
What is Under-capitalization?
Occurs when a business owner cannot gain access to adequate funding
What is Real Capital?
Physical facilities used to produce goods and services
What is a Social Environment?
Interconnected system of different demographic factors such as race, ethnicity, gender, age, income, sexual orientation ect.
What is a Demand Curve?
Shows relationship between demand and price
What is a Supply Curve?
Shows relationship between supply and price
What is Depression?
Very long Recession
What are the determinants of demand?
Income changes, Population changes, Consumer preferences, Complementary goods, Substitute goods
What are the determinants of supply?
Technology changes, Resource prices, Price expectations, Number of suppliers, Price of substitute goods
