Intro to Business

Question 1

Business as a going concern

Answer 1

Businesses are organized to pursue profits in the short term and over time. They differ from projects or hobbies in that they do not have a predetermined end date or singular definition of success.

Question 2

Businesses are organized to pursue profits in the short term and over time. They differ from projects or hobbies in that they do not have a predetermined end date or singular definition of success.

Answer 2

Business as a going concern

Question 3

Business as an organized activity

Answer 3

Business requires that resources be organized to deliver value to a market. Resources include, but are not limited to, land, labor, and capital.

Question 4

Business requires that resources be organized to deliver value to a market. Resources include, but are not limited to, land, labor, and capital.

Answer 4

Business as an organized activity

Question 5

business as a purposeful activity

Answer 5

Business requires that the resources that have been organized be put to purposeful use.

Question 6

Business requires that the resources that have been organized be put to purposeful use.

Answer 6

business as a purposeful activity

Question 7

business model

Answer 7

The way a business makes profits is referred to as its business model.

Question 8

The way a business makes profits is referred to as its business model.

Answer 8

business model

Question 9

business process outsourcing (BPO)

Answer 9

Moving necessary jobs to remote locations,

often overseas.

Question 10

Moving necessary jobs to remote locations,

often overseas.

Answer 10

business process outsourcing (BPO)

Question 11

business system

Answer 11

A business differs from a project in that the business is based on a system that is designed to deliver value to customers into the future.

Question 12

A business differs from a project in that the business is based on a system that is designed to deliver value to customers into the future.

Answer 12

business system

Question 13

capitalism

Answer 13

A form of economic system where the factors of production (land, labor, and capital) are owned by private individuals or companies and where exchange between economic actors is based on their own free choices.

Question 14

A form of economic system where the factors of production (land, labor, and capital) are owned by private individuals or companies and where exchange between economic actors is based on their own free choices.

Answer 14

capitalism

Question 15

communism

Answer 15

A form of economic system that is an extreme version of socialism, whereby economic actors are generally guided in their activities by a central authority.

Question 16

A form of economic system that is an extreme version of socialism, whereby economic actors are generally guided in their activities by a central authority.

Answer 16

communism

Question 17

competition

Answer 17

One of the dynamic forces that drives innovation in business is competition between business organizations.

Question 18

One of the dynamic forces that drives innovation in business is competition between business organizations.

Answer 18

competition

Question 19

corporatism

Answer 19

An economic system that preserves private property but that tends to use government regulations to guide how that property is used.

Question 20

An economic system that preserves private property but that tends to use government regulations to guide how that property is used.

Answer 20

corporatism

Question 21

creating value

Answer 21

The primary purpose of business. Customers are the ultimate judges of the value that a business organization creates.

Question 22

The primary purpose of business. Customers are the ultimate judges of the value that a business organization creates.

Answer 22

creating value

Question 23

economic institutions

Answer 23

Those agreements that exist, formally and informally, within the borders of a nation that promote or oppress business activity.

Question 24

Those agreements that exist, formally and informally, within the borders of a nation that promote or oppress business activity.

Answer 24

economic institutions

Question 25

entrepreneur

Answer 25

An individual who uses the resources at hand to create value for markets at a profit.

Question 26

An individual who uses the resources at hand to create value for markets at a profit.

Answer 26

entrepreneur

Question 27

globalization

Answer 27

The continuing integration of the world’s various economies via trade, currency flows, and standard rules of commerce.

Question 28

The continuing integration of the world’s various economies via trade, currency flows, and standard rules of commerce.

Answer 28

globalization

Question 29

incomplete contracts theory

Answer 29

Theory that holds that no contract can cover all possible uses of an asset, and thus people organize into a business to avoid the complexity of multiple such contracts.

Question 30

Theory that holds that no contract can cover all possible uses of an asset, and thus people organize into a business to avoid the complexity of multiple such contracts.

Answer 30

incomplete contracts theory

Question 31

Information Age

Answer 31

An era that was characterized by the advent of computing, automation, and population movement from industrial to information-oriented jobs.

Question 32

An era that was characterized by the advent of computing, automation, and population movement from industrial to information-oriented jobs.

Answer 32

Information Age

Question 33

initial public offering (IPO)

Answer 33

The formal process whereby private companies can begin to sell shares to the public; it concludes with listing shares on a major stock exchange like the NASDAQ.

Question 34

The formal process whereby private companies can begin to sell shares to the public; it concludes with listing shares on a major stock exchange like the NASDAQ.

Answer 34

initial public offering (IPO)

Question 35

intellectual property

Answer 35

Intangible assets owned by a business or an individual that arise from creativity, innovation, know-how, and reputation.

Question 36

Intangible assets owned by a business or an individual that arise from creativity, innovation, know-how, and reputation.

Answer 36

intellectual property

Question 37

market

Answer 37

A voluntary and regular gathering of people for the purpose of buying and selling goods and services from one another.

Question 38

A voluntary and regular gathering of people for the purpose of buying and selling goods and services from one another.

Answer 38

market

Question 39

NASDAQ

Answer 39

The National Association of Securities Dealers Automated Quotation system; a major stock exchange based in New York City.

Question 40

The National Association of Securities Dealers Automated Quotation system; a major stock exchange based in New York City.

Answer 40

NASDAQ

Question 41

repeatable

Answer 41

One of the mechanical elements of a business is to design production or service so that it can be provided to all customers with similar quality and reliability.

Question 42

One of the mechanical elements of a business is to design production or service so that it can be provided to all customers with similar quality and reliability.

Answer 42

repeatable

Question 43

scalable

Answer 43

One of the mechanical elements of a business is to make the production or service providing processes expandable to meet growing customer demand.

Question 44

One of the mechanical elements of a business is to make the production or service providing processes expandable to meet growing customer demand.

Answer 44

scalable

Question 45

socialism

Answer 45

A form of economic system where the factors of production (land, labor, and capital) are owned by the government, and where economic actors are constrained by a central planning system regarding with whom and in what quantities they may enter into exchange.

Question 46

A form of economic system where the factors of production (land, labor, and capital) are owned by the government, and where economic actors are constrained by a central planning system regarding with whom and in what quantities they may enter into exchange.

Answer 46

socialism

Question 47

sustainable competitive advantage

Answer 47

An advantage that a business organization has over its competitors that can be leveraged over a period of time.

Question 48

An advantage that a business organization has over its competitors that can be leveraged over a period of time.

Answer 48

sustainable competitive advantage

Question 49

transaction costs

Answer 49

The costs associated with economic exchange between two or more parties in an economic system.

Question 50

The costs associated with economic exchange between two or more parties in an economic system.

Answer 50

transaction costs

Question 51

value

Answer 51

In business, value is determined by a market or markets, and is often expressed via this equation: Value 5 Price 3 Quality.

Question 52

In business, value is determined by a market or markets, and is often expressed via this equation: Value 5 Price 3 Quality.

Answer 52

value

Question 53

value proposition

Answer 53

The value that a business brings to a market.

Question 54

The value that a business brings to a market.

Answer 54

value proposition