MIDTERM STUDY

Question 1

Define Profit

Answer 1

a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Question 2

What is a non-profit organization?

Answer 2

A not-for-profit organization does not earn any profits for its owners. Instead, the organization donates the money it receives to help fund the organization’s objectives and goals. A not-for-profit might also use received donations to stay up and running.

Question 3

What is Fiscal policy?

Answer 3

Fiscal policy, in simple terms, is an estimate of taxation and government spending that impacts the economy.

Question 4

What is a budget deficit?

Answer 4

A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country.

Question 5

What are the differences between Socialism, Communism, and Capitalism?

Answer 5

Socialism, like communism, calls for putting the major means of production in the hands of the people, either directly or through the government. … There is no purely capitalist or communist economy in the world today. The capitalist United States has a Social Security system and a government-owned postal service.

Question 6

What is a business cycle?

Answer 6

The business cycle is the periodic contrac- tion and expansion that occur over time in virtually every economy

Question 7

What is the difference between opportunity cost, absolute and comparative advantage?

Answer 7

Absolute advantage refers to the uncontested superiority of a country or business to produce a particular good better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production diversification.

Question 8

What is an embargo?

Answer 8

Is a total ban on the international trade of a certain item, or a total halt in trade with a par- ticular nation.

Question 9

What are tariffs?

Answer 9

Taffifs are a tax. It adds to the cost borne by consumers of imported goods and is one of several trade policies that a country can

Question 10

What is a trading block?

Answer 10

An agreement between countries intended to reduce or remove barriers to trade within member countries. Frequently, but not always, those countries are geographically close.

Question 11

What is Corporate Social Responsibility?

Answer 11

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.

Question 12

What is consumerism and what are the rights of consumers?

Answer 12

Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts

Question 13

What is the Sarbanes-Oxley act?

Answer 13

The Sarbanes-Oxley Act (sometimes referred to as the SOA, Sarbox, or SOX) is a U.S. law to protect investors by preventing fraudulent accounting and financial practices at publicly traded companies.

Question 14

What is a whistle-blower?

Answer 14

people who report illegal or unethical behavior.

Question 15

What is a stakeholder?

Answer 15

are any groups that have a stake—or a personal interest—in the performance and actions of an organization

Question 16

What is a social audit?

Answer 16

A social audit is a way of measuring, understanding, reporting and ultimately improving an organization’s social and ethical performance.

Question 17

What is a Carbon footprint?

Answer 17

refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly

Question 18

What is supply and demand? How does it affect price?

Answer 18

There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.

Question 19

How can culture impact the success of a business?

Answer 19

The influence of cultural factors on business is extensive. Culture impacts how employees are best managed based on their values and priorities. It also impacts the functional areas of marketing, sales, and distribution. It can affect a company’s analysis and decision on how best to enter a new market.

Question 20

What are the universal ethical standards?

Answer 20

(1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship.