Study for Final Flashcards
Factors of Production
- Natural Resources
- Human Resources
- Capital
- Entrepreneurs
- Information Resource
What is a Market Economy?
- Economic basis is supply and demand
- Political basis is capitalism
- Ownership of the factors of production is open
- Buyers and sellers have freedom of choice
- The market is the mechanism for the exchange of goods and services
- B2C & B2B exchanges take place without much of govt. Involvement
- Shortages drive up demand, EQ price becomes more expensive
- Surplus drive down price
What are the 2 Types of Market Economies?
Capitalism and Mixed Economy
Capitalism:
- when a countries trade is controlled by private owners
Mixed Economy:
- private owned trade but includes government intervention like regulations
What is the Economic Environment?
The conditions of the economic system in which an organizational operates
Key Economic Goals?
- Economic Growth
- Economic Stability
- Full employment
What is the Business Cycle and the Four Phases?
The typical patter of short term ups and downs in an economy
- peak
- recession
- trough
- recovery
What is Aggregate Output?
Total quantity and quality of goods and services that a country produces during a given period
Higher aggregate outcome = higher economic growth
Standard of Living?
total quantity and quality of goods and services ta country can purchase with their own currency
What is Productivity?
measure of growth that compares the output of an economic system with the resource that are needed to produce the output
How do you Measure Economic Growth?
- Gross National Product
- Gross Domestic Product
GNP: value of all goods and services produced by a national economy within a given period regardless of production location
GDP: Value of all goods and services produced by a national economy within a given period with domestic factors of production
What is Balance of Trade?
the difference in value between total exports and imports
What are the Types of Unemployment?
- Frictional
- Seasonal
-Cyclical - Structural
What is Michael Porters 5 Forces Model
- Threat of New entrants
- Bargaining Power of Consumer
- Bargaining Power of Buyer
- Threat of Substitutes
- Industry Rival
What is Corporate Social Responsibility?
The idea that a business should balance its commitment to individuals and groups that are directly affected by its activities
What are the Areas of Social Responsibility?
- Responsibility Toward Environment
- Responsibility Toward Customers
- Responsibility Toward Employees
- Responsibility Toward Investors
What are the Approaches to Social Responsibility?
Highest Level of Social Responsibility to Lowest Level
1. Proactive Stance
2. Accommodative Stance
3. Defensive Stance
4. Obstruction Stance
Forms of Competitive Advantage?
- Absolute Advantage:
- a country can produce something more efficiently than another country - Comparative Advantage:
- a country can produce certain items more efficiently (cheaper) than other items
Theory of National Competitive Advantage? Four Key Conditions?
- Factor conditions
- Demand conditions
- Related and Supporting conditions
- Strategies, Structure, and Rivalries
What is a Trade surplus and Deficit?
Surplus: when a country exports more than they import.
Deficit: when a country imports more than exports
What is Job analysis?
What is Job Description?
What is Job Specifications?
Job Analysis:
- Detailed Study of the duties of a specific job and the required qualifications
Job Description:
- Duties of the job working conditions, tools, and materials needed.
Job Specification:
- Skills, abilities, and credentials needed to do the job.
What is the Accounting Equation?
Assets = Liabilities + Owners Equity
Three Golden Rules of Accounting?
- Debit the receiver, credit the giver (for personal accounts)
- Debit what comes in, Credit what goes out (for real or asset accounts)
- Debit expenses, Credit income and gains (for nominal accounts)
DEBIT = increases Assets and Expenses
CREDIT = Increase Liabilities and Revenue
What is a Balance Sheet?
Provides information about accounting equation factors. Shows firms financial condition at certain time
Current Assets?
Cash and assets that can be converted into cash within the year
