Test #1

Question 1

Profit

Answer 1

The difference between cost to make a product and what the customer pays

Question 2

Stakeholders

Answer 2

Groups of people that have a stake in the success and outcomes of a business (anyone affected)

Question 3

Shareholders

Answer 3

People who have invested money in a company

Question 4

Economics

Answer 4

Distributing resources for the production of goods and services

Question 5

Natural Resources

Answer 5

Land, forests, minerals, water (not made by people)

Question 6

Human Resources

Answer 6

Known as labour, the abilities used to produce goods

Question 7

Financial Resources

Answer 7

Known as capital, the money used to purchase natural and human resources

Question 8

Economic Systems

Answer 8

How a society distributes its resources to produce goods and services

Question 9

Socialism

Answer 9

Government owns and operates basic industries, but individuals own most businesses

Question 10

Demand

Answer 10

Numbers of goods bought at a given price at a specific time

Question 11

Supply

Answer 11

The number of products that businesses will sell at different prices at a specific time

Question 12

Equilibrium Price

Answer 12

The point where supply and demand meet

Question 13

Oligopoly

Answer 13

When there are very few businesses selling a product

Question 14

Monopoly

Answer 14

When only one business provides a product in a given market

Question 15

Inflation

Answer 15

Prices are continuously increasing

Question 16

Recession

Answer 16

A decline in production, employment, and income

Question 17

Unemployment

Answer 17

The % of the population that wants to work but is unable to find a job

Question 18

Non-Profit Organizations

Answer 18

Organizations that provide goods and services but do not have the purpose of earning profits

Question 19

Free-Market System

Answer 19

Pure capitalism, all decisions are made without the government

Question 20

Business Ethics

Answer 20

The principles and standards that determine acceptable conduct in business

Question 21

Social Responsibility

Answer 21

A business’s obligation to maximize its positive impact on the society

Question 22

Ethical Issue

Answer 22

An identifiable problem, situation, or opportunity that requires a person to choose from several actions that may be evaluated as right or wrong

Question 23

Conflict of Interest

Answer 23

Advancing your personal interest over other’s interests, benefit self at the expense of the company

Question 24

Code of Ethics

Answer 24

Formalized rules and standards that describe what a company expects of its employees

Question 25

Whistleblower

Answer 25

An employee who exposes an employer’s wrongdoing

Question 26

Consumerism

Answer 26

The activities that people undertake to protecter their rights as consumers

Question 27

Plagiarism

Answer 27

Taking someone else’s work and presenting it as your own

Question 28

Corporate Citizenship

Answer 28

The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by stakeholders

Question 29

Bribes

Answer 29

Payments, gifts, or special favours intended to influence the outcome of a decision

Question 30

Importing

Answer 30

Buying products from another country

Question 31

Exporting

Answer 31

Selling products to another country

Question 32

Absolute Advantage

Answer 32

A country is the only source/producer of an item

Question 33

Comparative Advantage

Answer 33

A country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items (sells these items to other countries and buys products from countries that produce it more effectively)

Question 34

Outsourcing

Answer 34

The transferring of tasks to countries where labour and supplies are less expensive (hiring another company to provide you a service)

Question 35

Offshoring

Answer 35

Type of outsourcing where the business relocates to another country

Question 36

Balance of Trade

Answer 36

The difference in value between what a nation exports and imports

Question 37

Trade Deficit

Answer 37

Importing more than what you are exporting (buying more than selling)

Question 38

Trade Surplus

Answer 38

Exporting more than what you are importing (selling more than selling)

Question 39

Tariff and Trade Restrictions

Answer 39

Part of a nation’s legal structure that can be made or removed

Question 40

Import Tariff

Answer 40

A tax created by a nation on goods imported into the country

Question 41

Exchange Controls

Answer 41

Regulations that restrict the amount of currency that can be bought or sold

Question 42

Quota

Answer 42

A restriction on the number of units that are allowed to be imported

Question 43

Embargo

Answer 43

A prohibition on trade for a particular product

Question 44

Dumping

Answer 44

Selling products at less than what it costs to produce them

Question 45

Licensing

Answer 45

One company allows another to use its name, products, brands, and materials in exchange for a fee

Question 46

Franchising

Answer 46

When the franchiser agrees to provide a franchise name, logo, and products in return for financial commitment to follow their standards of operation

Question 47

Joint Venture

Answer 47

Sharing operation costs between a foreign country and a local partner

Question 48

Strategic Alliance

Answer 48

A partnership formed to create competitive advantage

Question 49

Direct Investment

Answer 49

Ownership of overseas facilities

Question 50

Balance of Payments

Answer 50

The difference between the flow of money into and out of a country

Question 51

Mixed Economies

Answer 51

Economies made up of elements from more than one economic system

Question 52

Contract Manufacturing

Answer 52

Hiring another country to produce a certain amount of their product. The product carries the domestic firms name

Question 53

Monopolistic Competition

Answer 53

When there are fewer businesses than in a pure-competition environment and the differences among what they sell are small

Question 54

Multinational

Answer 54

A corporation that operates on a worldwide scale