THE DYNAMIC BUSINESS ENVIRONMENT

Question 0

What is profit?

Answer 0

is measured in money. If the amount of money a business makes is greater than the sum of its expenses, the business is profitable.

Question 1

What is business?

Answer 1

the production and marketing of goods and services to make a profit.

Question 2

What is revenue?

Answer 2

the total amount of money a business takes in. revenues must be greater than the sum of all expenses—now including monthly payments to the bank to repay a loan. If revenues are too small relative to expenses, the business will be operating at a loss

Question 3

What is a corporation?

Answer 3

is a business organization with a special legal status.

Question 4

What is Stakeholders?

Answer 4

all the people who have a stake in what a company does or doesn’t do. All of us, to some extent, are stakeholders in many corporations, even if we don’t realize that we are. If you own a Honda, you have a stake in the health of that company. For example, if that company fails, you could have problems getting parts and services for your vehicle.

Question 5

What is Shareholders?

Answer 5

a particular kind of stakeholder. Shareholders are people who own shares, called stock, in a company. If you own 10 shares of Jay Bird, Inc., that means you own 10 little pieces of the company. As a shareholder, you have a particular interest in the return on your investment (ROI).

Question 6

What does the economy consists of?

Answer 6

consists of all the goods and services it produces.

Question 7

To be an entrepreneur is to?

Answer 7

assess and accept risks. Economic and legal constraints may either encourage or discourage entrepreneurial risk-taking.

Question 8

What is The Uniform Commercial Code (UCC)?

Answer 8

The Uniform Commercial Code (UCC)serves this purpose by setting clear standards for terms of contracts, warranties, and intellectual property (like copyrights and trademarks).
Governments can lessen the risks of entrepreneurship through laws that allow business contracts to be enforced by the courts.

Question 9

What is tradable currencies?

Answer 9

The U.S. dollar, the European euro, and the Chinese yuan are tradable currencies.

Question 10

What is The capitalist system?

Answer 10

a system of economics under which ownership of and investment in the means of production and distribution depends chiefly upon corporations and private individuals. — capitalist, n. — capitalistic.

Question 11

What is Demographics?

Answer 11

Demographics is the study of population characteristics. The American demographic picture is changing rapidly. Businesses that don’t pay attention to these changes are likely to be at a disadvantage.

Question 12

What is mixed economies?

Answer 12

mix elements of socialism and capitalism.

Question 13

What is Basic “safety net” programs?

Answer 13

Medicare, Social Security, and unemployment insurance, have been a part of American life for several decades.

Question 14

What are Economic indicators?

Answer 14

Economic indicatorsprovide businesses and government economic policymakers with measures that profile or characterize the health of the economy.

Question 15

What are the three major economic indicators?

Answer 15

• The gross domestic product (GDP)
• Gross national product (GNP)
• The unemployment rate

Question 16

The gross domestic product (GDP)is?

Answer 16

The gross domestic product (GDP)is the total monetary value of goods and services produced in the United States during a given year. The GPD counts the monetary value of both domestic and foreign-held company goods and services produced within the boundaries of the United States.

Question 17

the gross national product (GNP)counts only the?

Answer 17

value of goods and services produced by American companies. In this age of globalization, the GDP is generally considered a more useful indicator than the GNP.

Question 18

The unemployment rate is?

Answer 18

an important economic indicator.

Question 19

What is the Price indexes?

Answer 19

help businesspeople and economic policymakers evaluate the health of the economy as it’s affected by inflation, hyperinflation, stagflation, or deflation.

Question 20

Inflationrefers to the?

Answer 20

increase in the prices of goods and services over time. Modest inflation—of, say, 2% over a year—is considered acceptable. Costs for labor and production tend to increase slightly over time. However, high levels of inflation may put a definite strain on both consumers and producers.

Question 21

Hyperinflationis said to occur when?

Answer 21

the value of currency decreases by 50% or more over some period of time. After World War I (1914–1918), hyperinflation reduced the value of the German Deutschmark so rapidly that a loaf of bread could cost a gym pack stuffed with paper money. (Hyperinflation contributed heavily to the civil and social unrest that permitted Adolph Hitler’s rise to power.

Question 22

Stagflation occurs when?

Answer 22

inflation and unacceptable levels of unemployment occur at the same time. Prices are rising even as people are losing their jobs.

Question 23

Deflation occurs when?

Answer 23

a country produces more goods than people are able to buy. Too few dollars are chasing too many goods, and the value of currency actuallyincreases as prices fall. In effect, supply and demand are out of balance.

Question 24

What are the two primary kinds of price indexes?

Answer 24

• The consumer price index (CPI)

- The producer price index (PPI)

Question 25

The consumer price index (CPI) tracks?

Answer 25

monthly statistics indicating price inflation or deflation. CPI categories include costs of housing, food, clothing, and medical care. Wages, salaries, rents, interest rates, government benefits, and even tax brackets are—or may be—pegged to the CPI.

Question 26

The producer price index (PPI) measures?

Answer 26

The producer price index (PPI) measures wholesale prices. The PPI takes the perspective of the seller, while the CPI takes the perspective of the consumer. Other kinds of economic indicators include housing starts, retail sales volumes, and changes in levels of personal income.

Question 27

Through fiscal policy?

Answer 27

The federal government attempts to keep the economy stable by raising or lowering taxes or by spending money.