Business
To provide utility, a product must be
useful
In a traditional economic system, the question of what to produce is answered by producing
what has always been produced
One of the freedoms provided to individuals by the private enterprise system is the freedom to choose
where they will work
If a good or service is scarce, consumers will usually be
willing to pay money to get it
Most businesses put their greatest competitive efforts into competing
with direct competitors
Efficient production enables businesses to
turn out the most products at the least cost
manufacturer is a type of business that
turns raw goods into useful products
consumption
ultimate goal of all economic activity
Which of the following is a benefit of global trade
An improved standard of living
Which of the following presents the first three steps in the accounting cycle in the correct order:
Analyze, journalize, and post
How do nations track the flow of money coming in and going out of their countries
Balance of payments
Which of the following terms describes the difference between the exports and imports of a nation
Balance of trade
How have industry structure changes affected the current business environment
Business now moves faster than ever
Who answers the basic economic questions in a private enterprise economic system
Businesses and individuals
Into what two categories can wants be divided
Economic and noneconomic
Which of the following is a result of globalization
Higher productivity
Why is production important to businesses
It creates goods and services businesses can sell
Which of the following is an on-boarding activity
Orientation
Which of the following is a disadvantage of private enterprise
Periods of unemployment
An example of a country that has a socialist command economy is
Sweden
Which of the following is a true statement about business ethics and the law
The two are not the same thing, but they do overlap
Which one of the following groups of words best describes wants
Unlimited, changing, and competing
What determines whether an economic product is an industrial product or a consumer product
Who buys and uses the product
For an accounting system to be useful to the business, the accounting information it contains must be
accurate and up to date
purchasing
acquiring goods/ services
The main way that economic factors influence the external business environment is by
affecting customers' ability to spend
Environmental scanning is sometimes called environmental
analysis
specialty products
antiques, sports cars
lobbying
attempt to influence decisions in government/officials
A risk involved with information management is being unprepared for a government
audit.
shopping products
best priced items
To protect your company from employee theft or negligence, the business should have its employees
bonded
In economics, the term capital goods includes
buildings and equipment
Globalization can be an advantage for businesses because it
can help them to cut costs for certain resources
Determining which projects a business should invest in is known as
capital budgeting
A business's philanthropic responsibility involves its contributions to
charity
How do marketers get their messages to customers
communication
A commission or bonus is an example of a form of
compensation.
In a private enterprise economic system, consumers can choose from a variety of products as a result of
competition
operations
day - to - day activities for businesses to function
economizing
deciding which goods/services to purchase/provide
The heart of economics is
decision-making
The first task in the HR management activity of staffing is
determining need
social responibility 4 pillars
economic responsibility legal responsibility ethical responsibility philanthropic responsibility
Operations managers have two main goals in mind
efficiency and effectiveness
company's involvement with people in so many different countries is due to the trend of
globalization
In a communist command economy, the economic questions will be answered by
government
The way in which an economic system answers the basic economic questions depends upon the country's
government
Free exchange of ideas contributes to
greater business innovation
net profit
gross profit-operating expense=net profit
When return on capital is positive, the company is
growing in value
The people who work to produce goods and services are known as
human resources
tariffs
importation taxes
The difference between service providers' and manufacturers' operations activities is that ser-vice providers produce __________ outputs
intangible
disposable income
money left after paying taxes
Finance is the business function that involves managing
money.
economic want
need to spend money for good/service
Once marketers know what to offer consumers, they attempt to increase the
new purchases.
noneconomic want
no money for good/service
Offering high quality, large assortments, and free shipping are examples of
nonprice competition
Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of
offshoring
The private enterprise economic system is often described as a
price-directed system
Accounting is distinct from finance because its main focus is on
record-keeping activities
The part of staffing that involves seeking out and attracting qualified potential job candidates is called
recruiting
If expenses are greater than income, there's no
reward
Consumers are typically most willing to pay more for goods and services that bring them greater
satisfaction
Retailing takes place whenever goods are
sold to the ultimate consumer
Starting a small business that may or may not suceed is an example of
speculative risk
Gross profit shows business owners the difference between what they've
spent and received
convenience products
staple/impulse
One of the benefits of economic freedom is that it provides individuals with
the opportunity for success
The economic basis for the private enterprise economic system is
the profit motive
A job specification is an explanation of
the skills, knowledge, and characteristics required for a job
Each purchase strengthens the economy by encouraging
trade
A popular product is said to be
in demand
discretionary items
wanted, not needed
Inflation is a factor involved in which category of an environmental scan
Economy
Which of the following is a positive effect of government regulation
Legal protection
economic good
tangible, scarce, transferrable
Which of the following is a negative effect on businesses of government regulation:
Additional expense and inefficiency are experienced
Which of the following categories of information are found on a balance sheet
Assets, liabilities, owner's equity
What kind of conversion process is being used in an assembly line that produces soft drinks?
Capital-intensive
Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year
Cash flow statement
In what way might an HR manager be involved in employee benefits
Determining eligibility and costs
"Brain drain" occurs when
a country loses talented employees to better opportunities overseas.
Managing information for business continuity is important in case of
a disaster
One way in which many businesses demonstrate their social responsibility toward employees is by providing them with
a safe working environment
Marketing is described as creating
exchanges
Of the following methods of entering a foreign market, which is the least risky
exporting
Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk
controlling
One of the benefits of production to consumers is that production
creates form utility
Businesses are affected by social factors in the external environment because
customer needs are affected by these factors as well
subsidies
financial assistance such as grants/tax breaks
Businesses keep track of external changes as part of a process called
environmental scanning
The highest level of involvement in international business is
establishing a multinational firm
Understanding business ethics can be difficult since
ethics are not always clear-cut
external factors of business
ethnic political social technology
A salesclerk working part-time at a clothing store is an example of a(n)
human resource
Offering higher wages, employee-assistance programs, and benefits are responses to limited
human resources
A risk involved with information management is leaving customers unprotected from
identity theft
industrial products
materials, parts, installations, equipment, supplies
One of the differences between private enterprise and other types of economic systems is that, in other systems, workers
may be unable to improve their standard of living
Which of the following is not a main factor in a business's site selection decision
media
Every society must develop a system for deciding how it will use its resources so that it can
meet people's needs
One way that competition benefits business is by encouraging the creation of
new companies
4 types of utility
time possession form place
gross profit
income from sales-costs of goods=gross profit
What provides the basis for all marketing goals and actions
planning
A main reason that environmental scanning is important is so that businesses can be aware of
potential threats
To discover a product's level of utility, marketers measure the consumer's
satisfaction
Task utility is about making changes to the characteristics of a
service
Seeing the "big picture" instead of smaller, individual parts is an organizational learning concept known as
systems thinking
One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government
taxation
The two main sources of revenue used to pay the costs of government regulation are
taxes and borrowing
Which of the following actions must a business take as a result of political factors in the external environment
Paying taxes
Which of the following actions describes proactive management
Planning in advance for change
Communist command economies are most likely to experience which of the following problems
Poor quality products
Which of the following is the most likely policy that a government would follow to avoid a trade deficit
Protectionism
What actions are consumers most likely to take when the economy is poor
Restrain their spending
Which of the following is a measure of how well a business generates cash flow
Return on capital
Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered
Review the invoice
Striving to get new products to the market first and win scarce customer dollars is an "adaptable" strategy often called
competitive aggression
6 main categories of environmental scanning
demographics society and culture economy competition government technology
Without marketing, producers and customers would be
disconnected from each other
natural resources
items found in nature for goods
info management
process of accessing, maintaining, evaluating, disseminating business knowledge/ facts/ data
marketing
process of creating, communicating, delivering, exchanging offerings that have value for consumers/ partnerships/ society
accounting
process of keeping financial records
environmental scanning
process of keeping track of external factors/changes 1. gather info about surroundings 2. analyze info 3. determine future impact of info
strategic management
process of planning, controlling, organizing
financial analysis
process of planning, maintaining, monitoring, controlling, reporting use of financial resources
human resources
process of planning, staffing, leading, organizing employees
Distribution examines how income is divided between
producers and resource owners
The basic role of the United States government is to
protect U.S. citizens
The buying of goods and services for a business is known as
purchasing
When HR management executives participate in a company's long-range planning efforts, they are taking part in
strategic management
economics
study of how to meet unlimited wants with limited resources
Marketing encourages people from different countries to __________ frequently
trade
A nation that exports more than it imports maintains a
trade surplus
Lack of economic growth is a major problem for __________ economic systems
traditional
The specific resources used in a company's production are called
inputs
Which of the following is a potential problem in market economies
Financial loss
Which of the following is a trend in information management
Increased compliance laws and regulations
Which change provides the most time utility for a consumer
Staying open for business on the weekend
unsought products
coffin, crutches
3 basic economic questions
1. what will be produced 2. how will it be produced 3. how will product be allocated
Which of the following industries is part of the fast-growing services-producing sector of the economy
Education
What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments
Exchange
In a socialist economic system, who tends to answer the question of how products will be produced
Government and business
Which of the following are qualities of monopolies
High prices and low production
Which of the following economic resources is responsible for combining the other resources to produce goods and services
Human resources
Which of the following occurs when the supply of individuals who are able and willing to work diminishes
Human resources become limited
Which of the following would be done first in an environmental scan
Identifying participants and responsibilities
What accounting record would summarize a business's profit or loss for a previous year
Income statement
Which activities are likely to increase a firm's profit
Increasing sales and decreasing expenses
Which of the following statements best describes the way that the U.S. economic system functions
Individuals and businesses are the primary decision makers, while the government is the regulator
Which of the following is a benefit of the freedom to own private property
It encourages people to save and to invest
Which of the following is a true statement about innovative management
It is more participative than traditional management
How does the finance function relate to company spending
It plans and controls spending
What type of economic system is used in the United States
Market
Jon makes custom furniture for his customers. He strives to make sure that meeting their needs and wants is his top priority. What "adaptable" strategy is Jon using?
Market orientation
Which of the following is not an example of demographic data
Need for convenience
Priscilla's design company is always willing to consider new ideas, trends, and ways of thinking. This is an example of which of the following characteristics of an adaptable organization
Open-mindedness
Which of the following "adaptable" strategies seeks to strengthen an organization by bringing employees together as well as by empowering them as individuals
Organizational learning
scalability
The ability to easily realign its people and resources appropriately
Which of the following is a reason that the role of HR management is changing
There is greater diversity in the workforce
Why are entrepreneurs important in a private enterprise system
They encourage the development of new products
What is the purpose of government regulation of business activities that might cause air or water pollution
To conserve the environment
Why does the government set and collect taxes
To help pay the expenses of government
Which of the following is the best reason for studying economics
To prepare for effective decision-making and responsible citizenship
Which of the following types of economic systems adopts the fewest new ideas or improvements
Traditional
True or false: Certain industries are more sensitive to specific environmental changes than others
True; some environmental factors have a greater impact on certain industries.
What are the three basic economic questions
What products will be produced; how will products be produced; and how will products be allocated
An organization that has the ability to adapt quickly is
agile
capital goods
all manufactured/ constructed items to produce goods/ services
Operations managers must work closely with managers and employees in
all other parts of the business
Making sure a company follows laws and regulations describes the HR management
compliance
A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good
consumer
The ultimate goal of all economic activity is
consumption
The overall purpose of accounting is to
control the finances of the business
profit
income-expense=profit
Environmental degradation occurs because of
increased production
Economic factors can affect a business's operations by
increasing or decreasing costs
Producers respond to consumers' positive economic votes by
increasing production
Private enterprise is based on the idea that everyone is better served when
individuals are free to set their own goals
To keep communication flowing with other departments, the finance function depends on
information systems
Resources that enable businesses to operate are also known as
inputs.
How does technology affect a business's customers
it influences what they want and need
quota
limits on number of products foreign companies can sell
A business with poor ethics is likely to
lose customers
According to the marketing concept, keeping company goals in mind means to
maintain the firm's purpose
Individuals put limits on their own economic freedom by
making personal economic choices
For a consumer to be satisfied, the four types of utility must be
present
The uncertainties of direct and indirect losses to your business property due to fire, wind, accident, theft, etc. are called
pure risk
globalization
rapid flow of capital, labor, and ideas across national borders
An operations manager must determine the route materials will take through the production process. This is a scheduling activity known as
sequencing
Government owns the basic means of production but there is some private ownership of businesses under
socialism
human resources main activities
staffing, compensation and benefits, training and development, compliance, and employee relationships
Which of the following is a public good that is provided by the government
Interstate highways
A characteristic of human wants is that they are
unlimited
What are three types of buying
Buying for resale, buying for transformation, and buying for business use
Which of the following is an example of a governmental regulatory agency
Federal Aviation Administration (FAA)
For which of the following do workers compete in a private enterprise system
Jobs
Industry associations differ from regulatory agencies in that they
don't have government authority
In production, the purpose of the conversion process is to
turn inputs into products