Business Mid-term Chapters 1-3
Which of following actions of the government indicates the privatization of an industry?
Allowing private businesses to operate in an industry that was previously operated by the government.
____________ is the study of how a society uses scarce resources to produce and distribute goods.
Economics
____________ is lead by innovation, initiative, and the willingness to take the risks in creating and operating businesses.
Entrepreneurship
____________ is money that an organization brings in through the sale of its goods and services.
Revenue
A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful. (T/F)
True
Capitalism is a term used to describe the free-market system, one in which private parties own and operate the majority of businesses and where competition, supply, and demand determine which goods and services are produced. (T/F)
True
The equilibrium point is the point at which quantity of a good or service equals the quantity demanded. (T/F)
True
Which of the following is true regarding the economic environment of business that shapes the behavior of buyers and sellers?
Virtually every decision made is influenced by the economic environment.
____________ refers to a resource or capability a company must have before it can start competing in a given market.
barriers to entry
____________ refers to a view of business that considers the many decisions that must be made and the potential problems that must be overcome before the organization can deliver its products or services.
business mindset
A ____________ is a framework of how a business intends to generate revenue.
business model
The money, equipment, and buildings that a business needs in order to produce goods and services are called ____________.
capital
____________ refers to some aspect of a product or company that makes it more appealing to target customers.
competitive advantage
When the U.S. dollar is strong, U.S. exports will likely ____________.
cost more in other countries
A ____________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal.
demand curve
Businesses can impact society in both positive and negative ways. Occupying land and displacing existing businesses are examples of ____________.
disrupting communities
What types of technologies are strong enough to create or destroy companies?
disruptive
Microeconomics is the study of ____________.
economic behavior among consumers and businesses
The number of units of one currency that must be exchanged for a unit of the second currency is known as the ____________ between the currencies.
exchange rate
____________ are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices.
export subsidies
Assets refer to the tangible economic resources owned by a firm. (T/F)
false
In a ____________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell.
free-market system
Which of the following is an objective of protectionism?
guarding specific industries in a nation
Which of the following refers to people and their individual talents and capabilities?
human resources
____________ limit the amount of particular goods that countries allow to be imported during a given year.
import quotas
In the global marketplace, which of the following is often a type of key asset needed to successfully utilize an advantage?
intellectual
Dumping ____________.
involves selling a product at a price lower than the cost of production
The risk and reward relationship ____________.
is fundamental to businesses in every modern economy.
A company benefits from economies of scale when it ____________.
manufactures and distributes products in higher quantities.
____________ refers to a company's target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers.
market environment
The ____________ economic system allows individuals to own and operate the majority of businesses with limited economic intervention by the government.
mixed
An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ____________.
nonprofit organization
____________ is the term used to describe the difference between revenue and expenses.
profit
____________ are politically motivated embargoes that revoke a country's normal trade relations status.
sanctions
A ____________ creates value by performing activities that provide benefit to the customer.
service business
Population trends that change the composition of consumer markets and the workforce are part of a compnay's ____________ environment.
social
Who are the workers who apply entrepreneurial strategies to cause large-scale social change?
social entrepreneurs
The classic theory of comparative advantage suggests that each country should ____________.
specialize in those areas where it can produce more efficiently than other countries
The ____________ depicts the relationship between prices and quantities that sellers will offer for sale, regardless of demand.
supply curve
Taxes on goods charged by a country where an item is being imported to are known as ____________.
tariffs
Taxes, surcharges, or duties levied against imported goods are known as ____________.
tariffs
The term ____________ refers to forces resulting from the practical application of science to innovations, products, and processes.
technological environment.
A country's balance of payment equals the ____________.
total flow of money into the country minus the total flow of money out of the country
A country has a trade surplus when the ____________.
value of its exports exceeds the value of its imports.
A country has a trade deficit when the ____________.
value of its imports exceeds the value of its exports