Bus 101 Ch 1-6 Exam 1

______________are the people who combine the inputs of natural resources, labor, and capital to produce goods or services with the intention of making a profit or accomplishing a not-for-profit goal.

Entrepreneurs

____ is a set of moral standards for judging whether something is right or wrong.

Ethics

A formal written statement that describes in detail the idea for a new business and how it will be carried out; includes a general description of the company, the qualifications of the owner(s), a description of the product or service, an analysis of the market, and a financial plan.

business plan

Power that is derived from an individual's ability to threaten negative outcomes.

coercive power

A manager's ability to view the organization as a whole, understand how the various parts are interdependent, and assess how the organization relates to its external environment.

conceptual skills

Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency.

contingency plans

The process of assessing the organization's progress toward accomplishing its goals; includes monitoring the implementation of a plan and correcting deviations from the plan.

controlling

A _________is a legal entity with several corporate features, such as limited liability, an unlimited life span, an elected board of directors, and an administrative staff.

cooperative

The set of attitudes, values, and standards that distinguishes one organization from another.

corporate culture

A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.

culture

The _____ is the value of one currency in terms of another.

exchange rate

A decline in GDP that lasts for two consecutive quarters (each a three-month period) is called a _________________.

recession

Define expert power.

Power that is derived from an individual's extensive knowledge in one or more areas.

A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in the areas of finance and management, and helps them win federal contracts.

Small Business Administration (SBA)

____________ focuses on the consequences of an action taken by a person or organization seeking the greatest good for the greatest number.

Utilitarianism

The ability to produce the desired result or good.

effectiveness

People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scope and direction of an existing firm.

entrepreneurs

List the 4 Factors of Production

land, labor, capital, and entrepreneurship

Certain rights are guaranteed by the government and its laws, and these are called ________.

legal rights

The biggest advantage of a corporation is _______.

limited liability

A hybrid organization that offers the same liability protection as a corporation but may be taxed as either a partnership or a corporation.

limited liability company (LLC)

The combination of two or more firms to form one new company.

merger

A(n) _____ is a tax levied by a nation on imported goods.

tariff

_____ are goods and services that are made in one country and sold to other countries.

Exports

______is the total market value of all final goods and services produced within a nation's borders each year.

GDP (Gross Domestic Product)

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Import quotas

___________ refers to a government's programs for controlling the amount of money circulating in the economy and interest rates, conducted by the Federal Reserve (the Fed),

Monetary policy

The _____ created the world's largest free-trade zone.

NAFTA (North American Free Trade Agreement)

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

Outsourcing

_________ is an economic system in which the basic industries are owned by the government or by the private sector under strong government control.

Socialism

List 4 of the 7 of the external dynamic business environment

Technological Economic Political / Legal Demographic Social Competitive Global

Define a vision statement

Where a business wants to go, a future state of being

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

World Bank

Individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own funds.

angel investors

Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates

autocratic leaders

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

balance of trade

A group of people elected by the stockholders to handle the overall management of a corporation, such as setting major corporate goals and policies, hiring corporate officers, and overseeing the firm's operations and finances.

board of directors

A ___________ is an organization that strives for a profit by providing goods and services desired by its customers.

business

Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote.

democratic leaders

A philosophy in which a person will follow his or her obligations to an individual or society because upholding one's duty is what is ethically correct.

deontology

Using the least amount of resources to accomplish the organization's goals.

efficiency

Entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own.

intrapreneurs

In a _____________, two or more companies form an alliance to pursue a specific project, usually for a specified time period.

joint venture

An association of two or more individuals who agree to operate a business together for profit.

partnership

The practice of limiting investments to securities of companies that behave in accordance with the investor's beliefs about ethical and social responsibility to encourage businesses to be more socially responsible.

social investing

List 3 legal forms of business

sole proprietorship partnership corporation

Individuals or groups to whom a business has a responsibility; include employees, customers, the general public, and investors.

stakeholders

Financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

venture capital

Define a mission statement

what a business does

List 3 characteristics of the entrepreneurial personality

Ambitious Independent Self-confident Risk-takers Visionary Creative Energetic

_________ also known as the private enterprise system, is based on competition in the marketplace and private ownership of the factors of production (resources).

Capitalism

_____________ is the concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts.

Corporate social responsibility (CSR)

_________ is the study of people's vital statistics, such as their age, gender, race and ethnicity, and location.

Demography

List the 4 levels of the Pyramid of Corporate Social Responsibility in order from base to top.

Economic Legal Ethical Philanthropic

What are the two types of mergers and what is the difference?

horizontal and vertical

The term _______________ implies that certain rights—to life, to freedom, to the pursuit of happiness—are bestowed at birth and cannot be arbitrarily taken away.

human rights