Contemporary Business Chapter 1
private property
Namesh recently sold his Ford Taurus to a personal friend. Namesh's sale of his automobile illustrates the right to _____.
True
Not-for-profit organizations are commonly exempt from federal, state, and local taxes.
human resources
A company that values employees as sources of ideas and innovation is utilizing its _____.
False
The current philosophy among managers today is best described as transaction management.
True
When government sets ground rules for competitive activity, the intent is to reduce "cutthroat" competition.
Labor union
Which of the following is a public sector, not-for-profit organization?
The right to private property
Which of the following is considered to be the most fundamental right of the private enterprise system?
Businesses are nonprofit organizations that provide services to the public.
Which of the following statements is NOT true regarding businesses?
competition
a natural force that guides free market capitalism.
critical thinking
ability to analyze and assess information to pinpoint problems or opportunities.
business
all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.
diversity
blending individuals of different genders, ethnic backgrounds, cultures, religions, ages and physical and mental abilities.
transaction management
building and promoting products in the hope that enough customers will buy them to cover costs and earn profits
social era
business era in which companies seek ways to connect and interact with customers using technology.
relationship era
business era in which firms seek ways to actively nurture customer loyalty by carefully managing every interaction
consumer orientation
business philosophy that focuses first on determining unmet consumer wants and needsand then designing products to satisfy those needs.
not-for-profit organizations
businesslike establishments that have primary objectives other than returning profits to their owners
creativity
capacity to develop novel solutions to perceived organizational problems.
relationship management
collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.
Private enterprise system
economic system that rewards companies for their ability to identify and serve the needs and demands of customers.
capitalism
economic system that rewards companies for their ability to perceive and serve the needs and demands of consumers; also called the private enterprise system.
crowd sourcing
enlisting the collective talent of a number of people to get work done.
factors of production
four basic inputs: land, labor, capital and entrepreneurship.
labor
includes anyone who works, including both the physical labor and the intellectual inputs contributed by workers.
capital
includes technology, tools, information, and physical facilities.
land
is used in the production of a good, and includes all production inputs or natural resources that are useful in their natural states such as oil, gas, minerals, and timber.
private property
most basic freedom under the private enterprise system; the right to own, use, buy, sell, and bequeath land, buildings, machinery, equipment, patents, individual possessions, and various intangible kinds of property
brand
name, term, sign, symbol, design, or some combination that identifies the products of one firm and differentiates them from competitors' offerings
nearshoring
outsourcing production or services to locations near a company's home base or closer to customers.
branding
process of creating an identity in consumers' minds for a good service, or company; a major marketing tool in contemporary business.
offshoring
relocation of business processes, both production (manufacturing) and services (accounting), to lower-cost locations over seas.
profits
rewards earned by business people who take the risks involved in blending people, technology, and information to create and market want-satisfying goods and services.
competitive differentiation
unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers
outsourcing
using outside vendors-contracting work out to another party-for the production of goods or fulfillment of services and functions previously performed in house.
Entrepreneurship
willingness to take risks to create and operate a business
True
Managers are beginning to recognize the different needs of workers of different ages.
False
When farmers rent land in order to increase crop production, they are acquiring capital.