introduction to business ch's 1,2,3
Leon is an accountant for a small company. As such, he participates primarily in ________ activities.
financial
Oscar is a real estate entrepreneur in a country that promotes the individual right to own property, earn profits, make decisions about business operations, and choose productivity systems. Which system best describes Oscar's business environment?
free enterprise
What are the two primary factors economists consider when evaluating the American economy?
growth in GDP and jobs
Recently, ________ became the number-one consumer complaint with the Federal Trade Commission.
identity theft
Following a bad harvest, the prices of agricultural commodities in Brazil have increased dramatically, as have the prices of products manufactured from agricultural commodities. Government intervention has failed to arrest the rising prices. Based on this information, Brazil is experiencing
inflation
Daniel notices that one of his colleagues arrives late and leaves early from work every day. In deciding whether or not to report this behavior, what must he do first?
know his company's policy regarding the ethics of his colleague's choice
The factors of production are the
land, labor, capital, and enterprise used to produce goods and services.
When different businesses promote similar products that differ in some characteristics but satisfy the same consumer need, the competitive environment is most likely to be
monopolistic competition.
Advertising, personal selling, coupons, and sweepstakes are elements included in the ________ aspect of marketing activities.
promotion
Which of the following exists when there are many small businesses selling one standardized product, such as agricultural commodities like wheat, corn, and cotton?
pure competition
The focus of all marketing activity is to
satisfy the needs and wants of consumers.
Spending an excessive amount of time on personal e-mails, submitting personal expenses on company expense reports, and using the company copier for personal use are all examples of
the misuse of company resources.
One of the most difficult things for a business to restore after an ethics scandal is/are
trust
The quantity of goods and services that consumers are willing to buy at different prices at a specific time is referred to as
demand
What is true of a free-market system?
All economic decisions are made without government intervention.
________ are payments, gifts, or special favors intended to influence the outcome of a decision.
Bribes
Which statement is true about businesses and profits?
Earning profits contributes to society by creating resources that support social institutions and government.
What is true of ethics and social responsibility in business?
Ethical conduct and corporate social responsibility are linked to increased profits.
How are profits handled in communist systems?
Excess income goes to the government.
How does modified capitalism differ from pure capitalism?
In modified capitalism, the government intervenes and regulates business to some extent.
88. ________ indicates the income level of "average" Americans. It is useful in determining how much "average" consumers spend and how much money Americans are earning.
Per capita income
Which is the BEST example of a business trying to balance the needs of various stakeholders?
Pete's Pest Control Company is trying to develop an eco-friendly insecticide that will eliminate crop-killing pests and still adhere to environmental regulations.
________ is the primary goal of business.
Profit
________ is an economic system in which the government owns and operates basic industries such as utilities, health care, and banking.
Socialism
Which statement is true of how the mass media reports on the ethical conduct of businesses?
The mass media focuses more on misconduct than good ethical conduct.
What competitive environment exists when there is only one business providing a product in a given market?
a monopoly
What is associated with a hostile workplace when a person or group is targeted and is threatened, harassed, belittled, verbally abused, or overly criticized?
bullying
Lindsay, a manager, makes decisions that benefit her financially at the expense of her firm. This is an example of which ethical issue in business?
conflict of interest
Increased unemployment can reduce consumer demand for goods and services, leading to
deflation
The study of how resources are distributed for the production of goods and services within a social system is referred to as
economics
Egalitarianism refers to the
equal distribution of income and social services.
A hairdryer manufacturer produced a new model that could dry a person's hair in under five minutes. When customers used this hairdryer and experienced scalp and hand burns, the manufacturer was required to create and enforce detailed plans to prevent future burns. This example relates to
fairness and honesty.
In which market structure do individual businesses have control over their products' price because each business supplies a large portion of the products sold in the marketplace?
oligopoly
Allie, the manager of a new pet grooming company, makes sure her grooming salon always has plenty of treats and toys for the animals as well as beverages and snacks for their owners to ensure a quality customer service experience. This is an example of the ________ element of management.
operations
Decisions regarding product adoption, development, branding, and positioning fall under which element of the marketing mix?
product
The term ________ refers to a business's obligation to maximize its positive impact and minimize its negative impact on society.
social responsibility
A budget deficit occurs when a nation
spends more than it takes in from taxes.
All the groups that have an interest in an organization's success and outcomes are known as the organization's
stakeholders
The quantity of products that businesses are willing to sell at different prices at a specific time is referred to as
supply
An entrepreneur has been primarily associated with the willingness to
take risks
