PRINCIPLES OF BUSINESS
issues to consider when conducting an environmental scan
business ethics, business trends, relationship between government and business
jake wants to run his own business without any business skills. what type of business should he do?
business format franchise
how does marketing influence utility
by providing information by being involved in specific types of utility
situation demonstrating interrelationship of primary business activities
company ABC is a large business that makes and sells soft drinks to bottllng companies.
role of competiton in trade
competition forces businesses to keep their products low and produce better products
the federal governmetn awarding patents is to do what
encourage research
each purchase stregthens economy by
encouraging trade
Which of the following factors affecting the business environment is represented by the business's location:
environmental
private enterprise is based on the idea that
everyone is better served when individuals are free to set their own goals
price supports=
farmers
wendy's sells rights to operate restaurants to individuals who meet criteria. what type of business is this?
franchinising
the european union:
free trade agreement amoung european countries that unites them to obtain greater trading power
why types of freedoms does private enterprise afford?
freedom to choose freedom to own, use by and sell private property
world trade organization
globalization organization that deals with rules of trade between nations
trade missions
group of business executives and gov officials who travel to foreign countries to promote trade between their countries
the government sets and collects taxes to
help pay expenses of governmet
accounting shows
how businesses are doing
how are business activites irterrelated or dependent on one another and work together
if a business changes in some way, the primary business activiies must adjust in response
popular product is said to be
in demand
Appropriate information management saves businesses time and money by
maintaining higher levels of productivity
potenttial problem for a market ecnonomy
no competition
what does registering a trademark do?
protects intellectual property
importance of environmental scan
provides a starting point for a businesss's planning of its goals, objectives, and actions that answer the question, "where do we want to be?"
One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually
provides expierence that increases the business's credibility
embargoes
requirements to suspend all import-export trade with another country
A business should conduct environmental scans on a continuous basis so that it can
respond to opportunities and threats quickly
utility plays role of
satisfaction gauge
One reason that businesses use a matrix organizational design is to
share human resources
Government owns the basic means of production but there is some private ownership of business under
socialism
what is international trade
takes place when product is produced in one country and consumed in another
trade barriers used to limit international trade
tarrifs; taxes on certain imported goods
An important factor that has a significant effect on the general business environment is
technology
the way in which an economic system answers basic economic questions depends on
the government
venture capital
the money "angel" investors put into start-up businesses
why do businesses conduct an environmental scan
to indentify trends, gaps, events, developments and issues that will impact the business
purpose of organizational design
to match the form of the organization as closely as possible to the purpose the organization seeks to achieve
why do nations engage in national trade?
to obtain needed resources
what is domestic trade
transaction that occurs within the geographic boundry of ones country
Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of ________the risk
avoiding
issues with international trade
balance of trade increased competition for customers currency valuation cultural and political differences government control and support multinational corporations
industrial revolution caused
production costs to decrease
In what way might a human resources manager be involved in employee benefits?
Determining eligibility and costs of benefits
what happened after WWII
IMF
Which of the following is the best action for businesses to take in order to adapt to changing markets:
Implement innovative strategies and ideas
How does the finance function relate to company spending?
It plans and controls spending
Which of the following situations would most likely indicate the need to adapt to changes in the business environment:
The supply for materials used in manufacturing a product has decreased
What type of program does a company use to track their customers?
a database
offering virtual sevices
a service offered through a medium on communication rather than in perso. ex: online banking
The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n)________advantage
absolute
TeJuan's Fishing Shack demonstrates effective information management by
accessing a list of fishing equipment appropriate for a particular customer.
external business changes
affect the primary business activities.
good ethics are important because
an ethical business contributes toward it's own success
trade centers
assist in finding products to import and markets for export
a weak currency will
decrease imports, but increase exports
organic =
delegation
What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds?
demographic
What does a resource manager do?
determines eligibility and cost of benefits
entrepenurs encourage
develop of new products
what is a nations balance of trade
difference between the value of a company's imports and it's exports
what are the duties of middle management
district manager, dept head, regional sales manager
general agreement on tarrifs and trade
effort amoung its countries to expand world trade and improve international trrade relations
north american tree trade agreement
eliminates trade barriers amoung canada, us and mexico. Allows free movement of trade amoung these three countries
Companies that operate at the international level should be aware of political factors that affect trade, such as civil unrest or
embargoes
equity
(what the business owns or controls minus debt) used when businesses sell shares of stock or company real estate.
civil rest
= embargoes
Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity the bread shop is likely involved in:
Promoting the new bread through advertising
A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n)_____________ good.
consumer
trade surplus=
country's exports are larger than imports
trade deficit=
country's imports are larger than exports
what is a nations balance of payments
countrys annual accounting record that tracks all its monetary transations with another country
making a website does what for a business
creates a new revenue source
A wholesale distributor would like to track its customers geographically. Which software application would be most effective?
database
A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using?
information
when a business changes
it must adjust its pirmary business activities ot suit its new situation
small businesses develop an organizational design so that
it provides exprience that increases business's credibility
accouting
keeping accurate and useful financial records
quotas
limit set on the amount of exports or imports
financial analysis =
obtain funding for supplies
interrelationship=
one business activity changes, so others must adjust in response
Multi national coporations
organizations that conduct business in several countries
In the late 1800s, market domination by a small number of extremely large, powerful companies led to the
passage of anitrust laws
what happened in 1800s
passage of antitrust laws
why are people better served through a private enterprise system?
people are free to set their own goals and choices they work harder to achieve their own goals ecnonomic freedom provides the opportunity for success
weaknesses of private enterprise system
periods of unemployment, poverty, unequal distribution of property and income
environmental factor that effects performance of business=
political risk
Financial Analysis
process of planning, maintaining, monitoring, controlling and reporting the use of financial resources. includes financing and accounting.
organizational design
process of structuring a business's people, info, and tech in order to achieve goals and be successful
outsourcing
using outside organizations to perform one or more ofthe primary business activities
comparative advantage
when a country can produce a product at a lower cost than another country
absolute advantage
when one country has the ability to product a good or service with less resources than another
Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?
wholesale
trade agreements
work to reduce trade barriers