Principles of Business Review

What is a result when workers' wages rise throughout the economy while productivity decreases?

Inflation

How does the finance function relate to company spending?

It plans and controls spending.

The federal government awards patents to businessess that have invented new products

To encourage research

In an overall sense, where does marketing occur?

Wherever customers are

The U.S. produces widgets faster and cheaper than Switzerland. The U.S. has a(n) ___advantage.

comparative

During the Industrial Revolution, the factory system caused

production costs to decrease.

One reason a physicians' practice might form a partnership as an LLP is to

protect innocent partners form the malpractice of another partner

One reason a physicians' practice might form a partnership as an LLP is to

protect innocent partners from malpractice of other partners

A purchased laptop to use for homework. In economic terms, the computer would be a(n)__ good.

consumer

Appropriate information management saves businesses time and money by

maintaining higher levels of productivity.

A business should conduct environmental scans on a continuous basis so that it can

respond to opportunities and threats quickly.

Why is production important to businesses?

It creates goods and services businesses can sell.

A wholesale distributor tracks customers geographically. Which software application?

Database

What trends are businesses considering when they analyze where customers live backgrounds?

Demographic

In what way might a human resources manager be involved in employee benefits?

Determining eligibility and costs of benefits

Which is a reason that a U.S. company would decide to offer its products in other countries:

To expand to new, untapped markets

ratio of a pound of yellow squash @ $ .40/ lb and a lb. of butternut squash @ $1.20/lb ?

1 to 3

What role does utility play in the implementation of the marketing concept?

A satisfaction gauge

Why should a business practice good ethics?

An ethical business contributes toward its own success.

Which of the following are qualities of monopolies:

High prices and low production

Which economic resources is responsible for combining other resources to produce goods:

Human resources

Which economic resource combines other resources to produce goods and services:

Natural resources

Which of the following is a disadvantage of private enterprise:

Periods of unemployment

Which of the following is an example of excess supply:

Price = $700, demand = 300, supply = 500

Which change provides the most time utility for a consumer?

Staying open for business on the weekend

Why should productivity be measured?

To see whether the business's objectives are being met

Which one of the following groups of words best describes wants:

Unlimited, changing, and competing

In order for an accounting system to be useful to the business, the information must be

accurate and up-to-date.

To reduce the chance of investigations and orders to cease production, businesses should

adhere to government regulations.

The ultimate goal of all economic activity is

consumption

A country with a weak currency value tends to

decrease its imports and increase its exports.

When changes in a product's price cause corresponding changes in consumer demand, the product-

elastic demand.

Producers respond to consumers' positive economic votes by

increasing production

Which of the following is a public good that is provided by the government:

interstate highways

Running out of inventory can result in

lost sales

meeting with people from other countries, understanding social differences, such as bowing

non-verbal cues

In the late 1800s, market domination by a small number of large, powerful companies led to the

passage of antitrust laws.

Alex owns a guitar, several books, a car, and a telescope. Alex's possessions are examples of

private property

Businesses can protect themselves from the risk associated with lost shipments by

purchasing transportation insurance.

Government can prevent unqualified persons from operating a business by

refusing to grant them a license

An advantage to a business in filing Chapter 11 bankruptcy is that it allows the business to

reorganize

Government owns the basic means of production but there is some private ownership of businesses

socialism

Retailing takes place whenever goods are

sold to the ultimate consumer.

Gross profit shows business owners the difference between what they've...

spent and received

An important factor that has a significant effect on the general business environment is

technology

A socially responsible business will attempt to give customers

the best products at the best prices.

Each purchase strengthens the economy by encouraging

trade

Lack of economic growth is a major problem for __________ economic systems.

traditional

Most businesses put their greatest competitive efforts into competing

with direct competitors