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