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
