HSB FINAL (145)

WHAT IS? The benefits that come from completion

-Businesses -Consumer -Society

WHAT IS? the people businesses should be socially responsible for

-People who use products -communities where they are located -employees of the business

What are the three factors that affect the value of resources?

1) Productivity 2) Availability of supply 3) Demand

DEFINE: Producer

A business that produces goods *2 examples

DEFINE: Regulated monopolies

An exception-- allowed when its too expensive for another company to compete. *2 examples

Which of the following is one of the main principles of the private enterprise system: A) monopolies B) competition C) price fixing D) exclusive agreements

B) competition

DEFINE: Partnership

Business owned by two or more people *2 examples

DEFINE: Trade industries

Businesses that buy and sell goods to others *2 examples

The automobile industry, the pharmaceutical industry, and the oil industry are all examples of A) a regulated monopoly B) perfect competition C) oligopolies D) monopolistic competition

C) oligopolies

WHAT IS? there is two variations of this: -socialism -communism

Command economic system

WHAT IS? _ makes better and less expensive goods and services in the business world

Competition

WHAT IS? smaller companies combine into a larger one

Consolidation

Which of the following statements about perfect competition is correct: A) There is a limited supply of goods and services. B) Businesses have a good deal of control over the market. C) Products vary from seller to seller. D) It is used as a benchmark to compare real market structures against.

D) It is used as a benchmark to compare real market structures against.

DEFINE: Exchange

Economic transaction *2 examples

DEFINE: Monopolistic Competition

LOTS of businesses sell similar product that have few differences *2 examples

WHAT IS? Combining of two or more companies

Merger

DEFINE: Competition

Rivalry among two or more businesses to attract scarce or limited customer dollars *2 examples

WHAT IS? When businesses have a duty to contribute to the well being of society

Social responsibility

TRUE OR FALSE? the following is a situation in which people are out of work and can't afford "extra" purchases: Bad company

TRUE answers like Unexpected event, Bad investment, & Negative circumstances may sound like a good answer, but they are actually incorrect.

DEFINE: Economic risks

The type of risk that involves changes in the market, which in return effect prices of goods *2 examples

DEFINE: Possession utility

Usefulness created when in the ownership of the right person *2 examples

DEFINE: Opportunity costs/Trade-offs

What you give up in order to gain *2 examples

DEFINE: Shopping products

When customers shop around for the best price and quality with advice from salesperson. *2 examples

DEFINE: Oligopoly

When only a FEW businesses sell all the products *2 examples

DEFINE: Nonprice competition

When two businesses compete other than price *2 examples

DEFINE: Pure risks

a characteristic of risks that brings the possibility of either loss or no loss, no gray area included. *2 examples

DEFINE: want

a desire for something we may or may not require. *2 examples

DEFINE: Utility

adding usefulness to a product *2 examples

DEFINE: Form utility

altering a good to make it more useful *2 examples

WHAT IS? socialism

socialism is when the gov meets the basic needs of everyone

WHAT IS? Private enterprise

business managed by private individuals rather than the government

DEFINE: Sole proprietorship

business owned by an individual *2 examples

DEFINE: Profit reward

business owner wants to reward themselves for their efforts *2 examples

DEFINE: Natural resources

can be renewed from the earth *2 examples

WHAT IS? a traditional economic system

economic decisions

DEFINE: guarantee

example of a way to transfer risk. 100% _________ *2 examples

DEFINE: Industrial goods

goods and services purchased by a business so they can provide their products. *2 examples

DEFINE: Consumer goods

goods and services that are purchased and used by end consumer. *2 examples

WHAT IS? an economic system

how a country uses its resources

DEFINE: Convenience Products

item you purchase quickly without much thought. *2 examples

DEFINE: Distribution

making goods and services available for use by consumers *2 examples

DEFINE: Expenses

money a business spends *2 examples

DEFINE: good

something you can touch, it is tangible, it is useful. *2 examples

DEFINE: non economic want

something you do not have to spend money in order to receive your want. *2 examples

DEFINE: Human resources

the people who produce goods and services. *2 examples

DEFINE: Speculative risks

possibilities of loss, gain, or no change. *2 examples

DEFINE: Business risk

possibility of failure or sucess *2 examples

DEFINE: services

productive acts that satisfy economic wants. *2 examples

DEFINE: unsought products

products you buy because you need, not necessarily want. *2 examples

DEFINE: Profit

reward a business owner receives for taking a risk *2 examples

DEFINE: gross profit

sales income-cost of goods *2 examples

DEFINE: Retailers

sells to end consumer *2 examples

DEFINE: Wholesalers

sells to other businesses *2 examples

DEFINE: Economy

social system of production, exchange, distribution, and consumer goods *2 examples

DEFINE: Income

money you get for the work you have done *2 examples

DEFINE: corporation

owned by stockholders *2 examples

WHAT IS? Four types of corporations

1) closed 2) Open 3) S 4) Non profit

WHAT IS? Government legislation affecting competition

-Sherman anti-trust act -clayton act federal trade commission act -robinson-patman act -celler-Kefauver anti-merger act

WHAT IS? two types of partnership arrangements

1) General partner ship 2) Limited partnership *Briefly describe each

WHAT IS? Two ways a business can be socially responsible

1) Maximize profits for the business 2) Contribute to public interests

What are the four market structures?

1) Monopoly 2) Oligopoly 3) Perfect/Pure 4) monopolistic competition *BRIEFLY DESCRIBE EACH

WHAT IS? three ways corporations can grow

1) Sell more stock 2) Mergers 3) consolidations

Which activities are likely to increase a firm's profit? A) increasing sales and decreasing expenses B) increasing supplies and decreasing production C) decreasing sales and increasing expenses D) increasing supplies and increasing production

A) increasing sales and decreasing expenses

Which of the following factors that affect profit usually able to be controlled? A) incomes and expenses B) Expenses and pricing C) pricing and billing D) Expenses and billing

B) Expenses and pricing

Which of the following is a direct benefit to consumers of the effects of competition: A) higher product prices B) wider product selection C) wise use of resources D) fewer new businesses in the market

B) wider product selection

TRUE OR FALSE? When employees are working faster or better, they are increasing their: Value

FALSE efficiency (is a better answer) goes up when employees are working more productively.

WHAT IS? growing your business

Expansion

DEFINE: Monopoly

Exists when a market is controlled by one business *2 examples

TRUE OR FALSE? When Maura purchased a new car, she was able to get part of the purchase price back from the car's manufacturer. The car's manufacturer engaged in: price fixing

FALSE offering rebate is the return of part of a payment for a good. Unlike a discount, which is deducted from the price before purchase, a rebate is returned after purchase.

TRUE OR FALSE? The amount of money paid for raw materials and product sold is called: operating expense

FALSE Cost of goods is the amount of money paid for raw materials.

WHAT IS? distributing recognized goods and services through a legal agreement

Franchise

DEFINE: Service businesses

Perform intangible activities that satisfy peoples needs and wants *2 examples

DEFINE: Limited liability company

Owners enjoy advantages of corporation

DEFINE: Producers

People who make goods or services *2 examples

WHAT IS? independent sale between a franchisor and a franchisee

Product trade-name franchise

DEFINE: Warranties

Promise to repair or replace a faulty product. Example of a way to transfer risk. *2 examples

DEFINE: Raw-goods producer

Provides raw materials *2 examples

TRUE OR FALSE? Most businesses put their greatest competitive efforts into competing: with direct competitors.

TRUE answers like locally, nationally, & with indirect competitors may seem correct. But it makes more sense for businesses to compete with direct competitors, because they may not need to compete with local and national businesses. But they will always have competition with direct competitors.

TRUE OR FALSE? the following are qualities of monopolies: high prices and low production

TRUE this question is tricky because, low production and much competition; high prices and much competition; & low prices and little competition sound right. But monopolies have close to total control, causing high prices and low production in order to encourage competition.

DEFINE: Production

The act of making goods *2 examples

DEFINE: Direct competition

Type of competition that occurs among business that offer similar goods or services *2 examples

DEFINE: Indirect competition

Type of competition that occurs when businesses do NOT offer the same or similar goods, but still compete *2 examples

DEFINE: Natural Risks

Type of risk that results from natural causes *2 examples

DEFINE: Price competition

Type of rivalry between businesses that use price to lure customers. *2 examples

DEFINE: Specialty Products

Unique and special products, often brand name. *2 examples

DEFINE: cost of goods

amount of money a business pays for raw material *2 examples

DEFINE: operating expenses

an on-going cost for running a business *2 examples

DEFINE: Economizing

avoiding waste *2 examples

DEFINE: Manufacturers

changes the shape or form of materials to make them useful to consumers *2 examples

WHAT IS? communism

gov does all

DEFINE: net Profit

gross profit-operating expenses *2 examples

DEFINE: Consumer

the person who is receiving/using a goods or service *2 examples

DEFINE: economics

the social science of an economy *2 examples

DEFINE: Economic resources (aka factors of production)

these are used by a business to produce goods and services. *2 examples

DEFINE: Human risks

type of risk caused by human weakness *2 examples

DEFINE: Capital goods

used in the production of goods and services *2 examples

DEFINE: Place utility

usefulness created by changing where a product is *2 examples

DEFINE: time utility

usefulness made when a product is available at a certain time. *2 examples

DEFINE: Consumption

utilization of economic goods *2 examples

DEFINE: Pure/Perfect competition

when MANY businesses sell the same product and there Is plenty of options *2 examples

DEFINE: scarcity

when we have unlimited wants and limited needs. *2 examples

DEFINE: economic want

when you have to spend money in order to receive your want. *2 examples