Short answer questions

Explain the difference between "ethics" and an "ethic".

"ethics"- reasoning about or systematic inquiry into ultimate question of morality an "ethic"- a system of moral action or reasoning

When is a good time for a small business to pivot?

-Your company is always playing catch up -There's too much competition -Your company has plateau -One thing gets the most traction -There's a limited response from your marketplace -Your perspective has changed

How do economic growth, full employment, price stability, and inflation indicate a nation's economic health?

Economic growth is an increase in a nation's output of goods and services, the more the nation produces, the higher its standard of living. The goal of full employment is to have a job for all who can and want to work. With price stability, the overall prices of goods and services are not moving very much either up or down. Inflation is the general upward movement of prices. When prices rise, purchasing power falls.

Explain the differences between macroeconomics and microeconomics?

Microeconomics is the study of economics at an individual, group or company level. Macroeconomics focuses on the other hand, is the study of a national economy as a whole. Microeconomics focuses on issues that affect individuals and companies.

Explain perfect competition and then explain why it is so rare.

Perfect competition is characterized by a large number of buyers and sellers, very similar products, good market information for both buyers and sellers, and ease of entry into and exit from the market. Because the products are very similar and each firm contributes only a small amount to the total quantity supplied by the industry, priced determined by supply and demand. If a firm raises its price a little above the going rate, it would lose customers.

What is the relationship between GDP, inflation, and real GDP?

Real GDP accounts for the price change that may have occurred due to inflation. An increase in inflation means that prices have risen. With an increase in inflation, there is a decline in the purchasing power of money, which reduces consumption and therefore GDP decreases.

What is the SBA and what are some of the important benefits that if offers to small businesses?

Small business Administration (SBA) is a government agency that speaks on behalf of small businesses; specifically it helps people start and manage small businesses, advise them in the areas of finance and management, and helps them win federal contracts.

Is a company's only responsibility to its investors to make a profit? Why or why not?

Yes, because if the company does not make a profit, then legal, ethical, and philanthropic responsibilities do not matter.

"An entrepreneur should work on business, not in it." Evaluate this advice. Is it wise? Universally applicable?

You think you can get things done better and more efficiently than anyone else. That might be true, but all the time and effort you are spending doing jobs that other people could be doing is the time that you are not running your business. As a leader of your business, you are the only person in your company who will be genuinely motivated to grow your company. Every minute you are working on tasks could be minutes used towards planning, strategizing, and building the best business possible.

List some of the advantages and disadvantages to a sole proprietorship, and give an example of a company or industry that may want to avoid this business structure.

advantages: -easy and inexpensive to form -profits all go to the owner -direct control of the business -freedom from government regulations -no special taxation -ease of dissolution disadvantages: -unlimited liability -difficulty raising capital -limited managerial expertise -trouble finding qualified employees -personal time commitment -unstable business life -losses are the owner's responsibility Avoid sole proprietorship -Airlines -Schools -Hospitals -Banks