Business module 1

Match the type of market to its description. 1. retail stores, shopping malls, flea markets, and grocery stores 2. Amazon, eBay, and other online providers 3. the available workforce in a country or specific geographic region 4. the New York Stock Exchange, NASDAQ, Wall Street, Standard and Poor's and others 5. illegal contraband, sex trafficking, drugs, and other items sold without regulation

1. Physical markets 2. Internet markets 3. Labor market 4. Stock markets 5. Black markets

Match the business goal to its description. 1. the overriding objective for a business should be to earn as much profit for its owners as possible 2. businesses should strive not only to increase their profit but also to improve society 3. everyone affected by a business should have some say in how that business operates

1. Profit maximization 2. Corporate Social Responsibility 3. Stakeholder Theory

For each business goal listed, choose whether it is considered to be either a long-term or short-term goal. physical and spiritual needs of the communities 1. __________ a responsibility to meet the physical needs of your employees and your own family _2.____________ setting financial priorities long-term goal acting with integrity towards suppliers, creditors, and employees 3.___________ establish time priorities short-term goal establish ethical priorities 4.____________ strive for profit maximization and share those blessings with others 5.__________

1.long-term goal 2:long-term goal 3: short-term goal 4:short-term goal 5:short-term goal 6:short-term goal 7:long-term goal

Approximately what percent of American businesses are partnerships?

10%

Several government agencies help protect customers' rights and health. Besides these watchdog agencies, corporations should ensure that customers have the right to buy safe products , customers have 1._______________ about the products such as food ingredients and clothing materials, and the ability to 2.___________ when there are concerns or questions about a product.

1:safe products 2:information 3:contact companies

Nonprofit organizations register under the IRS as a This code establishes the conditions a business must meet to be considered not for profit and qualify for certain tax breaks.

501(c) corporation.

Choose from the list the four specialized departments that make up the functional areas of a typical for-profit business.

?

The two main types of small businesses are...

?

For each statement given choose whether or not it is an advantage or disadvantage to having a sole proprietorship type of business. Easy and cheap to start; few regulations 1.________ Unlimited personal liability 2._______ Must provide or borrow all funds personally 3._______ Retain all profits for yourself advantage Total control over business decisions advantage Business dissolves upon death 4.______________

Answer 1: advantage Answer 2: disadvantage Answer 3: disadvantage Answer 4: advantage Answer 5: advantage Answer 6: disadvantage

Who acts as the senior manager in charge of running the entire corporation?

CEO (Chief Executive Office)

___________ are a completely separate legal entity from their owners.

Corporations

In general, a business is an organization that provides what two things?

Goods and services

A limited partnership is a business where...

NOT the government limits the number of partners that can be members of the board f directors.

The main goal of a business that is not a charity or a free provider of goods and services is to make a ...

Profit

Small businesses are regulated by what federal department?

The Small Business Administration (SBA)

For a business to be successful in the labor market and attract the best employees, companies must offer... (choose the three best answers)

a pleasant working environment. competitive salaries. excellent benefits.

What type of corporations generally have a small number of shareholders, and those shareholders are not allowed to sell their stock to the public?

a private corporation

The business' managers need to ensure that their corporation provides three main things for their employees. Choose the three best answers.

a responsibility to keep the workplace free from discrimination and harassment a fair wage and adequate benefits a healthy workplace environment

List two advantages and two disadvantages of a small business run as a partnership.

advantages Easy to start Decisions are made with more thought disadvantages more potential for conflict liability is unlimited

What is the most significant risk of a sole proprietorship?

amortization interest depreciation taxes

An example of how a business can have little regard for their employees' health is the case of a manufacturing company (Johns Manville) that decided profits were more important than protecting their employees from the dangers of a harmful substance. That substance is...

asbestos.

Who has an ethical and legal requirement to handle the company's assets responsibly?

business managers

Select all of the following that are considered external stakeholders.

customers suppliers and creditors community and government

What are the three typical characteristics of a small business?

do not have a huge effect on the industry employ fewer than 500 workers independently run

Select all of the following that are considered internal stakeholders.

employees managers owners

The stakeholder theory as applied to business states that...

everyone who is affected by a business should have a say in how that business operates.

Jesus told His disciples, "For what does it profit a man to gain the whole world and...?" Mark 8:36

forfeit his soul

Doing good work and having a strong work ethic are principles that everyone must follow to meet biblical standards and have long-term business success.

good work work ethic

External stakeholders include... (choose the four best answers)

government. customers. suppliers and creditors. the local community and society.

In running a business using Christian principles, it is vital to be profitable but not...

greedy.

The difference between a company's sales (or revenue) and the amount it cost them to produce the goods that they sold is called the...

gross profit.

Shareholders own a percentage of the company based on..

how much stock they own.

Where should we lay up treasures?

in heaven

Stakeholders are people with a vested interest in a business. The two types of stakeholders include...

internal and external.

In economics, a is a structure that lets buyers and sellers exchange goods and services.

market

Ethics violations can occur in many areas in business, but they're most common in three areas. Choose those three most prevalent areas of misconduct in business.

misuse or stealing of company property tax evasion fraud in accounting and record keeping

The Bible warns about going into debt. To prevent from ruining a business, what are two good biblical principles to follow when making investment decisions?

only borrow when absolutely necessary avoid long-term debt

A for-profit company distributes excess revenue to its...

owners or shareholders.

What is an agreement between business partners that outlines each partner's privileges and responsibilities?

partnership agreement

In return for a franchisor helping a franchisee set up their business and providing training and marketing assistance, a franchisee is required to... (choose two)

pay a franchising fee. follow certain guidelines set by the franchisor.

What is an example of a business not providing a safe work environment for its workers?

poor air circulation in coal mines leading to carbon monoxide or methane gas poisoning

If the chief goal of a business is to earn as much profit for its owners as possible, then that type of business concentrates on...

profit maximization.

Companies that allow shareholders to freely buy and sell stock are known as...

public corporation.

Ownership of a corporation is determined by who owns shares of the company's stock. Those owners are called...

shareholders.

Proverbs 22:1 (ESV) says, "A good name is to be chosen rather than great riches, and favor is better than..."

silver or gold.

What are some of the costs associated with ignoring biblical principles according to the lessons?

taking shortcuts to make fast profits terrible working conditions and low pay corporations taking on large debt

Market research is...

the gathering and analysis of data about consumers.

The concept of corporate social responsibility is best related as...

the idea that businesses should care about improving society as well as making a profit.

A nonprofit company distributes excess revenue in...

the organization to further its goals.