Intro to Business

Which of the following actions of the government indicates the privatization of an industry?

Allowing private businesses to operate in an industry that was previously operated by the government.

Who are the workers who apply entrepreneurial strategies to cause large-scale social change

Social entrepreneurs

Which one of the following is true regarding the economic environment of business that shapes the behavior of buyers and sellers?

Virtually every decision made is influenced by the economic environment.

________ refers to a resource or capability a company must have before it can start competing in a given market.

barriers to entry

________ refers to a view of business that considers the many decisions that must be made and the potential problems that must be overcome before the organization can deliver its products or services

business mindset

A(n) ________ is a framework of how a business intends to generate revenue.

business model

The money, equipment, and buildings that a business needs in order to produce goods and services are called ________.

capital

________ refers to some aspect of a product or company that makes it more appealing to target customers.

competitive advantage

When the U.S. dollar is strong, U.S. exports will likely ________.

cost more in other countries

A(n) ________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal.

demand curve

Businesses can impact society in both positive and negative ways. Occupying land and displacing existing businesses are examples of ________.

disrupting communities

What types of technologies are strong enough to create or destroy companies?

disruptive

Microeconomics is the study of ________.

economic behavior among consumers and businesses

________ is the study of how a society uses scarce resources to produce and distribute goods.

economics

________ is lead by innovation, initiative, and the willingness to take the risks in creating and operating businesses

entrepreneurship

The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies.

exchange rate

________ are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices

export subsidies

Assets refer to the tangible economic resources owned by a firm.

false

In a ________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell.

free market system

Which of the following is an objective of protectionism?

guarding specific industries in a nation

Which of the following refers to people and their individual talents and capabilities?

human resources

________ limit the amount of particular goods that countries allow to be imported during a given year.

import quotas

In the global marketplace, which of the following is often a type of key asset needed to successfully utilize an advantage?

intellectual

Dumping ________.

involves selling a product at a price lower than the cost of production

The risk and reward relationship ________.

is fundamental to businesses in every modern economy

A company benefits from economies of scale when it ________.

manufactures and distributes products in higher quantities

________ refers to a company's target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers.

market environment

The ________ economic system allows individuals to own and operate the majority of businesses with limited economic intervention by the government.

mixed

An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ________.

nonprofit organization

________ is the term used to describe the difference between revenue and expenses.

profit

_____ is money that an organization brings in through the sale of its goods and services.

revenue

________ are politically motivated embargoes that revoke a country's normal trade relations status.

sanctions

A ________ creates value by performing activities that provide benefit to the customer.

service business

Population trends that change the composition of consumer markets and the workforce are a part of a company's ________ environment.

social

The classic theory of comparative advantage suggests that each country should ________.

specialize in those areas where it can produce more efficiently than other countries

The ________ depicts the relationship between prices and quantities that sellers will offer for sale, regardless of demand

supply curve

Taxes on goods charged by a country where an item is being imported to are known as ________.

tariffs

Taxes, surcharges, or duties levied against imported goods are known as ________.

tariffs

The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes.

technological environment

A country's balance of payment equals the ________.

total flow of money into the country minus the total flow of money out of the country

A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful

true

Capitalism is a term used to describe the free-market system, one in which private parties own and operate the majority of businesses and where competition, supply, and demand determine which goods and services are produced.

true

The equilibrium point is the point at which quantity of a good or service equals the quantity demanded

true

A country has a trade surplus when the ________.

value of its exports exceeds the value of its imports

A country has a trade deficit when the ________.

value of its imports exceeds the value of its exports