BA 101: Chapter 2

The increase in the older population by the year 2020 will

-create many new markets for goods and services

To balance the money coming in with that going out of the Social Security program by 2017:

-government will have to raise taxes, reduce benefits, spend less on other programs, or borrow on the world market

As production processes continue to improve, it is no longer enough to provide customers with high-quality products. They also expect:

-high-quality service

Companies that are customer-driven

-listen to their customers -adjust their offerings accordingly

T/F - It is important to empower front-line workers because they are the ones responding to customer needs.

T

Smartphones and social media are technological tools that have completely changed the way people ___________.

communicate

The risks of entrepreneurship are reduced by having laws that support enforceable ___________.

contracts

When a company contracts with another, sometimes in another country, to do some of its functions, such as production or accounting, it is known as ____________.

outsourcing

The difference between revenues and the expenses needed to operate business is its:

profit or loss

Which of the following are examples of a service?

-A college course -Auto insurance

The factors of production include:

-Capital -Labor -Land

Businesses can be more successful by responding to their customers needs and wants they track using:

-Databases of customers buying preferences -Databases that track a customer's specific choices -Databases that use bar codes to track customer's purchases

Globalization has occurred because of:

-Efficient distribution systems -Advances in communication

The purposes of nonprofit organizations include:

-Filling a societal need -Filling an educational need

A country's quality of life includes such elements as:

-Health care and leisure time -Political freedom and natural environment -Education and safety

The Uniform Commercial Code is important to businesses in the United States because:

-It makes business agreements such as contracts enforceable by law

The term "factors of production" refers to the:

-Natural, human, and financial resources used to produce goods and services

Changes in the technological environment include the emergence of Information Technology that includes such tools as

-The Internet -Cell Phones -Computers

An important effect of changed communication technology is that we communicate:

-With people worldwide instantly

A product that is tangible and can be touched or held in your hand is:

-a good

Dealing with a diverse workforce managers to:

-be sensitive to workers and cultures around the world

Examples of demographic statistics are:

-race and national origin -age, income level, and gender

Whether a business makes a profit or loss is determined by the determined by the difference between the total amount of money a business takes in from sales, known as its ____________, and the money needed to operate it, known as ____________.

-revenue -expenses

The resources of land, labor, capital, entrepreneurship, and knowledge are:

-the factors of production

Many countries have large quantities of one or more factors of production, but have not been successful in accumulating wealth because:

-they lack entrepreneurship and knowledge to use the other resources effectively

Government policies that favor business are:

-writing laws that support writing enforceable contracts -Keeping interference to a minimum

Giving employees the authority and responsibility they need to respond quickly to customer needs is known as ___________.

Empowerment

The amount of goods and services people can buy with money they have is known as the:

Standard of living

Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that:

Many small businesses fail every year

What is the term used by employees for the amount of output generated by the inputs used?

Productivity

An entrepreneur ____________ both time and money in trying to make a profit.

Risks

Groups that have a strong interest in the success and outcome of a business, such as employees, neighbors, or government regulators, are called ___________.

Stakeholders

What is the term for all of the groups that stand to gain or lose by the policies and activities of a business and whose concern the business needs to address?"

Stakeholders

Acting with consideration for groups such as seniors, the disabled, homosexuals, and others has expanded our understanding of the term ___________.

diversity

The buying and selling of goods over the Internet is known as ___________.

e-commerce.

Business are part of a country's ____________

economic

Businesses are part of a country's:

economic system

A business tries to earn a profit by providing ____________ and ____________ services that satisfy people's needs and wants.

goods, services

The total amount of money a business takes in during a given period of time by selling goods and services is its:

revenue

An intagible product such as health care is a(n)

service

Demography is the statistical study of:

the human population's characteristics such as size, density, age, gender, and income

To be more competitive set a goal of ___________ in their production processes because it reduces costs due to wasted materials.

zero defects