Business

To provide utility, a product must be

useful

In a traditional economic system, the question of what to produce is answered by producing

what has always been produced

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose

where they will work

If a good or service is scarce, consumers will usually be

willing to pay money to get it

Most businesses put their greatest competitive efforts into competing

with direct competitors

Efficient production enables businesses to

turn out the most products at the least cost

manufacturer is a type of business that

turns raw goods into useful products

consumption

ultimate goal of all economic activity

Which of the following is a benefit of global trade

An improved standard of living

Which of the following presents the first three steps in the accounting cycle in the correct order:

Analyze, journalize, and post

How do nations track the flow of money coming in and going out of their countries

Balance of payments

Which of the following terms describes the difference between the exports and imports of a nation

Balance of trade

How have industry structure changes affected the current business environment

Business now moves faster than ever

Who answers the basic economic questions in a private enterprise economic system

Businesses and individuals

Into what two categories can wants be divided

Economic and noneconomic

Which of the following is a result of globalization

Higher productivity

Why is production important to businesses

It creates goods and services businesses can sell

Which of the following is an on-boarding activity

Orientation

Which of the following is a disadvantage of private enterprise

Periods of unemployment

An example of a country that has a socialist command economy is

Sweden

Which of the following is a true statement about business ethics and the law

The two are not the same thing, but they do overlap

Which one of the following groups of words best describes wants

Unlimited, changing, and competing

What determines whether an economic product is an industrial product or a consumer product

Who buys and uses the product

For an accounting system to be useful to the business, the accounting information it contains must be

accurate and up to date

purchasing

acquiring goods/ services

The main way that economic factors influence the external business environment is by

affecting customers' ability to spend

Environmental scanning is sometimes called environmental

analysis

specialty products

antiques, sports cars

lobbying

attempt to influence decisions in government/officials

A risk involved with information management is being unprepared for a government

audit.

shopping products

best priced items

To protect your company from employee theft or negligence, the business should have its employees

bonded

In economics, the term capital goods includes

buildings and equipment

Globalization can be an advantage for businesses because it

can help them to cut costs for certain resources

Determining which projects a business should invest in is known as

capital budgeting

A business's philanthropic responsibility involves its contributions to

charity

How do marketers get their messages to customers

communication

A commission or bonus is an example of a form of

compensation.

In a private enterprise economic system, consumers can choose from a variety of products as a result of

competition

operations

day - to - day activities for businesses to function

economizing

deciding which goods/services to purchase/provide

The heart of economics is

decision-making

The first task in the HR management activity of staffing is

determining need

social responibility 4 pillars

economic responsibility legal responsibility ethical responsibility philanthropic responsibility

Operations managers have two main goals in mind

efficiency and effectiveness

company's involvement with people in so many different countries is due to the trend of

globalization

In a communist command economy, the economic questions will be answered by

government

The way in which an economic system answers the basic economic questions depends upon the country's

government

Free exchange of ideas contributes to

greater business innovation

net profit

gross profit-operating expense=net profit

When return on capital is positive, the company is

growing in value

The people who work to produce goods and services are known as

human resources

tariffs

importation taxes

The difference between service providers' and manufacturers' operations activities is that ser-vice providers produce __________ outputs

intangible

disposable income

money left after paying taxes

Finance is the business function that involves managing

money.

economic want

need to spend money for good/service

Once marketers know what to offer consumers, they attempt to increase the

new purchases.

noneconomic want

no money for good/service

Offering high quality, large assortments, and free shipping are examples of

nonprice competition

Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of

offshoring

The private enterprise economic system is often described as a

price-directed system

Accounting is distinct from finance because its main focus is on

record-keeping activities

The part of staffing that involves seeking out and attracting qualified potential job candidates is called

recruiting

If expenses are greater than income, there's no

reward

Consumers are typically most willing to pay more for goods and services that bring them greater

satisfaction

Retailing takes place whenever goods are

sold to the ultimate consumer

Starting a small business that may or may not suceed is an example of

speculative risk

Gross profit shows business owners the difference between what they've

spent and received

convenience products

staple/impulse

One of the benefits of economic freedom is that it provides individuals with

the opportunity for success

The economic basis for the private enterprise economic system is

the profit motive

A job specification is an explanation of

the skills, knowledge, and characteristics required for a job

Each purchase strengthens the economy by encouraging

trade

A popular product is said to be

in demand

discretionary items

wanted, not needed

Inflation is a factor involved in which category of an environmental scan

Economy

Which of the following is a positive effect of government regulation

Legal protection

economic good

tangible, scarce, transferrable

Which of the following is a negative effect on businesses of government regulation:

Additional expense and inefficiency are experienced

Which of the following categories of information are found on a balance sheet

Assets, liabilities, owner's equity

What kind of conversion process is being used in an assembly line that produces soft drinks?

Capital-intensive

Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year

Cash flow statement

In what way might an HR manager be involved in employee benefits

Determining eligibility and costs

"Brain drain" occurs when

a country loses talented employees to better opportunities overseas.

Managing information for business continuity is important in case of

a disaster

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with

a safe working environment

Marketing is described as creating

exchanges

Of the following methods of entering a foreign market, which is the least risky

exporting

Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk

controlling

One of the benefits of production to consumers is that production

creates form utility

Businesses are affected by social factors in the external environment because

customer needs are affected by these factors as well

subsidies

financial assistance such as grants/tax breaks

Businesses keep track of external changes as part of a process called

environmental scanning

The highest level of involvement in international business is

establishing a multinational firm

Understanding business ethics can be difficult since

ethics are not always clear-cut

external factors of business

ethnic political social technology

A salesclerk working part-time at a clothing store is an example of a(n)

human resource

Offering higher wages, employee-assistance programs, and benefits are responses to limited

human resources

A risk involved with information management is leaving customers unprotected from

identity theft

industrial products

materials, parts, installations, equipment, supplies

One of the differences between private enterprise and other types of economic systems is that, in other systems, workers

may be unable to improve their standard of living

Which of the following is not a main factor in a business's site selection decision

media

Every society must develop a system for deciding how it will use its resources so that it can

meet people's needs

One way that competition benefits business is by encouraging the creation of

new companies

4 types of utility

time possession form place

gross profit

income from sales-costs of goods=gross profit

What provides the basis for all marketing goals and actions

planning

A main reason that environmental scanning is important is so that businesses can be aware of

potential threats

To discover a product's level of utility, marketers measure the consumer's

satisfaction

Task utility is about making changes to the characteristics of a

service

Seeing the "big picture" instead of smaller, individual parts is an organizational learning concept known as

systems thinking

One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government

taxation

The two main sources of revenue used to pay the costs of government regulation are

taxes and borrowing

Which of the following actions must a business take as a result of political factors in the external environment

Paying taxes

Which of the following actions describes proactive management

Planning in advance for change

Communist command economies are most likely to experience which of the following problems

Poor quality products

Which of the following is the most likely policy that a government would follow to avoid a trade deficit

Protectionism

What actions are consumers most likely to take when the economy is poor

Restrain their spending

Which of the following is a measure of how well a business generates cash flow

Return on capital

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered

Review the invoice

Striving to get new products to the market first and win scarce customer dollars is an "adaptable" strategy often called

competitive aggression

6 main categories of environmental scanning

demographics society and culture economy competition government technology

Without marketing, producers and customers would be

disconnected from each other

natural resources

items found in nature for goods

info management

process of accessing, maintaining, evaluating, disseminating business knowledge/ facts/ data

marketing

process of creating, communicating, delivering, exchanging offerings that have value for consumers/ partnerships/ society

accounting

process of keeping financial records

environmental scanning

process of keeping track of external factors/changes 1. gather info about surroundings 2. analyze info 3. determine future impact of info

strategic management

process of planning, controlling, organizing

financial analysis

process of planning, maintaining, monitoring, controlling, reporting use of financial resources

human resources

process of planning, staffing, leading, organizing employees

Distribution examines how income is divided between

producers and resource owners

The basic role of the United States government is to

protect U.S. citizens

The buying of goods and services for a business is known as

purchasing

When HR management executives participate in a company's long-range planning efforts, they are taking part in

strategic management

economics

study of how to meet unlimited wants with limited resources

Marketing encourages people from different countries to __________ frequently

trade

A nation that exports more than it imports maintains a

trade surplus

Lack of economic growth is a major problem for __________ economic systems

traditional

The specific resources used in a company's production are called

inputs

Which of the following is a potential problem in market economies

Financial loss

Which of the following is a trend in information management

Increased compliance laws and regulations

Which change provides the most time utility for a consumer

Staying open for business on the weekend

unsought products

coffin, crutches

3 basic economic questions

1. what will be produced 2. how will it be produced 3. how will product be allocated

Which of the following industries is part of the fast-growing services-producing sector of the economy

Education

What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments

Exchange

In a socialist economic system, who tends to answer the question of how products will be produced

Government and business

Which of the following are qualities of monopolies

High prices and low production

Which of the following economic resources is responsible for combining the other resources to produce goods and services

Human resources

Which of the following occurs when the supply of individuals who are able and willing to work diminishes

Human resources become limited

Which of the following would be done first in an environmental scan

Identifying participants and responsibilities

What accounting record would summarize a business's profit or loss for a previous year

Income statement

Which activities are likely to increase a firm's profit

Increasing sales and decreasing expenses

Which of the following statements best describes the way that the U.S. economic system functions

Individuals and businesses are the primary decision makers, while the government is the regulator

Which of the following is a benefit of the freedom to own private property

It encourages people to save and to invest

Which of the following is a true statement about innovative management

It is more participative than traditional management

How does the finance function relate to company spending

It plans and controls spending

What type of economic system is used in the United States

Market

Jon makes custom furniture for his customers. He strives to make sure that meeting their needs and wants is his top priority. What "adaptable" strategy is Jon using?

Market orientation

Which of the following is not an example of demographic data

Need for convenience

Priscilla's design company is always willing to consider new ideas, trends, and ways of thinking. This is an example of which of the following characteristics of an adaptable organization

Open-mindedness

Which of the following "adaptable" strategies seeks to strengthen an organization by bringing employees together as well as by empowering them as individuals

Organizational learning

scalability

The ability to easily realign its people and resources appropriately

Which of the following is a reason that the role of HR management is changing

There is greater diversity in the workforce

Why are entrepreneurs important in a private enterprise system

They encourage the development of new products

What is the purpose of government regulation of business activities that might cause air or water pollution

To conserve the environment

Why does the government set and collect taxes

To help pay the expenses of government

Which of the following is the best reason for studying economics

To prepare for effective decision-making and responsible citizenship

Which of the following types of economic systems adopts the fewest new ideas or improvements

Traditional

True or false: Certain industries are more sensitive to specific environmental changes than others

True; some environmental factors have a greater impact on certain industries.

What are the three basic economic questions

What products will be produced; how will products be produced; and how will products be allocated

An organization that has the ability to adapt quickly is

agile

capital goods

all manufactured/ constructed items to produce goods/ services

Operations managers must work closely with managers and employees in

all other parts of the business

Making sure a company follows laws and regulations describes the HR management

compliance

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good

consumer

The ultimate goal of all economic activity is

consumption

The overall purpose of accounting is to

control the finances of the business

profit

income-expense=profit

Environmental degradation occurs because of

increased production

Economic factors can affect a business's operations by

increasing or decreasing costs

Producers respond to consumers' positive economic votes by

increasing production

Private enterprise is based on the idea that everyone is better served when

individuals are free to set their own goals

To keep communication flowing with other departments, the finance function depends on

information systems

Resources that enable businesses to operate are also known as

inputs.

How does technology affect a business's customers

it influences what they want and need

quota

limits on number of products foreign companies can sell

A business with poor ethics is likely to

lose customers

According to the marketing concept, keeping company goals in mind means to

maintain the firm's purpose

Individuals put limits on their own economic freedom by

making personal economic choices

For a consumer to be satisfied, the four types of utility must be

present

The uncertainties of direct and indirect losses to your business property due to fire, wind, accident, theft, etc. are called

pure risk

globalization

rapid flow of capital, labor, and ideas across national borders

An operations manager must determine the route materials will take through the production process. This is a scheduling activity known as

sequencing

Government owns the basic means of production but there is some private ownership of businesses under

socialism

human resources main activities

staffing, compensation and benefits, training and development, compliance, and employee relationships

Which of the following is a public good that is provided by the government

Interstate highways

A characteristic of human wants is that they are

unlimited

What are three types of buying

Buying for resale, buying for transformation, and buying for business use

Which of the following is an example of a governmental regulatory agency

Federal Aviation Administration (FAA)

For which of the following do workers compete in a private enterprise system

Jobs

Industry associations differ from regulatory agencies in that they

don't have government authority

In production, the purpose of the conversion process is to

turn inputs into products