Chapter 1

Stakeholder theorists believe that ________.

people outside of the business enterprise (e.g., consumers) ought to have a say in how the business operates

Which of the following is a form of abuse that can arise due to dominance in market share?

price exploitation

What attempts to deal with the potential of mergers and acquisitions to lead to market dominance?

competition law

Which of the following best describes the relationship between a firm and the consumer in a market economy?

A firm survives by producing goods that consumers are willing and able to buy.

How is a stakeholder different than a shareholder?

A shareholder is an owner of the company, whereas a stakeholder is any individual or group with an interest in the company's operations and / or output.

Which of the following is considered an example of a market stakeholder?

all of these answers

What is the process managers use to transfer authority and responsibility to positions below them?

delegation

Which of the following is NOT an acceptable use of surplus revenues generated by a non-profit?

distribution to shareholders

The difference between a firm's total revenue and all costs represents ______

economic profit

Effective organization promotes high level of ____.

efficiency

According to economist Milton Friedman, the main purpose of a business is to

maximize profits for its owners.

The total opportunity costs (both explicit and implicit) of a venture to an investor represent ________.

normal profit

The philosophy of organization is centered on what concepts?

specialization and division of work

In which of the following areas do nonprofits NOT play a role?

stock exchanges

What belief has driven customers, businesses, home buyers, and the U.S government itself to rely increasingly on debt?

that the value of their investments would continue to grow