Chapter 1- Introduction to Business

Stakeholder theorists believe that _______

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

The market facilitates _____

trade

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 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

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

competition law

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

A measure of the benefit that an economic actor can gain from either a good or service is ________

economic value

Effective organization promotes a high level of ________

efficiency

Effective organization allows a firm to directly result in all of the following EXCEPT:

higher profits

IT is changing the basis of business from labor and manual skills to ___________

knowledge management

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

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

What technological development has allowed individuals to meet "face-to-face" over the internet and have discussions related to a project they are working on together?

videoconferencing