Intro To Business Essay Questions

How does a public corporation's over inflating its financial condition affect employees and investors?

If they find out you lied, it will make employees and investors not want to associate themselves with your business.

What is the fundamental difference between personal decision making and business decision making

In personal decision making, you are thinking about what will benefit you the most, when in business decision making, you are thinking about what will benefit you're business the most

What are the effects of unethical behavior by customers to the company and other customers? Give an example of a customer's unethical behavior.

It gives the business a bad reputation because they think the management is poor because the customer is going off. It effects the other customers because they can feel unsafe in the business, depending on the situation. One time in Walmart, a woman was screaming at a worker and wouldn't stop no matter how many times he asked her.

What does a government often do with a budget surplus?

Cut taxes, reduce the national debt, or increase spending for certain programs

Describe 3 characteristics of a command economy.

1. A central authority makes the key economic decisions 2. The government owns and controls all the resources and business 3. Highly skilled workers may have the same wages as low skilled workers

What are the 5 ways to measure a nation's economic activity?

1. GDP (Gross Domestic Product) 2. Standard of Living 3. Unemployment Rate 4. Rate of Inflation 5. National Debt

List the 4 responsibilities business have to society.

1. Help the environment. 2. Contribute to the economy 3. Act ethical 4. Give back to the community

List 3 business ethics

1. Honesty 2. Integrity 3. Accountability

List the 5 essential steps of the decision making process

1. Identify the situation 2. Identify possible courses of action 3. Determine the pros and cons 4. Make a decision 5. Evaluate your decision

What are the 4 stages of the business cycle?

1. Prosperity 2. Recession 3. Depression 4. Recovery

What are the 4 major economic shifts (in chronological order) the United States had experienced?

1. Service based economy, early 1600s 2. Agriculture based economy, 1700s, 3. Industrial Revolution, mid 1850s 4. Information based economy, 1900s

What are the three basic economic questions?

1. What should be produced? 2. How should it be produced? 3. Who should share in what is produced

How do consumers affect businesses?

Businesses will only produce what a customer will buy. Customers control how much businesses sell because of supply and demand. Without consumers, all businesses would be gone.

Explain the difference between entrepreneurial resources and labor resources

Entrepreneurial Resources: Used by entrepreneurs, includes anything that has to be done for the business. Labor Resources: Used by people that the entrepreneur employs, includes what they get paid to do.

Explain the difference between a renewable resource and a nonrenewable resource. Give two examples of each.

Renewable resources: Can be remade and redistributed over and over again, water and oxygen. Nonrenewable resources are resources that come from the earth and con not be remade or redistributed, oil and coal

Explain and give an example of how a country's economy could depend primarily on its natural resources.

Saudi Arabia with oil. Their economy depends very heavily on oil because they have a lot of it and they don't generate a lot of money in tourism, agriculture, etc.

Why does unemployment increase during a recession?

The business doesn't have to produce as much, so they don't need as many workers

How do businesses affect communities?

They create local jobs for citizens in the community. They provide locally sourced products, which require less man labor than something that would need to be shipped across the world. They also add more value to your community and bring new people to the community.

Explain the difference between wants and needs

Wants: Something you don't need to survive, but would like to have, Playstation Needs: Something that you can't live without, water

How can treating an employee unethically backfire?

Your employee can leave you, leaving you with 1 less employee. He could tell about you treated him to others, which could give your business a bad reputation.