business midterm

Question 1

lack of resources

Answer 1

scarcity

Question 2

raw materials from nature that are used to produce goods

Answer 2

natural resources

Question 3

the people who make the goods and services for which they are paid

Answer 3

labor resources

Question 4

things used to produce goods and services such as buildings, materials, and equipment

Answer 4

capital resources

Question 5

an individual who undertakes the creation, organization, and ownership of a business

Answer 5

entrepreneur

Question 6

study of how individuals and groups o individuals strive to satisfy their needs and wants by making choices

Answer 6

economics

Question 7

the amount of money given or asked for then goods and services are bought or sold

Answer 7

price

Question 8

the amount of goods and services that producers will provide at various prices

Answer 8

supply

Question 9

the amount or quanitty of goods and services that consumers are willing to buy at various prices

Answer 9

demand

Question 10

an economic system in which a central authority makes the key economic decisions (socialism)

Answer 10

command economy

Question 11

moral principals by which people conduct themselves personally, socially, or professionally

Answer 11

ethics

Question 12

rules based on moral principals about how businesses and employees ought to conduct themselves

Answer 12

business ethics

Question 13

a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions

Answer 13

sweatshop

Question 14

a set of guidelines for maintaining ethics in the workplace

Answer 14

code of ethics

Question 15

a conflict between self-interest and professional obligation

Answer 15

conflict of interest

Question 16

the duty to do what is best for the good of society

Answer 16

social responsibility

Question 17

rule of conduct

Answer 17

principal

Question 18

personal behavior- how you act/react to a situation

Answer 18

conduct

Question 19

honesty and sincerity

Answer 19

integrity

Question 20

something that is good for society

Answer 20

benefit

Question 21

the owner is responsible for the company’s debts

Answer 21

unlimited liability

Question 22

an organization that is owned and operated by it’s members (small farms)

Answer 22

cooperative

Question 23

a type of organization that focuses on providing a service, not to make profit (charity)

Answer 23

nonprofit organization

Question 24

a contractual agreement to use the name and sell the products or services of a company in a designated geographic area

Answer 24

franchise

Question 25

a business that moves goods from one business to another

Answer 25

intermediary

Question 26

distributes goods

Answer 26

wholesaler

Question 27

the process of creating, expanding, manufacturing, or improving goods and services

Answer 27

production

Question 28

the buying and reselling of goods that have already been produced

Answer 28

procurement

Question 29

the process that involves getting consumers to but a products or service

Answer 29

marketing

Question 30

the business or art of money management. requires analyzing financial statements to make future decisions

Answer 30

finance

Question 31

what are resources?

Answer 31

items that people can use to make or obtain what they need or want

Question 32

what is one of the biggest obstacles in starting a business?

Answer 32

money

Question 33

what does competition of for the consumer?

Answer 33

competition helps consumers

Question 34

what is marker research and why do businesses need it?

Answer 34

gathering and analyzing info about the wants and needs of consumers. identifies opportunity and demand

Question 35

what are the 3 basic economic questions?

Answer 35

what should be produced, who should get what's produced, how should it be produced

Question 36

what is a market economy?

Answer 36

decisions that are made in the marketplace (supply and demand ~ capitalism)

Question 37

what are the 4 economic shifts that our country experienced since the 1600s?

Answer 37

1600- service based 1700- agricultural 1800-industrial 1900- information based

Question 38

what is the federal reserve and what do they do?

Answer 38

gov't agency that guides economy. they regulate the amount of money in circulation, interest rates, amount of $ loaned

Question 39

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

Answer 39

gdp, inflation, standard of living, unemployment rate natural debt

Question 40

what are the 4 stages of the business cycle?

Answer 40

prosperity, depression, recovery, recession

Question 41

what is bribery?

Answer 41

gifts, money, and favors offered to encourage a business deal

Question 42

what is a small business?

Answer 42

less than 500 employees

Question 43

what is a business plan?

Answer 43

written description of a new business that describes all aspects of it

Question 44

what is in each section of the business plan

Answer 44

vision statement- values + beliefs mission statement- major goals complaint description- size + scope + type

Question 45

what is the main reason people want to become an entrepreneur?

Answer 45

be their own boss

Question 46

what is a processed good

Answer 46

goods made from raw materials

Question 47

adv of sole proprietorship

Answer 47

easy to start, keep profit, you're in charge

Question 48

dis adv of sole proprietorship

Answer 48

unlimited liability, lack of skill, ends when owner dies

Question 49

adv of partenership

Answer 49

easy to start, more skills, easier to get credit

Question 50

dis adv of partenership

Answer 50

split profit, unlimited liability, shared risk

Question 51

adv of cooperation

Answer 51

limited liability, raise $ from stock, doesn't end when owner dies

Question 52

dis adv of coorperation

Answer 52

double taxation, difficult to start, heavy gov't regulation