Exam 1 (ch. 1-5) Flashcards Preview

Intro to Business > Exam 1 (ch. 1-5) > Flashcards

Flashcards in Exam 1 (ch. 1-5) Deck (37):
1

Customer satisfaction, not production efficiency, was the focus of the production era.

False

2

Following one's passion in regard to a career guarantees a big paycheck.

False

3

Capital is not a factor of production.

False

4

The Industrial Revolution Era encouraged workers to become individual owners and to take kpride in the production process.

False

5

A product has value when its benefits to the customer are less than the price that the customer pays

False

6

Natural Resources

Inputs that offer value in their natural state (fossil fuels, minerals, water, etc.)

7

Entrepeneurship Era

-Second half of the 1800s.
-Large-scale entrepeneurs emerged, building business empires that raised overall standard of living.
-Laws passed to protect consumers and workers.

8

Diversity

A variety of demographics (age, race, religion, gender)

9

Effects of Aging Population (Opportunities and Threats)

Opportunities:
-Companies that focus on elderly will boom
-Products may be redesigned to better accomodate elderly
-Companies with older employees will benefit

Threats:
-Smaller workforce
-Companies will compete HARD for top talent
-Taxes may increase
-Consumer market may shrink

10

The government has a budget deficit when spending is lower than revenue.

False

11

Socialism

-Gov should own & operate key enterprises that directly affect public welfare.
-Tend to have higher taxes to dist. wealth more evenly

12

Communism

-Public ownership of all enterprises.
-Under direction of strong central gov
-Communist countries didn't thrive
-People unable to choose where to work
-Extremely corrupt
-North Korea and Cuba still communist, continue to fail

13

Productivity

-Relationship between production of goods/services and the resources required to produce them
--Amount of Input divided by amount of output--

14

GDP

-Total value of all final goods/services produced within a nations physical boundaries over a given period of time.
-Used to measure economic performance and compare to other nations

15

What happens in the Recovery phase?

-Rising economic growth & employment
-Businesses expand, consumers begin to spend more
-Transition period between contraction & expansion

16

Seasonal Unemployment

Job loss related to the time of year (construction, agriculture, holiday workers)

17

Debt ceiling

-Max amount of money Congress lets the gov't borrow

18

Fiscal Cliff

Gov't spending cuts and sharp tax increase
-can happen after debt ceiling increase

19

Countries with the highest trade barriers in international trade have the least competition.

True

20

If a firm contracts with a foreign producer, does that ensure an obligation that those factories adhere to ethical standards?

Yes. Companies will receive consumer backlash if they fail to do so.

21

Do licensors in foreign licensing run the risk that the licensees become their competitors?

Yes

22

What kind of assistance is offered by the World Bank?

-Technical advice about infrastructure, communications, health, education
-Financial assistance with low interest loans.

23

Are quotas levied against exports considered taxes?

No

24

Balance of Payment

Measure of total flow of money into/out of a country
-can be a deficit or surplus

25

Foreign Outsourcing

Contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic productions
Risks:
-Quality control
-Social Responsibility

26

Difference between Legal/Political, Economic, and Sociocultural differences

Legal/Political: laws/regulations, gov't stability (no civil war, riots, violence), trade restrictions

Economic: population, income, economic growth, exchange rate

Sociocultural: language, attitude, values

27

Functions of IMF (International Monetary Fund)

-Support stable exchange rates
-Facilitate smooth system of intern'tl payments
-Encourage member nations to adopt sound economic policies
-Promotes international trade
-Lends money to member nations to address economic problems
-LENDER OF LAST RESORT TO NATIONS IN FINANCIAL TROUBLE-

28

Tariff

Taxes levied against imports
-Gov't uses to help failing businesses and important economic industries-

29

One's culture, personal needs, and family influences a persons ethical choices.

True

30

Stakeholders refer to...

Groups that affect performance/actions of an org
-Employees
-customers
-investors
-community

31

Social Responsibility

The obligation of a business to contribute to society (donations, partnering w/ nonprofit, etc)

32

Carbon Footprint

amount of co2 and carbon compounds emitted due to fossil fuel consumption by a business (goal is to become neutral and emit none or counteract emission)

33

Sarbanes-Oxley Act

Set higher ethical standards for public corps and accounting firms
CEOs have to personally certify validity of financial statements

34

Corporate Philanthropy

Business donations to nonprofit groups including money and products

35

Consumerism

Focuses on the right to:
-Be safe
-Be informed
-Choose
-Be heard

36

Green Marketing

Developing/promoting environmentally sound products and practices to gain a competitive edge

37

Planned Obsolescence

Deliberately designing products to fail in order to shorten time between consumer purchases