buisnes exam

What is the definition of business?

An organized effort to produce and sell goods/services for profit to meet societal needs.

What is a competitive advantage?

A unique benefit or advantage a business offers to attract customers.

What are the resources available to a business?

Human, financial, material, and informational resources.

What are the three types of businesses?

1. Service Businesses: Provide services (e.g., haircuts, tax preparation).

2. Manufacturing Businesses: Create tangible goods (e.g., Intel chips).

3. Marketing Intermediaries: Buy and resell products (e.g., Office Depot).

What is the equation for profit?

Profit = Revenue - Expenses.

What are the areas of the business environment?

Economic, competitive, sociocultural, technological, and political/legal environments.

What is the definition of an economy?

A system where wealth is created and distributed.

What are the factors of production?

Land/natural resources, labor, capital, entrepreneurship.

Who is an entrepreneur?

A person who risks resources to start and operate a business.

What are economic indicators?

Examples include GDP, inflation, unemployment rate, Consumer Price Index (CPI), and Prime Interest Rate.

What is a recession?

A period of declining economic activity.

What is the Federal Reserve's role in stimulating the economy?

Lower interest rates or purchase securities to encourage borrowing and spending.

What is the Federal Reserve's role in slowing the economy?

Raise interest rates or sell securities to curb inflation.

What are the phases of the business cycle?

Prosperity, recession, depression, and recovery.

What is supply in economics?

The quantity producers are willing to sell at different prices.

What is demand in economics?

The quantity consumers are willing to buy at different prices.

What is market price?

The price where supply equals demand.

What are success requirements in business?

Attributes like honesty, integrity, time management, communication skills, and professionalism.

What is operations management?

Activities required to produce goods/services, creating utility (form and time utility).

What are the key differences between services and goods?

Services are intangible, perishable, inseparable, and variable.

What does production planning include?

Product lines, demand forecasting, capacity planning, and outsourcing.

What are the types of inventories?

Raw materials, work-in-process, finished goods.

What are the costs associated with inventory?

Acquisition, holding, and stock-out costs.

What inventory control techniques are mentioned?

Materials Requirements Planning (MRP) and Just-in-Time (JIT) systems.

What is outsourcing in a business context?

Contracting external organizations to perform business functions.

What is capacity in production?

The maximum production level a business can sustain to meet demand.

What is a Just-in-Time (JIT) inventory system?

A system that reduces waste by receiving goods only as they are needed in the production process.

What is lean manufacturing?

A methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.