BUAD 101 Exam #1 Review Questions

studied byStudied by 1 person
0.0(0)
Get a hint
Hint

What is a not-for-profit organizations primary objective?

1 / 65

flashcard set

Earn XP

Description and Tags

66 Terms

1

What is a not-for-profit organizations primary objective?

to not return profits to owners

New cards
2

What activity lies at the heart of every business endeavor?

an exchange between a buyer and a seller

New cards
3

What do profits represent?

rewards earned by business people who take risks to create want-satisfying goods and services

New cards
4

What accounting equation must every organization solve?

revenue - expense = profit

New cards
5

What are the four basic factors of production?

natural resources, capital, human resources, and entrepreneurship

New cards
6

What is a natural resources corresponding factor payment?

rent

New cards
7

What is capitals corresponding factor payment?

interest

New cards
8

What is human resources corresponding factor payment?

wages

New cards
9

What is entrepreneurship's corresponding factor payment?

profit

New cards
10

What are the four types of captial?

technology, tools, information, and physical facilities

New cards
11

What is an entrepreneur?

someone who takes a risk in starting a business to earn a profit

New cards
12

What is the private enterprise system?

an economic system that rewards firms for their ability to identify and serve the needs and demands for customers

New cards
13

What is an alternative term for the private enterprise system?

capitalism

New cards
14

What is the most basic freedom under the private enterprise system?

private property

New cards
15

What is private property?

the right to own, use, buy, sell, and bequeath land, buildings, machinery etc.

New cards
16

What does the private enterprise system guarantee business owners?

the right to all profits - after taxes - they earn through their activities

New cards
17

What is freedom of choice in a private enterprise system?

the potential for citizens to choose their own employment, purchases, and investments

New cards
18

What are the six eras of business history?

colonial, industrial revolution, industrial entrepreneurs, production, marketing, relationship

New cards
19

What is transaction management?

building and promoting products in the hope that enough customers will but them to cover costs and earn profits

New cards
20

During which era of business history was branding developed?

the marketing era

New cards
21

Why was the industrial revolution era important in business?

introduction of mass production by semi-skilled workers and machines

New cards
22

What is the definition of outsourcing?

using outside vendors to produce goods or fulfill services that were handled in-house or in-country

New cards
23

What is the definition of offshoring?

relocation of business processes to lower-cost locations overseas

New cards
24

What is the definition of nearshoring?

outsourcing production or services to locations near a firms home base

New cards
25

What is the definition of onshoring?

returning production to its original manufacturing location because of changes in costs or processes

New cards
26

What are business ethics?

the standards of conduct and moral values involving decisions made in the work environment

New cards
27

What is social responsibility?

a management philosophy that includes contributing resources to the community, preserving the natural environment, and developing nonprofit programs for the benefit of the general public

New cards
28

What is customer orientation?

focuses first on determining unmet consumer wants and needs and then designs products to satisfy those needs

New cards
29

What is the definition of business ethics?

the standards of conduct and moral values governing actions and decisions in the work environment

New cards
30

What is conflict of interest?

business decision may be influenced for personal gain or to harm another

New cards
31

What are Lawrence Kohlberg's stages of ethical standards?

pre-conventional, conventional, and post-conventional

New cards
32

What is the pre-conventional stage?

individuals consider their own needs and desires and rules are followed out of fear

New cards
33

What is the conventional stage?

individuals consider the interests of others and outside group influences

New cards
34

What is the post-conventional stage?

the highest level of ethical and moral behavior where individual follows personal principles

New cards
35

What does CSR stand for? What is it?

Corporate Social Responsibility. Contributions to the overall economy

New cards
36

What are stakeholders?

customers, investors, employees, and public affected by or with an interest in a company

New cards
37

What is a code of conduct?

a formal statement that defines how an organization expects employees to resolve ethical questions

New cards
38

What is whistle-blowing?

an employee's disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices

New cards
39

What is economics?

the social science that analyzes the choices individuals, groups, and governments make in allocating scarce resources

New cards
40

What is microeconomics?

the study of small economic units, such as individual consumers, families, and businesses

New cards
41

What is macroeconomics?

the study of a nation's overall economic issues, how resources are used, and how government policies affect standard of living

New cards
42

What is the definition of demand?

willingness and ability of buyers to purchase goods and services at different prices

New cards
43

What is the definition of supply?

the amount of goods and services for sale at different prices

New cards
44

What is demand driven by?

the number of factors that influence how people decide to spend their money, outside circumstances, or large economic events

New cards
45

What is a demand curve?

a graph of the amount of a product that buyers will purchase at different prices

New cards
46

What do lower prices attract?

larger purchases

New cards
47

What is a supply curve?

a graph that shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand

New cards
48

What is the equilibrium price?

supply and demand curves meet, prevailing market price at which you can buy an item

New cards
49

What is pure competition?

a market structure where large numbers of buyers and sellers exchange homogeneous products that no single participant can significantly influence price

New cards
50

What is monopolistic competition?

a market structure where large numbers of buyers and sellers exchange heterogeneous products so participant has some control over price

New cards
51

What is an oligopoly?

a market situation where relatively few sellers compete and high start-up costs serve as barriers to new competitors (think industries)

New cards
52

What is a monopoly?

a market situation in which a single seller dominates trade of a good or service for which buyers can find no close substitutes (think government regulated)

New cards
53

What is a planned economy?

government controls determine business ownership, profit, and resource allocation

New cards
54

What is socialism?

government ownership and operation of major industries such as communications

New cards
55

What is communism?

property would be shared equally under direction of a strong central government (classless)

New cards
56

What is a mixed market economy?

economic system that mixes both private enterprise and planned economy

New cards
57

What is recession?

cyclical economic contratction that lasts for longer than six months

New cards
58

What is a depression?

prolonged recession that causes significant drop in gross domestic product (GDP)

New cards
59

What is GDP?

gross domestic product or the sum of all goods and services produced within a countries boundaries

New cards
60

What is inflation?

rising prices caused by excessive consumer demand and increases in cost of production or material

New cards
61

What is core inflation rate?

inflation rate after energy and food prices are removed

New cards
62

What is hyperinflation?

economic situation characterized by soaring prices

New cards
63

What is deflation?

prices continue to fall and weaken economy

New cards
64

What is CPI?

Consumer Price Index or the monthly average change in prices of goods and services

New cards
65

What are the four unemployment types?

frictional (between jobs), structural (displacement), cyclical (downturn in business cycle), seasonal (pattern of work)

New cards
66

What does productivity describe?

the relationship between the number of units produced and the number of human inputs necessary to produce them

New cards

Explore top notes

note Note
studied byStudied by 68 people
... ago
5.0(1)
note Note
studied byStudied by 164 people
... ago
5.0(3)
note Note
studied byStudied by 116 people
... ago
5.0(1)
note Note
studied byStudied by 24 people
... ago
5.0(1)
note Note
studied byStudied by 10 people
... ago
5.0(2)
note Note
studied byStudied by 164 people
... ago
5.0(3)
note Note
studied byStudied by 210 people
... ago
4.8(5)

Explore top flashcards

flashcards Flashcard (23)
studied byStudied by 7 people
... ago
5.0(1)
flashcards Flashcard (42)
studied byStudied by 9 people
... ago
5.0(1)
flashcards Flashcard (27)
studied byStudied by 9 people
... ago
5.0(1)
flashcards Flashcard (64)
studied byStudied by 3 people
... ago
5.0(1)
flashcards Flashcard (32)
studied byStudied by 1 person
... ago
5.0(1)
flashcards Flashcard (27)
studied byStudied by 42 people
... ago
5.0(1)
flashcards Flashcard (37)
studied byStudied by 2 people
... ago
5.0(1)
flashcards Flashcard (20)
studied byStudied by 41 people
... ago
5.0(3)
robot