KSB 111 TEST

What is a profit-making business?

Any business selling services in order to make a profit.

What characterizes non-profit organizations?

They are funded by the government, meant to do good for society, and do not make a profit for themselves.

What is a for-profit social enterprise?

Businesses that generate profits while fulfilling a mission to make the world a better place.

Who are participants in a business?

Participants include owners who invest money, employees who are hired, and third-party participants like customers.

What are the functional areas of a business?

Key areas include management, operations, marketing, accounting, and finance.

What does an operations manager do?

Designs and oversees the transformation of resources into goods or services.

Define economics.

The study of the production, distribution, and consumption of goods and services.

What is equilibrium in market terms?

The state where quantity demanded equals quantity supplied at a specific price.

What is monopoly?

A market condition where there is only one seller, allowing full control over pricing.

What is the difference between monetary policy and fiscal policy?

Monetary policy involves the government via the Federal Reserve adjusting interest rates, while fiscal policy involves government actions like changing tax rates.

Define trade surplus.

When a country sells more products than it buys.

What is the role of the Equal Employment Opportunity Commission?

It enforces federal laws against employment discrimination.

What is the main purpose of strategic planning in management?

To establish an overall plan or course of action for the organization.

What is the mission statement of a business?

It articulates the current business purpose and objectives.

Differentiate between job specialization and job rotation.

Job specialization focuses on specific tasks for efficiency, while job rotation allows employees to change jobs systematically.

Define groupthink.

The tendency to conform to group pressure in decision-making, often resulting in a lack of critical thinking.

What are nonverbal communication methods?

Messages communicated through facial expressions, posture, gestures, and tone of voice.