Bus 100 Final Exam Study Guide ACTUAL UPDATED Questions and CORRECT
Answers
C
Terms in this set (87)
What is Business? The organized effort of individuals to produce and sell, for a profit, the goods
and services that satisfy society's needs
Classification of business (manufacturing vs. service vs. Manufacturing- any business that uses components to make a finished good
intermediaries) Service- providing work by and individual or team for its customers, such as
intangible goods like insurance, education, banking
Intermediaries- buy products from manufacturers and resell
The function of profit -Reward for producing goods and services people want
-Compensation for assuming the risks of ownership
= risk of not receiving payment
=risk of losing investment
Microeconomics vs. Macroeconomics Micro- The study of the decisions made by individuals and businesses
Macro- The study of the national and global economies
Capitalism Economy vs. Command Economy(socialism Capitalism- Individuals and businesses own the resources and are free to
and communism) exchange and contract with each other without decree from government
authority. The collective term for these uncoordinated exchanges is the "market."
Command- Under a command economy, governments own all of the factors of
production such as land, capital and resources, and government officials
determine when, where and how much is produced at any one time
Economic Indicators- GDP; inflation; unemployment Gross Domestic Product (GDP)- The total value of all goods and services
produced by all people within the boundaries of a country during a one-year
period
Inflation- The value of the dollar goes down and demand increases
-Unemployment
Monetary vs. Fiscal policy Monetary- The Federal Reserve's ("the Fed") decisions that determine the size of
the supply of money in the nation and the level of interest rates
Fiscal- Governmental decisions aimed at affecting the level of spending.
Accomplished primarily through government spending and tax rates
(Business) Ethics vs. Laws Ethics- Is the application of moral standards (principles and values that govern
actions) to business situations. Right vs. Wrong
Laws- The system of rules that a particular country or community recognizes as
regulating the actions of its members and may enforce the imposition of penalties
, Social Responsibility (what it is; 4 concepts; Pros and What it is- The recognition that business activities have an impact on society and
Cons) the consideration of that impact in business decision making
4 Concepts- 1. Philanthropic- contribute resources to community, improve quality
of life
2. Ethical- obligation to do what is right, just, and fair
3. Legal- law is society's codification of right and wrong
4. Economic- the foundation upon which all other rest
Pros- As a part of society, business can't ignore social problems.
- Business has the means to tackle social problems.
- Addressing social problems can create a more stable environment.
- Socially-responsible decision making prevents government intervention.
Cons- Businesses are primarily responsible to shareholders.
- Corporate time, money and talent should be used to create profit.
- Individual businesses can't be expected to solve problems affecting society in
general.
- Social issues are the problem of government officials elected for that purpose.
International Business Activities that involve exchanges across national borders
Balance of Trade the total value of a nation's exports minus the total value of its imports over some
period of time.
Trade Deficit a negative (unfavorable) balance of trade where imports exceed exports in value
Types of Trade Restrictions (import duty; revenue tariff; import duty- A tax levied on a particular foreign product entering a country
protective tariff; dumping; nontariff barriers) revenue tariff-imposed to generate income for the government.
protective tariff- imposed to protect a domestic industry from competition by
keeping the prices of imports at or above the price of domestic products.
dumping- The exportation of large quantities of a product at a price lower than
that of the same product in the home market
nontariff barriers- nontax measures imposed by a government to favor domestic
over foreign suppliers
International Business Entry Strategies (indirect exporting;
direct exporting; licensing A&D; joint venture A&D; totally
owned facilities A&D; multinational firm
Indirect Exporting Selling to or through an intermediary; use an export/import merchant who
assumes the risks of ownership, distribution, and sale. The agent who arranges
sale for a commission or fee
Direct Exporting selling directly to your target customer in a market. May establish own sales
offices or branches in foreign countries
licensing- A contractual agreement in which one firm
Licensing A&D A contractual agreement in which one firm permits another to produce and
market its product and use its brand name in return for a royalty or other
compensation
=Advantage-It allows expansion into foreign markets with little
or no direct investment
=Disadvantage- The product image may be damaged if standards are not upheld,
The original producer does not gain foreign marketing experience
Answers
C
Terms in this set (87)
What is Business? The organized effort of individuals to produce and sell, for a profit, the goods
and services that satisfy society's needs
Classification of business (manufacturing vs. service vs. Manufacturing- any business that uses components to make a finished good
intermediaries) Service- providing work by and individual or team for its customers, such as
intangible goods like insurance, education, banking
Intermediaries- buy products from manufacturers and resell
The function of profit -Reward for producing goods and services people want
-Compensation for assuming the risks of ownership
= risk of not receiving payment
=risk of losing investment
Microeconomics vs. Macroeconomics Micro- The study of the decisions made by individuals and businesses
Macro- The study of the national and global economies
Capitalism Economy vs. Command Economy(socialism Capitalism- Individuals and businesses own the resources and are free to
and communism) exchange and contract with each other without decree from government
authority. The collective term for these uncoordinated exchanges is the "market."
Command- Under a command economy, governments own all of the factors of
production such as land, capital and resources, and government officials
determine when, where and how much is produced at any one time
Economic Indicators- GDP; inflation; unemployment Gross Domestic Product (GDP)- The total value of all goods and services
produced by all people within the boundaries of a country during a one-year
period
Inflation- The value of the dollar goes down and demand increases
-Unemployment
Monetary vs. Fiscal policy Monetary- The Federal Reserve's ("the Fed") decisions that determine the size of
the supply of money in the nation and the level of interest rates
Fiscal- Governmental decisions aimed at affecting the level of spending.
Accomplished primarily through government spending and tax rates
(Business) Ethics vs. Laws Ethics- Is the application of moral standards (principles and values that govern
actions) to business situations. Right vs. Wrong
Laws- The system of rules that a particular country or community recognizes as
regulating the actions of its members and may enforce the imposition of penalties
, Social Responsibility (what it is; 4 concepts; Pros and What it is- The recognition that business activities have an impact on society and
Cons) the consideration of that impact in business decision making
4 Concepts- 1. Philanthropic- contribute resources to community, improve quality
of life
2. Ethical- obligation to do what is right, just, and fair
3. Legal- law is society's codification of right and wrong
4. Economic- the foundation upon which all other rest
Pros- As a part of society, business can't ignore social problems.
- Business has the means to tackle social problems.
- Addressing social problems can create a more stable environment.
- Socially-responsible decision making prevents government intervention.
Cons- Businesses are primarily responsible to shareholders.
- Corporate time, money and talent should be used to create profit.
- Individual businesses can't be expected to solve problems affecting society in
general.
- Social issues are the problem of government officials elected for that purpose.
International Business Activities that involve exchanges across national borders
Balance of Trade the total value of a nation's exports minus the total value of its imports over some
period of time.
Trade Deficit a negative (unfavorable) balance of trade where imports exceed exports in value
Types of Trade Restrictions (import duty; revenue tariff; import duty- A tax levied on a particular foreign product entering a country
protective tariff; dumping; nontariff barriers) revenue tariff-imposed to generate income for the government.
protective tariff- imposed to protect a domestic industry from competition by
keeping the prices of imports at or above the price of domestic products.
dumping- The exportation of large quantities of a product at a price lower than
that of the same product in the home market
nontariff barriers- nontax measures imposed by a government to favor domestic
over foreign suppliers
International Business Entry Strategies (indirect exporting;
direct exporting; licensing A&D; joint venture A&D; totally
owned facilities A&D; multinational firm
Indirect Exporting Selling to or through an intermediary; use an export/import merchant who
assumes the risks of ownership, distribution, and sale. The agent who arranges
sale for a commission or fee
Direct Exporting selling directly to your target customer in a market. May establish own sales
offices or branches in foreign countries
licensing- A contractual agreement in which one firm
Licensing A&D A contractual agreement in which one firm permits another to produce and
market its product and use its brand name in return for a royalty or other
compensation
=Advantage-It allows expansion into foreign markets with little
or no direct investment
=Disadvantage- The product image may be damaged if standards are not upheld,
The original producer does not gain foreign marketing experience
