BUS 1010 Exam 1 ACTUAL UPDATED Questions and CORRECT Answers
Terms in this set (115)
revenue income
expenses The cost of assets consumed or services used in the process of generating
revenues.
profit difference between a business's revenue and its expenses
Six dimensions of external environment economic, technological, sociocultural, domestic business, global, political-legal
five factors of production labor, capital, entrepreneurs, physical resources, and information resources
global environment the international forces that affect a business
technological environment all the ways by which firms create value for their constituents
Political-Legal Environment the relationship between business and government
Sociocultural Environment the customs, mores, values, and demographic characteristics of the society in
which an organization functions
Economic Environment relevant conditions that exist in the economic system in which a company
operates
Domestic Business Environment the environment in which a firm conducts its operations and derives its revenues
Law of Demand principle that buyers will purchase (demand) more of a product as its price drops
and less as its price increases
Law of Supply principle that producers will offer (supply) more of a product for sale as its price
rises and less as its price drops
planned economy (communism, socialism) economy that relies on a centralized government to control all or most factors of
production and to make all or most production and allocation decisions
Market Economy (Capitalism) individual producers and consumers control production and allocation by
creating combinations of supply and demand
mixed economy (socialism) features characteristics of both planned and market economies
Privatization process of converting government enterprises into privately owned companies
4 conditions for a private enterprise to thrive private enterprise system, freedom of choice, profits, competition
monopolistic competition trying to differentiate their products from those of competitors
, Oligopoly market or industry characterized by a handful of (generally large) sellers with the
power to influence the prices of their products
Monopoly market or industry in which there is only one producer that can therefore set the
prices of its products
natural monopoly industry in which one company can most efficiently supply all needed goods or
services
standard of living the total quantity and quality of goods and services that they can purchase with
the currency used in their economic system
Terms in this set (115)
revenue income
expenses The cost of assets consumed or services used in the process of generating
revenues.
profit difference between a business's revenue and its expenses
Six dimensions of external environment economic, technological, sociocultural, domestic business, global, political-legal
five factors of production labor, capital, entrepreneurs, physical resources, and information resources
global environment the international forces that affect a business
technological environment all the ways by which firms create value for their constituents
Political-Legal Environment the relationship between business and government
Sociocultural Environment the customs, mores, values, and demographic characteristics of the society in
which an organization functions
Economic Environment relevant conditions that exist in the economic system in which a company
operates
Domestic Business Environment the environment in which a firm conducts its operations and derives its revenues
Law of Demand principle that buyers will purchase (demand) more of a product as its price drops
and less as its price increases
Law of Supply principle that producers will offer (supply) more of a product for sale as its price
rises and less as its price drops
planned economy (communism, socialism) economy that relies on a centralized government to control all or most factors of
production and to make all or most production and allocation decisions
Market Economy (Capitalism) individual producers and consumers control production and allocation by
creating combinations of supply and demand
mixed economy (socialism) features characteristics of both planned and market economies
Privatization process of converting government enterprises into privately owned companies
4 conditions for a private enterprise to thrive private enterprise system, freedom of choice, profits, competition
monopolistic competition trying to differentiate their products from those of competitors
, Oligopoly market or industry characterized by a handful of (generally large) sellers with the
power to influence the prices of their products
Monopoly market or industry in which there is only one producer that can therefore set the
prices of its products
natural monopoly industry in which one company can most efficiently supply all needed goods or
services
standard of living the total quantity and quality of goods and services that they can purchase with
the currency used in their economic system
