FM 116 Final Exam review with correct answers 100% 2026

FM 116 Final Exam review with correct answers 100% 2026 Autocratic leaders - Correct Answer Hoard decision-making power for themselves and issue orders without consulting followers Democratic leaders - Correct Answer Share power with followers, solicit and incorporate input from followers before making final decisions Free-rein leaders; Laissez Faire leaders - Correct Answer Set objectives for followers but give them freedom to choose the way to accomplish those goals GDP - what does it measure, indicate? - Correct Answer - Total value of all final goods and services produced within a nation's physical boundaries over a given period of time - Used to: Measure the economic performance of individual nations - Compare the growth among nations How do you know when recession is happening? - Correct Answer -Recession: Decrease in the GDP for two consecutive quarters -Depression: Long and deep recession Supply - Correct Answer Quantity of products that producers are willing to offer for sale at different market price Demand - Correct Answer Quantity of products that consumers are willing to buy at different market prices National debt / federal debt - Correct Answer - Sum of the total amount of money the government has borrowed and not yet repaid. - How much has to be paid back is also contingent on the prevailing interest rates at the time the money was borrowed. inflation, hyperinflation, disinflation, deflation, - Correct Answer - Inflation: Period of rising average prices across the economy - Hyperinflation: average monthly inflation rate of more than 50 percent - Disinflation: period of slowing average price increases - Deflation: period of falling average prices - High inflation: Bad for business, the economy - Low inflation: Sign of a healthy economy When a company issues tock for the first time its called an... - Correct Answer Initial Public Offering (IPO) - allows the general public to own shares of the company. The money for the stocks that are sold go to the corporation. Company can raise money by issuing stock Franchising - Correct Answer - A licensing arrangement in which a franchisor allows franchisees to use its name, trademark, products, business method in exchange for monetary payments --Franchisor: Supplies resources in exchange for money and other considerations --Franchisee: Pays for the right to use resources supplied by the franchisor Advantages and disadvantages of franchising - Correct Answer - Advantages: Less risk, Training and support, Brand recognition, Easier access to funding - Disadvantages: Costs, Lack of control, Negative halo effect, Growth challenges, Restrictions on sale, Poor execution Licensing - Correct Answer - Purchasing, for a fee, the right to use another comp