Business Leadership Exam Review
the term for all the activities involved in developing and exchanging products
business
the customer of a service is often called a
client
anything that is bought or sold is called a
product
customers who purchase goods and services for their own use are called
consumers
____ utility is added when a business changes the form of a good or a service to make it more useful
form
a ___ is anywhere buyers and sellers can meet to buy and sell goods and services
market
the difference between the income earned and the expenses incurred by a business during a specific
period of time is called _____
profit
a science that examines how goods and services are produced, sold and used is called ____
economics
a ____ economy is one in which economic decisions are based on society's values, culture, and
customs
traditional
the law of ____ says that the price of a product is determined by the relationship of the supply of the
product and the demand for the product
supply and demand
____ is the market value of all final products produces in a country during a specific time period
GDP; gross domestic product
the four components of GDP are consumer spending, business investment, government spending and
____
net exports
the ___- rate is the rate of change in prices calculated on a monthly or yearly basis
inflation
,____ is the general decline in prices throughout the economy
deflation
the ____ represents the cost of a loan and is expressed as a percent of the amount borrowed
interest rate
____ competition is a competitive advantage based on factors other than price
nonprice
the activities involved in buying and selling goods on a large scale is ____
commerce
the total money circulating at any one time in a country is the ____
money supply
fiscal policy is the tax spending decisions made by the president and _____
congress
when two or more businesses work together to remove their competition, set prices, and control
distribution is called ____
collusion
a ___ is a legal binding agreement between two or more people or businesses
contract
a(n) ____ is a proposal to provide a good or a service
offer
something of value promised in a contract is called ___
consideration
___ means that a person is legally able to enter into a binding agreement
capacity
promoting the welfare of others is called
philanthropy
a(n) ____ is a contract to rent something
lease
when one or more parties do not follow the agreed terms of a contract without have a legitimate
reason ___ occurs
breach of contract
, a(n) ___ contract lists the products or the services provided by a business and the price a customer
pays in exchange
sales and service
principles that help define appropriate behavior in a business setting are ____
business ethics
a ____ is a document the dictates how businesses should be conducted
code of ethics
a(n) ___ business is an organization that generates revenue
for-profit business
a(n) ____ exists to serve some public purpose
not-for-profit organizations
___are businesses that use supplies from other producers to make products
manufacturers
a business that purchases large quantities of products directly from producers and sells the products
in smaller quantities to retailers is a _____
wholesaler
in a private enterprise system, ______ directly provide consumers with products that meet their
needs and wants
retailers
a ____ is the simplest and most common form of a business ownership
proprietorship
a ___ is an association of two or more persons who co-own a business with objective of earning a
profit
partnership
the numeric system is used to classify businesses and collect and economic statistics is called the ____
( NAICS) North american industry classification system
the ___ is a group of individuals who make a high level management decisions for a corporation and
establish company policies
collective
a share of ownership in a corporation is called a ____
stock
the term for all the activities involved in developing and exchanging products
business
the customer of a service is often called a
client
anything that is bought or sold is called a
product
customers who purchase goods and services for their own use are called
consumers
____ utility is added when a business changes the form of a good or a service to make it more useful
form
a ___ is anywhere buyers and sellers can meet to buy and sell goods and services
market
the difference between the income earned and the expenses incurred by a business during a specific
period of time is called _____
profit
a science that examines how goods and services are produced, sold and used is called ____
economics
a ____ economy is one in which economic decisions are based on society's values, culture, and
customs
traditional
the law of ____ says that the price of a product is determined by the relationship of the supply of the
product and the demand for the product
supply and demand
____ is the market value of all final products produces in a country during a specific time period
GDP; gross domestic product
the four components of GDP are consumer spending, business investment, government spending and
____
net exports
the ___- rate is the rate of change in prices calculated on a monthly or yearly basis
inflation
,____ is the general decline in prices throughout the economy
deflation
the ____ represents the cost of a loan and is expressed as a percent of the amount borrowed
interest rate
____ competition is a competitive advantage based on factors other than price
nonprice
the activities involved in buying and selling goods on a large scale is ____
commerce
the total money circulating at any one time in a country is the ____
money supply
fiscal policy is the tax spending decisions made by the president and _____
congress
when two or more businesses work together to remove their competition, set prices, and control
distribution is called ____
collusion
a ___ is a legal binding agreement between two or more people or businesses
contract
a(n) ____ is a proposal to provide a good or a service
offer
something of value promised in a contract is called ___
consideration
___ means that a person is legally able to enter into a binding agreement
capacity
promoting the welfare of others is called
philanthropy
a(n) ____ is a contract to rent something
lease
when one or more parties do not follow the agreed terms of a contract without have a legitimate
reason ___ occurs
breach of contract
, a(n) ___ contract lists the products or the services provided by a business and the price a customer
pays in exchange
sales and service
principles that help define appropriate behavior in a business setting are ____
business ethics
a ____ is a document the dictates how businesses should be conducted
code of ethics
a(n) ___ business is an organization that generates revenue
for-profit business
a(n) ____ exists to serve some public purpose
not-for-profit organizations
___are businesses that use supplies from other producers to make products
manufacturers
a business that purchases large quantities of products directly from producers and sells the products
in smaller quantities to retailers is a _____
wholesaler
in a private enterprise system, ______ directly provide consumers with products that meet their
needs and wants
retailers
a ____ is the simplest and most common form of a business ownership
proprietorship
a ___ is an association of two or more persons who co-own a business with objective of earning a
profit
partnership
the numeric system is used to classify businesses and collect and economic statistics is called the ____
( NAICS) North american industry classification system
the ___ is a group of individuals who make a high level management decisions for a corporation and
establish company policies
collective
a share of ownership in a corporation is called a ____
stock
