Test Bank For An Introduction to Business Ethics 6th
Edition By Joseph DesJardins
Business - ANSWER: The organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
What are the four resources a business needs in order to be successful? - ANSWER:
Human resources, material resources, informational resources, and financial
resources.
What do manufacturing businesses do? - ANSWER: They process various materials.
What do service businesses do? - ANSWER: They provide services.
Ex: Haircuts, legal advice, tax preparation, etc.
What do marketing intermediaries do? - ANSWER: Buy products and resell them
(retailers).
Intermediary - ANSWER: Go-between; mediator.
Are businesses that understand customer needs, and work to satisfy those needs
successful? - ANSWER: Yes
Profit - ANSWER: The remains after all business expenses have been deducted from
sales revenue.
What is the formula for profit? - ANSWER: Sales revenue - expenses
Economics - ANSWER: The study of how wealth is created and distributed.
Microeconomics - ANSWER: The study of the decisions made by individuals and
businesses.
Macroeconomics - ANSWER: The study on how the aggregate economy behaves.
Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in
unemployment.
Economy - ANSWER: The system through which a society creates and distributes
wealth.
Capitalism - ANSWER: A system in which individuals own and operate the majority of
businesses that provide goods and services.
,Socialism - ANSWER: A system in which the government owns and controls the
means of production.
Communism - ANSWER: A system where factors of production are owned and
directed by the state.
What type of economy is the U.S.? - ANSWER: Capitalist
Why is the U.S. a mixed economy? - ANSWER: They include both capitalism and
socialism.
What do businesses purchase after they sell their goods and services? - ANSWER:
Factors of production.
Factors of Production - ANSWER: Land, labor, and capital.
What does the government do in exchange for taxes? - ANSWER: They provide public
services not provided by businesses.
Ex: Law Enforcement
Command Economy - ANSWER: An economic system in which the government
controls a country's economy.
What type of economies are in command economy? - ANSWER: Socialism and
communism.
Competition - ANSWER: Competing on sales for potential customers.
Pure Competition - ANSWER: Large number of small that businesses that sell the
same type of products with the same characteristics.
What are some characteristics of a pure competition? - ANSWER: - It is easy to enter
leave the market
- All prices are basically the same
Supply - ANSWER: Quantity of a product producers are willing to sell.
Demand - ANSWER: Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) - ANSWER: The price at which the amount that buyers
wish to buy equals the amount that sellers wish to sell.
Monopoly Competition - ANSWER: A one seller market.
What are some characteristics of a monopoly competition? - ANSWER: - No
competition
, - Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition - ANSWER: A large number of small businesses that sell
similar products.
What are some characteristics of a monopolistic competition? - ANSWER: - Similar
products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market.
Oligopoly - ANSWER: A few large business that sell identical or very similar products.
Ex: Automobiles, oil industries, etc.
What are some characteristics of a oligopoly competition? - ANSWER: - Sizable
investment needed to enter.
- Compete on price and characteristics.
Barter System - ANSWER: A system in which people buy and sell goods by
exchanging one item for another; no money is involved.
Domestic System - ANSWER: The manufacture of goods in the household setting; a
production system that gave way to the factory system.
Factory System - ANSWER: A method of production that brought many workers and
machines together into one place.
Specialization - ANSWER: In production, a system in which each worker performs a
single part of an entire process.
Service Economy - ANSWER: An economy in which more effort is devoted to the
production of services than to the production of goods.
Ethics - ANSWER: A system of moral principles.
Business Ethics - ANSWER: The application of moral standards to business situations.
Fairness and Honesty - ANSWER: Business people are expected to refrain from
knowingly deceiving, misrepresenting, or intimidating others.
Organizational Relationships - ANSWER: Business people should put the welfare of
others and the company above their own welfare.
Edition By Joseph DesJardins
Business - ANSWER: The organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
What are the four resources a business needs in order to be successful? - ANSWER:
Human resources, material resources, informational resources, and financial
resources.
What do manufacturing businesses do? - ANSWER: They process various materials.
What do service businesses do? - ANSWER: They provide services.
Ex: Haircuts, legal advice, tax preparation, etc.
What do marketing intermediaries do? - ANSWER: Buy products and resell them
(retailers).
Intermediary - ANSWER: Go-between; mediator.
Are businesses that understand customer needs, and work to satisfy those needs
successful? - ANSWER: Yes
Profit - ANSWER: The remains after all business expenses have been deducted from
sales revenue.
What is the formula for profit? - ANSWER: Sales revenue - expenses
Economics - ANSWER: The study of how wealth is created and distributed.
Microeconomics - ANSWER: The study of the decisions made by individuals and
businesses.
Macroeconomics - ANSWER: The study on how the aggregate economy behaves.
Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in
unemployment.
Economy - ANSWER: The system through which a society creates and distributes
wealth.
Capitalism - ANSWER: A system in which individuals own and operate the majority of
businesses that provide goods and services.
,Socialism - ANSWER: A system in which the government owns and controls the
means of production.
Communism - ANSWER: A system where factors of production are owned and
directed by the state.
What type of economy is the U.S.? - ANSWER: Capitalist
Why is the U.S. a mixed economy? - ANSWER: They include both capitalism and
socialism.
What do businesses purchase after they sell their goods and services? - ANSWER:
Factors of production.
Factors of Production - ANSWER: Land, labor, and capital.
What does the government do in exchange for taxes? - ANSWER: They provide public
services not provided by businesses.
Ex: Law Enforcement
Command Economy - ANSWER: An economic system in which the government
controls a country's economy.
What type of economies are in command economy? - ANSWER: Socialism and
communism.
Competition - ANSWER: Competing on sales for potential customers.
Pure Competition - ANSWER: Large number of small that businesses that sell the
same type of products with the same characteristics.
What are some characteristics of a pure competition? - ANSWER: - It is easy to enter
leave the market
- All prices are basically the same
Supply - ANSWER: Quantity of a product producers are willing to sell.
Demand - ANSWER: Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) - ANSWER: The price at which the amount that buyers
wish to buy equals the amount that sellers wish to sell.
Monopoly Competition - ANSWER: A one seller market.
What are some characteristics of a monopoly competition? - ANSWER: - No
competition
, - Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition - ANSWER: A large number of small businesses that sell
similar products.
What are some characteristics of a monopolistic competition? - ANSWER: - Similar
products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market.
Oligopoly - ANSWER: A few large business that sell identical or very similar products.
Ex: Automobiles, oil industries, etc.
What are some characteristics of a oligopoly competition? - ANSWER: - Sizable
investment needed to enter.
- Compete on price and characteristics.
Barter System - ANSWER: A system in which people buy and sell goods by
exchanging one item for another; no money is involved.
Domestic System - ANSWER: The manufacture of goods in the household setting; a
production system that gave way to the factory system.
Factory System - ANSWER: A method of production that brought many workers and
machines together into one place.
Specialization - ANSWER: In production, a system in which each worker performs a
single part of an entire process.
Service Economy - ANSWER: An economy in which more effort is devoted to the
production of services than to the production of goods.
Ethics - ANSWER: A system of moral principles.
Business Ethics - ANSWER: The application of moral standards to business situations.
Fairness and Honesty - ANSWER: Business people are expected to refrain from
knowingly deceiving, misrepresenting, or intimidating others.
Organizational Relationships - ANSWER: Business people should put the welfare of
others and the company above their own welfare.
