BUSMHR 2292 Exam Questions and Answers
the act of creating, buying, or selling goods and
business
services with the goal of making a profit
a business owned + operated by a single individual
sole proprietorship who is personally liable for all business debts +
obligations (ex- freelance writer)
a business owned by 2+ individuals who share the
partnership profits/losses of the business (ex- law firm)
General + Limited
a legal entity that is owned by shareholders + has a
separate legal + tax existence from its owners- can
corporation
issue stocks to raise capital + have limited liability
protection for their shareholders (ex: Coca Cola)
a business structure that combines the liability
protection of a corporation with the tax benefits of a
partnership- owned by members + their liability is
limited liability company
limited to the amount of their investment in the
company (ex- group of software engineers who
started a company that provides consulting services)
, a business owned + operated by a group of
individuals for their mutual benefit- often formed by
farmers + credit unions (ex- Mondragon Corporation
cooperative
Recreational Equipment, Inc. (REI) → consumer
cooperative- owned by its members who are also its
customers
a business model where a franchisee
(individual/group) purchases the right to operate a
franchise
business using the trademark, products + services of a
franchisor (owner of the business) (ex- McDonalds)
a business organization that operates for a charitable,
educational, or other public purpose- don't have
nonprofit owners/shareholders + any profits are reinvested to
mission (ex- Brighter Bites)
Not required to pay taxes
job creation, economic growth, innovation,
positive business impacts
philanthropy, necessary goods/services
environmental damage, exploitation of workers,
negative business impacts
unethical/illegal practices, market domination
the principles + values that guide individuals' +
organizations' behavior in the business world- serve
business ethics
as framework for decision-making + interactions with
stakeholders
moral principles honesty, integrity, fairness, responsibility, respect
the external environment in which businesses
business environment operate- economic, legal, social, technological
factors
economic factors inflation, interest rates, economic growth
controlled by Fed- affects cost of borrowing,
interest rates
consumer spending, investments
if interest rates increase what happens to cost of
increase
borrowing?
the act of creating, buying, or selling goods and
business
services with the goal of making a profit
a business owned + operated by a single individual
sole proprietorship who is personally liable for all business debts +
obligations (ex- freelance writer)
a business owned by 2+ individuals who share the
partnership profits/losses of the business (ex- law firm)
General + Limited
a legal entity that is owned by shareholders + has a
separate legal + tax existence from its owners- can
corporation
issue stocks to raise capital + have limited liability
protection for their shareholders (ex: Coca Cola)
a business structure that combines the liability
protection of a corporation with the tax benefits of a
partnership- owned by members + their liability is
limited liability company
limited to the amount of their investment in the
company (ex- group of software engineers who
started a company that provides consulting services)
, a business owned + operated by a group of
individuals for their mutual benefit- often formed by
farmers + credit unions (ex- Mondragon Corporation
cooperative
Recreational Equipment, Inc. (REI) → consumer
cooperative- owned by its members who are also its
customers
a business model where a franchisee
(individual/group) purchases the right to operate a
franchise
business using the trademark, products + services of a
franchisor (owner of the business) (ex- McDonalds)
a business organization that operates for a charitable,
educational, or other public purpose- don't have
nonprofit owners/shareholders + any profits are reinvested to
mission (ex- Brighter Bites)
Not required to pay taxes
job creation, economic growth, innovation,
positive business impacts
philanthropy, necessary goods/services
environmental damage, exploitation of workers,
negative business impacts
unethical/illegal practices, market domination
the principles + values that guide individuals' +
organizations' behavior in the business world- serve
business ethics
as framework for decision-making + interactions with
stakeholders
moral principles honesty, integrity, fairness, responsibility, respect
the external environment in which businesses
business environment operate- economic, legal, social, technological
factors
economic factors inflation, interest rates, economic growth
controlled by Fed- affects cost of borrowing,
interest rates
consumer spending, investments
if interest rates increase what happens to cost of
increase
borrowing?
