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Any activity that provides goods or services to consumers to make a profit
business
Anyone who has a legitimate interest in the success or failure of a business
stakeholder
What is a perfect competition?
many buyers/sellers for an identical product, no price differentiation
What is an oligopoly?
market or industry in which there are few sellers
-easy to set prices
What is the only example of a legal monopoly?
Public Utilities
What act protects whistleblowers?
Sarbanes Oxley of 2002
What is an absolute advantage?
the ability to produce a specific product better and more efficiently than any other company/country
What is a comparative advantage?
the ability to produce a specific product more efficiently than any other product
The total value of a nation's exports minus the total value of its imports
Balance of Trade
What are the four resources required for an organized business?
land, labor, capital, and entrepreneurship (ideas/innovation)
What is a complete halt to trading with a nation or for a particular product?
embargo
An economic perspective that focuses on an individual or business decisions
microeconomics
What is a tax that is levied on a particular foreign product entering a country?
tariff
What is business ethics?
knowing what is right and wrong for business activities
An economic perspective that focuses on global business decisions
macroeconomics
What is the difference between a business merger and a business acquisition?
business merger - where two companies come together as a new company
business acquisition - where one company buys another company
What are the five steps in making an ethical decision and provide an example?
Listen and learn, identify the ethical issues, create and analyze options, identify the best option, explain your decision and resolve any differences that arise
What is a profit and how does it impact stakeholders?
profit - everything left after all expenses are deducted
Stakeholders are anyone impacted by the business, so profits can benefit them from potential business growth or future opportunity.
What is a stock and how is it used by a company?
an ownership stake in a company
-used to generate revenue
What is the difference between an open company and a closed company?
Who can purchase stock
In an open company, anyone can purchase stock whereas in a closed company it is typically meant for owners or investors.
Explain the differences between import duties, dumping, and nontariff barriers.
Import duties: taxes or customs collected by a government on imported goods when they cross a national border
Dumping: an unfair trade practice where a foreign company sells a product in another country below its production cost or for less than it sells in its home market
Nontariff barriers: trade restrictions that limit imports or exports using methods other than a direct tax or duty
What is the difference between common stock and preferred stock?
In common stock, you have voting rights whereas in preferred stock you give up votes for dividends
Compare and contrast social responsibility and corporate citizenship.
- Corporate citizenship treats a business as a member of the community with a broad cultural role, while Corporate Social Responsibility (CSR) focuses on specific policies and actions a business takes to act responsibly.
- Citizenship is measured by reputation and community health, while CSR is measured through KPIs, audits, and data reporting.
What can a country do in an instance of trade deficit?
-import less, export more
-impose tariffs, quotas, monetary manipulation
-place an embargo
Final Question
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