Ch 1: Exploring the Business Environment & Economics
The money a business generates which is greater than what it spends.
What is revenue?
This refers to the movement of goods and services between countries without any political or economic barriers.
What is free trade?
The standards of moral behavior; that is, behavior accepted by society as right versus wrong.
What is ethics?
This is considered to be the most common form of business organization.
What is a sole proprietorship?
This business person is successful if they are highly energetic, oriented toward taking action, self-nurturing, and take calculated risks.
What is an entrepreneur?
This environment is driven by the customer.
What is the competitive environment?
A country has this type of advantage if it sells to other countries only the goods it produces most effectively and efficiently.
What is absolute advantage?
An example of this includes an office supply store using in-store recycling and non-toxic cleaners.
What is a corporate social initiative?
This type of business corporation is taxed like a sole proprietorship and partnership.
What is an S corporation?
This type of business person is a creative person who works as an entrepreneur within a corporation.
What is an intrapreneur?
The economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.
What is capitalism?
The complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.
What is an embargo?
An organization sets this up to allow employees to communicate anonymously.
This type of business organization is a less-involved process, requiring few documents and tax forms.
What is a sole proprietorship?
This part of your business plan is the most important in getting the attention of a banker.
What is the executive summary?
This policy deals heavily with the Federal Reserve Bank.
What is monetary policy?
This is considered the least expensive and involved strategy of entering global markets.
What is licensing?
These two words are often misinterpreted as having the same idea and meaning; however, they should not be used interchangeably and are considered antonyms.
What is ethical and legal?
People invest in this type of business due to their nationally recognized name.
What is a franchise?
These people invest their money in small businesses that are likely to become “hot, new” business successes before the company goes public.
What is an angel investor?
These are considered to be inputs of production.
What are labor, natural resources, and capital?
This is considered the most expensive and involved strategy a company can use to reach global markets.
What is foreign direct investment?
This economist argued against corporate social responsibility, believing that businesses should be socially responsible by making money for their stockholders.
Who is Milton Friedman?
This type of business corporation allows for ease of owner change, just by selling stock.
What is a conventional corporation?
Businesses with low failure rates tend to require this.
What is a significant amount of advanced training?