Chapter 1
Revenues minus expenses = this
What is profit?
The study of how to increase resources and create conditions that will make better use of them is called this
What is resource development?
Buying products from another country is known as this
What is importing?
The owners of a corporation are called this
What are stockholders?
This form of business ownership has unlimited liability
What is sole proprietorship?
A reduction in standard of living mean what has happened
What is one is able to purchase less goods and services today than yesterday with the money they have available?
Adam Smith believed that markets would be guided by this
What is the invisible hand?
Selling products to another country is known as this
What is exporting?
This is the limit of shareholder Joe's risk
What Joe's investment amount?
This form of business ownership can have no more than 100 US citizens as shareholders
What is an S- Corp?
Land, labor, capital, entrepreneurship are this
What are the factors of production?
Gross Domestic Product is a topic studied in this area
What is Macroeconomics?
The difference between money flowing into to a country versus flowing out of a country is this
What is balance of payments?
Lou has saved enough to buy a Dunkin Donuts franchise, one advantage for him will be this
What is management and marketing expertise from the franchisor?
Since the 1980's this sector has provided the greatest increase in US jobs
What is service?
Using the least amount of resources to produce goods is this
What is efficiency?
An economic and political system in which the government makes almost all economic decisions and owns almost all factors of production is this
What is communism?
The belief that your country/culture is superior to others is this
What is ethnocentricity?
Lou has saved enough to buy a Dunkin Donuts franchise. One disadvantage would be this
What is profit sharing, restrictions on selling, coattail effects or management regulation?
The national debt is made up of this
What is the sum of all federal deficits over time?
My company must produce high quality good/services at a competitive price to be this
What is competitive?
After a recession or depression when an economy begins to stabilize and grow we are in this business cycle
What is recovery?
When doing business outside of your home country one should consider this carefully
What is culture?
I invest my money but do not have management responsibility or liability for losses beyond my investment. I am a
What is a limited partner?
The United States is this type of economy
What is a mixed economy?