Business Basics
_______ describes total amount of money a business generated through business operations (selling goods/services), while _____ describes their earnings after deducting salaries and other expenses.
What is the difference between REVENUE and PROFIT?
BONUS POINTS:
What is considered a "LOSS" in business?
Global trade allows countries to produce what they make best and buy what they need from other countries, this process is called ______ and ______.
What is EXPORTING and IMPORTING?
BONUS POINTS:
What is the movement of goods and services among nations without political or economic barriers known as?
These are the moral principles that guide a person's behavior and is reflected in how they treat others and relationships.
What is ETHICS?
BONUS POINTS:
What are some advantages to an ethics-based approach to business?
These are the three major forms of business ownership.
What are SOLE PROPRIETORSHIP, PARTNERSHIP and CORPORATION?
BONUS POINTS:
Provide at least two advantages to each form of business ownership.
These entrepreneurs use a company's existing resources to develop and launch new products.
What is an Intrapreneur?
BONUS POINTS:
Provide three examples of companies that utilize Intrapreneurs.
The amount of goods and services people can buy with the money they have. Usually affected by taxation and regulation.
What is STANDARD OF LIVING?
BONUS POINTS:
List three demographic characteristics.
The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.
What is Absolute Advantage?
BONUS POINTS:
Explain Comparative Advantage theory
These codes set and outline the ethical corporate standard for a business.
What are COMPLIANCE-BASED and INTEGRITY-BASED ethics codes?
BONUS POINTS:
Describe the difference between these two ethical codes.
Some of the disadvantages of this type of business is unlimited liability, management difficulties, limited financial resources, overwhelming time commitment, few fringe benefits, limited growth, and a short life-span.
What is SOLE PROPRIETORSHIPS?
Entrepreneurs who accept the risk of starting and managing a business, but prefer to maintain their business at a manageble size.
What is a MICROPRENEUR?
The five elements that can either help or hinder the development of a business (aka - business environment).
What are:
ECONOMIC AND LEGAL
TECHNOLOGICAL
COMPETITIVE
SOCIAL
and GLOBAL BUSINESS
Along with CONTRACT MANUFACTURING, JOINT VENTURES and STRATEGIC ALLIANCES these are the six strategies for reaching global markets.
What is LICENSING, EXPORTING, FRANCHISING?
BONUS POINTS:
Licensing is a strategy in which a licensor allows a licensee to produce its product in exchange for a fee or more commonly referred to as what?
The practicing of this "good citizen" mentality is based on a business's commitment to integrity, fairness and respect; and can help them attract and retain better employees.
What is CORPORATE SOCIAL RESPONSIBILITY?
________ is the result of two firms joining to form one company, whereas an ________ is one company's purchase of the property and obligations of another company.
What are MERGER and ACQUISITION?
BONUS POINTS:
Describe or share an example of the three types of corporate mergers: vertical, horizontal, and conglomerate.
A form of private financing, these individuals or firms provide young companies and start-ups with funding in exchange for equity (partial ownership) in the business/firm.
What are VENTURE CAPITALISTS?
BONUS POINTS:
Opposite of venture capitalists, ________ are well-off individuals who invest their own money in a startup venture.
Socialism, Communism, Free-Market Capitalism, and Mixed.
What are different ECONOMIC SYSTEMS?
BONUS POINTS:
Describe the difference between or share an example of each system!
______ tariffs are designed to shield domestic production from foreign competition by raising the price of the imported commodity, while _______ tariffs are designed to obtain revenue rather than restrict imports
What is the difference between a PROTECTIVE TARIFF and a REVENUE TARIFF?
An example would be a business's charitable donation to a nonprofit organization.
What is CORPORATE PHILATHROPY?
BONUS POINTS:
Name at least two other ways a businesss can practice corporate social responsibility.
A firm that has made sizeable investments and has a physical presence in several foreign countries.
What is a MULTINATIONAL CORPORATION?
BONUS POINTS:
Describe a Limited Liability Company (LLC)
These are specific geographic areas designed to attract and promote business investment by offering tax breaks and government-backed development incentives.
What is an ENTERPRISE ZONE?
BONUS POINTS:
Describe the purpose of a Business Incubator
_____ is the study of how a nation’s economy operates as a whole, while _____ is the study of the behavior of individual people and organizations in specific markets.
What is MACROECONOMICS and MICROECONOMICS?
BONUS POINTS:
What entity manages MONETARY POLICY?
Some of the major threats of doing business in global markets.
What is the potential LOSS OF JOBS or FALLING WAGES in the home market, offshore outsourcing may REDUCE PRODUCT QUALITY leading to damage to company's reputation, COMMUNICATION can be challenging?
These are activities a business can monitor or perform when conducting a SOCIAL AUDIT.
What is monitoring WORKPLACE ISSUES, making CHARITABLE DONATIONS, and reviewing POLLUTION CONTROL EFFORTS?
The advantages are limited liability, ability to raise money, ease of turnover in ownership, separation between ownership and management.
What are CORPORATIONS?
BONUS POINTS:
Who are STAKEHOLDERS in a business?
Before a business is started, the owner(s) should invest the time to create a good business plan, which would include these key elements:
What are:
- Description of the business
- Target market
- Competitive advantage
- Financial resources available
- Qualifications of the owners/management