Chapter 1- Exploring the World of Business & Economics
The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
What is business?
True or false, a conflict of interest is when a business person benefits from a business deal he/she set up
FALSE!
Give an example of a barrier to international trade
Examples: Tariffs, Embargos, Import Quota, foreign exchange control
The easiest form of business to start
Sole Proprietorship
This industry attracts the most small businesses
What is the service industry?
The way in which people deal with the creation and distribution of wealth
what is the economy?
TRUE!
Give an example of an absolute advantage
Examples: South Africa diamonds, Saudi Arabia oil, Australia wool, China rice
There are _________ different business structures
5
Examples of characteristics of an entrepreneur
Examples: independence, desire to determine one's own destiny, willingness to take on a challenge, have a family history of running a business, younger in age
An economic system in which individuals own and operate the majority of businesses that provide goods and services
what is capitalism?
Informing the press of government officials about unethical practices within one's organization is known as horn blowing
False!
Give an example of an institution whose purpose is to lend money to corporations and other entitles that want to enter global markets
Example: The export Import Bank of the US, Multilateral development banks, The IMF (International Monetary Fund)
Examples of advantages of a business partnership
Answers: Easy to open, sharing responsibility, access to more capitol
True or False: Women run business make up 65% of all businesses in the United States
False:
Correct answer is 51%
An economic system in which government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production
What is a command economy?
There are four arguments against and four arguments in support of social responsibility
True
Examples of reasons against trade restrictions
Examples: Higher price for consumers, loss of jobs, restrictions on consumer choice
True or False; Limited Liability companies have perpetual life
Examples of reasons small businesses fail
Examples: Lack of management skills, growing/expanding too fast, poor financial management
The total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period
What is GDP (Gross Domestic Product)?
The socio economic model of social responsibility is primarily concerned with society getting the support in needs from business
True
Methods of entering international business
Licencing, Exporting, Joint Ventures, Totally Owned Facilities, Strategic Alliances, Trading Companies, Countertrade, Multinational Firms
The business structure that is the best for raising capitol
What is a corporation?
Examples of advantages of small businesses
Examples: Form personal relationships with customers, ability to adapt and change, simplified record keeping, independence