Business Basics
A business earns $100,000 in revenue and has $75,000 in expenses. This is the amount of profit the business earned.
What is $25,000?
This is the quantity of a good or service that producers are willing to sell at different prices during a specific period of time.
What is supply?
When a U.S. business purchases products made in another country and brings them into the United States, the business is doing this.
What is importing?
This is a tax that a government places on imported goods.
What is a tariff?
An action can follow the law but still raise questions about whether it is right or wrong. This shows the difference between these two concepts.
What are ethics and legality?
This is a person who starts and manages a business, taking on risk in hopes of earning a profit.
What is an entrepreneur?
This occurs when the general level of prices for goods and services decreases over time.
What is deflation?
When a country imports more goods and services than it exports, it experiences this type of balance of trade.
What is a trade deficit?
A company hires a foreign company to produce its products instead of building and operating its own production facility overseas. This global business strategy is called this.
What is contract manufacturing?
An employee who reports illegal or unethical activity within an organization is known by this term.
What is a whistleblower?
Employees, customers, suppliers, owners, and members of the community are all examples of these people or groups who are affected by a business.
What are stakeholders?
Studying why small business owners buy more trucks and vans when gasoline prices decrease is an example of this branch of economics.
What is microeconomics?
A country has this type of advantage when it can produce a product at a lower opportunity cost than another country.
What is comparative advantage?
Two or more companies share ownership, investment, risks, and profits in a business project under this type of partnership.
What is a joint venture?
This type of ethics code focuses on preventing unlawful behavior through rules, controls, and penalties for wrongdoing.
What is a compliance-based ethics code?
Land, labor, capital, entrepreneurship, and knowledge are the five resources businesses use to produce goods and services.
What are the factors of production?
Taxes and government spending are the two primary tools used in this type of economic policy.
What is fiscal policy?
A government places a strict limit on the quantity of a particular product that can be imported into the country. This trade restriction is called this.
What is an import quota?
Companies cooperate to achieve a common goal while remaining separate organizations and without creating a jointly owned business. This arrangement is called this.
What is a strategic alliance?
This is an evaluation of how well a company is meeting its goals and responsibilities to society.
What is a social audit?
Land, factories, railroads, and stores are primarily owned by individuals rather than the government under this free-market economic system.
What is capitalism?
Interest rates and the money supply are tools used by the Federal Reserve as part of this type of economic policy.
What is monetary policy?
This is the relative value of one country’s currency compared with the currency of another country.
What is an exchange rate?
A U.S. company moves some of its business operations to another country, often to reduce costs. This practice is known as this.
What is offshore outsourcing?
Businesses operating in different countries may face different laws, cultures, working conditions, and expectations about right and wrong. These differences create challenges in this area of business ethics.
What are international ethics?