Business Dynamics + Supply & Demand
What is the ultimate and primary goal of all businesses?
profit
In management, POLC stands for
planning, organizing, leading, controlling
In the US, who owns the majority of businesses?
individuals
right vs wrong
US companies ___________, or transfer manufacturing and other tasks, to countries where labor and supplies are far less expensive.
Nonprofit organizations may provide goods or services but they do not have the fundamental purpose of earning profits. What are two ways they get funding?
Donations & fund-raising
The purpose of marketing is to satisfy _____________ needs.
customers'
Competition is the rivalry among businesses for consumers’ dollars. Competition ___________ quality and reduces _________.
improves, prices
_________ ethical firms tend to be _________ profitable and have more satisfied __________ and ___________.
Highly, more, employees & customers
They are the only source or producer of an item
Consumers demand more when prices ______, Business are willing to supply more when prices _______. Why?
fall, rise; save money, earn higher profits
The 4 P's of marketing are
product, price, place, promotion
What exists when there are very few businesses selling a similar, yet differentiated product?
What exists when there is only one business providing a given product in a market?
What are 3 examples of social responsibility?
Sponsorship of a sports team
Donations to special charities
Putting in volunteer time
Funding non-profit organizations
Implementing non-polluting techniques
Building renovations to improve conditions and remove hazards
Name 2 US exports and 2 US imports.
exports: Ag equip & commodities, entertainment, American food, technology
imports: cars, oil, coffee/tea/cocoa, diamonds, computers, medicine
As demand for a good or services increases, the price tends to _________. What are 3 reasons demand might increase?
rise; change in fashion, new popular business, social media, lower price compared to competitors
________ resources = labor
________ resources = land, minerals, water
________ resources = capital
human, natural, financial
Competition is _______ for consumers because it gives us _________. Name 3 comparisons we make when buying.
GOOD; choice; quality, price, appearance, usefulness, appeal
_____% of people say they report unethical behavior. It should be reported ___________ to ___________.
76%; anonymously to HR or a manager
A positive balance of trade is a _______ ___________ and a negative balance of trade is a ________ ___________. Which is harmful & why?
trade surplus, trade deficit; deficit - loss of businesses and employment
Demand increase: price _______, quantity ________.
Demand decrease: price ________, quantity ________.
Supply increase: price ________, quantity ________.
Supply decrease: price ________, quantity _________.
^^, <<, <^, ^<
Economic __________ (market/spending decline) may lead to a __________, or at worst a ______________.
contraction, recession, depression
In ______ competition, there are many businesses selling in one market, but there is no/very little ____________ in the products. All products have a similar ________. Give an example.
pure; differentiation; price; Starbucks or Ag Commodities
bribery, misuse of company time, abuse/intimidating behavior, false/misleading promos/ads, business relationships, misuse of company resources
A _________ is a tax levied by a nation on goods imported into the country. A _________ tariff is a specific amount of money on each unit, an ___ _______ is based on the value of the item.
tariff; fixed, ad valorem