5.01
Name the three characteristics of a Want
Unlimited, Changeable, Competing
What are the three economic questions when dealing with scarcity?
What to produce, how to produce, for whom to produce
What is the business practice of hiring a party outside of an organization to perform one or more of the primary business activities?
Outsourcing
Market Economy: ______ ownership of property
Private
If a business is not concerned about social responsibility, it is likely to?
Be a failure
Name the three kinds of resources
Natural, Human, Capital
What is the equation for profit?
Revenues – Expenses = Profit
What is an entity with goals that can be financial or tied to a particular mission?
A business
Roll of United States Government: _______ U.S. citizens.
Protect
One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually
Provides experience that increases the businesses credibility
Name the three questions that need to be asked when using scarce resources
What to Produce, How to produce it, and who to distribute too
Why is profit important?
Reward to business, if fail it can affect the employees and community
What three processes are involved with Strategic Management?
Planning, Controlling, and Organizing
The government borrows money from the private sector by _______
By issuing bonds
Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and
Authority
Name the four types of Utility
Form, Place, Time, Possession
What are the three types of risk?
Economic, Natural, Human
What is the money “angel” investors put into start-up businesses?
Venture Capital
Government protection of business property is known as ______
Patents
Which affects the business environment because it provides the MOST options for consumers
Global Competition
What is a phenomenon that occurs when changes in relative prices cause buyers to replace the purchase of one product with another
Substitution Effect
Chances of loss that may result in loss, no change, or gain. Examples: buying new machinery, constructing new buildings.
Speculative Risks
What are the six types of business activities?
(Financial analysis, Human resources management, Information management, Marketing, Operations management, and Strategic management)
Countries with free healthcare benefits and free education.
Welfare Countries
A small-business owner whose business is a sole proprietorship is planning to "go global." What method for going global would be BEST to recommend to the small-business owner?
Start by hiring an export management company.