BUSINESS BASICS
What is the primary goal of most businesses?
To generate a profit
Name an example of an internal stakeholder.
Manager
What is globalization?
Cultural exchange and interconnected markets
What does the operations department in a business do?
Converts inputs into outputs
What causes change in the technological environment?
Digital tools like the Internet
Name one example of a service.
A haircut
Name an example of an external stakeholder.
Government
What advantage does a country have if it produces something more efficiently than others?
Absolute advantage
What is the main job of marketing?
Identify and meet customer needs
What is a primary reason for entering global markets?
To access larger customer bases
What happens if a business's expenses exceed its revenue?
It suffers a loss
What is a stakeholder?
A person with an interest in a business
What is comparative advantage based on?
Lower opportunity cost
What does finance do in a business?
Plan and manage company funds
What is a trade surplus?
When exports exceed imports
Define 'value' in a business context
The relationship between price and perceived benefits
What is the benefit of having stakeholders?
To support and interact with the business
How is balance of trade calculated?
Exports minus imports
What does a Chief Revenue Officer manage?
Marketing and Sales
What does a trade deficit mean?
More imports than exports
What is a nonprofit organization’s primary goal?
To further its mission
What does the social environment in business involve?
Consumer values and attitudes
What is included in the global business environment?
All factors that influence international trade
What is the role of management in a business?
Supervise performance
What does balance of payments include?
Financial transactions with the rest of the world