Chapter 1+2
What is a good? What is a service?
A good is a tangible item manufactured by a busines.
A service is an intangible offering like a car wash.
What type of competiton is fast food?
Monopolistic (mostly)
What is globalization?
Growth to a global of worldwide scale
Advantages of a sole proprietorship
Get all profits, get full creative freedom, no tax
What is a mission statement?
Describes the purpose of an organization.
What is socialism? What country is an example
Basic industries are government owned like transportation, while businesses as owned by the people. An example could be Isreal
What is an example of a monopoly?
Utilities or patented drugs
Name an example of a natural barrier of trade.
Language, water, land, etc
What is a non profit?
Organizations formed to service a public purpose
What does SMART stand for?
Specific, measurable, attainable, relevant, timely
What are the external business factors (PESTEL)
Political legal, economic, socio cultural, technological, environmental, legal
What is production?
The creation of goods and services
What is an embargo?
Complete ban against importing or exporting a product.
What is a main draw back to an incorporation?
Managers who typically run parts of the corporation don’t really care about its success. They are also costly to set up and can be taxed
What is the autocratic leadership style?
Make decisions without consulting others
What is the definition of full employment?
All who are willing and able to work are working.
What is a forward vertical integration?
Suppliers possess the power to become a new entrant in an industry
Why are tariffs a good thing?
Protect small industrys, help create new competition, protect jobs, aid military
Name an example of a seller cooperative
Argriculture
What is benchmarking?
A process by which a company compares its performance with that of high performing organizations
What are the 3 economic stages?
Prosperity, recession, depression
What are porters 5 forces?
Bargaining power of suppliers
bargaining power of customers
threat of new entrants
threat of substitute products
competitive rivalry in an industry
What was the Uruguay round
Agreement by the WTO that lowered trade barriers worldwide.
Define double taxation
Allows stockholders dividends to be taxed as corporate profit and personal income
name the 4 steps of the management process
Planning, organizing, leading, controlling