Ch.1
The study of the production, distribution, and consumption of goods and services
What is economics
A morally problematic situation in which you must choose between two or more alternatives that aren’t equally acceptable to different groups.
What is an ethical dilemma?
A nation has an _________ if it’s the only source of a particular product or can make more of a product with the same amount of or fewer resources than other countries.
What is Absolute Advantage
The most common form of ownership and accounts for about 72 percent of all U.S. businesses
What is a Sole Proprietorship
someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it
What is an Entrepreneur
What are the 5 functions of business?
Management - Operations - Marketing - Accounting - Finance
An individual who exposes illegal or unethical behavior in an organization
What is a whistle blower
Whats it called when a country can produce a product at a lower opportunity cost than other nations?
What is Comparative Advantage
A business owned jointly by two or more people and accounts for about 10% of U.S. businesses
What is General Partnership
They provide large firms with such services as accounting, legal, and insurance, and many provide outsourcing services to large companies
What is Small Businesses
2 policies the government uses to control money
Monetary & Fiscal Policy
An organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions.
What is Corporate Social Responsibility
___________ is when a company has its products manufactured or services provided in other countries
___________ is when a company sets up facilities in a foreign country that replaces U.S. manufacturing facilities to produce goods that will be sent back to the United States for sale
What is Outsourcing
What is Offshoring
has a single general partner who runs the business and is responsible for its liabilities
What is Limited Partnership
Tells the story of your business concept, provides an overview of the industry in which you will operate. Its most common use is persuading investors and lenders to provide financing.
What is a Business Plan
What're 3 main goals all economies share?
Growth - High Employment - Price Stability
5 stages of corporate responsibility
Defensive - Compliant - Managerial - Strategic - Civil
____ are restrictions on imports that impose a limit on the quantity of a good that can be imported over a period of time
____ is a quota that, for economic or political reasons, bans the import or export of certain goods to or from a specific country
____ are taxes on imports
Quotas
Embargo
Tariffs
____ are owned by shareholders who invest money in them by buying shares of stock
What is Corporations
4 disadvantages of owning your own business
Financial Risk - Stress - Time Commitment - Undesirable duties
4 types of competition in a free market?
Perfect Competition - Monopolistic Competition - Monopoly - Oligopoly
Define the problem - Identify feasible options - Assess the effect of each option on stakeholders - Establish criteria for determining the most appropriate action - Select the best option based on the established criteria. These are 5 steps on how to face an?
Ethical Dilemma
encourages free trade by regulating and reducing tariffs and by providing a forum for resolving disputes
What is The General Agreement on Tariffs and Trade (GATT)
Each partner is personally liable not only for his or her own actions but also for those of all partners
What is Unlimited Liability
5 advantages of owning your own business
Independence - Lifestyle - Financial Rewards - Learning Opportunities - Creative Freedom & Personal Satisfaction