Chapter 1-2
What is economics?
It is the study of the production, distribution, and consumption of goods and services
What is NAFTA?
It is an agreement among the governments of the United States, Canada, and Mexico to open their borders to unrestricted trade
Who owns Corporations?
Shareholders who invest in the company
What is an Entrepreneur?
An entrepreneur is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it
what are the 4 roles of a manager?
planning, directing, organizing, and controling
Define Monopoly
There is only one seller in the market
Name one thing that the World Trade Organization (WTO) does?
It encourages global commerce and lower trade barriers, enforces international rules of trade, and provides a forum for resolving disputes
What is the most common form of ownership and accounts for about 72 percent of all U.S. businesses?
Sole Proprietorship
Small business generate how much of United States GDP?
50%
what is it called when a manager tends to make decisions without soliciting input and expects subordinates to follow instructions without undue explanation?
It is called an autocratic leadership style
What is a Whistle-blower?
An individual who exposes illegal or unethical behavior in an organization
True or False
Absolute advantage is when a country can produce a product at a lower opportunity cost than other nations
False
Absolute Advantage is when a nation is 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.
How is an s-corporation different from a regular corporation?
It gets taxed on profits only once and it can't have more than 100 stockholders
What is a Business Plan?
It tells the story of your business concept, provides an overview of the industry in which you will operate, describes the goods or services you will provide, identifies your customers and proposed marketing activities, explains the qualifications of your management team, and states your projected income and borrowing needs
What is strategic human resource planning?
its the process of developing a plan for satisfying the organization’s human resource needs
What are the five questions you ask yourself to avoid an ethical lapse?
1. Is the action legal?
2. Is it unfair to some parties?
3. If I take it, will I feel badly about it?
4. Will I be ashamed to tell my family, friends, coworkers, or boss?
5. Will i be embarrassed if my action is written up in the local newspaper?
What is it called when a company grants a foreign company the right to use its brand name and sell its products?
A: licensing Agreement
B:Franchise Agreement
C:International Contract Manufacturing/outsourcing
D:Tariffs
B: Franchise Agreement
Which company accounts for the most sales revenue in the United States?
Corporations at approximately 82%
What are the 4 disadvantages of starting a small business?
1. stress
2. time commitment
3. financial risk
4. undesirable duties
What is the name of this theory:proposes that employees work hard to obtain a reward when they value the reward, believe that their efforts will result in acceptable performance, and believe that acceptable performance will lead to a desired outcome or reward.
A: Two-factor Theory
B: Equity Theory
C: Expectancy Theory
C: Expectancy Theory
Is it fiscal policy or the monetary policy when the government uses its power to spend and tax?
Fiscal Policy
what is the equation to calculate opportunity cost?
opportunity gained divided by opportunity given up= opportunity cost
What is it called when a company purchases another company but with no new company being formed?
A: Acquisition
B: Merger
c: Hostile Takeover
A: Acquisition
What do small business do for the economy?
1. creates jobs
2. sparks innovation
3. creates opportunities for women and minorities to achieve financial success and independence
What are labor unions?
They are organized groups of workers that bargain with employers to improve members’ pay, job security, and working conditions