EC-907
The economic system in which the government owns and controls most resources and means of production.
What is a Command Economy (or Communism)?
The financial statement that shows a business's revenues and expenses over a specific period of time.
What is an Income Statement (or Profit and Loss Statement)?
The type of business risk that results from changes in the overall business environment, such as a major recession or a pandemic.
What is Economic Risk (or Pure Risk)?
The management function that involves setting goals, developing strategies, and outlining tasks to achieve the organization’s objectives.
What is Planning?
The set of moral principles or values that guide a company's behavior and decision-making.
What are Ethics (or Business Ethics)?
What economists call the conflict that arises from unlimited wants but limited resources.
What is Scarcity?
The category on the balance sheet that includes things the company owes to others, such as bank loans or accounts payable.
What are Liabilities?
A type of business ownership where one owner is fully liable for all business debts and losses, and the business's profits are taxed as the owner's personal income.
What is a Sole Proprietorship?
A management style where the manager makes all the decisions and gives clear, specific instructions to employees with little input from them.
What is Autocratic Leadership?
A situation in which a business decision has negative consequences for one stakeholder group, even though it may benefit the company or another group.
What is an Ethical Dilemma?
The economic principle stating that as the price of a good increases, the quantity producers are willing to supply also increases.
What is the Law of Supply?
Revenue minus the Cost of Goods Sold (COGS) equals this key line item on the Income Statement.
What is Gross Profit?
The three required elements that must be present to form a legally binding contract.
What are Offer, Acceptance, and Consideration?
According to Maslow’s Hierarchy of Needs, this is the most basic need that must be met first, including essentials like food, water, and shelter.
What are Physiological Needs?
The idea that a business has a duty to operate in ways that benefit society and the environment, not just its shareholders.
What is Social Responsibility (or Corporate Social Responsibility - CSR)?
The condition that exists when a market has a single seller controlling the entire supply of a specific good or service.
What is a Monopoly?
The fundamental equation that must always balance for a Balance Sheet: Assets = Liabilities + ?
What is Owner's Equity (or Stockholders' Equity)?
A legal term for a name, symbol, or other device that identifies a product and differentiates it from competitors.
What is a Trademark?
A formal arrangement that details how an organization’s departments, jobs, and reporting relationships are structured, often visualized in a chart.
What is an Organizational Structure?
An employee who reports the illegal or unethical actions of their employer to an external authority or the media.
What is a Whistleblower?
This measurement is the total dollar value of all final goods and services produced within a country's borders in a given year.
What is Gross Domestic Product (GDP)?
This financial ratio is calculated by dividing Current Assets by Current Liabilities and is used to assess a company's ability to pay its short-term debts.
What is the Current Ratio?
This principle grants a corporation, not its owners or managers, the legal obligation and ultimate responsibility for its debts and actions.
What is Limited Liability (or Corporate Liability)?
A process where a company analyzes its internal strengths and weaknesses against external opportunities and threats to develop a long-term strategy.
What is SWOT Analysis?
This framework focuses on the maximum benefit for the largest number of people, judging an action by its outcomes rather than its adherence to rules.
What is Utilitarianism?