Business Basics
Q: What is the main purpose of a business?
A: To solve problems and make a profit and/or achieve a mission
Q: Name four basic economic systems.
A: Communism, Socialism, Capitalism, Mixed Economy
Q: Which role identifies target markets and manages promotional campaigns?
A: Marketing
Q: Define business ethics.
A: The application of ethics in business situations; right from wrong in as it applies to business situations.
Q: If Starbucks sells coffee, is it providing a good or a service?
A: A good (coffee is tangible)
Q: What is the difference between goods and services?
A: Goods are physical items (e.g., shoes), while services are intangible work (e.g., tutoring)
Q: In which system does the government own most businesses and control competition?
A: Communism
Q: Which role creates budgets, analyzes financial performance, forecasts cash flows, and ensures compliance with regulations?
A: Finance
Q: Name one reason why ethics matter in business.
A: Builds trust, prevents legal issues, or improves reputation
Q: What does the S&P 500 comprise of?
Answer: Largest 500 companies in U.S. stock market.
Q: Name one key difference between for-profit and non-profit organizations.
A: For-profits aim to earn profit (revenues > expenses), while non-profits focus on mission, not profit
Q: Which economic system encourages competition in small businesses but limits it in major industries?
A: Socialism
Q: Which role handles employee relations, workplace policies, and training?
A: Human Resources
Q: Give two examples of common ethical issues in business.
A: Misuse of company resources, discrimination, harassment, conflicts of interest, abusive behavior
Q: What does Bottom Line refer to in Business?
Q: In business, who takes on the greatest financial risk, and why?
A: Owners, because they provide financial resources and risk losing investments
Q: What is a tariff and why is it used?
A: A tax on imported goods to raise their price and protect domestic industries
Q: Which role coordinates suppliers, manages inventory, and optimizes logistics?
A: Supply Chain
Q: What are two ways companies can improve ethical behavior?
A: Develop a code of ethics, provide ethics training, create supportive reporting systems
Q: What does Top-Line refer to in Business?
A: Revenue
Q: What are the 4 P’s of marketing?
A: Product, Price, Place, Promotion
Q: Which economic system gives individuals the widest range of career options, and why?
Capitalism, because individuals own businesses, competition is market-driven, and there are many industries and opportunities
Q: What does IT actually stand for in IT Management/Operations?
A: Information Technology
What does NDA stand for in business/business ethics?
A: Non-Disclosure Agreement – It’s a legal contract between two or more parties that requires them to keep certain information confidential and not share it with others.
Q: What are the 3 main financial statements?