CH 1 The Dynamics of Business and Economics
This can have tangible or intangible characteristics and provides satisfaction and benefits to the customer
Product
We define [BLANK_BLANK] as the principles and standards that determine acceptable conduct in business.
business ethics
[BLANK_BLANK], exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item
Absolute advantage
Businesses owned and operated by one individual are considered [BLANK_BLANK] and they are the most common forms of business organizations in the United States
Sole proprietorships
[BLANK] is the process of creating and managing a business to achieve desired objectives. These individuals risk their wealth, time and effort to develop an innovative product or process.
Entrepreneurship
[BLANK] is a process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment.
Management
The difference between what it costs to make and sell a product and what a customer pays for it is a companies what?
Profit
It is considered improper to give or accept [BLANK], which are payments, gifts, or special favors intended to influence the outcome of a decision.
Bribes
[BLANK] is the sale of goods and services to foreign markets.
AND
[BLANK] is the purchase of goods and services from foreign markets
Exporting and Importing
A [BLANK] is a form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”
Partnership
We define [BLANK_BLANK] as any independently owned and operated business that is not dominant in its competitive area or industry group and does not employ more than 500 people
Small Business
[BLANK], the process of determining the organization’s objectives and deciding how to accomplish them, is the first function of management.
Planning
[BLANK] are groups that have a stake in the success and outcomes of a business. And can include customers, employees, investors, government regulators, and the community
Stakeholders
Taking someone else’s work and presenting it as your own without mentioning the source—is another ethical issue called [BLANK]
Plagiarism
[BLANK_BLANK_BLANK_BLANK] is an international organization dealing with the rules of trade between nations.
The World Trade Organization (WTO)
A [BLANK] is a legal entity, created by the state, whose assets and liabilities are separate from its owners.
Corporation
The shortest path to failure in business is [BLANK], the lack of funds to operate a business normally.
Undercapitalization
[BLANK] plans are those plans that establish long-range objectives and overall strategy or course of action by which the firm fulfills its mission.
[BLANK] plans are short-range plans designed to implement the activities and objectives specified in the strategic plan.
[BLANK] plans are very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan.
Strategic
Tactical
Operational
We define [BLANK] as the study of how resources are distributed for the production of goods and services within a social system
economics
We define [BLANK] as conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities.
Sustainability
We define [BLANK] as the relocation of business processes by a company or subsidiary to another country.
Offshoring
A [BLANK_BLANK] is a partnership established for a specific project or for a limited time.
Joint Venture
A key element of business success is a [BLANK_BLANK]—a precise statement of the rationale for the business and a step-by-step explanation of how it will achieve its goals.
Business Plan
[BLANK] is the structuring of resources and activities to accomplish objectives in an efficient and effective manner. It helps to create synergy, so all the parts that make up the firm are worth more when combined because of the output.
Organizing
[BLANK] is the number of goods and services that consumers are willing to buy at different prices at a specific time AND [BLANK] is the number of products—goods and services—that businesses are willing to sell at different prices at a specific time.
Demand and Supply
[BLANK_BLANK] is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.
Corporate citizenship
More and more companies are moving to a [BLANK_BLANK], which involves standardizing products (and, as much as possible, their promotion and distribution) for the whole world, as if it were a single entity.
Global strategy OR Globalization
A [BLANK] is the combination of two companies (usually corporations) to form a new company.
Merger
[BLANK_BLANK] are persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.
Venture Capitalists
[BLANK-BLANK] managers, those who supervise both workers and the daily operations of the organization.
[BLANK] managers are those members of an organization responsible for the tactical planning that implements the general guidelines established by top management.
[BLANK] managers include the president and other top executives of a business, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the organization.
First-Line
Middle
Top
Contractions of the economy lead to [BLANK] – a decline in production, employment, and income.
Recession
[BLANK] occurs when an employee exposes an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies.
Whistleblowing
[BLANK] is the physical facilities that support a country’s economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems.
Infrastructure
These are advantages of (sole proprietorships, partnerships, corporations)
•Easy to organize.
•Availability of capital and credit.
•Combined knowledge and skills.
•Swift decision making.
•Government regulations are few.
Advantages of Partnerships
Partnerships
A license to sell another’s products or to use another’s name in business, or both, is a [BLANK]
Franchise
[BLANK] leaders: Make all decisions then tell employees what must be done and how. These people pay attention to detail and let others know they have the power. Used for stimulating unskilled workers or unmotivated people.
[BLANK] leaders: Involve employees in decisions. Let them express opinions. Consider their point of view. Requires less supervision like free rein. And both work best for skilled and trained individuals.
[BLANK] leaders: Let employees work without much interference.
Set performance standards and let employees find own way to meet them. Demonstrates the greatest trust.
Autocratic
Democratic
Free-rein
One commonly used measure of the economy is [BLANK_BLANK_BLANK] —the sum of all goods and services produced in a country during a year.
Gross Domestic Product (GDP)
This exists when person must choose whether to advance personal interests or those of others.
Conflict of Interest
A [BLANK] is a group of firms or nations that agrees to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets.
Cartel
A [BLANK_BLANK_BLANK] is a group of individuals, elected by the stockholders to oversee the general operation of the corporation, who set the corporation’s long-range objectives.
Board of Directors
The [BLANK_BLANK] is an economic model involving the sharing of underutilized resources.
Sharing Economy (Uber, Lyft)
[BLANK_BLANK] occurs when employees are provided with the ability to take on responsibilities and make decisions about their jobs.
Employee Empowerment
Name the three economic systems, what is used most today?
Communism, socialism and capitalism. Modified capitalism.
What are the ethical issues in business?
bribery, misuse of company time, abusive behavior, misuse of resources, and conflict of interest.
What are the international trade barriers?
Economic
ethical, legal and political
social and cultural
technological
An [blank_blank_blank] is how a private corporation goes public and it does so by selling its stock so that it can be traded in the market.
Initial public offering
How does small business contribute to the American economy?
Job Creation and innovation
What are the functions of management?
Planning, organizing, directing, and controlling
Name the 4 forms of competition
What are the issues of importance to business?
Relation with owners and stockholders, employee relations, consumer relations, sustainability issues, response to environmental issues, and community relations
an [BLANK] prohibits trade in a particular product. generally directed at specific goods or countries and may be established for political, economic, health or religious reasons.
embargo
Ease of transfer of ownership via stock, eternal life unless special circumstances occur, and limited liability are all [blank_blank_blank]
advantages of corporations
What are industries that attract small business?
Retailing, wholesaling, services, manufacturing, technology and sharing economy.
Skills needed by management?
technical expertise
conceptual skills
analytical skills
human relation skills
What are the characteristics of pure competition, monopolistic competition, oligopoly and monopoly
Pure competition: Many small businesses selling one standardized product. agriculture.
monopolistic competition: fewer biz than in pure comp. Difference in goods are small. kinds of soft drinks.
oligopoly: very few biz selling a product. control over product price.
monopoly: one business exists. Utility companies
An identifiable problem, situation, or opportunity that requires a person to choose from several actions that can be seen as right or wrong, ethical or unethical.
ethical issues
Transferring manufacturing and other tasks to countries where labor and supplies are less expensive.
Outsourcing
Combined knowledge and skills of each individual involved, ease of speaking to each other to make decisions fairly quickly, and having better earning power are all [blank_blank_blank]
Advantages of Partnerships
Adv: Independence, costs, flexibility, focus, and reputation.
Disad: High stress,
High failure rate (undercapitalization, managerial inexperience, and inability to cope with growth)
Six steps of the decision making process?
Recognizing and defining the situation
developing optionsanalyzing options
selecting the best one
implementing the decision
monitoring the consequences