Chapter 1- Exploring the World of Business & Economics
The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
What is business?
This arises when a business person benefits from a business transaction personally, even though it may not be the best deal for the organization.
What is Conflict of Interest?
What win-win means without saying both sides win.
What is a mutually beneficial result for both parties involved in the transaction, argument, or discussion?
Within 1%, the percentage of US businesses that are small businesses.
What is 99.9%? Acceptable answer 98.9% and above.
It's which is which, supply or demand. Direct or indirect relationship.
Characterized by businesses competition and profit motivation. No government intervention.
What is a Free Enterprise System?
The definition or explanation of corporate citizenship.
What is a belief that a corporation must act in the public's best interest and be socially responsible?
How your mind interprets a situation based on what you see, hear, and assume.
What is a paradigm?
These are three reasons businesses may fail.
What are any 3 of the following?
1. Poor management
2. Lack of funding
3. Not good at what they do
4. No market for business
5. Competition too strong
6. Bad location and more!
Human wants for goods and services exceed the amount that is available.
What is scarcity?
Four types of businesses based on how they do business (how they make revenue).
What are service, merchandising, manufacturing, and hybrid?
Informing the press of government officials about unethical practices within one's organization.
What is whistle blowing?
Listen to the other person and try to understand their perspective prior to telling them how you feel or what you think.
Seek First to Understand, Then to be Understood
The general level of prices for which the common person can afford goods and services.
What is cost of living?
What is wrote Wealth of Nations, one of the most important figures in Economics. Credited for division of labor, specialization, economies of scale, and the invisible hand?
Businesses do this because of tax reporting, management analysis, and investor information.
What is accounting?
Three of the Five principles on how to act ethically.
What are any 3 of the following?
1. Do no harm
2. Make things better
3. Respect others
4. Be fair
5. Be loving
It is why 1+1 = 3.
SYNERGY. By working together to achieve a goal, two can achieve much more than each one independently. If they worked separately 1, 1 they'd get 2. But by working together, they will be more efficient and be able to utilize each other's strengths making 3 instead of 2.
Be Proactive
Macro vs. Micro economics
What is macroeconomics focuses on the total or aggregate economy, nationwide or worldwide? Microeconomics focuses on individual businesses or households.
The four types of management skills and who may need what type of skill.
What are: technical skills (direct supervisors)
conceptual skills (upper management)
interpersonal skills (all)
decision making skills (all)?
The difference between the socio economic model of social responsibility and the economic model of social responsibility.
What is: In the socio economic model, business should emphasize not only profits but also the impact of its decisions on society.
In the economic model, society will benefit most when business is left alone to produce and market profitable products that society needs.
It's Why and How and should "Sharpen the Saw"
What is: you should sharpen the saw to recharge, renew, educate, etc. If you do not sharpen the saw, you will get worn down and not be as efficient or effective. Taking a break, resting, reading, playing a game, going to a training, literally sharpening a saw can help even though at first it may seem like it is not a good idea to take a break. It is and it is important. Sharpen the mind, the body, the spirit, all of it!
The three factors that may contribute to a person acting unethically or illegally.
What are:
1. Opportunity
2. Motivation
3. Capability
Explanations of the four types of economic structures.
What is traditional (customs, barter, limited production), command (gov't total influence), market (free enterprise), or mixed (some combination)?