Ch 1
Anything that is bought or sold is called a(n) ____
product
US laws that promote fair trade and competition among businesses.
Antitrust Laws
A ____ is a legally binding agreement between two or more people or businesses.
contract
A tax on imported goods is called:
tariff
The ____ is a sentence in a business plan that describes the purpose of the business.
mission statement
A science that examines how goods and services are produced, sold, and used is called ____.
economics
Rate of change in prices calculated on a monthly or yearly basis.
inflation
A business that is legally separate from its owners and has a board of directors is called:
corporation
The cost to convert one currency into another is called:
foreign exchange rate
____ is the process of controlling and making decisions about a business.
management
goods going out of a country
export
Market structure with a small number of businesses selling the same or similar products.
oligopoly
A business that is owned and often operated by a single individual is called:
sole proprietorship
Goods, services, and capital brought into a country from outside its borders is called:
import
_ consists of a company's division managers and department heads.
middle management
A(n) _ economy is one in which the government makes all the economic decisions for its citizens.
command
Law that requires that one and a half times the regular rate of pay for more than 40 hours for qualified employees.
The Fair Labor Standards Act of 1963
a business owned by two or more persons who share the risks and rewards of a business equally
A government order that prohibits trade with a foreign country is called
embargo
name the first step in the ethical decision making process (conflict resolution)
define the problem
Organized way in which a nation chooses to use its resources to create goods and services.
economic system
What are the four stages of a business cycle?
expansion; peak; contraction; and trough
an act of breaking the terms set out in a contract.
breach
The connection made among nations when economies freely move goods, labor, and money across borders is called:
globalization
Planning, organizing, staffing, implementing, and controlling