Chapter 1-Business: The organized effort of individuals to produce and sell, for a profit, the goods andservices that satisfy society’s needs.oMust combine all 4 resources effectively to be successful:Human resources: people who furnish their labor to the businessMaterial resources: raw materials used in manufacturing processesInformational resources: money required to pay employees, purchase materialsFinancial resources: tells the managers how effectively the other 3 resources arebeing combined and used.oSatisfying the needs of the firm’s customersoProfit-Classification of businessoManufacturing businessoServiceoMarketing intermediaries: buy products from manufactures and resellmanufacture > marketing intermediaries > consumers-Economicis the study of how wealth (anything of value) is created and distributed.oMicro: study of decisions made by individuals and businessesoMacro: study of the national economy and the global economyoProductivity: The average level of output per worker per houroGross Domestic Product (GDP): The total value of all goods and services produced by allpeople within the boundaries of a country during a one-year periodoConsumer Price IndexCPI:A monthly index that measures the changes in prices of afixed basket of goods purchased by a typical consumer in an urban areaoProducer Price IndexPPI:An index that measures prices that producers receive for theirfinished goodsDiffers from CPI due to government subsidies, sales & excise taxes, distributioncosts-Interest RatesoDiscount Rates: The interest rate the Fed offers to member banks who need to borrowmoney to keep their reserves at or above the minimum.oPrime Rate: The lowest interest rate that banks charge their most credit-worthycustomers. Also the basis for many home loan programs. Always adjusts based on thediscount rate.oFederal funds state: Interest rate banks charge one another for the use of Federal funds.The Fed indirectly controls this rate by the way it buys and sells Treasuries to the banks.-The Business Cycle: the fluctuations of the economic growth rate for a country()oPeak period(prosperity): the economy is at its highest point and unemployment is low.Total income is relatively highoRecession:2 or more consecutive 3 month periods of decline in a country’s GDP.Unemployment rises, total buying power declinesoDepression:a severe recession that lasts longer than a typical recession and has a largerdecline in business when compared to a recession
focusNode
Didn't know it?
click below
Knew it?
click below
Embed Code - If you would like this activity on your web page, copy the script below and paste it into
your web page.
Normal Size Small Size show me how
Business Chapter 1-4
| The organized effort of individuals to produce and sell, for a profit, the goods and service that satisfy societies needs is called | business |
| Organizations that contain raw materials, machinery, and labor to produce goods are called | manufacturing business |
| Mike Amerson decides to start a residential landscaping business. How would this business most likely be classified | service business |
| The ultimate objective of every firm must be to | satisfy the needs of their customers |
| When a firms sales revenue are greater than it expenses, the firm has a | profit |
| For a business, stakeholders represent | all the different people or groups who are affected in some way by the business |
| According to economists, natural resources, labor, capital, and entrepreneurship are called | factors of production |
| Examples of command economies include | socialism and communism |
| The total dollar value of all goods and services produced by all people within the boundaries of a country is called | gross domestic product |
| The consumer price index (CPI) | is a monthly index that tracks the prices paid by consumers and is often used to measure inflation |
| A market situation (or industry) in which there are few sellers | Oligopoly |
| The application of moral standards to business situations | Business ethics |
| The economic model of social responsibility places primary emphasis on | economic return |
| Which of the following scenarios would not be considered international business | a bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky |
| Purchasing products or materials in other nations and bringing them into one's country is | importing |
| If the Land of Mercury had total exports of 150 billion and total imports of 234 billion, it had a | trade deficit |
| Which of the following best defines balance of trade | the total value of a nations exports minus the total value of its imports over some period of time |
| Another name for an import duty is a | tariff |
| China is selling school supplies in the Untied States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufactures to compete. This is referred to as | dumping |
| Arguments for imposing trade restrictions include | equalizing a nations balance of payments |
| a and business that is independently owned operated for profit and is not dominant in its field | a small business |
| why some small business fail | lack of capital and cash-flow problems, flack of management skills, and over expansion |
| a carefully constructed guide for the person starting a business | business plan |
| three basic purpose for creating a business plan | communications, management, planning |
| a governmental agency that assists, counsels, and protects the interests of small business in the U.S. | the small business administration |
| a license to operate an individually owned business as through it were part of a chain of outlets or stores | franchise |
| the actual granting of a franchise | franchising |
| an individual or organization granting the franchise | franchisor |
| a person or organization purchasing a franchise | franchise |