MIE 201 EXAM 1 STUDY GUIDE
business - Answers - any profit-seeking organization that provides goods and service
designed to satisfy customers needs
revenue - Answers - money a company brings in through the sales of goods and
services
business model - Answers - a clearly stated outline of how the business intends to
generate revenue
profit - Answers - money left over after all the costs involved in doing business have
been deducted from revenue
competition gives customers - Answers - a wider range of options, it tends to increase
quality, improve customer service and lower prices
competition advantage - Answers - some aspect of a product or company that makes it
more appealing to target customers
linking of risk and reward is important because - Answers - businesses wouldn't have
incentives to take risks without rewards and to encourage smart and responsible
decision making
moral hazard - Answers - irresponsible and unethical behavior
not-for-profit organizations - Answers - organizations that provide good and services
without having a profit motive
good-producing business - Answers - create value by making things, most of which are
tangible
service business - Answers - companies that create value by performing activities that
deliver some benefit to customers
barrier to entry - Answers - any resource or capability a company must have before it
can start competing in a given market
ex) money, gov't approval, limited supplies
business contributes to society by - Answers - offering good and services, providing
employment, paying taxes, contributing to national growth, stability and security
negative effects of business in society - Answers - generating pollution and creating
waste, creating health and safety risks, disrupting communities and causing financial
instability
, social entrepreneurs - Answers - people who apply entrepreneurial strategies to enable
large-scale social change
social environment - Answers - trends and forces in society at large
stakeholders - Answers - internal and external groups affected by a company's
decisions and activies
technological environment - Answers - forces resulting from the practical applications of
science to innovations, products and processes
-disruptive technologies are those who change the nature of an industry
economic environment - Answers - the conditions and forces that affect the cost and
availability of good, services, labor and thereby shape the behavior of buyers and
sellers
legal and regulatory environment - Answers - laws and regulations at local state and
national and international level
market environment - Answers - a company's target customer, the buying influences
that shape the behavior of those customers and competitors that market similar
products to those customers
financial managers - Answers - planning
accounting managers - Answers - monitoring and reporting
professionalism - Answers - quality of performing at a high level and conducting oneself
with purpose and pride
-striving to excel, being dependable, accountable, being a team player, communicating
effectively, demonstrating etiquette, making ethical decisions, maintaining a confident,
positive outlook
microeconomics - Answers - the study of how consumers, businesses, and industries
collectively determine the quantity of goods and services demanded and supplied at
different prices
economics - Answers - the study of how a society uses its scarce resources to produce
and distribute goods and services
macroeconomics - Answers - the study of "big picture" issue in an economy, including
competitive behavior among firms, the effect of government policies and overall
resource allocations issues
factors of production - Answers - -natural resources
business - Answers - any profit-seeking organization that provides goods and service
designed to satisfy customers needs
revenue - Answers - money a company brings in through the sales of goods and
services
business model - Answers - a clearly stated outline of how the business intends to
generate revenue
profit - Answers - money left over after all the costs involved in doing business have
been deducted from revenue
competition gives customers - Answers - a wider range of options, it tends to increase
quality, improve customer service and lower prices
competition advantage - Answers - some aspect of a product or company that makes it
more appealing to target customers
linking of risk and reward is important because - Answers - businesses wouldn't have
incentives to take risks without rewards and to encourage smart and responsible
decision making
moral hazard - Answers - irresponsible and unethical behavior
not-for-profit organizations - Answers - organizations that provide good and services
without having a profit motive
good-producing business - Answers - create value by making things, most of which are
tangible
service business - Answers - companies that create value by performing activities that
deliver some benefit to customers
barrier to entry - Answers - any resource or capability a company must have before it
can start competing in a given market
ex) money, gov't approval, limited supplies
business contributes to society by - Answers - offering good and services, providing
employment, paying taxes, contributing to national growth, stability and security
negative effects of business in society - Answers - generating pollution and creating
waste, creating health and safety risks, disrupting communities and causing financial
instability
, social entrepreneurs - Answers - people who apply entrepreneurial strategies to enable
large-scale social change
social environment - Answers - trends and forces in society at large
stakeholders - Answers - internal and external groups affected by a company's
decisions and activies
technological environment - Answers - forces resulting from the practical applications of
science to innovations, products and processes
-disruptive technologies are those who change the nature of an industry
economic environment - Answers - the conditions and forces that affect the cost and
availability of good, services, labor and thereby shape the behavior of buyers and
sellers
legal and regulatory environment - Answers - laws and regulations at local state and
national and international level
market environment - Answers - a company's target customer, the buying influences
that shape the behavior of those customers and competitors that market similar
products to those customers
financial managers - Answers - planning
accounting managers - Answers - monitoring and reporting
professionalism - Answers - quality of performing at a high level and conducting oneself
with purpose and pride
-striving to excel, being dependable, accountable, being a team player, communicating
effectively, demonstrating etiquette, making ethical decisions, maintaining a confident,
positive outlook
microeconomics - Answers - the study of how consumers, businesses, and industries
collectively determine the quantity of goods and services demanded and supplied at
different prices
economics - Answers - the study of how a society uses its scarce resources to produce
and distribute goods and services
macroeconomics - Answers - the study of "big picture" issue in an economy, including
competitive behavior among firms, the effect of government policies and overall
resource allocations issues
factors of production - Answers - -natural resources
