BUS-200 Midterm Review || WITH RATED 100%
CORRECT ANSWERS
Explain "globalization of markets" correct answers competing with markets overseas
(exporting overseas: selling semiconductors, tobacco, grain)
Explain "globalization of production." correct answers making things overseas (ex: phones)
What is the difference between a for-profit and non-profit company? correct answers For-
Profit: businesses that aim to make money; Non-profit: organizations such as charities, which
exist for specific good causes in societies
What does CSR stand for? correct answers Corporate Social Responsibility
What is outsourcing? Example. correct answers Any activity which an organization considers
can be more advantageous carried out by another firm, often in another country. An example
would be Nike, who doesn't have manufacturing plants of its own but instead outsources from
countries like Vietnam and Philippines.
What is offshoring? Example. correct answers Outsourced activities that take place in
advantageous jurisdictions such as those with lax regulation and low taxation. (ex: financial
arrangements- when a country has their products produced or made through another country
so it is cheaper for the company)
What four factors foster successful entrepreneurs? correct answers Societal factors, legal and
regulatory factors, available finance, infrastructure
What is the gig economy? correct answers Category of work in which a person's working life
consists of moving from one job to another, typically working as a self-employed person
What is an SME? correct answers Small-to-medium size enterprise: Business ranging from
micro-enterprises of just one person to firms with up to 249 employees.
What is a limited liability company? correct answers When the owner of a company is liable
only up to the amount invested
What is a privately owned company? correct answers don't sell their shares in the public
stock exchange (maintain control of their own company)
What is a publicly traded company? correct answers sell their shares on the stock exchange
(each person that buys a share is considered a member of the company)
What is an IPO? correct answers Initial Public Offering: first offering by a company of its
shares to the public on a stock exchange; also known as 'flotation'
What is an MNE? correct answers Multinational enterprise (MNE): a lead company (the
parent company) which has acquired ownership (whole or partial) and other contractual ties
in other organizations (including companies and unincorporated businesses) outside its home
country.
, What is an affiliate company? correct answers organization connected through ownership
stake or other strategic ties to an MNE, often in supply chains
What is a subsidiary company? correct answers a company owned wholly or substantially by
another company, which is in a position to exert control
What is a holding company? correct answers an umbrella company that owns the multiple
companies or divisions that make up the business
What does OECD stand for and what countries are members? correct answers Organization
for Economic Co-operation and Development (OECD): organization of the world's main
developed. 36 members, developed countries.
What are the 6 PESTLE elements? correct answers Political, economic, socio-cultural,
technological, legal, environmental
What are the six elements of sustainability? correct answers Climate change and the
environment, Technological change that benefits societies, Economic prosperity, Governance
that promotes social goods, Financial stability, and Individual and societal wellbeing
Define globalization. correct answers The process by which businesses or other organizations
develop international influence or begin to operate on an international scale
What is primary production? correct answers agriculture, mining, and fishing
What is secondary production? correct answers industrial production
What is industrialization? Give an example. correct answers the process of transformation of
an economy from mainly agricultural production (for domestic consumption) to an economy
based on factory production (ex: is manufacturing, mining, and retailing)
What is economic development and how is it measured? correct answers any change in a
country's overall balance of economic activities (measured by GDP)
What does HDI stand for, what does it measure, and why is it important? correct answers
Human Development Index is a UN ranking of countries according to three sets of criteria
(hee- economic, health/life expectancy, and education)
What are the differences between developed and developing or least developed countries?
correct answers Developed Country: A country having an effective rate of industrialization
and individual income. Developing Country: is a country which has a slow rate of
industrialization and low per capita income
Explain emerging economies and give an example correct answers fast-growing developing
countries, typically becoming increasingly globalized
Explain transition economy and give an example correct answers economies making the
transition from planned economies to market based economies (ex: economies of Eastern
Europe and the CIS)
CORRECT ANSWERS
Explain "globalization of markets" correct answers competing with markets overseas
(exporting overseas: selling semiconductors, tobacco, grain)
Explain "globalization of production." correct answers making things overseas (ex: phones)
What is the difference between a for-profit and non-profit company? correct answers For-
Profit: businesses that aim to make money; Non-profit: organizations such as charities, which
exist for specific good causes in societies
What does CSR stand for? correct answers Corporate Social Responsibility
What is outsourcing? Example. correct answers Any activity which an organization considers
can be more advantageous carried out by another firm, often in another country. An example
would be Nike, who doesn't have manufacturing plants of its own but instead outsources from
countries like Vietnam and Philippines.
What is offshoring? Example. correct answers Outsourced activities that take place in
advantageous jurisdictions such as those with lax regulation and low taxation. (ex: financial
arrangements- when a country has their products produced or made through another country
so it is cheaper for the company)
What four factors foster successful entrepreneurs? correct answers Societal factors, legal and
regulatory factors, available finance, infrastructure
What is the gig economy? correct answers Category of work in which a person's working life
consists of moving from one job to another, typically working as a self-employed person
What is an SME? correct answers Small-to-medium size enterprise: Business ranging from
micro-enterprises of just one person to firms with up to 249 employees.
What is a limited liability company? correct answers When the owner of a company is liable
only up to the amount invested
What is a privately owned company? correct answers don't sell their shares in the public
stock exchange (maintain control of their own company)
What is a publicly traded company? correct answers sell their shares on the stock exchange
(each person that buys a share is considered a member of the company)
What is an IPO? correct answers Initial Public Offering: first offering by a company of its
shares to the public on a stock exchange; also known as 'flotation'
What is an MNE? correct answers Multinational enterprise (MNE): a lead company (the
parent company) which has acquired ownership (whole or partial) and other contractual ties
in other organizations (including companies and unincorporated businesses) outside its home
country.
, What is an affiliate company? correct answers organization connected through ownership
stake or other strategic ties to an MNE, often in supply chains
What is a subsidiary company? correct answers a company owned wholly or substantially by
another company, which is in a position to exert control
What is a holding company? correct answers an umbrella company that owns the multiple
companies or divisions that make up the business
What does OECD stand for and what countries are members? correct answers Organization
for Economic Co-operation and Development (OECD): organization of the world's main
developed. 36 members, developed countries.
What are the 6 PESTLE elements? correct answers Political, economic, socio-cultural,
technological, legal, environmental
What are the six elements of sustainability? correct answers Climate change and the
environment, Technological change that benefits societies, Economic prosperity, Governance
that promotes social goods, Financial stability, and Individual and societal wellbeing
Define globalization. correct answers The process by which businesses or other organizations
develop international influence or begin to operate on an international scale
What is primary production? correct answers agriculture, mining, and fishing
What is secondary production? correct answers industrial production
What is industrialization? Give an example. correct answers the process of transformation of
an economy from mainly agricultural production (for domestic consumption) to an economy
based on factory production (ex: is manufacturing, mining, and retailing)
What is economic development and how is it measured? correct answers any change in a
country's overall balance of economic activities (measured by GDP)
What does HDI stand for, what does it measure, and why is it important? correct answers
Human Development Index is a UN ranking of countries according to three sets of criteria
(hee- economic, health/life expectancy, and education)
What are the differences between developed and developing or least developed countries?
correct answers Developed Country: A country having an effective rate of industrialization
and individual income. Developing Country: is a country which has a slow rate of
industrialization and low per capita income
Explain emerging economies and give an example correct answers fast-growing developing
countries, typically becoming increasingly globalized
Explain transition economy and give an example correct answers economies making the
transition from planned economies to market based economies (ex: economies of Eastern
Europe and the CIS)
