Intro to Business(NCTI) Questions And Answers Rated 100% Correct!!

Business - Answer-organization that provides goods or services to earn profits Profits - Answer-difference between a busi-ness's revenues and its expenses External Environment - Answer-everything outside an organization's boundaries that might affect it Domestic Business Environment - Answer-the environment in which a firm conducts its operations and derives its revenues Global Business Environment - Answer-the international forces that affect a business. include international trade agreements, international economic conditions, political unrest, and so forth. Technological Environment - Answer-all the ways by which firms create value for their constituents. Includes human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems Political-Legal Environment - Answer-the relationship between business and government. government regulation of business Sociocultural Environment - Answer-the customs, mores, values, and demo-graphic characteristics of the society in which an organization functions. includes the customs, mores, values, and demographic characteristics of the society Economic Environment - Answer-relevant conditions that exist in the economic system in which a company operates. Economic System - Answer-a nation's system for allocating its resources among its citizens Factors of Production - Answer-resources used in the production of goods and services—labor, capital, entrepreneurs, physical resources, and information resourcesLabor (Human Resources) - Answer-physical and mental capabilities of people as they contribute to economic production. human resources or human capital Capital - Answer-funds needed to create and operate a business enterprise Entrepreneur - Answer-individual who accepts the risks and opportunities involved in creating and operating a new business venture Physical Resources - Answer-tangible items that organizations use in the conduct of their businesses Information Resources - Answer-data and other information used by businesses Planned Economy - Answer-economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions Market Economy - Answer-economy in which individuals control production and allocation decisions through supply and demand Communism - Answer-political system in which the government owns and operates all factors of production Market - Answer-mechanism for exchange between buyers and sellers of a particular good or service Capitalism - Answer-system that sanctions the private ownership of the factors of production and encourages entrepreneur-ship by offering profits as an incentive