Intro to Business Exam 1 Questions & Answers

What is the primary focus of a profit organization? - ANSWERSTo make a profit. What are the four functions of management? - ANSWERSPlanning, organizing, controlling, and leading What are the factors of production used to make goods and services? - ANSWERSquality products, efficient operations, social responsibility, and business ethics. What is Communism? - ANSWERSOwned and operated by by government. No competition, the government owns and operates everything. Excess income goes to the government. Consumers have limited choice of goods and services, prices usually high. Little choice in career choice, most work for government-owned farms and industries. What is Socialism? - ANSWERSGov owns and operates major industries, individuals own small businesses. Restricted in major industries, encouraged in small business. Profits earned in small business may be reinvested in business, profits from gov owned industries go to gov. Consumers have some choice of goods and services, prices determined by supply and demand. Some choice of careers, many work in gov jobs. What is Capitalism? - ANSWERSIndividuals own and operate all business. Encouraged by market forces and government regulations. People are free to keep profits and use them as they wish. Consumers have wide choice of goods and services, prices determined by supply and demand. Unlimited choice of careers. What is pure competition? - ANSWERSMany small businesses in same product market. What is monopolistic competition? - ANSWERSsmall number of businesses little difference in products. What is oligopoly? - ANSWERSVery few businesses selling a product. What is a monopoly? - ANSWERSThe market structure that exists when there is only one business providing a product in a given market. What is economic expansion? - ANSWERSEconomy is growing and consumers are spending money. What is a depression? - ANSWERSunemployment very high; consumer spending low; business output sharply reduced What is a recession? - ANSWERSDecline in production, employment, and income What is economic contraction? - ANSWERSspending declines, layoffs, economy slows down. What is inflation? - ANSWERSCondition characterized by continuing rise in prices. What is importing? - ANSWERSthe purchase of goods and services from foreign sources What is exporting? - ANSWERSthe sale of goods and services to foreign markets What is a budget deficit? - ANSWERSthe condition in which a nation spends more than it takes in taxes What is a negative balance of trade? - ANSWERSA country who brings more in than they are sending out What is a positive balance of trade? - ANSWERSA country who sends out more than they are bringing in What is an entrepreneur? - ANSWERSan individual who risks his or her wealth, time and effort to develop for profit an innovative product or way of doing things. What are business ethics? - ANSWERSprinciples and standards that determine acceptable conduct in business What is the primary reason for the Sarbanes-Oxley Act? - ANSWERShelp restore confidence in corporate America by the public How should someone determine the best way to handle an ethical decision? - ANSWERSLook through the viewpoint of stakeholders What is conflict of interest? - ANSWERSMost common ethical issue identified by employees. Put own interest before interest of customer. What is a code of ethics? - ANSWERSFormalized rules and standards that describe what a company expects of it's employees What is plagiarism? - ANSWERSThe act of taking come else's work and presenting it as your own without mentioning the source What is whistleblowing? - ANSWERSThe act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies. Studies indicate that organizations that are profitable also practice ________. - ANSWERSSocial Responsibility What are the arguments for Social Responsibility? - ANSWERSBusinesses helped create many of the social problems that exist today, so they should help fix them. They have the financial and technical resources to help solve problems. As members of society, businesses should do their fair share to help others. It's necessary to ensure economical survival. What are the arguments against Social Responsibility? - ANSWERSSidetracks managers from the primary goal of business. Participation give businesses greater power, perhaps at the expense of particular segments of society. People question whether business has expertise needed to assess and make decisions about social problems. People believe that social problems are the responsibility of gov agencies and officials, who can be held accountable by voters. What are the environmental concerns of today's society? - ANSWERSAnimal rights, pollution, and going green. What are the benefits of technology? - ANSWERSImproved global access, faster productivity growth, improved efficiency, and reduced costs. What is MIS? - ANSWERSManagement Information System- Collect, store, update, process and present data. What is intranet? - ANSWERSa network of computers similar to the Internet that is available only to people inside an organization What is extranet? - ANSWERSa network of computers that permits selected companies and other organizations to access the same info and may allow collaboration and communication. What is the Internet? - ANSWERSGlobal information system that links many computer networks together.