Major Field Test Business Study Set| Exam Questions with Verified Answers|
Latest Update Graded A+
Administrative Law Consists of the rules,orders, and decisions of administrative agencies.
These agencies are often given rule making, investigation, and enforcement powers.
Criminal Law and Civil Law What are the two types of law?
Criminal Law A system of law concerned with the punishment of those who commit crimes;
implies that perpetrators of crimes are subject to imprisonment.
Civil Law The the system of law concerned with private relations between members of a
community rather than criminal, military, or religious affairs. Typically involves either money
damages or changes in a person's status or behavior.
Two divisions of criminal law Includes: Felonies (punishment over a year) and Misdemeanors
(punishment under a year)
Tort A civil wrong committed against a individual. (negligence, malpractice, etc.)
Contract An agreement between two or more persons to do, or to refrain from doing
something in exchange for something of value.
Key Elements of a Binding Contract Competent Parties (not drugged, mentally impared,
etc.), excludes Minors (must be 18), Consideration (each side must contribute something of
value), and Mutual Assent (each side must be clear - write it down).
Uniform Commercial Code (UCC) One uniform act that has been promulgated in attempts to
harmonize the law of sales and other commercial transactions in all 50 states.
,It covers things such as sale of goods, credit, and bank transactions. All states have adopted the
entire UCC except Louisiana that only adopted parts of it.
Forward Integration A vertical integration strategy that involves entry into value chain
system activities closer to the end user (distribution chain focused).
Backward Integration A vertical integration strategy that involves entry into activities
previously performed by suppliers or other enterprises positioned along earlier stages of the
industry value chain system (supply chain focused).
Horizontal Integration A strategy in which a company acquires or merges in order to gain
with additional business activities at the same level of the value chain (same level of production
across multiple industries).
Vertical Integration A strategy in which a company performs value chain activities along
more than one stage of an industry's value chain system (different stages of production and/or
distribution in the same industry).
Market Penetration A strategy adopted by companies for new and existing products to
attract larger number of buyers and a larger market share.
Market Development A strategy in which company focuses on expanding the potential
market through new users or new uses.
Product Development The process of designing, creating and marketing new products or
services to benefit customers.
Concentric Diversification A type of diversification strategy in which a company acquires or
develops new products or services, closely related to its core business or technology in order to
enter one or more new markets.
, Conglomerate Diversification A type of diversification strategy in which a company acquires
or merges in order one or more new markets that are completely separate from the company's
core business or technology.
Horizontal Diversification Type of diversification under which a firm develops or acquires
new products that are different from its core business or technology, but which may appeal to
its current customers.
Joint Venture A business arrangement in which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task.
Retrenchment A strategy used to cut expenses with the goal of becoming a more financial
stable business by reducing the diversity or the overall size of the operations of the company.
Divestiture The partial or full disposal of a business unit through sale, exchange, closure or
bankruptcy; typically resulting from a management decision to no longer operate a business
unit because it is not part of a core competency.
Liquidation When a company's operations are brought to an end, and its assets are divvied
up among creditors and shareholders, according to the priority of their claims because said
company can no longer pay its obligations.
Bankruptcy Legal procedure for liquidating a business which cannot fully pay its debts out of
its current assets.
(1) people face trade-offs; (2) the cost of something is what you give up to get it; (3) rational
people think at the margin; and (4) people respond to incentives. The Principles of Economic
Decision Making assume that:
(1) trade can make everyone better off; (2) markets are usually a good way to organize
economic activity; and (3) governments can sometimes improve market outcomes. The
Principles Concerning People's Economic Interactions assume that:
Latest Update Graded A+
Administrative Law Consists of the rules,orders, and decisions of administrative agencies.
These agencies are often given rule making, investigation, and enforcement powers.
Criminal Law and Civil Law What are the two types of law?
Criminal Law A system of law concerned with the punishment of those who commit crimes;
implies that perpetrators of crimes are subject to imprisonment.
Civil Law The the system of law concerned with private relations between members of a
community rather than criminal, military, or religious affairs. Typically involves either money
damages or changes in a person's status or behavior.
Two divisions of criminal law Includes: Felonies (punishment over a year) and Misdemeanors
(punishment under a year)
Tort A civil wrong committed against a individual. (negligence, malpractice, etc.)
Contract An agreement between two or more persons to do, or to refrain from doing
something in exchange for something of value.
Key Elements of a Binding Contract Competent Parties (not drugged, mentally impared,
etc.), excludes Minors (must be 18), Consideration (each side must contribute something of
value), and Mutual Assent (each side must be clear - write it down).
Uniform Commercial Code (UCC) One uniform act that has been promulgated in attempts to
harmonize the law of sales and other commercial transactions in all 50 states.
,It covers things such as sale of goods, credit, and bank transactions. All states have adopted the
entire UCC except Louisiana that only adopted parts of it.
Forward Integration A vertical integration strategy that involves entry into value chain
system activities closer to the end user (distribution chain focused).
Backward Integration A vertical integration strategy that involves entry into activities
previously performed by suppliers or other enterprises positioned along earlier stages of the
industry value chain system (supply chain focused).
Horizontal Integration A strategy in which a company acquires or merges in order to gain
with additional business activities at the same level of the value chain (same level of production
across multiple industries).
Vertical Integration A strategy in which a company performs value chain activities along
more than one stage of an industry's value chain system (different stages of production and/or
distribution in the same industry).
Market Penetration A strategy adopted by companies for new and existing products to
attract larger number of buyers and a larger market share.
Market Development A strategy in which company focuses on expanding the potential
market through new users or new uses.
Product Development The process of designing, creating and marketing new products or
services to benefit customers.
Concentric Diversification A type of diversification strategy in which a company acquires or
develops new products or services, closely related to its core business or technology in order to
enter one or more new markets.
, Conglomerate Diversification A type of diversification strategy in which a company acquires
or merges in order one or more new markets that are completely separate from the company's
core business or technology.
Horizontal Diversification Type of diversification under which a firm develops or acquires
new products that are different from its core business or technology, but which may appeal to
its current customers.
Joint Venture A business arrangement in which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task.
Retrenchment A strategy used to cut expenses with the goal of becoming a more financial
stable business by reducing the diversity or the overall size of the operations of the company.
Divestiture The partial or full disposal of a business unit through sale, exchange, closure or
bankruptcy; typically resulting from a management decision to no longer operate a business
unit because it is not part of a core competency.
Liquidation When a company's operations are brought to an end, and its assets are divvied
up among creditors and shareholders, according to the priority of their claims because said
company can no longer pay its obligations.
Bankruptcy Legal procedure for liquidating a business which cannot fully pay its debts out of
its current assets.
(1) people face trade-offs; (2) the cost of something is what you give up to get it; (3) rational
people think at the margin; and (4) people respond to incentives. The Principles of Economic
Decision Making assume that:
(1) trade can make everyone better off; (2) markets are usually a good way to organize
economic activity; and (3) governments can sometimes improve market outcomes. The
Principles Concerning People's Economic Interactions assume that:
