MGM101 TEST 2 STUDY GUIDE
EXTERNAL ENVIRONMENT - Answers -Everything outside an organization's
boundaries that might affect it.
ECONOMIC ENVIRONMENT - Answers -Conditions of the economic system in which
an organization operates.
AGGREGATE OUTPUT - Answers -Total quantity of goods and services produced by
an economic system during a given period.
BUSINESS CYCLE - Answers -Pattern of short-term ups and downs (expansions and
contractions) in an economy.
GROSS DOMESTIC PRODUCT (GDP) - Answers -Total value of all goods and
services produced within a given period by a national economy through domestic
factors of production.
GROSS NATIONAL PRODUCT (GNP) - Answers -Total value of all goods and
services produced by a national economy within a given period regardless of where the
factors of production are located.
GDP PER CAPITA - Answers -Gross domestic product per person.
REAL GDP - Answers -GDP calculated to account for changes in currency values and
price changes.
PURCHASING POWER PARITY - Answers -Principle that exchange rates are set so
that the prices of similar products in different countries are about the same.
PRODUCTIVITY - Answers -Measure of economic growth that compares how much a
system produces with the resources needed to produce it.
BALANCE OF TRADE - Answers -The total of a country's exports (sales to other
countries) minus its imports (purchases from other countries).
NATIONAL DEBT - Answers -The total amount of money that a country owes its
creditors.
BUDGET DEFICITS - Answers -The result of the government spending more in one
year than it takes in during that year.
INFLATION - Answers -Occurrence of widespread price increases throughout an
economic system.
, CONSUMER PRICE INDEX (CPI) - Answers -Measure of the prices of typical products
purchased by consumers living in urban areas.
DEFLATION - Answers -A period of generally falling prices.
UNEMPLOYMENT - Answers -The level of joblessness among people actively seeking
work in an economic system.
FISCAL POLICIES - Answers -Policies whereby governments collect and spend
revenues.
MONETARY POLICIES - Answers -Policies whereby the government controls the size
of the nation's money supply.
RESEARCH AND DEVELOPMENT (R&D) - Answers -Those activities that are
necessary to provide new products, services, and process.
POLITICAL-LEGAL ENVIRONMENT - Answers -Conditions reflecting the relationship
between business and government, usually in the form of government regulation.
SOCIO-CULTURAL ENVIRONMENT - Answers -Conditions including the customs,
values, attitudes, and demographic characteristics of the society in which an
organization functions.
OUTSOURCING - Answers -Strategy of paying suppliers and distributors to perform
certain business processes or to provide needed materials or services.
BUSINESS PROCESS MANAGEMENT - Answers -Approach by which firms move
away from department-oriented organization and toward process-oriented team
structures that cut across old departmental boundaries.
ACQUISITION - Answers -The purchase of a company by another, larger firm that
absorbs the smaller company into its operations.
MERGER - Answers -The union of two companies to form a single new business.
POISON PILL - Answers -A defence that management adopts to make a firm less
attractive to an actual or potential hostile suitor in a takeover attempt.
DIVESTITURE - Answers -Occurs when a company sells part of its existing business
operations to another company.
SPINOFF - Answers -Strategy of setting up one or more corporate units as new,
independent corporations.
EXTERNAL ENVIRONMENT - Answers -Everything outside an organization's
boundaries that might affect it.
ECONOMIC ENVIRONMENT - Answers -Conditions of the economic system in which
an organization operates.
AGGREGATE OUTPUT - Answers -Total quantity of goods and services produced by
an economic system during a given period.
BUSINESS CYCLE - Answers -Pattern of short-term ups and downs (expansions and
contractions) in an economy.
GROSS DOMESTIC PRODUCT (GDP) - Answers -Total value of all goods and
services produced within a given period by a national economy through domestic
factors of production.
GROSS NATIONAL PRODUCT (GNP) - Answers -Total value of all goods and
services produced by a national economy within a given period regardless of where the
factors of production are located.
GDP PER CAPITA - Answers -Gross domestic product per person.
REAL GDP - Answers -GDP calculated to account for changes in currency values and
price changes.
PURCHASING POWER PARITY - Answers -Principle that exchange rates are set so
that the prices of similar products in different countries are about the same.
PRODUCTIVITY - Answers -Measure of economic growth that compares how much a
system produces with the resources needed to produce it.
BALANCE OF TRADE - Answers -The total of a country's exports (sales to other
countries) minus its imports (purchases from other countries).
NATIONAL DEBT - Answers -The total amount of money that a country owes its
creditors.
BUDGET DEFICITS - Answers -The result of the government spending more in one
year than it takes in during that year.
INFLATION - Answers -Occurrence of widespread price increases throughout an
economic system.
, CONSUMER PRICE INDEX (CPI) - Answers -Measure of the prices of typical products
purchased by consumers living in urban areas.
DEFLATION - Answers -A period of generally falling prices.
UNEMPLOYMENT - Answers -The level of joblessness among people actively seeking
work in an economic system.
FISCAL POLICIES - Answers -Policies whereby governments collect and spend
revenues.
MONETARY POLICIES - Answers -Policies whereby the government controls the size
of the nation's money supply.
RESEARCH AND DEVELOPMENT (R&D) - Answers -Those activities that are
necessary to provide new products, services, and process.
POLITICAL-LEGAL ENVIRONMENT - Answers -Conditions reflecting the relationship
between business and government, usually in the form of government regulation.
SOCIO-CULTURAL ENVIRONMENT - Answers -Conditions including the customs,
values, attitudes, and demographic characteristics of the society in which an
organization functions.
OUTSOURCING - Answers -Strategy of paying suppliers and distributors to perform
certain business processes or to provide needed materials or services.
BUSINESS PROCESS MANAGEMENT - Answers -Approach by which firms move
away from department-oriented organization and toward process-oriented team
structures that cut across old departmental boundaries.
ACQUISITION - Answers -The purchase of a company by another, larger firm that
absorbs the smaller company into its operations.
MERGER - Answers -The union of two companies to form a single new business.
POISON PILL - Answers -A defence that management adopts to make a firm less
attractive to an actual or potential hostile suitor in a takeover attempt.
DIVESTITURE - Answers -Occurs when a company sells part of its existing business
operations to another company.
SPINOFF - Answers -Strategy of setting up one or more corporate units as new,
independent corporations.
