BUS X100 Exam 4 (Mentor answer key) 2024 Spring Study Guide

Business is the organized efforts of individuals and organizations.... - - To produce and distribute products - That satisfy the needs of customers and stakeholders in society - At a profit Refers to the money that is used to purchase items that are used to product goods and services. - Capital A broad term that includes all that includes all the natural resources that can be found on land (ex. Oil, gold, water, wood, vegetation) - Land This includes machines, tools, building, or whatever else is used in the production of goods - Capital Combination of all factors; led by an innovative spirit and risk-taking - Entrprenuership According to Peter Drucker, this is and will always be the most important factor of production - Knowledge Looking at the competitive landscape as well as external influences that affects a business decision-making process (Hint: think PESTLE) - Environmental Scan What does PESTLE stand for - Political, Economic, Social, Technological, Legal, environmental In this competitive structure, it is illegal unless approved by the US government. This term is often represented by public utilities. - Monopoly In this competitive structure, there are many buyers and sellers, along with products being perfect substituted. Most agricultural product (ex. Corn) use this structure. - Perfect In this competitive structure, there are many buyers and sellers with similar (not identical) products. Fast-food restaurants best represent this. - Monopolistic In this competitive structure, there are a few large sellers with similar (not identical) products. The airline industry best represents this. - Oligopoly A country's economic system is determined by four questions. Please list those questions. - 1) What goods and services will be produced? 2) How will these goods and services be produced? 3) Who will receive the goods and services produced? 4) How will the system accommodate change and progress? A capitalist market - is one in which decisions about what and how much to produce are made by the market - by buyers and sellers negotiating prices for goods and services. Socialism - is an economic system that believes most basic businesses (e.g., steel mills, coal mines, and utilities) should be owned by the government so that profits can be more evenly distributed among the people.