Intro to Business Ch 1 & 2 Test Prep

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  1. Define Business
    Any activity that seeks to provide goods and services to others while operating at a profit
  2. Define profit
    the amount of money a business takes in during a given period by selling goods and services.
  3. Define entrepreneur
    a person who risks time and money to start and manage a business
  4. Define revenue
    the total amount of money a business takes in during a given period by selling goods and services
  5. Define standard of living
    the amount of goods and services people can buy with the money they have
  6. define quality of life
    • the general well-being of a society in terms of its:
    • political freedom,
    • natural environment,
    • education,
    • health care,
    • safety,
    • amount of leisure, and
    • rewards

    that add to the satisfaction and joy that other goods and services provide
  7. define stakeholders
    all the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address
  8. define factors of production
    the resources used to create wealth
  9. what are the 5 factors of production
    • 1. land
    • 2. labor
    • 3. capital
    • 4. entrepreneurship
    • 5. knowledge
  10. define business environment
    the surrounding factors that either help or hinder business development

    • economic and legal
    • technology
    • competition
    • social environment
  11. what is e-commerce
    buying and selling of goods online
  12. What is B2B
    business to business

    Amazon to Coleman Homes
  13. what is B2C
    business to consumer

    Amazon to your wife
  14. what is a database
    an electronic storage file for information
  15. define demography
    the statistical study of the human population

    • -size
    • -density
    • -age
    • -race
    • -gender
    • -income
  16. Which age group has the most money
    65-74 is the richest
  17. what is empowerment
    giving front line workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests
  18. how to gain an edge over competition with customer service
    exceed customer expectations
  19. Is war good for global business
    If you make bullets, yes.

    Otherwise, no. War puts an economic strain. In times of peace there is less international tension and better global economic growth.
  20. define economics
    the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals
  21. define microeconomics
    looks at the behavior of people and organizations in a particular maket
  22. define macroeconomics
    looks at the operation of a nation's economy as a whole
  23. what is the invisible hand... and who started it
    the process that turns self-directed gain into social and economic benefits for all

    Adam Smith
  24. define capitalism
    an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
  25. 4 basic rights of capitalism
    • 1. the right to own private property
    • 2. the right to own a business and keep all that business's profits
    • 3. the right to freedom of competition
    • 4. the right to freedom of choice
  26. define supply
    the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
  27. define demand
    the quantity of products that people are willing to buy at different prices at a specific time
  28. define equilibrium point
    the place where supply and demand meet
  29. what is perfect competition
    many sellers in a market and none is large enough to dictate the price of a product
  30. what is monopolistic competition
    large number of sellers produce very similar products that buyers nevertheless perceive as different
  31. what is oligopoly
    competition where just a few sellers dominate the market
  32. what is monopoly
    one seller controls the total supply
  33. what is the GDP
    Gross Domestic Product

    total value of final goods and services produced in a country in a given year
  34. what is the unemployment rate
    the number of civilians at least 16 years old who are unemployed and tried to find a job within the past 4 weeks
  35. define recession
    2 or more consecutive quarters of decline in the GDP
  36. who manages they money supply and interest rates in the US
    the federal reserve
  37. define importing
    buying products from another country
  38. define exporting
    selling products to another country
  39. define free trade
    the movement of goods/services among nations without political or economic barriers
  40. what is comparative advantage
    the theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently
  41. what is absolute advantage
    the advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries
  42. what is the balance of trade
    the total value of a nation's exports compared to its imports measured over a particular period
  43. what is trade deficit
    an unfavorable balance of trade.

    occurs when the value of a country's imports exceeds that of its exports
  44. what is dumping
    selling products in a foreign country at lower prices than those charged in the producing country
  45. What are the 6 strategies for reaching global markets, in order from least amount of commitment, control, risk, and profit potential, to greatest.
    • 1. Licensing
    • 2. Exporting
    • 3. Franchising
    • 4. Contract manufacturing
    • 5. International joint ventures and strategic alliances
    • 6. Foreign direct investment
  46. what is a tariff
    tax imposed on imports
  47. what is trade protectionism
    the use of government regulations to limit the import of goods and services
  48. what is import quota
    a limit on the number of products in certain categories that a nation can import
  49. what is an embargo
    a complete ban on the import or export of a certain product, or the stopping of all trade with a particular country
  50. What is GATT
    General Agreement of Tariffs and Trade

    a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions
  51. What is WTO
    World Trade Organization

    the international organization that replaced the GATT and was

    assigned the duty to mediate trade disputes among nations
  52. What is NAFTA
    North American Free Trade Agreement

    Agreement that created a free-trade area among the US, Canada, and Mexico
Card Set:
Intro to Business Ch 1 & 2 Test Prep
2014-02-04 21:54:03

Intro to business at UCO - CH 1 & 2
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