Finance Flashcards

Business & Finance Review

Which environment is NOT an important dimension of a business organization externalenvironment? The corporate cultural environment
What is profit? Difference between revenues and expenses
What is the environment where a firm conducts business known as? Domestic business environment
Factors such as international trade agreements, economic conditions, and political unrest will have the greatest impact on what type of business environment? Global business environment
Which type of business environment can reduce or replace the need for traditional working methods,physical equipment, and other platforms needed to conduct business? Technological environment
The pursuit of profits is how a business differs from organizations such as public universities, public hospitals, and government agencies. T/F TRUE
An organizations external environment consists of everything that might affect it.T/F TRUE
What is the general term for resources used by a business to produce a good or service referred to as? Factors of Proudction
What term denotes a nation’s basis for allocating its resources among its citizens? Economic system
What is the process for converting government enterprises into individually owned firms known as? Privatization
What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services? Human resources
Who is the person who accepts the risks and opportunities inherent in a new business opportunity? Entrepreneurs
What factor of production is used to generate forecasts based on specialized knowledge and economic data? Information resources
When making decisions about production and allocation, which type of system depends on individual producers and consumers to create a combination of supply and demand? Market economy
The idea that individuals would contribute according to their abilities and receive benefitsaccording to their needs supports which type of economy? Communist based economy
Which of the following best explains the difference between a market economy and a planned economy? In a planned economy, consumers have little choice in where they work or what they purchase or pay.
What type of economy is the United States reflective of? Mixed
What does a planned economy rely on a centralized government to do? Allocate all or most factors of production
Which economic system emphasizes the private ownership of most factors of production? Capitalism
In which type of economy do the individual producer and consumer control production through supply and demand? Market economy
The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment. T/F? FALSE
Physical resources include the data and other information used by businesses. T/F FALSE
The technological environment includes only electronics and telecommunications used to perform business activities. T/F FALSE
In a market system, individuals are limited as to what they can buy and in how they can spend their money. T/F FALSE
In a market economy, there is a centralized government that controls factors of production and decision making. FALSE
What is the point at which the supply curve and the demand curve intersect on a graph? equilibrium
What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal? Market price
What occurs when the quantity demanded exceeds the quantity supplied? Shortage
What marks the key difference between economic systems? The way the factors of production are managed
What is the primary force that determines what a firm buys and sells? Laws of supply and demand
What is the willingness and ability of producers to offer a good for sale referred to as? Supply
What takes place when buyers purchase more of a product when the price drops, and less when the price increases? Laws of demand
What can be used to determine relationships among different levels of demand and supply, based on price? Demand and supply curves
Graphically, what has been achieved when price of goods demanded is equal to the quantity of goods supplied? Equilibrium price
What are individual beliefs about what is right and wrong or good and bad referred to as? Ethics
Which of the following should be the first step in assessing ethical behavior in a certain situation? Collect facts related to the situation.
What is likely the single MOST effective step that a company can take to set ethical standards? Demonstrate support from top management
How do top managers BEST demonstrate a commitment to ethical business practices? By adopting and enforcing written codes of ethics
What category of ethics relates to matters such as hiring, firing, working conditions, privacy and respect? Behavior toward employees
When an activity benefits an individual but not the employer, what ethical dilemma has been created? Conflict of interest
What do ethical norms that ensure an action is consistent with what’s fair entail? Justice
Which ethical norm considers whether a particular act optimizes the benefits to those who are affected by it? Utility
When evaluating a decision based on the ethical norm of rights, a manager is MOST likely to consider which of the following questions? Does the decision respect the individuals involved?
Which of the following is the BEST description of organizational stakeholders? Individuals and groups that are directly affected by the practices of a company
Standards that help to shape behaviors towards employees, the organization, and other economic agents are Managerial ethics
Ethics are beliefs about what is right and wrong. TRUE
Business ethics refers to ethical or unethical behaviors by employees in the context of theirpersonal lives. FALSE
What is the term given to the groups, individuals, and organizations that are directly affected bythe practices of an organization? organizational stakeholders
Which entity is defined as independent and has little influence on its market? Small business
The U.S. Department of Commerce considers a business “small” if it has fewer than how manyemployees? 500
Which of the following industry groups is the fastest growing segment of small business enterprise? Services
Which of the following types of venue is favored by small-business retailers? specialty shop
Why is it difficult to compare relative job growth for different-sized businesses? It is hard to determine the cutoff point at which a small business becomes a large business.
Why do attitudes about entrepreneurship vary internationally? Attitudes towards risk-taking in business are culturally determined.
When an investor is not interested in owning their own business, why do they need to understand entrepreneurship? To determine the key characteristics of success
In a small business, who determines prices for wholesalers and customers? Market forces
Small businesses impact key aspects of the U.S. economy including Job creation and innovation
The Small Business Administration is the government agency charged with owning small businesses. FALSE
Small businesses produce more patents per employee than large patenting firms. TRUE
Most businesses in the United States are large businesses with more than 500 employees. FALSE
Major innovations are most likely to come from large corporations. FALSE
The Small Business Administration (SBA) may consider a business with many employees to be small as long as it has low annual revenues.
What are products that are created domestically and transported for sale abroad? Exports
What are products that are created abroad and then transported and sold domestically? Imports
Which country is the world’s largest marketplace and most stable economy? The United States
Which country in the Pacific Asia region has one of the world’s largest economies? China
Which organization was developed to promote economic and cultural cooperation among Asian countries? ASEAN
Which organization created the classification of countries based on per capita income? The World Bank
Under which of the following treaties are Canada, the United States, and Mexico gradually eliminating tariffs and all other trade barriers? The North American Free Trade Agreement
What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region? ASEAN
Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas? General Agreement on Tariffs and Trade
How does globalization of business benefit shareholders of an organization? Through increased and improved profitability
What caused manufacturing jobs to move from Mexico to China in the late 1990s? Increases in Mexico’s cost of living and wages
Where is the world’s largest free marketplace? Europe
An import is a product made or grown abroad but sold domestically TRUE
The World Trade Organization (WTO) was created to encourage international trade TRUE
Globalization refers to the process by which countries around the world are becoming more self-sufficient. FALSE
Which business constituents analyze their competitive environments and plan, organize, direct, and control the operations of their organizations? Managers
Which aspect of the management process involves determining what the organization needs to do and how best to get it done? Planning
What function of the management process is used to monitor and ensure the organization is meeting its goals? Controlling
The first step in the planning process is determining goals. What is the next step? Developing a comprehensive strategy
Which description defines the planning function of the management process? Determining what an organization needs to do and how best to get it done
Which description identifies the organizing function of the management process? Determining how best to arrange an organization’s resources into a coherent structure
Which function in the management process is being utilized when a firm elects to move towards a more centralized structure? Organizing
Which description identifies the controlling function of the management process? Monitoring a firm’s performance to ensure that it is meeting its goals
Comparing actual performance against standards is an example of which function of the management process? Controlling
What type of management process function is being used when a manager motivates the workforce by rewarding them with additional vacation when standards are achieved? Leading
When a sales manager compares actual sales to the quarterly sales quota, he or she is performing the controlling function of management. TRUE
The first step in the control process is to compare actual performance to standards FALSE
Which type of manager is responsible for implementing the strategies, policies, and decisions made by top managers? Middle manager
Which type of manager spends most of their time working with and supervising the employees who report to them? First-line managers
Which type of business constituent has titles such as President and CEO? top managers
Which level of management is responsible for the overall performance and effectiveness of the firm? Top managers
CFO and controller are titles associated with what type of manager? Financial
Which level of management sets general policies, formulates strategies, approves all significant decisions, and represents the company in dealings with other firms and with government bodies? Top managers
Titles such as plant manager, operations manager, and division manager designate which level of management? Middle managers
The titles of supervisor, office manager, and group leader are examples of which level of management? First-line management
Which of the following are responsible for production and quality control? operations managers

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