p.4
Business Ethics and Social Responsibility
What is the definition of ethical behavior?
Conforming to personal beliefs and social norms about what is right and good.
p.10
Business Management Process
What are the three levels of managers?
Top Managers, Middle Managers, and First-line Managers.
p.5
Business Ethics and Social Responsibility
What is the focus of the ethical norm of Justice?
Consistency with fairness.
p.7
Business Ethics and Social Responsibility
What should take precedence over profits according to social responsibility principles?
Social responsibility (SR).
p.9
Forms of Business Ownership
What are corporations defined as?
Legal entities that can own property, sue, or be sued.
p.11
Strategic Management and Planning
What is strategic management?
The process of helping an organization maintain an effective alignment with its environment.
p.5
Business Ethics and Social Responsibility
What is the ethical norm of Utility?
Optimize benefits to all affected parties.
p.11
Business Management Process
What skills are needed to process increasing amounts of information?
Management and technology skills, particularly in communication.
p.2
Economic Systems Overview
What does an economic system refer to?
How a nation allocates resources among its citizens, including individuals and organizations.
p.7
Entrepreneurship and Small Business
What are some economic contributions of small businesses?
Job creation, innovation, and supply chain support for larger firms.
p.10
Business Management Process
What does leading in management involve?
Guiding and motivating employees to meet the organization’s objectives.
p.9
Forms of Business Ownership
What are two advantages of corporations?
Limited liability and continuity.
p.4
Business Ethics and Social Responsibility
What characterizes unethical behavior?
Conforming to beliefs and norms about what is wrong and bad.
p.4
Business Ethics and Social Responsibility
What should business ethics encompass?
Ethical or unethical behavior by employees in their jobs, and should be part of business ethos and company culture.
p.12
Business Management Process
How does goal setting help firms?
It helps firms allocate resources.
p.11
Business Management Process
What type of skills are necessary to face a volatile and complex business environment?
Complex problem-solving skills.
p.6
Business Ethics and Social Responsibility
How can ethics be assessed during the hiring process?
By including ethics in interviews to assess decision-making tendencies.
p.2
Economic Systems Overview
What is a planned economy?
A centralized government controls most production factors and makes allocation decisions.
p.4
Business Ethics and Social Responsibility
What do managerial ethics standards guide?
Behavior towards employees, the organization, and economic agents (customers, competitors, stockholders, etc.).
p.12
Strategic Management and Planning
What does functional strategy guide managers in?
Specific areas such as marketing, finance, and operations.
p.7
Entrepreneurship and Small Business
How is entrepreneurship defined?
Seeking business opportunities under risk.
p.13
Strategic Management and Planning
What do strategic plans reflect?
Decisions about resource allocations, company priorities, and steps needed to meet strategic goals.
p.8
Forms of Business Ownership
What is an advantage of sole proprietorships?
Simple formation and tax benefits.
p.1
Basic Business Concepts
What is profit?
The difference between revenues and expenses; rewards for risk-taking.
p.3
Economic Systems Overview
What does the business cycle reflect?
Short-term economic fluctuations, including expansions and contractions.
p.1
External Business Environments
What influences the domestic business environment?
Competition, political stability, technology, tax systems, population growth, and financial stability.
p.1
External Business Environments
How does the economic environment affect businesses?
Conditions affecting operations; strong economies lead to higher wages, while weak economies allow lower wages.
p.14
Business Management Process
What is involved in setting up new systems in a company?
Compensating employees who enforce the firm's new values.
p.5
Business Ethics and Social Responsibility
What does the ethical norm of Caring entail?
Consistency with responsibilities to each other.
p.11
Business Management Process
What is a key global management skill for the 21st century?
Understanding foreign markets, cultural differences, and the motives and practices of foreign rivals.
p.12
Business Management Process
How does goal setting assist managers?
It helps managers assess performance.
p.9
Forms of Business Ownership
What are two disadvantages of corporations?
Double taxation and complex formation.
p.12
Strategic Management and Planning
What are the two types of diversification in corporate strategy?
Related diversification and unrelated diversification.
p.8
Entrepreneurship and Small Business
What is a disadvantage of franchising?
High start-up costs and ongoing fees.
p.2
Economic Systems Overview
What is a mixed market economy?
Combines elements of both planned and market economies, featuring privatization and socialism.
p.9
Business Management Process
What does the management process involve?
Planning, organizing, leading, and controlling resources to achieve goals.
p.11
Strategic Management and Planning
What are performance targets used for in organizations?
To measure success or failure.
p.6
Business Ethics and Social Responsibility
What basic consumer rights should businesses provide?
Safety, information, choice, education, and service.
p.3
Demand and Supply Dynamics
What defines a monopoly?
A single producer controls the market and sets prices based on consumer demand.
p.3
Economic Systems Overview
What does Gross Domestic Product (GDP) measure?
The total value of goods/services produced within a country during a specific period.
p.13
Business Management Process
What is corporate culture?
The shared experiences, stories, beliefs, and norms that characterize an organization.
p.14
Business Management Process
What is the role of top management in a new company?
To formulate a vision for the company.
p.5
Business Ethics and Social Responsibility
What does the ethical norm of Rights emphasize?
Respect the rights of all individuals involved.
p.5
Business Ethics and Social Responsibility
What are some areas of business ethics?
Fraud and manipulation, sustainability, diversity and inclusion, exploitation, corruption, and bribes.
p.12
Business Management Process
What is one purpose of goal setting in management?
Provides direction and guidance for managers at all levels.
p.10
Business Management Process
What does the control process compare?
What has been planned versus what has been achieved.
p.7
Business Ethics and Social Responsibility
What responsibility do corporations have regarding the problems they create?
They should address those problems.
p.7
Entrepreneurship and Small Business
What defines small businesses?
Independent businesses with limited market influence.
p.10
Business Management Process
Who are considered top managers?
President, vice president, CEO, CFO.
p.2
Economic Systems Overview
What characterizes a market economy?
Individual producers and consumers dictate production and allocation through supply and demand interactions.
p.4
Business Ethics and Social Responsibility
What are some ethical concerns in business?
Ambiguity (e.g., financial disclosure) and global variations in practices (e.g., bribes).
p.10
Business Management Process
What do first-line managers do?
Work with and supervise employees.
p.9
Business Management Process
What are the three main components of planning?
Determining goals, developing strategy, and designing tactical and operational plans.
p.7
Entrepreneurship and Small Business
What are characteristics of successful entrepreneurs?
Resourcefulness, strong customer relations focus, desire for independence, ability to manage uncertainty and risk, and networking skills.
p.13
Strategic Management and Planning
What are tactical plans?
Shorter-term plans for implementing specific aspects of the company’s strategic plans.
p.2
Demand and Supply Dynamics
What is price elasticity?
It measures how demand changes with price fluctuations.
p.10
Business Management Process
What is the primary function of organizing in management?
Arranging people, resources, and activities in a coherent structure.
p.10
Business Management Process
What is the purpose of controlling in management?
Monitoring a firm's performance to ensure it meets its goals.
p.12
Strategic Management and Planning
What does corporate strategy determine?
What business a company will own and operate.
p.2
Economic Systems Overview
What are the key factors of production?
Labor, Capital, Entrepreneurs, Physical Resources, Information Resources.
p.8
Entrepreneurship and Small Business
What is one advantage of buying an existing business?
Lower risk, but it may have existing issues.
p.11
Strategic Management and Planning
What is a mission statement?
A statement of how a business will achieve its fundamental purpose.
p.8
Entrepreneurship and Small Business
What are the advantages of franchising?
Proven model and support from the franchisor.
p.9
Business Management Process
What strategies are used for growth or restructuring in corporations?
Mergers, acquisitions, divestitures, and spin-offs.
p.3
Basic Business Concepts
What are private property rights?
Rights that allow individuals to own and control their possessions.
p.10
Business Management Process
What is the role of middle managers?
Implement strategies and work toward goals set by top managers.
p.8
Entrepreneurship and Small Business
What is a key advantage of starting a business from scratch?
Avoids inherited problems.
p.6
Business Ethics and Social Responsibility
What are some ethical practices that businesses should adopt?
Written codes of conduct, top management support, ethics training programs, and ethical hotlines.
p.3
Demand and Supply Dynamics
What is perfect competition?
A market structure with many small firms where prices are determined by supply and demand.
p.13
Strategic Management and Planning
What does analyzing the organization and the environment involve?
Assessing internal strengths and weaknesses and external opportunities and threats.
p.3
Demand and Supply Dynamics
What characterizes monopolistic competition?
Numerous sellers differentiate their products, allowing some control over pricing.
p.2
Demand and Supply Dynamics
What is supply in economic terms?
The willingness and ability of producers to offer goods/services; directly related to price.
p.8
Entrepreneurship and Small Business
What are keys to success in small businesses?
Hard work, market demand, and managerial competence.
p.13
Strategic Management and Planning
Who sets operational plans?
Mid-level and lower-level managers set short-term targets for daily, weekly, or monthly performance.
p.9
Business Management Process
Who are involved in managing a corporation?
Shareholders, a board of directors, and corporate officers.
p.4
Business Ethics and Social Responsibility
What are some sources of personal codes of ethics?
Childhood responses to adult behavior, peer influence in elementary school, and adult experiences and developed values.
p.6
Business Ethics and Social Responsibility
What is one responsibility of an independent board in a company?
To ensure the board acts in the company’s interest.
p.9
Business Management Process
What are the responsibilities of managers?
Responsible for business performance and effectiveness, accountable to key stakeholders.
p.4
Business Ethics and Social Responsibility
What steps are involved in making ethical judgments?
Gather relevant information, analyze facts against moral values, and make a judgment based on rightness or wrongness.
p.7
Entrepreneurship and Small Business
What roles do entrepreneurs play?
They take risks to create and grow businesses.
p.8
Entrepreneurship and Small Business
What are common reasons for failure in small businesses?
Poor management and insufficient capital.
p.1
Business Environment Overview
What type of environment do businesses operate in?
A volatile, uncertain, complex, and ambiguous environment influenced by technological advancements.
p.13
Strategic Management and Planning
What is contingency planning?
Planning for change by identifying important aspects of a business or market that might change and how to respond.
p.8
Forms of Business Ownership
What is a disadvantage of partnerships?
Unlimited liability for general partners.
p.13
Business Management Process
What is the first step in changing the culture?
Analysis of the company’s environment to highlight extensive change.
p.1
External Business Environments
What defines the political-legal environment for businesses?
The regulatory relationship between business and government defining operational boundaries.
p.1
External Business Environments
What influences the sociocultural environment?
Customs and values that affect acceptable goods/services and business conduct.
p.11
Strategic Management and Planning
What are goals in the context of strategic management?
Objectives that a business hopes and plans to achieve.
p.6
Business Ethics and Social Responsibility
What type of culture should businesses create to promote ethical behavior?
A culture of openness and dissent.
p.3
Basic Business Concepts
What motivates profit in a market economy?
Profit motivation drives businesses to innovate and improve efficiency.
p.6
Business Ethics and Social Responsibility
What is the definition of social responsibility in a business context?
Balancing commitments to stakeholders.
p.13
Strategic Management and Planning
What is the purpose of matching the organization and its environment?
To match environmental threats and opportunities against corporate strengths and weaknesses.
p.7
Entrepreneurship and Small Business
What are the essentials of a business plan?
Goals and objectives, strategies for achievement, and implementation plans.
p.3
Economic Systems Overview
What are economic indicators?
Statistics that reflect the health of an economic system, measuring growth and stability.
p.3
Economic Systems Overview
What is Real GDP?
GDP adjusted for inflation, reflecting true economic growth rates.
p.13
Business Management Process
How can managers support corporate culture?
By rewarding and promoting those who understand and work toward maintaining it.
p.12
Strategic Management and Planning
What does retrenchment in corporate strategy involve?
Downsizing and divestiture, especially during difficult times.
p.11
Strategic Management and Planning
What are the different levels of goals organizations set?
Long-term goals (five years or more), intermediate goals (one to five years), and short-term goals (one year or less).
p.7
Entrepreneurship and Small Business
What are popular areas of small-business enterprise?
Services, retailing, construction, wholesaling, finance and insurance, manufacturing and transportation.
p.8
Entrepreneurship and Small Business
What are some sources of financing for small businesses?
Personal resources, family and friends loans, bank loans, venture capital, SBA financial programs.
p.6
Business Ethics and Social Responsibility
What are some environmental responsibilities of businesses?
Control pollution, waste disposal, and recycling.
p.3
Demand and Supply Dynamics
What is an oligopoly?
A market dominated by a few large sellers with significant barriers for new entrants.
p.8
Forms of Business Ownership
What is an advantage of partnerships?
More talent and fundraising capability.
What are key strategies for winning competition?
Minimizing costs and maximizing quality to earn higher margins.
p.1
External Business Environments
What factors affect the global business environment?
International trade agreements, economic conditions, political unrest, market opportunities, cultures, competitors, and currency values.
What are sustainable practices in business?
Practices like waste reduction that contribute to environmental preservation and long-term economic stability.
p.12
Strategic Management and Planning
What is the focus of business (or competitive) strategy?
Improving the company’s competitive position at the level of the business unit or product line.
p.2
Demand and Supply Dynamics
What is demand in economic terms?
The willingness and ability of buyers to purchase products; inversely related to price.
p.6
Business Ethics and Social Responsibility
What should businesses avoid to ensure employee rights?
Illegal discrimination, and they should ensure safety and work-life balance.
p.8
Forms of Business Ownership
What is a disadvantage of sole proprietorships?
Unlimited liability and limited resources.
p.1
Basic Business Concepts
How do businesses respond to consumer choice?
By providing options to satisfy needs based on consumer preferences.
p.3
Business Management Process
What does productivity measure?
The comparison of output against resource input; higher productivity leads to lower prices.
p.1
Basic Business Concepts
What is the definition of a business?
An organization providing goods/services for profit.
p.13
Strategic Management and Planning
What does crisis management involve?
An organization’s methods for dealing with a crisis requiring immediate response.
p.8
Forms of Business Ownership
What do cooperatives combine?
Benefits of sole proprietorships with corporate power.
How can companies focusing on sustainability benefit?
By enhancing reputations, attracting socially responsible consumers, mitigating risks, and strengthening community relations.
p.2
Demand and Supply Dynamics
What is a surplus?
Occurs when quantity supplied exceeds quantity demanded, leading to potential losses for producers.
p.2
Economic Systems Overview
What does the private enterprise system allow?
Individuals to pursue their interests with minimal government intervention.
p.1
External Business Environments
What does the technological environment involve?
Human knowledge, methods of work, equipment, telecommunications, and processing systems.
p.2
Demand and Supply Dynamics
What is a shortage?
Happens when quantity demanded exceeds quantity supplied, resulting in lost profits and increased competition.
What is crucial for efficient business operations?
Efficient cash flow management.
What benefits do businesses provide to society?
Goods/services, employment, innovation, improved quality of life, personal income enhancement, tax contributions, and community support.
