UNDERSTANDING BUSINESS 13TH EDITION QUESTIONS WITH ANSWERS, ALL BUNDLED TO BOOST AND EASE, Exams of Business Statistics

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UNDERSTANDING BUSINESS 13TH EDITION QUESTIONS WITH ANSWERS, ALL BUNDLED TO BOOST AND EASE YOUR STUDY, RATED A+ what are some of the advantages of working for others? - ANSWER the company assumes the company's entrepreneurial risk and provides you with benefits. what benefits do you lose by being an entrepreneur? what do you gain? - ANSWER low risks, low reward. high risk, high reward. what are the five factors of production? what seem to be the most important to create wealth? - ANSWER land, labor, capital, entrepreneurship, and knowledge. knowledge and entrepreneurship go hand and hand because they support each other leading to ideas and growth in the economy what are the four ways the government can foster entrepreneurship? - ANSWER allow private ownership of business, enable business people to create enforceable contracts, establish a currency tradable in world markets, help minimize corruption in business. what is the difference between effectiveness, efficiency, and productivity? - ANSWER effectiveness is producing the desired result, efficiency is doing it with the least amount of resources, and productivity is the amount of output you generate from the amount of input. what is empowerment? - ANSWER measures taken to increase the degree of autonomy and self - determination in people and in communities in order to enable them to represent their interests in a responsible and self - determined way. what are some of the major issues affecting the economy today? - ANSWER War and terrorism, global changes. what major factor caused people to move from farming to manufacturing and from manufacturing to the service sector? - ANSWER technologies became so advanced causing farming to be extremely efficient this lead to the migration from farming to manufacturing. what does the future look like for tomorrow's college graduates? - ANSWER more occupations in the service sector will lead to more service jobs. What is the difference between revenue and profit? - ANSWER Revenue is the total amount a business takes in, profit is the amount of money a business earns above what it spends. what is the difference between standard of living and quality of life? - ANSWER standard of living is the amount of goods and services people can buy with the money they have. quality of life is the general well being of a society. what is risk, how is it related to profit? - ANSWER the chance an entrepreneur takes of losing time and money on a business. Risk must be taken to make a profit what do the terms stakeholders, outsourcing, and insourcing mean? - ANSWER stakeholders are all the people that stand to make a gain or lose by the policies and activity. outsourcing means contraction other companies to do functions of the firm. insourcing is within the company. What led to the emergence of socialism? - ANSWER Socialists believe that the distribution of wealth should be more evenly distributed than in free-market capitalism. Government should be empowered to carry out the distribution of wealth. What are the benefits and drawbacks of socialism? - ANSWER Free education through college, free health care, and free child-care are some of the benefits of socialism. The key drawback of socialism is high taxes often causing a "brain drain" in the economy. Socialism also tends to inspire less innovation. What countries still practice communism? - ANSWER Most nations have drifted away from communism but North Korea, Cuba still espouse communism. Russia, Vietnam, and China still have some communist ideals in place. What does ethnocentricity mean, and how can it affect global success? - ANSWER ethnocentricity - an attitude that your own culture is superior to others. It can affect global success because outside of the United States there are a wide array of various cultures and if you do things to offend or act insensitive towards a specific culture your products/ services will basically be shunned and you will not make any money. How would a low value of the dollar affect U.S. exports? - ANSWER A low value of the dollar would affect U.S. exports because you would be spending more money to produce the product than you will be making when people purchase the product, there will be no profit. The product/services will need to be listed for a lower price. What does the Foreign. Corrupt Practices Act prohibit? - ANSWER "questionable" or "dubious" payments to foreign officials to secure business contracts. What are the advantages and disadvantages of trade protectionism and of tariffs? - ANSWER Both trade protectionism and tariffs are supposed to be used to regulate the imports and exports of goods. They believe that this allows the domestic producers to survive and grow without being put out of business by the cheaper foreign suppliers. The disadvantage is that the goods sometimes cost more to purchase due to the cost of the tariffs. What is the key objective of a common market like the EU? - ANSWER The key objective of a common market is being able to trade regionally without having an internal tariff and a set setup of laws to facilitate the exchanges. What three nations comprise NAFTA? - ANSWER United States, Canada, Mexico What are the three major threats to doing business in global markets? - ANSWER Terrorism, Nuclear proliferation, income inequality What key challenges must India and Russia face before becoming global economic leaders? - ANSWER Russia must solve it's political, currency and social problems before becoming a global economic leader. India must address it's difficult trade laws and inflexible bureaucracy. What does the acronym BRIC stand for? - ANSWER Brazil, Russia, India, China What are the two primary concerns associated with offshore outsourcing? - ANSWER 1. Loss of jobs (primarily manufacturing) 2. Safety (specifically foods, drugs, and toys)