… jureeyj , garane , shueib and qanciye

Business
Question and answers
1. What is business?
 Profit-seeking activities and enterprises provide goods and
services necessary to an economic system
2. What is profit-seeking ?
 Profit-seeking is the reward for business people who take the
risk involved to offer goods and services to customers.
3. What is not-for –profit organization?
 Not-for-profit organizations are business-like establishments
that have primary objectives other than profits.
4. List factor of production and explain?
Natural resources Inputs that are useful in their natural states,

including land, forests, and minerals.

Capital Technology, tools, information, facilities, machines, and
equipment.
 Human resources Anyone who works, including physical and

intellectual labor.
Entrepreneurship The willingness to take risks to create and

operate a business.
5. what is entrepreneur ?
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 a person who risks time and money to start and

manage a business
6. what is technology ?
 Technology is the application of knowledge based on
scientific discoveries, inventions, and innovations.
7. What is partnership?
 A partnership is an affiliation of two or more companies that
help each other achieve common goals.
8. What is strategic alliance ?
 A strategic alliance is a partnership formed to create a
competitive advantage for both parties
9. What is outsourcing, offshoring and nearshoring?
 Outsourcing is using outside vendors to produce goods or
fulfill services and functions that were previously handled in-
house or in-country.
 Offshoring is the relocation of business processes to lower-
cost locations overseas.
 Nearshoring is outsourcing production or services to nations
near a firm ’s home base.
10. What is the 21 century manager?
 Critical thinking is the ability to analyze and assess
information to pinpoint problems or opportunities.
 Creativity is the capacity to develop novel solutions to
perceived organizational problems.
 Ability to Lead Change is Guide employees and
organizations through changes
 Vision is The ability to perceive marketplace needs and what
an organization must do to satisfy them
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11. What Makes a Company Admired?

 Solid profits
 Stable growth
 Safe and challenging work environment
 High-quality goods and services
 Business ethics and social responsibility
12. List the future of business ?
 New Technologies
 Population Shifts
 Emerging nations
 Shrinking Global Barriers
 Trade, communication, transportation

Chapter two
1. What is business ethics ?
 The standards of conduct and moral values governing
actions and decisions in the work environment.
NB = read you are slide

Chapter three
1. What is economic ?
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 Analysis of the choices people and governments make

in allocating resources.
2. List types of economic and explain?
 Microeconomics is The study of small economic units,
such as individual consumers, families, and businesses.
 Macroeconomics is the study of nation overall
economic issues.
3. What is supply and demand ?
 Supply: Amount of goods and services for sale at different

prices.

 Demand: Willingness and ability of consumers to purchase

goods and services at different prices.

4. What is supply carve and demand ?

 Supply curve - shows the relationship between different

prices and the quantities that sellers will offer for sale,

regardless of demand.

 Demand curve - shows the amount of a product buyers

will purchase at different prices.

5. Classify three categories in economies ? explain

 Private enterprise system: capitalism or market
economy
 Planned economies: socialism, communism
 Mixed economies (combinations of the two)
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6. List four degree of completion ?

 Pure competition
 Monopolistic competition
 Oligopoly
 Monopoly
7. What is socialism and communism ?
 Socialism is Government ownership and operation
of major industries, such as health care or
communications.
 Communism is Property owned and shared by the
community under a strong central government.

8. What is mixed market economics ?

 Mixed Market Economies is Economic systems that
combine features of private enterprise and planned
economies.
9. What is privatization?
 Privatization is Process of converting a publicly
owned company to a private one
10. List business cycle ? explain
 Prosperity—High consumer confidence, businesses
expanding
 Recession—Cyclical economic contraction lasting for
six months or longer
 Depression—Extended recession
 Recovery—Declining unemployment, increasing
business activity
11. What is productivity and GDP?
 … jureeyj , garane , shueib and qanciye

 Productivity: Relationships between the goods and

services produced and the inputs needed to
produce them.
 Gross Domestic Product (GDP): Sum of all goods
and services produced within a nation’s boundaries;
a measure of national productivity
12. List price level chages ? explin and tell how is measure.
 Inflation is rising prices caused by a combination
of excessive consumer demand and increases in
the costs of raw materials.
 Core inflation rate measures inflation minus
energy and food prices.
 Demand-pull inflation - Excessive consumer
demand.
 Cost-push inflation - Rises in costs of the factors of
production.
 Hyperinflation - Soaring consumer prices.
 Deflation is when prices continue to fall.
13. What is unemployment rate ?
 The unemployment rate is the percentage of total
workforce actively seeking work but currently
unemployed
14. What is fiscal policy and monetary policy?
 Fiscal Policy - Government actions to influence
economic activity through decisions about taxes
and spending.
 Monetary Policy - government actions to increase
or decrease the money supply and change
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banking policy and interest rates to influence

consumer spending.
15. What is federal budget?
 The Federal Budget - Annual plan for how the
government will raise and spend money in the
coming year.

Chapter four
1. Why nations trade ?
 Boosts economic growth
 Expands markets
 More efficient production systems
 Less reliance on the economies of home nations
2. What export and import ?
 Exports: Domestically produced goods and
services sold in markets in other countries.
 Imports: Foreign-made products and services
purchased by domestic consumers.
3. What is absolute and comparative advantage?
 Absolute advantage: Country can maintain a
monopoly or produce at a lower cost than
any competitor.
 Comparative advantage: Country can supply
a product more efficiently and at lower cost
than it can supply other goods, compared
with other countries
4. List and explain measuring trade between nation ?
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 Balance of trade: Difference between a

nation’s imports and exports.
 Balance of payments: Overall flow of money
into or out of a country.
 Balance of payments surplus = more money
into country than out
 Balance of payments deficit = more money
out of country than in
5. List barriers that comfort global business ?
 Social and Cultural Differences
 Language: Potential problems
 Values and Religious Attitudes:
Differing values about business
efficiency, employment levels
 Economic Differences
 Infrastructure: Basic systems of
communication, transportation,
energy facilities, and financial systems.
 Currency Conversion and Shifts:
Fluctuating values can make pricing in
local currencies difficult and affect
decisions about market desirability
and investment opportunities.
 Political and Legal Differences
 Political Climate
 Legal Environment
 International Regulations .
6. Types of trade restrictions? Explain
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 Tariffs - taxes, surcharges, or duties on

foreign products. .
 Nontariff Barriers - also called
administrative trade barriers

Chapter 5
1. What is small business?
 small business to be a firm that is
independently owned and operated and is not
dominant in the field.
2. What is home-basic business ?
 Allows for more control of business
 Allows for more control of personal time
 Keeps start-up and operating expenses low
 Owner can feel isolated and business has less
visibility to customers
3. What is contribution of small business ?
 Create New Jobs
 Account for 30% of U.S. Exports
 Offer Customized Services
 Create New Industries
 Encourage Innovation
4. Why reasons small business ?
 Management Shortcomings
 Inadequate Financing
 Government Regulation
5. List and explain forms of privet ownership ?
 … jureeyj , garane , shueib and qanciye

 Partnership is a two or more owner’s

 Corporation is unlimited number of
shareholder’s
 Sole proprietorship is one owner
6. What is Legal Structures to Meet Changing Needs

 Financial Situation
 Management Skills and Limitations
 Management Styles and Capabilities
 Exposure to Liability
7. List types corporation ?
 Domestic, foreign, alien
 S Corporation
 Limited Liability Companies
 Employee-Owned Corporations
 Not-for-Profit Corporations
8. List and explain corporate management?
 Stockholders – acquire stocks in exchange
for ownership
 Preferred Stock
 Common Stock
 Board of Directors – elected by
stockholders to oversee corporation
 Corporate Officers & Management – make
major corporate decisions and handle
ongoing operations
9. When business joined force ?
 Mergers and Acquisitions (M&A)
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 Merger – combination of two or more

firms to form one company
 Vertical
 Horizontal
 Conglomerate
 Acquisition – procedure in which one
firm purchases the property and assumes
the obligations of another
 Joint Venture – partnership between
companies for a specific purpose

Chapter six
1. What is Entrepreneurship?
 An entrepreneur is a person who seeks a
profitable opportunity and takes the
necessary risks to set up and operate a
business.
2. List Categories of Entrepreneurs?

 Classic Entrepreneurs
 Serial Entrepreneurs
 Social Entrepreneurs
3. Why Entrepreneurship?
 Being Your Own Boss
 Self-management is the motivation that
drives many entrepreneurs.
 Financial Success
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 Entrepreneurs are wealth creators.

 Job Security
 Over the past ten years, large companies
have eliminated more jobs than they have
created.
 Quality of Life
 Starting a business gives the founder some
choice over when, where, and how to work.
4. List and explain Entrepreneurial Characteristics
 Vision - entrepreneurs begin with an
overall idea for how to make their
business ideas successful
 High Energy Level - a willingness to work
hard
 Need to Achieve - entrepreneurs work
hard because they want to excel
 Self-Confidence - fearlessness in the face
of difficult odds
 Tolerance for Failure - entrepreneurs are
not easily discouraged
 Creativity - entrepreneurs devise
innovative ways to overcome difficult
problems and situations
 Tolerance for Ambiguity - entrepreneurs
take in stride uncertainties
 Internal Locus of Control - entrepreneurs
believe they can control their own fates