BUS 100: Test 1
25 Cards in this Set
Front | Back |
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what is the definition of business?
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the organized effort of individuals to produce and sell for a profit, the goods and services that satisfy society's needs
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what are the 4 fundamental business resources?
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human, material, informational, and financial
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what are the 3 types of economic systems?
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capitalism, socialism, communism
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what kind of economy does a capitalistic economic system have?
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market or mixed economy
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what kind of economy does a socialistic and communistic economic system have?
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command economy
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which economy do individuals own and operate the majority of businesses?
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capitalistic
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what is a free enterprise system
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system of business in which the individuals are free to decide what to produce, how to produce it, and what to sell it for
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what are the 4 types of compeition
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monopolistic, pure competition, monopoly, oligopoly
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what is absolute and comparative advantage
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absolute-the ability to produce a specific product more efficiently than any other nation
comparative-the ability to produce a specific product more efficiently than any other product
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with globalization ______ is becoming less important
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comparative advantage
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what the 2 tariff barriers
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dumping
import duty
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what are the 5 non-tariff barriers?
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embargo
import quota
foreign exchange control
currency devaluation
bureaucratic
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what ia a tariff
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a tax that is levied on products entering the country
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what is the definition of international economic communities
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organization of nations formed to promote the free movement of resources and products among its members via common economic policies
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what is foreign licensing
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contractual agreement to market product or use brand name in reutn for royalty or other compensation
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what are the 4 types of business ownership
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sole proprietorship
partnership
corporation
llc
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which form of business is owned by a single owner and is the most popular forn of business
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sole proprietorship
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which form of business is the simplest form, owned by one person, and has limited liability for the owner
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single member llc
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what are the advantages to a sole proprietoship
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pride of ownership,
retention of all profits
flexibility
ease of start-up
taxed once
secrecy
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what is a corporation known as if it is in the state it is incorporated
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domestic corporation
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what is a corporation known as if it located in another sttate
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foregin corporation
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type of corporation would you recommend to someone who was trying to avoid double taxation
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s corporation
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what are the 4 types of partnerships
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general
limited
llc
mlp
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what are the 2 types of corporations
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s corporation
c corporation
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in the corporate structure, who is appointed by the board of directors
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owners/stckholders
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