Understanding Business Concepts and Environment

What is a business?

• An organization striving for profit by providing goods/services

• A manufacturing-only operation

• A government agency providing public goods

• A charity that relies on donations

What is a not-for-profit organization?

• Exists to maximize owner profits

• Exists to sell goods only

• Exists only in the public sector

• Exists for goals other than profit

. Which of the following is NOT a factor of production?

• Natural resources

• Labor

• Currency

• capital

• entrepreneurship

Which of these are parts of the external business environment

• political/legal

• economic, technological

• social, competitive

• global, demographic

What describes an economic system where individuals own most businesses?

• Feudalism

• Capitalism

• Socialism

• Communism

Which system is based on government ownership and central planning?

• Communism

• Capitalism

• Socialism

• Democracy

Socialism involves:

• Full private ownership

• Government control of key industries

• Total deregulation

• No government control

What is GDP?

• the total amount of money in circulation.

• the total number of people employed in a country.

• total value of all goods and services produced in a country over a specific time period.

• a measure of a country's population.

GDP stands for

• Government Debt Percentage

• Gross Development Plan

• General Demand Policy

• Gross Domestic Product

Which measures inflation?

• CPI and PPI

• IRS and SEC

• GDP and GNP

• supply and demand