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FBLA Introduction to Business Procedures Exam|578 Questions with Solutions
FBLA Introduction to Business Procedures Exam|578 Questions with Solutions
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FBLA Introduction to Business ProceduresExam|578 Questions with Solutions
business - -the organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
- Human resources, material resources, informational resources, and
financial resources. - -What are the four resources a business needs in order
to be successful?
- They process various materials. - -What do manufacturing businesses do?
- They provide services.
Ex: Haircuts, legal advice, tax preparation, etc. - -What do service
businesses do?
- Buy products and resell them (retailers). - -What do marketing
intermediaries do?
- Intermediary - -Go-between; mediator.
- Yes - -Are businesses that understand customer needs, and work to satisfy
those needs successful?
- profit - -The remains after all business expenses have been deducted from
sales revenue.
- Sales revenue - expenses - -What is the formula for profit?
- economics - -The study of how wealth is created and distributed.
- microeconomics - -the study of the decisions made by individuals and
businesses.
- macroeconomics - -the study on how the aggregate economy behaves.
Ex: Inflation, price levels, rate of growth, national income, GDP, and changes
in unemployment.
- economy - -the system through which a society creates and distributes
wealth.
, - capitalism - -A system in which individuals own and operate the majority
of businesses that provide goods and services.
- socialism - -A system in which the government owns and controls the
means of production.
- communism - -A system where factors of production are owned and
directed by the state.
- Capitalist - -What type of economy is the U.S.?
- They include both capitalism and socialism. - -Why is the U.S. a mixed
economy?
- Factors of production. - -What do businesses purchase after they sell their
goods and services?
- factors of production - -Land, labor, and capital.
- They provide public services not provided by businesses.
Ex: Law Enforcement - -What does the government do in exchange for
taxes?
- command economy - -An economic system in which the government
controls a country's economy.
- Socialism and communism. - -What type of economies are in command
economy?
- competition - -Competing on sales for potential customers.
- pure competition - -Large number of small that businesses that sell the
same type of products with the same characteristics.
- - It is easy to enter leave the market
- All prices are basically the same - -What are some characteristics of a pure
competition?
- supply - -Quantity of a product producers are willing to sell.
- demand - -Quantity of a product buyers are willing to purchase.
- market price (equilibrium) - -The price at which the amount that buyers
wish to buy equals the amount that sellers wish to sell.
,- monopoly competition - -A one seller market.
- - No competition
- Great degree of power
- Power of pricing
- Hard to enter and leave the mark - -What are some characteristics of a
monopoly competition?
- Monopolistic Competition - -A large number of small businesses that sell
similar products.
- - Similar products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market. - -What are some characteristics of a
monopolistic competition?
- Oligopoly - -A few large business that sell identical or very similar
products.
Ex: Automobiles, oil industries, etc.
- - Sizable investment needed to enter.
- Compete on price and characteristics. - -What are some characteristics of a
oligopoly competition?
- barter system - -A system in which people buy and sell goods by
exchanging one item for another; no money is involved.
- Domestic System - -The manufacture of goods in the household setting; a
production system that gave way to the factory system.
- Factory System - -A method of production that brought many workers and
machines together into one place.
- Specialization - -In production, a system in which each worker performs a
single part of an entire process.
- Service Economy - -An economy in which more effort is devoted to the
production of services than to the production of goods.
- Ethics - -A system of moral principles.
- Business Ethics - -The application of moral standards to business
situations.
, - Fairness and Honesty - -Business people are expected to refrain from
knowingly deceiving, misrepresenting, or intimidating others.
- Organizational Relationships - -Business people should put the welfare of
others and the company above their own welfare.
- Conflict of Interest - -Situation in which an employee must choose
between a business's welfare and personal gain.
- communications - -Business communications that are false, misleading, or
deceptive are both illegal and unethical.
- - Governmental
- Trade Association - -What are some examples of external influence that
encourage ethical behavior?
- - Code of Ethics
- Employee Training - -What are some examples of internal influence that
encourage ethical behavior?
- Whistle-Blowing - -Informing the press or government officials about
unethical practices within one's organization.
- Code of Ethics - -A set of guidelines for maintaining ethics in the
workplace.
- Social Responsibility - -The duty to do what is best for the good of society.
Note: Social responsibility costs money, but is also good for business.
- Caveat Emptor - -"Let the buyer beware."
- - Business is a part of society. Therefore, they cannot ignore social issues.
- Businesses have the resources to tackle social issues.
- Businesses can create a stable environment for long-term profitability.
- It prevents increased government intervention. - -Why do people think
businesses should engage in social responsibility?
- - The focus should be on providing a return on investments.
- Business resources should be used to maximize profits, not solve social
issues.
- Problems affect society in general, so businesses should not be expected to
solve them.
- Social issues are the responsibility of government officials. - -Why don't
people think businesses should engage in social responsibility?
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