Autocratic leaders management style that hoard decision making power for themselves and issue orders without consulting followers
Democratic leaders leadership style that share power with followers, solicit and incorporate input from followers before making final decisions
Laissez Faire leaders l...
FM116 FINAL REVIEW QUESTIONS AND
CORRECT ANSWERS
Autocratic leaders ✅management style that hoard decision making power for
themselves and issue orders without consulting followers
Democratic leaders ✅leadership style that share power with followers, solicit and
incorporate input from followers before making final decisions
Laissez Faire leaders ✅leadership style with "free-reign leaders", set objectives for
followers but give them freedom to choose the way to accomplish these goals
Gross Domestic Product (GDP) ✅total value of all final goods and services produced
within a nation's physical boundaries over a given period of time
o All domestic production is included, even if the producer is foreign-owned
o It is a virtual measure of economic health
Recession ✅An economic downturn marked by a decrease in the GDP for two
consecutive quarters.
Depression: ✅An especially deep and long-lasting recession
Trade deficit ✅Shortfall that occurs when the total value of a nation's imports is higher
than the total value of its exports
Trade surplus ✅overage that occurs when the total value of a nation's exports is higher
than the total value of its imports
Budget deficit ✅shortfall that occurs when expenses are higher than revenue over a
given period of time
Federal debt ✅the sum of all the money that the federal government has borrowed
over the years and not yet repaid
Joint venture ✅an agreement between two or more companies where they pool their
resources for the purpose of accomplishing a specific task
o each of the participants is responsible for profits, losses, and costs associated with it
o it is not a merger
Partnership ✅a voluntary agreement under which two or more people act as co-
owners of a business for profit
, General partnership ✅when there is no limit on the number of partners who can
participate
♣ Usually has a stronger financial base
♣ Burdens of the business can be shared equally
♣ Partners are reliable for the mistakes of other partners
♣ There is an increase in disagreements
Limited partnership ✅includes at least one general partner and at least one limited
partner
♣ Both types of partners contribute financially to the company and share in its profits
♣ General partners can participate fully in managing but have unlimited personal liability
for any of its debts
Limited liability partnership ✅all partners have the right to participate in management
and have limited liability for company debts
Corporation ✅a form of business ownership in which the business is considered a
legal entity that is separate and distinct from its owner
o Can legally engage in business activity
o Can enter into binding contracts, borrow money, own property, pay taxes, and initiate
legal actions in its own name
Limited liability company ✅a form of business ownership that offers both limited liability
to its owners and flexible tax treatment
o Owners can vote if they want to be taxed as a corporation or as a partnership
Sole Proprietorship ✅a business that is owned and is usually managed by a single
individual
o Company earnings are treated just like the owners' outcome, any debts from the
company are considered the owner's personal debts
o Require little paperwork and costs when forming
o Give pride and personal satisfaction to owner from owning and running their own
business
o Opportunity to be your own boss
o If the business is successful, all the profits go to you
o No taxes are levied directly on earnings, they're taxed as income
Social Audit ✅a systematic evaluation of how well a firm is meeting its ethics and
social responsibility goals
Federal Reserve ✅the central bank of the United States that manages US monetary
policies
o Functions include banking services for member banks and the federal government
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