BUSN 11 Exam Questions with All Correct Answers
When starting a business, a new owner will be asked for this document by capital suppliers, key employees and possible supplier - Answer-A business plan
Business forms that are designed to limit liability to owners, limit the amount an owner ca...
BUSN 11 Exam Questions with All
Correct Answers
When starting a business, a new owner will be asked for this document by capital
suppliers, key employees and possible supplier - Answer-A business plan
Business forms that are designed to limit liability to owners, limit the amount an owner
can lose to - Answer-The amount they have invested in the company
What is the most closely followed stock market index, which gauges the direction of the
market - Answer-Dow Jones Industrial Average
What happens when the value of the U.S. dollar increases, relative to other currencies -
Answer-The trade deficit increases
Capitalism - Answer-an economic and political system in which a country's trade and
industry are controlled by private owners for profit, rather than by the state.
Production Era - Answer-In the early 1900s, businesses refined production process and
created greater efficiencies
Marketing Era - Answer-After WWII, businesses began to develop brands to help
consumers understand the differences among products
liar loan - Answer-when they can't verify your income
the great recession - Answer-huge expansion in the late 90s fueled by Y2K and the web
M1 Money Supply - Answer-includes all currency plus checking accounts and traveler's
checks
M2 money supply - Answer-Includes all of M1 money supply plus most savings
accounts, money market accounts, and certificates of deposit.
rights of capitalism - Answer-Right to own a business and keep after-tax profits
Right to private property
Right to free choice
Right to fair competition
, Oligopoly - Answer-a state of limited competition, in which a market is shared by a small
number of producers or sellers.
BRICS - Answer-five major emerging national economies: Brazil, Russia, India, China
and South Africa
Economies that were formerly centrally planned that have embraced free market forms
Economies that did not embrace the free market forms
Capitalism is when free markets determine what is to be produced (supply) and what is
to be consumed (demand) T / F - Answer-T
pure - Answer-many sellers selling virtually the same product
Monopolistic - Answer-a market structure in which many companies sell products that
are similar but not identical
Socialism - Answer-A system in which society, usually in the form of the government,
owns and controls the means of production.
Hyperinflation - Answer-A very rapid rise in the price level; an extremely high rate of
inflation.
Consumer Price Index (CPI) - Answer-evaluates the change in the weighted average
price of goods that an average of consumers buy each month
Producer Price Index (PPI) - Answer-Evaluates the change over time in the weighted
average wholesale prices
Reasons for International Trade - Answer-access to factors of production, reduced risk,
inflow of innovation
competitive advantage - Answer-a set of unique features of a company and its products
that are perceived by the target market as significant and superior to those of the
competition
opportunity cost - Answer-the most desirable alternative given up as the result of a
decision
absolute advantage - Answer-the ability to produce more of a given product using a
given amount of resources
trade surplus - Answer-when a country exports more than it imports
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