Business Management Ch. 2 & Supplemental Material

The four interdependent functions of business are production, marketing, finance, and management.

Cameron Herold said, "Allowances teach kids the wrong habits." They should find jobs that need to be done & negotiate.

The rent a business owner pays for office space is an example of a fixed cost.

The private ownership of resources by individuals rather than the government is called

Instead of asking "customers" if they wanted to buy pincushions, Cameron Herold asked, "Which color would you like?"

Factors of production include

How does competition benefit consumers?

Entrepreneurship thrives in a command economy.

The price at which supply equals demand is the equilibrium price.

In a(n) ______ economy, the government determines what, how, and for whom products and services are produced.

______ occurs because people's needs and wants are unlimited but resources to meet needs and wants are limited.

Which of the following is an example of a need?

Factors of production are economic resources used to create goods and services.

Fixed costs for a bakery would include which of the following?

Positive difference between revenues earned and costs of operating a business is ____________.

Brad Morgan said one of the most important rules of entrepreneurship is, "Do what you do best and trade for the rest."

Opportunity cost is the price an entrepreneur pays to have the opportunity to go into business (fees & startup costs).

Economic _____________ are the means through which goods and services are produced.

ABC Co earned profit of $20,000. Cost of operating was $185,000. What was revenue earned?

Price x Number Sold = Total Revenue

_______ exists when there is only one provider of a product or service.

_________ occures when individual workers focus on single tasks, enabling them to become more efficient and productive.

Generally, as the price of a product decreases, demand will also decrease.

Which business function would be concerned with determining amount of capital needed & how it will be obtained?

Your needs and wants

U.S. economic system is based on which 4 basic priniples

Individuals and businesses decide what, how, and for whom goods and services are produced in a

Which of the following is not a characteristic of a good entrepreneur?

Entrepreneurs invest in their communities by contributing to the local economy and by providing jobs.

A(n) _____ exists when a market is dominated by a small number of businesses that gain majority of total sales revenue.

Open 1 hour early. Sell 48 donuts $1 each & 10 coffees $2 ea. Pay employee $10. Increase expenses $5 + $10 ingredients.

Demand is probably MOST inelastic for which of the following items?

______ cost mearsures the disadvantages of producing one additional unit of a good or service.

Sue has a lemonade stand. Each cup costs $2.50. Sells 130 cups on Saturday and 120 on Sunday. Expenses $250. Profit ??

Mixed economies often result when countries shift away from command economies toward market economies.

When an entrepreneur brings a profitable new produce to market,

All economies must answer which basic question?

Cameron Herold said we need to encourage kids to

The dairy farmer in From Poop to Profit decided to create a new product because he became bored with famring.

Earning a college degree would belong in which stage of Maslow's Hierarchy of Needs

The quantity of a good or service that consumers are willing to buy at a given price is called supply.

Economists make no distinction between a want and a need.

Only advanced economies have the resources needed to satisfy all wants of all people for all material goods & services.