Midterm Prep Principles

The movement of goods and services among nations without political or economic barriers

Included in the controlling process

Groups of employees from different departments who work together on a long term basis

The optimal number of subordinates a manager supervises or should supervise

Benefits of a Limited Liability Company

A visual device that shows relationships among people and divides the organization's work

A detailed written statement that describes the nature of the business, target market, etc.

Two important considerations when choosing a form of business ownership is:

The price determined by supply and demand

Disadvantages of franchises

A person who buys a franchise

Fayol introduced management principles to include

Increase government spending and cut taxes in order to stimulate the economy are decisions of

Advantages of a Decentralized Organizational Structure

The advantage that exists when a country produces a product more efficiently than others

When the market price of a good is below the equilibrium price & all other things are unchanged

The buying and selling of goods on the internet

When comparing general partnerships to sole proprietorships, an advantage of partnerships is 

An owner who has unlimited liability and unlimited liability and is active in managing the firm

The part of the production process that puts together components

A business concern for the welfare of society

The value producers add to materials in the creation of finished goods and services

Two or more consecutive quarters of decline in the GDP

A company owned in a foreign country by another company, called the parent company

Tailoring products to meet the needs of individual customers

The creation of finished goods and services using the factors of production

A limit on the number of products in certain categories that a nation can import

Economic systems in which some allocation of resources is made by the market & some by the govt

If global trade experts predict that the value of the dollar will soon fall, it will result in:

Changes in management currently underway suggests the most effective managers of the future

A min inventory is kept on the premises and parts are delivered as it goes on the assembly line

3 important economic indicators of the United States are the unemployment rate, price indices &

The total value of final goods and services produced in a country in a given year

The broad, long term accomplishments an organization wishes to attain

A favorable balance of trade; occurs when the value of a country's exports exceeds imports

The joining of two firms in the same industry