Business Topics Quiz for First-Year Students

The primary role of business owners is to invest money in the business and take calculated risks to start and grow it.

Engineering is not a traditional functional area of business, though it may be involved in certain industries.

The PESTEL model analyzes the external macro-environment that a business operates in including political, economic, social, technological, environmental, and legal factors.

Stakeholders are individuals or groups that have an interest in a business's performance and can affect or be affected by its actions.

Revenue is the total income a business generates from its operations, while profit is the amount remaining after deducting expenses from revenue.

A key characteristic of a business is that it provides goods or services to consumers for a profit, meaning it aims to make money by selling products or offering services.

The main goal of any business is to satisfy customer needs and generate profit. By meeting customer demands and delivering products or services they value, the business can earn income.

Internal factors are specific to the business itself, while the PESTEL model focuses on external macro-environmental factors that impact all businesses.

Operations management is responsible for converting resources, such as raw materials, labor, and technology, into goods or services that a business offers.

United Way of America is a non-profit organization, meaning it operates for a social cause and not to make a profit.

Economics primarily studies how individuals, businesses, and governments make decisions about scarce resources to satisfy their needs and wants.

Land is a factor of production in economics, referring to all natural resources used to produce goods or services.

The equilibrium price is the price at which the quantity of a good or service that buyers are willing to purchase equals the quantity that sellers are willing to offer.

Capitalism is an economic system characterized by private ownership of resources, free markets, and competition, where individuals and businesses have the freedom to pursue their own interests.

Fiscal policy is the use of government spending and taxation to influence the economy. It can be used to stimulate economic growth or control inflation.

GDP (Gross Domestic Product) measures the market value of all final goods and services produced within a country's borders during a specific period, typically a year.

A monopoly is a market structure where there is only one seller of a particular good or service, giving that seller significant control over price and supply.

Monetary policy is a set of actions undertaken by a central bank to manipulate the money supply and interest rates to influence overall economic activity.

Building permits issued are a leading economic indicator because an increase in permits suggests future growth in construction activity and related industries.

Inflation happens when there is a sustained increase in the general price level of goods and services in an economy.

Business ethics is the application of ethical principles and values to business decision-making and behavior. It aims to guide individuals and organizations to act morally in the business context.

An ethical dilemma arises when a decision needs to be made between two or more morally acceptable options, where choosing one option may compromise another.

Corporate social responsibility (CSR) is a company's commitment to operate in an ethical and sustainable way, taking responsibility for its impact on its stakeholders, including employees, customers, the environment, and society.

A key component of ethical decision-making is considering the impact on stakeholders. This involves assessing how different parties – employees, customers, communities, etc., – will be affected by the decision.

Whistleblowing is the act of exposing illegal or unethical activities within an organization to authorities or the public. It usually involves an individual who believes that those activities are wrong.

One common rationalization for unethical behavior is to minimize the severity of the action or see it as not really illegal or immoral. This allows people to justify their actions by downplaying the ethical implications.

The Sarbanes-Oxley Act (SOX) aims to improve corporate governance and financial reporting practices to prevent fraud, enhance accounting standards, and increase investor confidence in the accuracy of financial information.

Managers have a key responsibility to safeguard the company's assets and handle funds responsibly. This includes using company resources ethically, avoiding misuse of funds, and ensuring financial transparency.

ESG criteria (Environmental, Social, and Governance) are used to evaluate a company's performance based on its environmental impact, social responsibility, and corporate governance practices. ESG investment considers these factors alongside financial returns.

One key consumer right is the right to be informed about a product. Consumers have the right to receive accurate information about the products they buy, including ingredients, safety, and potential risks.

A team is a group of individuals who work together interdependently toward a common goal, leveraging each member's complementary skills and knowledge.

A manager-led team is a traditional team structure where a designated manager assigns tasks, makes decisions, and directs the team's activities.

The primary role of a team leader is to influence and motivate team members, build trust and rapport, and create a positive and productive work environment.

Group cohesiveness refers to the attractiveness of a team to its members, leading to increased commitment and loyalty, a sense of belonging, and stronger group dynamics, making it less likely for members to leave.

Direction giving is a task-facilitating role within a team, where individuals provide guidance, set clear expectations, and ensure everyone understands the tasks and objectives.

The main purpose of a cross-functional team is to bring together individuals from different functional areas to leverage their specific expertise and create a more holistic and effective approach to solving problems, delivering projects, or making decisions.

Dominating is a blocking behavior within a team where an individual asserts their ideas and opinions aggressively, taking over conversations, monopolizing discussion, and creating an environment that prevents other members from contributing fully.

The primary goal of a self-managed team is to have considerable autonomy and control over their work, making decisions independently, setting their own objectives, and being accountable for their performance.

Virtual teams can function across time and space, allowing members to collaborate remotely, connect through technology, and make decisions and complete tasks regardless of physical location.

Unwillingness to cooperate is one reason for the failure of team-based projects. If team members lack a commitment to working together, fail to share information, or refuse to support each other, it undermines the project's success.