32 Questions
What is the main goal of U.S. business?
Maximizing profits and shareholder value
How do external environments affect the success or failure of an organization?
They can influence customer behavior and market demand
What elements contribute to resource distribution in the United States economic system?
Markets, demand, and supply dynamics
How is the performance of an economic system evaluated?
By considering multiple factors such as GDP growth, employment rates, and income distribution
What is the definition of profits in a business context?
The difference between a business's revenues and its expenses
Which term refers to everything outside an organization’s boundaries that might affect it?
External Environment
What is the system for allocating a nation's resources among its citizens, both individuals and organizations?
Economic System
Which type of economy relies on a centralized government to control all or most factors of production and allocation decisions?
Planned Economy
In which type of economy do individual producers and consumers control production and allocation by creating combinations of supply and demand?
Market Economy
What is the process of converting government enterprises into privately owned companies called?
Privatization
In a market economy, what does 'demand' refer to?
The willingness and ability of buyers to purchase goods or services
'Supply' in a market economy refers to:
The willingness and ability of producers to offer goods or services for sale
'Private property rights' in a private enterprise system refer to:
'Individual' ownership of resources used to create wealth
'Freedom of choice' in a private enterprise system allows individuals to:
'Sell' their labor to any employer they choose
'Profits' in a private enterprise system serve as a lure for some people to:
'Assume' the risks of entrepreneurship and pursue their own interests
In a market economy, what occurs when two or more businesses vie for the same resources or customers?
Competition
What is the difference between social responsibility and ethics?
Ethics are about the moral principles that guide a person's behavior, while social responsibility refers to the impact of an organization's decisions on society.
How do individuals develop their personal codes of ethics?
By integrating their values, beliefs, and experiences to form a moral framework for decision-making.
What are the four general approaches to social responsibility?
Legal, philanthropic, strategic, and ethical.
How do issues of social responsibility and ethics affect small businesses?
Social responsibility and ethics can affect the reputation, customer trust, and success of small businesses.
Which term refers to the standards of behavior that guide individual managers in their work?
Managerial ethics
What is the overall way in which a business attempts to balance its commitments to relevant groups and individuals in its social environment called?
Social responsibility
According to the Stakeholder Model of Responsibility, what do companies strive to be responsible to first and foremost?
Investors
What does 'unethical behavior' refer to?
Behavior that does not conform to individual beliefs and social norms about what’s right and good
What are two of the most common approaches to formalizing top management commitment to ethical business practices?
Instituting ethics programs and adopting written codes
What is the process of making an ethical judgment based on the rightness or wrongness of a proposed activity or policy called?
Ethical judgment making
What does 'ethics' refer to?
Beliefs about what is right and wrong or good and bad in actions that affect others
'Social responsibility' refers to the overall way in which a business attempts to balance its commitments to which groups?
'Relevant groups and individuals in its social environment'
'Business ethics' refers to ethical or unethical behaviors by employees in which context?
'Context of their jobs'
'Managerial ethics' refers to standards of behavior that guide whom in their work?
Individual managers
What do companies strive to be responsible to first and foremost according to the 'Stakeholder Model of Responsibility'?
Investors
What are two of the most common approaches to formalizing top management commitment to ethical business practices?
Instituting ethics programs and adopting written codes
Test your knowledge on the nature of U.S. business, its main goals and functions, the external environments affecting business success, and the different types of global economic systems. This quiz is based on Chapter One of Business Essentials 9e Ebert/Griffin.
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