Exam 1: The Foundations of Business

Generally speaking,economic systems can be divided into planned and free market systems.

Soup, Salad, & Sandwich is a regional chain of restaurants in the northeast that provides dine-in, carry-out, and catering services. Owners Jesse and Mataya Peña currently operate six locations and are in the process of opening a new restaurant in another state. Their operation is quite successful and appeals to health-conscious consumers, busy moms, and executives in a hurry. Staying open longer hours, enlarging the menu, and expanding the scope of the business are among the many goals set by the Peñas. They want to follow a traditional business model in reaching their goals. -Soup,Salad,& Sandwich features all of the traditional business participants except _____.

New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products. -In determining the quantity of drugs that it will be willing to sell at different prices,New Age management will actually be developing a demand curve.

A mixed market economy is one that relies on both goods? and service?producing businesses and is largely controlled by the government.

Price stability occurs when the average of the prices for goods and services does not change much;when they go up,we experience inflation.

The inflation rate is the percentage change in a price index.

Museums and most colleges and universities are not-for-profit organizations.

The term laissez-faire means that:

As factors of production -- equipment,buildings,vehicles,and cash are considered _____.

Asset-producing resources are the outputs used to produce inputs in a business.

Which of the following is not a characteristic of a business?

_____ refers to the quantity of a product that sellers are willing to sell at various prices

New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products. -Because it's set up to make profits while meeting people's needs,New Age stands to make larger profits when prices fluctuate.

Reported monthly by the Bureau of Labor Statistics,the _____ is the most widely publicized measure of inflation.

Good _____ management is particularly important when a company is first formed because new businesses usually need to borrow start-up money.

New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products. -In researching the quantity of medicines that customers are willing to purchase at various prices,New Age management will actually be researching demand.

Weight Off,a local weight-loss clinic,maintains a clientele of more than 200 busy executives who travel frequently and need specialized diet and exercise regimes.The activities needed to operate this business include all of the following except _____.

During a recession,the economy expands,unemployment is low,incomes rise,and consumers buy more products.

The United States federal government influences economic activity by two means,including _____.

Leading economic indicators predict the status of the economy over the course of _____.