Exam 1: The Foundations of Business

General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Cadillac, and GMC trucks are among the company’s product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines. -The industry conditions under which GM competes could not be characterized as _____.

In a _____ economy,the government controls selected major industries,such as transportation and health care,while allowing individual ownership of other industries.

To counter a recession,the Fed will take _____ measures to increase the money supply and reduce interest rates.

When sellers supply more of the product than buyers are willing to purchase,a shortage is created.

In theory,a _____ economy is one in which the government owns all or most enterprises.

One way that economists measure the performance of an economy is by looking at a widely used measure of total output called gross price stability.

The difference between the revenue that a company brings in from selling goods and services and the cost of generating this revenue is called _____.

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. -The Peñas hire a manager for each restaurant and assign specific goals and responsibilities.Each manager will perform each of the traditional management functions except _____.

In an oligopoly,each seller supplies a large portion of all the products sold in the marketplace.

The economic system with the highest level of government control is communism.

Swarez Construction Corp.is a nationwide builder of small business buildings.To understand the nature of supply and demand for its products,management would conduct a _____ study.

Every business must have one ____,whose primary role is to infuse money into the business.

A supply curve shows the relationship between the price of a product and the quantity that consumers are willing to buy.

General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Cadillac, and GMC trucks are among the company’s product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines. -The industry conditions illustrated in this scenario are best characterized as _____.

The U.S.leading index combines all economic indicators.

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. -New Age's customers will typically be willing to buy more of a product when prices are coming down and less when they're on the rise.

Scalpers sell tickets for such events as the World Series and the Super bowl for prices many times the amount printed on the tickets.This situation is an example of which of the following conditions?

While financial accountants prepare financial statements to help users both inside and outside of the organization,managerial accountants prepare reports for internal users only.

Among free market theorists,the principle of laissez-faire calls for government intervention to equalize the distribution of resources.

According to economists,we're entering a period of prosperity when GDP goes down for two consecutive quarters.