Exam 1: The Foundations of Business

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

When we plot a supply curve and a demand curve for apples on one graph, the point at which the two points intersect is the _____.

We call it "full employment" when _____ percent of those who want to work are employed.

SCENARIO-BASED 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, Pontiac, Oldsmobile, Cadillac, Saturn, 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 _____.

A good way to accumulate profits is to supply something that can be sold for much more than it costs to produce.

If average weekly manufacturing hours by production workers is on the rise, the economy will probably improve.

In an environment of perfect competition, external influences ensure that the market will arrive at an equilibrium point at which both buyers and sellers are satisfied.

A demand curve shows the relationship between the:

A demand curve shows the _____ of a product that will be demanded at different prices.

How does government use its powers of spending and taxation to implement fiscal policy

If, in any given year, the government takes in more money than it spends on goods and services, the result is a budget _____.

Businesses such as hospitals, insurance companies, financial institutions, and attorneys convert resources into _____ products.

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

A _____ accountant prepares information, such as reports on the cost of materials used in the production process, for internal use only.

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

As a functional area of business, _____ measures, summarizes, and communicates financial and managerial information and advises other managers on financial matters.

Previously communist economies, such as those of Eastern Europe, are becoming more mixed as they adopt capitalist characteristics and convert previously government-owned businesses to private ownership.

Under a socialist economic system, the government owns all or most businesses.

A business is any activity that provides goods or services to consumers for the purpose of making a profit.

Legal monopolies exist in industries requiring huge investments and in which it would be inefficient to duplicate the products that they provide.