MBA 5113 Business Exam 1 Questions & Answers 2024/2025
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MBA 5113 Business
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MBA 5113 Business
MBA 5113 Business Exam 1 Questions & Answers 2024/2025
Business - ANSWERSany activity that provides goods or services to consumers for the purpose of making profit.
Profit - ANSWERSselling a good/service for more than its cost..
Some organizations are established to provide social or educa...
MBA 5113 Business Exam 1 Questions &
Answers 2024/2025
Business - ANSWERSany activity that provides goods or services to consumers for the purpose of making
profit.
Profit - ANSWERSselling a good/service for more than its cost..
Some organizations are established to provide social or educational services, earning profit is not their
objective - nonprofit organizations (ex. Habitat for Humanity, American Red Cross).
Owner - ANSWERS- their primary role is to invest money in the business. They organize the business idea
and bring necessary resources together.
Employees - ANSWERShired by owners; work for the business and help achieve owners' goals.
Customers - ANSWERSthe ultimate goal of owners and employees is to satisfy customers.
Triple bottom line - ANSWERSframework for social responsibility.
People - social concerns
Planet - environmental concerns
Profits - economic concerns
Factors affecting productivity: - ANSWERSCapital/labor ratio: It is a measure of whether enough
investment is being made to make effective use of labor hours.
Scarcity of some resources
Work-force changes
Innovations and technology
Regulatory effects
Bargaining power
,Managerial factors
Quality of work life
Slope - ANSWERSrise/run
Causation - ANSWERSA graph is a summary of empirical observations.
It says nothing about cause and effect.
Economics - ANSWERSStudy of how society (business) chooses to allocate scarce resources (land, labor,
capital, etc.) to satisfy virtually unlimited wants (meet various business objectives, profits, etc.).
OPPORTUNITY COST - ANSWERSValue of benefits foregone by choosing
one alternative over another.
ECO Profits
ACC Profits - ANSWERSECO Profit= TR-EC-IC
ACC Profit= TR-EC
Ceteris Paribus - ANSWERSEverything else being held equal.
To test for market effects on price, must hold other factors, e.g., costs and demand factors, constant.
Market Mechanism helps resolve three Basic Economic Questions - ANSWERSWHAT to produce: We have
to sacrifice less desired activities and goods.
HOW to produce: find an optimal method of producing goods and services
FOR WHOM to produce: focuses on how an economy's output is distributed across members of society
, Production possibilities - ANSWERSThe alternative combinations of goods and services that could be
produced in a given time period with all available resources and technology
Economic Resources - ANSWERSLand - including natural resources
Labor - number and skills of workers
Capital - machinery, buildings, networks
Entrepreneurship - skill in creating products, services, and processes
production possibilities curve - ANSWERSA curve showing the different combinations of two goods or
services that can be produced in a full-employment, full-production economy where the available
supplies of resources and technology are fixed.
Economic growth: - ANSWERSAn increase in output (real GDP).
An expansion of production possibilities outward.
Investment: - ANSWERSExpenditures on (production) of new plant and equipment (capital) in a given
time period, plus changes in inventories.
Productivity - - ANSWERSoutput per unit of input, e.g., output per labor hour.
Factor Mobility - ANSWERSOur continuing ability to produce the goods and services that consumers
demand also depends on our agility in reallocating resources from one industry to another
Laissez faire - ANSWERSthe doctrine of "leave it alone," or nonintervention by government in the market
mechanism.
This concept is associated with Adam Smith.
Market Failure - ANSWERSAn imperfection in the market mechanism that prevents optimal outcomes.
Central Planning - ANSWERSThe government decides what goods are produced, at what prices they are
sold, and who gets them.
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