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Published by: Precious Stafford on Mar 04, 2011
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BUSN115 Midterm Study Guide

The BUSN115 midterm exam is 2 pages long. It is a timed exam worth 140 points that you may enter only once. You have 2 hours to complete the exam. It consists of 20 multiple choice questions worth 5 points each. There are 2 essay questions worth 20 points each. Be sure to save and save often while you are working on the exam, but do not submit your exam until you are finished with both pages! To earn full credit for the essay questions, your response to each question should answer the question completely in approximately 2 ± 3 paragraphs. The exam reflects the following course objectives and possible topics: TCO 1: Given a description of a typical business, demonstrate how that business acts within our economic system to achieve its goals as well as those of society, along with an understanding of how the future may impact these goals. y Know how government regulation affects the economy.

machines Human capital:labour force that possesses skills. training Technology:the technical means for the production of goods and services.answers. . Productivity may be increased by increasing the physical capital. Note that there is a term called Diminishing Returns to Physical Capital. human capital or technology.com/Q/What_are_the_elements_of_productivity_and_how_is_it_increased#i xzz1CINcM7Yx y Define ³quality of life´. education. It is the most important driver of productivity according to some economists.y PG 36 y Show the relationship of supply and demand as illustrated on supply and demand curves. It involves not only major inventions but thousands of small innovations.which means successive increases in physical capital lead to smaller increases in productivity Read more: http://wiki. buildings. Define elements of productivity and how it can be increased. The elements of productivity include: y y y Physical capital:human made resources such as tools.

Know what a free market economy is and its relationship to the distribution of wealth. Know the role of the US Federal Reserve and what tools they use to implement their policies. Know what constitutes US fiscal policy and how is it used to manage the economy.y y y y Know the similarities and differences between for profit and not-for-profit organizations. y y Define gross domestic product (GDP). y y y Be able to define ethics. Know who the stakeholders are of a business. Know how compliance is related to ethics. What some ethical concerns are as described in the text? . Know and explain the ³rights of capitalism´. y y y y y y y y Define a socialist economic system. Know how profit is determined for a business. TCO 2: Given the importance of ethics in business. be able to understand and address ethical dilemmas that may occur in workplace activities and offer suggestions to prevent their recurrence.

How Microloan Funds May Be Used Microloans may be used for the following purposes: . along with an understanding of the potential risks associated with starting a business venture. Know about the Small Business Microloan program. Define what creditor and debtor nations are. import quotas and subsidies as applied to foreign trade. which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. pegged and fixed exchange rates. and explain floating. The maximum loan amount is $50. be able to describe the major elements necessary for success. Know what is meant by ³balance of payments´ as related to foreign trade. Know the relationship of ethics and leadership. TCO 3: Given the need to increase profits through cost reductions. Describe a franchise and know its advantages and disadvantages. y y y y y y y y y y y y y Describe the forms of business ownership. The SBA makes funds available to specially designated intermediary lenders. Define a business merger. but the average microloan is about $13. Know the purpose of a limited liability company. short-term loans to small business concerns and certain types of not-for-profit child-care centers. Know what the General Agreement on Tariffs and Trade (GATT) is and its purpose. Define exchange rate. know how they are used and the advantages and disadvantages of each one. TCO 4: Given understanding of entrepreneurship.000. Know the meaning of currency devaluation.y y List and explain the steps to be considered when determining the ethics of an action. Define intrapreneur. Know what is the difference between a privately and publicly-owned business. Know what advantages a small business may have when entering a foreign countries market. Define a farm cooperative. Explain the advantages of free trade. Know reasons why some people become entrepreneurs. y y y y y y y y y Define and apply tariffs. Know what trade protectionism is. Know some of the reasons for the success and failure of small businesses. Define a favorable and unfavorable balance of trade. Know why women as a group are successful in franchises.000. Know the steps that should be taken in the buying of a franchise. What is a Microloan? The Microloan Program provides small. describe the use of globalization strategies to accomplish this initiative. along with a discussion of the pros and cons of this approach. These intermediaries make loans to eligible borrowers.

S.y y y y Working capital The purchase of inventory or supplies The purchase of furniture or fixtures The purchase of machinery or equipment. The Microloan Program is available in selected locations in most states. you may be required to fulfill training and/or planning requirements before your loan application is considered. intermediaries require some type of collateral as well as the personal guarantee of the business owner. Contact Your Local Microloan Intermediary Small businesses interested in applying for a microloan should contact an intermediary in their area. Generally. y y y y Know which business sector offers the most opportunity for profit for an entrepreneur. since all credit decisions are made on the local level. these rates will be between 8 and 13 percent. Terms. For more information contact your local SBA District Office or review the attached file for a list of participating intermediaries by state. depending on the intermediary lender and costs to the intermediary from the U. Collateral Each intermediary lender has its own lending and credit requirements. Interest Rates. Technical Assistance Each intermediary (lender) is required to provide business training and technical assistance to its micro-borrowers. and Fees Loan terms vary according to: y y y y The size of the loan The planned use of funds The requirements of the intermediary lender The needs of the small business borrower The maximum term allowed for a microloan is six years. Know what SCORE is. Know what the aspects of a limited liability company are. This business training can be helpful to you as you launch or expand your small business. Proceeds from a microloan cannot be used to pay existing debts or to purchase real estate. If you apply for microloan financing. Treasury. Interest rates vary. . Know what is considered ³a self-nurturing business person´. Generally.

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