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Intro to Business - Exam 1 Study Guide

Businesses’ focus
Capitalism- AKA free enterprise; individuals own and operate majority of
businesses providing goods and services
Socialism- System in which the gov’t owns and operates basic industries
but individuals own most businesses
Communism- A society in which the people (through the gov’t) w/o regard
to class own all the nation’s resources according to Karl Marx
Questions addressed by economic systems
Products vs. services- Products are goods or services with tangible and
intangible characteristics that provide satisfaction and benefits. Service
Entrepreneur / Intrapreneur
Inflation / deflation
Social responsibility issues
Conflicts of interest
Codes of ethics
Sole proprietorships / partnerships / corporations
Corporations: alien / foreign / domestic
Partnerships: general / limited / silent
Merger / acquisition / takeover / leveraged buyout
Public vs. private corporation
Small business (defined) / fields / advantages, disadvantages
Economy sectors
Mission statement / business plan
Franchise / franchisee
Planning: strategic / tactical
Control process steps
Leadership: democratic / autocratic / free-reign
Management: top / middle / first –line / production & operations
Board of directors
Management process
Financial management
Stockholders / stakeholders
Business practice legislation
Workplace misconduct
Production / operations managers
Venture capitalists