BUS 201 Study Sheet

BUS 201 Study Sheet - BUS 201 Study Sheet-61 multiple...

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BUS 201 Study Sheet-61 multiple choice questions 1) What is the definition of profits? The difference between expenses and revenue; it is what encourages people to open and expand businesses; what rewards owners for their risk. 2) What are the different phases of business evolution? a. Industrial revolution - development of factory system; replacement of cottage workers to workers & machinery to make mass production all in one place; reduced duplication of equipment; could buy raw materials in large quantities @ better prices; encourage specialization of labor b. Laissez-Faire - began the freeing of businesses from European markets; improvements in transportation (steamboat & railroads); rise in entrepreneurs(robber barons=Carnegie-steel, Mellon-Aluminum, Rockefellar-oil & Morgan-finance) bc (laissez-faire-w/o gov’t intervention); increased standard of living, hard for competitors to enter the market, price fixing was usual, The Sherman antitrust laws c. Production era - scientific management-studying jobs & finding the one best way to do job; Henry Ford-assembly line (fixed work stations, more task specialization was at the expense of worker freedom; dominance of big businesses overpower small firms, rise of labor unions & advent of collective bargaining; gov't was forced to intervene when the Great Depression hit & WWII occurred (bus. govt & labor all limit each other); henry ford produced only black cars d. The Marketing Era -new economic growth after WWII, 50s and 60s were prosperous, now bus. starts w/ the consumer; Procter & Gamble; Anheuser Busch= companys that gave a mass selection that consumers can choose from; rely more on advertising and market for preferences, tastes; began looking at truth in advertising and advertising directed at children e. The Global Era = 1980s; global economy, new technology & info systems; we now cars made in japan, etc; improved communication, transportation, international method of finance; downside= many us companies have been hurt by foreign businesses and made them work harder to cut costs and improve efficiency f. The Information Era =2000s; Internet era,100 per 1000 users in 95 to 750 per 1000 in 05; now growing in Europe and Asia as well; boost in services & trade; leveled the gap between large & small businesses; Internet is effective and efficient in networking; downside-privacy issue 3) Economic systems a. Planned economy - gov’t controls all or most factors of production; socialism & communism; can tell individuals where they can/cant work, make, purchase i. Communism : Karl Marxs idea; people would contribute according to their abilities & receive according to their needs; govt ownership of production was to be temporary. Ex of countries: Soviet Union, Eastern Europe=left communism, Cuba, N. Korea, Vietnam, & the Peoples Republic of China (communist) ii. Socialism : in partially planned systems (mixed)- gov’t owns & operates selected major industries; ex: control banking, steel, oil, transportation;
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This note was uploaded on 03/31/2008 for the course BUS 201 taught by Professor Brown during the Spring '07 term at N.C. State.

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BUS 201 Study Sheet - BUS 201 Study Sheet-61 multiple...

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