MGT 111 MIDTERM STUDYGUIDE

MGT 111 MIDTERM STUDYGUIDE - MGT 111 CHAPTER 1: Environment...

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MGT 111 MIDTERM STUDYGUIDE CHAPTER 1: Environment of Business OBJECTIVES: -Importance of Entreprenuership -Entreprenuership: Study of how a society chooses to employ its scarce resources to employ its scarce resources to produce goods and services and to distribute them among competing groups and individuals. -Technological -Social CHAPTER 2: Economics OBJECTIVES: -Micro -Supply and Demand: Shows the relationship between the price of anything (goods, wages, tuition etc). and the QD or supplied. -Equalibrium Point: Where buyers and sellers can come to an agreement. Marketing equalibrium, market clearing price. -Perfect competition: Prices determined by overall market demand. Ex: agriculture Remember:Perfect-Food-Demand -Monopolistic competition: many sellers with perceived differences. Ex: retail, fast food Remember: Mono-Alex-Shampoo -Imperfect competition (oligopoly): Few sellers can supply entire market. Ex: steel producers, Airlines, Auto makers. Remember: Oil-Car, P up , D=k -Imperfect competition (monopoly): diamonds, utilities, gas -Capitalism, Socialism -Adam Smith: Concerned about wealth of everyone- not just upper class. -Political Freedom to compete is essential. -Underlying assumption: wealth can be created. -Communism: Much control, Government decides -Few property rights, thus few political rights -Socialism: In the middle
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-Continue free choice, features private and public. - Capitalism: little control, market decides -Private property fundamental rights -Profit provides incentive to create greed can compromise ethics, and can push countries toward government intervention. -Free enterprise -FLAW: disparity of wealth, -Macroeconomics -The role of the federal government -Fed Reserve, Congress Be able to describe major goals and how they are measured. -econ growth: -GDP: calculate the amount of goods and services produced within a given year. -4-5% GDP growth is sufficient -full employment: -95% considered employed is good. -Concern is about those who are actively looking for work. -Those who are chronically unemployed or not looking for work do not count. -price stability: -Acceptable inflation is between 1-2% -CPI: % used v. income -Explain the two different approaches the US takes to achieve econ goals: -monetary: : (mon-bond)- Fed controlling the US Money Supply. -Raise/Lower Interest Rates: they raise/lower fed funds rate. -Banks are constantly borrowing from one another -IR go down, banks pay less for what they borrow., then customers pay less for what they borrow. .etc. - -fiscal: (fish-spend tax)- Congress and Administration (taxing and spending).
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-REP: raising taxes takes money away from consumers anad businesses, slowing economy. “trickle down effect” -DEM: lowering taxes has opposite effect: greater revenue invested (healthcare), people middle and lower classes benefitted. “redistribute wealth” -Fed raises and lowers IR, bank RR (monetary) CHAPTER 4 : Social Responsibility OBJECTIVES: -Personal, Societal and Organizational Factors that influence individual ethics. -Individual: different family values, background, personality etc.
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MGT 111 MIDTERM STUDYGUIDE - MGT 111 CHAPTER 1: Environment...

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