Exam 1: The Foundations of Business

In marketing, supply and demand interact to create a(n) _____price-the price at which buyers are willing to purchase the amount that sellers are willing to sell.

When the Fed believes that deflation is a problem, it will use contractionary policy to decrease the money supply and raise interest rates.

Ultimately, the goal of any business is to satisfy the needs of its _____.

Scenario-Based General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers.Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others.Chevrolet, Cadillac, and GMC trucks are among the company's product lines.Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota.Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines. -The industry conditions under which GM competes could be characterized as _____.

What are the external forces that influence business activities?

When sellers supply more of the product than buyers are willing to purchase, a ______ is created.

Managerial accountants prepare financial statements to help users, both inside and outside of the organization, assess its financial strengths.

Indicators that predict economic decline over periods of three to twelve months are called lagging economic indicators.

In an environment of perfect competition, external influences ensure that the market will arrive at an equilibrium point at which both buyers and sellers are satisfied.

While financial accountants prepare financial statements to help users both inside and outside of the organization, managerial accountants prepare reports for internal users only.

Currently, the U.S.national debt is approximately _____.

A supply curve shows the relationship between the price of a product and the quantity that consumers are willing to buy.

Lagging economic indicators report the status of the economy for periods of a _____ in the past.

Which of the following is an example of a service company?

_____ refers to the quantity of a product that sellers are willing to sell at various prices

A _____ accountant prepares information, such as reports on the cost of materials used in the production process, for internal use only.

In a _____ economy, the government controls selected major industries, such as transportation and health care, while allowing individual ownership of other industries.

Price stability occurs when the average of the prices for goods and services does not change much; when they go up, we experience inflation.

Demand is the quantity of product that buyers are willing to purchase at various prices.

To assess whether inflation is going up or going down, economists look at changes in (select one):