Business Management Midterm Review

propietorship/sole proprietorship
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Terms in this set (37)
Explain the purpose of the World Trade Organization.The WTO creates and enforces the rules governing trade among countries and makes sure that trade flows smoothly and predictably as possibleExplain the purpose of the World Bank.The World Bank provides loans to less developed countries to develop basic industries and facilities and works with countries to reduce poverty and increase shared prosperityDescribe how an economic want differs from a non-economic want.economic wants are desires for scarce material goods and services, like housing and clothing. noneconomic wants are desires for nonmaterial things that are not scarce like air and sunshineDescribe economic system in which private citizens are free to go into business for themselves, to produce whatever they want to produce, and distribute what they produceDescribe economic-political system in which the government controls the use of the country's factors of productionDescribe communism.extreme socialism, in which all or almost all of a nation's factors of production are owned by the governmentThe arrangement in which one international company allows another international company in another country to make and sell products according to certain specifications is called -international licensingWhat is culture?the customs, beliefs, values, and patterns of behavior of the people of a country or groupWhat does culture include?it includes language, religion, attitudes toward work, authority, family, traditions, manners, gestures, etiquettes, practices regarding courtship, and jokingUnited Nationsan intergovernmental organization tasked to promote international cooperation and to create and maintain international orderWorld Bankan international bank that offers low-interest loans, advice, and information to developing nationsWorld Trade Organizationan international organization that creates and enforces the rules governing trade among countriesInternational Monetary Fund (IMF)an international organization that provides loans to troubled nations, and also works to promote trade through financial cooperationThe way by which governments restrict the availability of foreign goods, limiting the quantity or value of units permitted to enter a country, is called -quotaAn agreement between two or more countries to remove all restrictions between them on the sales of goods and services, while imposing barriers on trade and investment from countries that are not part of it, creates a/an-trading blocinflationa rapid increase in pricesmarket economyan economic system based on free enterprise, in which businesses are privately owned, and production and prices are determined by supply and demandmarket economyan economy that distributes resources through the decentralized decisions of many firms and households as they interact in markets for goods and servicesmixed economyan economic system that uses aspects of a market and a command economy to make decisions about what, how, and for whom goods and services will be produced.socialist economyan economic system in which the state determines production, distribution, and price decisions and property is government ownedeconomic wantsthe desire for scarce material goods and services.noneconomic wantsdesire for nonmeterial things that are not partnershipa partnership with one or more general partners and one or more limited partners.what are some advantages of partnerships?skills pooled together, contribution of goodwill, improvement of credit positionwhat are some disadvantages of partnerships?unlimited financial liability, disagreement among partners, uncertain lifecreditorspeople who lend moneyunlimited financial liabilityindicates that partners are responsible for all debts of the business