INTRODUCTİON TO BUSİNESS

Not-for-profit organizations often service local communities through educational and social means such as public schools, charity groups, and government agencies. Red Cross, United Nations, Wikimedia and public libraries are examples of such non-profit organizations. B is the correct answer.

The following are the reasons competition is desirable for businesses:

A is the correct choice.

The Legal Environment: The legal environment affects businesses through all the laws and regulations imposed on them. Since taxing, too, is regulated by laws, C is the correct answer.

The Global Environment: The global environment has seen larger influences on companies around the world, even those that operate only domestically (i.e. local, regional, and national types of business). Factors such as global economic and political conditions, international competition, a country’s exchange rate, and international trade alliances and agreements affect firms in various ways. D is the correct choice.

Economic studies range from the study of choices by individuals like what to buy from the money earned each month (called microeconomics) to the study of industries, governments and the overall economy (called macroeconomics). E is the correct answer.

Pure competition exists when no single supplier is large enough to influence prices. Therefore, prices are largely determined by supply and demand conditions. There are many small suppliers in the market and it is easy for them to enter or exit the market. Suppliers produce products that buyers view as virtually identical. There are a few examples of products that appear to be identical such as agriculture products like fruits, vegetables and grains. A is the correct answer.

Elements of a business plan:

B is the correct answer.

A merger means a combination of two corporations to form a new company. C is the correct answer.

The Fairness or Justice Approach – an ethical behavior that treats people equally or fairly. D is the correct answer.

Compliance-driven – Firms can focus on achieving high levels of compliance required under a country’s laws and regulations with this strategy. The requirements are aimed at issues such as the environment, health, work safety and product safety. For example, factories should not only follow minimum requirements for workers’ safety and health regulations. They can further implement training and education to update workers’ skills and offer supplementary health plan which exceed the minimum compliance requirements. B is the correct answer.

Financial capital refers to money or funds used to create and operate a business. It can come from one’s personal savings, from friends and family, via business loans, from investors and through other forms of fund-raising. The correct answer is "C".