Business Management and Economics Quiz

Economies of scale occur when the per-unit cost of production decreases with higher output levels.

SWOT analysis involves assessing a business's internal Strengths and Weaknesses, as well as external Opportunities and Threats.

The primary goal of financial management is to enhance the wealth of shareholders.

The marketing mix includes Product, Price, Place, and Promotion; Performance is not a component.

The Federal Reserve manages monetary policy, influencing money supply and interest rates to stabilize the economy.

ROI stands for Return on Investment, representing the profitability of an investment.

HRM aims to align human resources with organizational objectives, fostering employee productivity and satisfaction.

Factors of production include land, labor, capital, and entrepreneurship; demand is a different economic concept.

Financial accounting aims to communicate a company's financial information to external parties.

Sole proprietorships lack limited liability, exposing owners' personal assets to business debts and obligations.

A market economy allocates resources based on supply and demand forces in the open market.

ROI measures the return on an investment, calculated as the percentage of net profit relative to the investment cost.

A monopoly is characterized by a single seller dominating the market with substantial market power.

Price elasticity of demand is a microeconomic concept; macroeconomic variables focus on the economy as a whole.

Oligopoly features a market dominated by a small number of large firms.

Gross profit is calculated by subtracting the cost of goods sold from total revenue.

Opportunity cost is the value of the best alternative forgone when a decision is made.

The income statement displays a company's revenues and expenses, determining its net profit or loss.

The SEC safeguards investors and ensures fair and transparent financial markets.

Diversification involves spreading investments across various assets to reduce risk and enhance portfolio stability.

Perfect competition is characterized by many buyers and sellers with no barriers to entry or exit.

A balance sheet summarizes a company's assets, liabilities, and equity at a specific moment.

CPI tracks the average price change of a basket of goods and services, reflecting inflation or deflation.

Elasticity of demand measures how sensitive quantity demanded is to changes in price.

Monopolistic competition involves firms offering differentiated products, allowing them some pricing power in the market.