County College of Morris
Introduction to Business 112
Chapter 1-5 Questions
Answer the following questions below in short, yet complete sentences with examples, where applicable.
1. What are two key differences between stakeholders and stockholders?
2. Define revenue, profit, and margin. How do they work in tandem?
3. What is the difference between effectiveness, efficiency, and productivity?
4. What are some major issues affecting the economy today?
5. In Adam Smith’s book, Wealth of Nations he used the phrase “invisible hand”. Does the meaning still hold true 225 years later? If so, describe a few modern day examples. If not, explain why.
6. Why does capitalism work so well in the United States? On the contrary why does socialism work so well in China and Russia, even though up until a decade ago they were more communistic?
7. Why is GDP important to a countries health? What factors contribute to a countries GDP and why are they important to keep a close eye on from an economic perspective.
8. Using the Internet, compare and contrast the Panic of 1907 to the Great Recession of 2008. What were some of the underlying causes? What preventative measures did the government take to help correct the dilemmas?
9. Why is it important for small business to keep in check with current business cycles?
10. Do you feel that monetary policy and fiscal policy should have an equal balance considering one is handled by the government and the other an independent entity?
11. Why are so many new businesses choosing a limited liability company (LLC) form of ownership?
12. Why do major “Fortune 500 corporations” re-incorporate themselves in the state of Delaware, even though their headquarters is elsewhere?
13. Why do organizations (non-profit and for profit / small and large) have a board of directors? Who is it comprised of and why?
14. Name at least 3 reasons why people are willing to takes “risks” as entrepreneurs? Provide 3 examples of small business where entrepreneurs usually start? For example, an engineer designing an app or a baker starting his or her own restaurant.
15. How do micropreneurs differ from entrepreneurs?
County College of Morris
Introduction to Business
112
Chapter 1
–
5
Questions
Answer
the following questions below in short, yet complete
sentences with examples
,
where applicable.
1.
What are t
wo
key differences between stakeholders and stockholders?
2.
Define revenue, profit, and margin.
How do they work in tandem?
3.
What is the difference between effectiveness, efficiency, and productivity?
4.
What are some major issues affecting the economy today?
5.
In Adam Smith’s book, Wealth of Nations he used the
phrase “invisible hand”. Does the
meaning still hold true 225 years later? If so, describe a few modern day examples. If
not, explain why.
6.
Why does capitalism work so well in the United States? On the contrary why does
socialism work so well in China
and Russia, even though up until a decade ago they were
more communistic?
7.
Why is GDP important to a countries health? What factors contribute to a countries
GDP and why are they important to keep a close eye on from an economic perspective.
8.
Using the
Internet, compare and contrast the Panic of 1907 to the Great Recession of
2008. What were some of the underlying causes? What preventative measures did the
government take to help correct the dilemmas?
9.
Why is it important for small business to keep i
n check with current business cycles?
10.
Do you feel that monetary policy and fiscal policy should have an equal balance
considering one is handled by the government and the other an independent entity?
County College of Morris
Introduction to Business 112
Chapter 1-5 Questions
Answer the following questions below in short, yet complete sentences with examples,
where applicable.
1. What are two key differences between stakeholders and stockholders?
2. Define revenue, profit, and margin. How do they work in tandem?
3. What is the difference between effectiveness, efficiency, and productivity?
4. What are some major issues affecting the economy today?
5. In Adam Smith’s book, Wealth of Nations he used the phrase “invisible hand”. Does the
meaning still hold true 225 years later? If so, describe a few modern day examples. If
not, explain why.
6. Why does capitalism work so well in the United States? On the contrary why does
socialism work so well in China and Russia, even though up until a decade ago they were
more communistic?
7. Why is GDP important to a countries health? What factors contribute to a countries
GDP and why are they important to keep a close eye on from an economic perspective.
8. Using the Internet, compare and contrast the Panic of 1907 to the Great Recession of
2008. What were some of the underlying causes? What preventative measures did the
government take to help correct the dilemmas?
9. Why is it important for small business to keep in check with current business cycles?
10.Do you feel that monetary policy and fiscal policy should have an equal balance
considering one is handled by the government and the other an independent entity?
———–
Morris County College is a community college in Morris County, New Jersey.
112: Introduction to Business
Questions for Chapters 1–5
Answer the following questions in short, full sentences with examples, if necessary.
1. What are the two most important distinctions between stakeholders and stockholders?
2. Establish the terms revenue, profit, and margin. How do they collaborate?
3. What is the distinction between efficiency, effectiveness, and productivity?
4. What are some of the most pressing economic concerns today?
5. Adam Smith used the expression “invisible hand” in his book Wealth of Nations. Is the meaning still valid after 225 years? If so, give a few contemporary examples. If this is not the case, please explain why.
6. Why does capitalism in the United States operate so well? Why, on the other hand, does socialism function so successfully in China?
