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Business & Finance Review, FIN 3713 Test 2 Questions and Complete Solutions Graded A+
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Business & Finance Review, FIN 3713 Test 2 Questions and Complete Solutions Graded A+
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Business & FinanceReview, FIN 3713 Test 2
Questions and Complete
Solutions Graded A+
Denning [Date] [Course title]
,Which environment is NOT an important dimension of a business organization external
environment? - Answer: The corporate cultural environment
What is profit? - Answer: Difference between revenues and expenses
What is the environment where a firm conducts business known as? - Answer: Domestic business
environment
Factors such as international trade agreements, economic conditions, and political unrest will have the
greatest impact on what type of business environment? - Answer: Global business environment
Which type of business environment can reduce or replace the need for traditional working methods,
physical equipment, and other platforms needed to conduct business? - Answer: Technological
environment
The pursuit of profits is how a business differs from organizations such as public universities, public
hospitals, and government agencies. T/F - Answer: TRUE
An organizations external environment consists of everything that might affect it.T/F - Answer: TRUE
What is the general term for resources used by a business to produce a good or service referred to as? -
Answer: Factors of Proudction
What term denotes a nation's basis for allocating its resources among its citizens? - Answer: Economic
system
What is the process for converting government enterprises into individually owned firms known as? -
Answer: Privatization
What is the term for the physical and intellectual contributions of people while engaged in the
production of goods and services? - Answer: Human resources
,Who is the person who accepts the risks and opportunities inherent in a new business opportunity? -
Answer: Entrepreneurs
What factor of production is used to generate forecasts based on specialized knowledge and economic
data? - Answer: Information resources
When making decisions about production and allocation, which type of system depends on individual
producers and consumers to create a combination of supply and demand? - Answer: Market economy
The idea that individuals would contribute according to their abilities and receive benefits
according to their needs supports which type of economy? - Answer: Communist based economy
Which of the following best explains the difference between a market economy and a planned
economy? - Answer: In a planned economy, consumers have little choice in where they work or what
they purchase or pay.
What type of economy is the United States reflective of? - Answer: Mixed
What does a planned economy rely on a centralized government to do? - Answer: Allocate all or most
factors of production
Which economic system emphasizes the private ownership of most factors of production? - Answer:
Capitalism
In which type of economy do the individual producer and consumer control production through supply
and demand? - Answer: Market economy
The customs, values, and demographic characteristics of the society in which an organization functions
are the principal elements of the political-legal environment. T/F? - Answer: FALSE
Physical resources include the data and other information used by businesses. T/F - Answer: FALSE
, The technological environment includes only electronics and telecommunications used to perform
business activities. T/F - Answer: FALSE
In a market system, individuals are limited as to what they can buy and in how they can spend their
money. T/F - Answer: FALSE
In a market economy, there is a centralized government that controls factors of production and decision
making. - Answer: FALSE
What is the point at which the supply curve and the demand curve intersect on a graph? - Answer:
equilibrium
What is the price at which the quantity of goods demanded and the quantity of goods supplied are
equal? - Answer: Market price
What occurs when the quantity demanded exceeds the quantity supplied? - Answer: Shortage
What marks the key difference between economic systems? - Answer: The way the factors of
production are managed
What is the primary force that determines what a firm buys and sells? - Answer: Laws of supply and
demand
What is the willingness and ability of producers to offer a good for sale referred to as? - Answer: Supply
What takes place when buyers purchase more of a product when the price drops, and less when the
price increases? - Answer: Laws of demand
What can be used to determine relationships among different levels of demand and supply, based on
price? - Answer: Demand and supply curves
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