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Intro to Business FINAL EXAM STUDY GUIDE questions well answered
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Intro to Business FINAL EXAM STUDYGUIDE
Business - correct answer ✔✔A collection of assets belonging to owners, designed and organized to
achieve some purposeful activity (usually the profitable sale of goods and services to others)
Profit - correct answer ✔✔The excess return above and beyond the cost of producing and selling goods
and services; the amount of money a business earns after deducting what it spends for salaries, raw
materials, and other expenses
If a business's costs and expenses are greater than its revenue____________ - correct answer ✔✔The
business will suffer a loss
Risk - correct answer ✔✔The change a business owner will lose the time and money invested in a
business that probes to be unprofitable
revenue - correct answer ✔✔The total amount of money that a business receives from the sale of its
goods and services
Stakeholders - correct answer ✔✔The customers, employees, stockholders, suppliers, creditors, and
others who stand to gain or lose by the policies and activities of a busines
Quality of life - correct answer ✔✔The general well-being of a society in terms of its political freedom,
education, healthcare, and other factors
outsourcing - correct answer ✔✔making other countries produce your product, usually to save money
Five factors of production - correct answer ✔✔land
Labor
Capital
,Knowledge
Entrepreneurship
Goods - correct answer ✔✔Tangible products such as computers, food, cars, and clothing
Services - correct answer ✔✔intangible products which cannot be held in your hand, such as education,
healthcare, insurance, and recreation
Value chain - correct answer ✔✔The set of all activities needed to bring a good or service into the hands
of the consumer
Social or socio- culture - correct answer ✔✔Many factors and forces in the business environment affect
the choices and activities of firms. Demographic trends (ex: the increase in the number of older citizens)
is part of the social/ socio-culture environment of business
Three ways government actions can promote business formation and growth - correct answer
✔✔Incubator- government gives businesses what they need to succeed
Lower taxes- the government gives businesses lower taxes
There are certain areas were the government will lower prices to purchase property for your business
Economics - correct answer ✔✔The study of how society employs resources to produce goods and
services for consumption among various groups of individuals
Communism - correct answer ✔✔A government system where major factors of production are owned
and controlled by the government, which makes almost all economic decisions, and citizens have very
limited personal freedoms
Capitalism - correct answer ✔✔The foundation of the economic system of the US, Canada, England, and
Australia
, Market price (equilibrium point) - correct answer ✔✔In a free market economy, as the demand for a
product or service increases it will cause scarcity, and thus the price that consumers are willing to pay for
that product or service will increase. As consumers' willingness to pay increases, more profit seeking
suppliers will enter the market to provide the good or service, and the increased supply and competition
will cause the price to go back down. the interaction of these forces of supply and demand will cause the
price for a good or service to eventually settle at the market price (equilibrium point)
Socialist - correct answer ✔✔Businesses are mostly run by the government
Usually higher taxes because of free healthcare and other government benefits
Fiscal policy - correct answer ✔✔Efforts by the government to adjust taxes and federal spending to
stabilize the economy
Capitalist - correct answer ✔✔The right to own private property and the right to own a business and
keep all of its profits
Gross domestic product (GDP) - correct answer ✔✔When studying the competitiveness of different
nations and comparing their outputs and standards of living, a measure that is often used is the total
value of all goods and services that are produced in each country in a given year
GDP per capita - correct answer ✔✔When the GDP's total value of output is divided by a country's
population, to give a per-person value of economic output
Adam Smith's theory about how society will be improved with such freedoms - correct answer ✔✔Adam
Smith, the father of economics, came up with the invisible hand theory. The theory included that people
will join the market seeking profits and desiring innovation, and people will want to buy the product. the
invisible hand is working to stimulate the economy, but really it's people desire for innovations and
profits. He also supported Laissez fair, to let alone
Global value chain - correct answer ✔✔All the steps it takes (from coming up with the product) to
getting the product to the hands of the consumer. the reason it's a global value chain is because the
value chain "steps" are completed in different countries
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