BUS 100 MID TERM REVIEW QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
Trade Surplus - Answers When a country's exports exceed its imports.
Trade Deficit - Answers When a country's imports exceed its exports.
European Union (EU) - Answers Economic union allowing free flow of goods, services, capital, and
people.
Strong U.S. Dollar - Answers Makes U.S. exports more expensive for foreign buyers.
Weak U.S. Dollar - Answers Makes U.S. exports cheaper for foreign buyers.
Market Entry Mode - Answers Strategy a firm uses to enter a foreign market.
Indirect Exporting - Answers Using intermediaries to sell abroad; firm focuses on production.
Licensing - Answers Allowing a foreign company to use intellectual property in exchange for royalties.
Franchising - Answers Licensing plus a complete operating system and brand control.
Turnkey Project - Answers Building and transferring a fully operational facility to a foreign client.
Joint Venture - Answers Shared ownership between a foreign firm and local partner.
Wholly Owned Subsidiary (WOS) - Answers 100% ownership of foreign operations; highest control.
Greenfield Investment - Answers Building a foreign operation from scratch.
Acquisition - Answers Purchasing an existing foreign company.
Managerial Control - Answers Degree of authority a company has over foreign operations.
Business - Answers An organization that produces goods or services to earn a profit.
Goods - Answers Physical products.
Services - Answers Intangible activities performed for customers.
Profit - Answers Total revenue minus total expenses.
Revenue - Answers Money earned from selling goods or services.
Expenses - Answers Costs incurred in running a business.
Land - Answers Natural resources used in production.
Labor - Answers Human effort used in production.
Capital - Answers Tools, equipment, and financial resources used to produce goods/services.
Entrepreneurial Talent - Answers Ability to identify opportunities and take risks.
Economic Environment - Answers Conditions affecting production and consumption (inflation,
unemployment).
Technological Environment - Answers Innovation and advancements impacting business.
Competitive Environment - Answers Rival firms competing for customers.
Social Environment - Answers Demographics, culture, aging populations, diversity trends.
Legal/Political Environment - Answers Laws and government policies affecting business.
Business-to-Business (B2B) - Answers Transactions between two businesses.
Business-to-Consumer (B2C) - Answers Transactions between businesses and end consumers.
Local Business - Answers Serves a limited surrounding geographic area.
Multinational Business - Answers Operates internationally.
Competition - Answers Businesses competing to attract customers.
Offshoring - Answers Moving business activities to another country.
Sole Proprietorship - Answers Business owned by one person with unlimited liability.
Unlimited Liability - Answers Owner is personally responsible for business debts.
Partnership - Answers Business owned by two or more individuals.
Limited Partnership - Answers Partnership with general partners and limited partners.
General Partner - Answers Manages the business and has unlimited liability.
Limited Partner - Answers Invests but has limited liability.
Corporation - Answers Separate legal entity owned by shareholders.
Limited Liability - Answers Owners are not personally responsible for business debts.
Stock - Answers Shares representing ownership in a corporation.
Merger - Answers Two companies join to form one company.
M&A Failure - Answers Often caused by poor integration and cultural conflict.
Federalist System - Answers U.S. legal system with national and state governments.
Contract Law - Answers Governs agreements between parties.
Tort Law - Answers Addresses wrongful acts causing injury or damage.
Strict Liability - Answers Responsibility without proof of negligence.
Patent - Answers Protects inventions and technological innovations.
Antitrust Laws - Answers Laws promoting competition and preventing monopolies.
Trade Surplus - Answers When a country's exports exceed its imports.
Trade Deficit - Answers When a country's imports exceed its exports.
European Union (EU) - Answers Economic union allowing free flow of goods, services, capital, and
people.
Strong U.S. Dollar - Answers Makes U.S. exports more expensive for foreign buyers.
Weak U.S. Dollar - Answers Makes U.S. exports cheaper for foreign buyers.
Market Entry Mode - Answers Strategy a firm uses to enter a foreign market.
Indirect Exporting - Answers Using intermediaries to sell abroad; firm focuses on production.
Licensing - Answers Allowing a foreign company to use intellectual property in exchange for royalties.
Franchising - Answers Licensing plus a complete operating system and brand control.
Turnkey Project - Answers Building and transferring a fully operational facility to a foreign client.
Joint Venture - Answers Shared ownership between a foreign firm and local partner.
Wholly Owned Subsidiary (WOS) - Answers 100% ownership of foreign operations; highest control.
Greenfield Investment - Answers Building a foreign operation from scratch.
Acquisition - Answers Purchasing an existing foreign company.
Managerial Control - Answers Degree of authority a company has over foreign operations.
Business - Answers An organization that produces goods or services to earn a profit.
Goods - Answers Physical products.
Services - Answers Intangible activities performed for customers.
Profit - Answers Total revenue minus total expenses.
Revenue - Answers Money earned from selling goods or services.
Expenses - Answers Costs incurred in running a business.
Land - Answers Natural resources used in production.
Labor - Answers Human effort used in production.
Capital - Answers Tools, equipment, and financial resources used to produce goods/services.
Entrepreneurial Talent - Answers Ability to identify opportunities and take risks.
Economic Environment - Answers Conditions affecting production and consumption (inflation,
unemployment).
Technological Environment - Answers Innovation and advancements impacting business.
Competitive Environment - Answers Rival firms competing for customers.
Social Environment - Answers Demographics, culture, aging populations, diversity trends.
Legal/Political Environment - Answers Laws and government policies affecting business.
Business-to-Business (B2B) - Answers Transactions between two businesses.
Business-to-Consumer (B2C) - Answers Transactions between businesses and end consumers.
Local Business - Answers Serves a limited surrounding geographic area.
Multinational Business - Answers Operates internationally.
Competition - Answers Businesses competing to attract customers.
Offshoring - Answers Moving business activities to another country.
Sole Proprietorship - Answers Business owned by one person with unlimited liability.
Unlimited Liability - Answers Owner is personally responsible for business debts.
Partnership - Answers Business owned by two or more individuals.
Limited Partnership - Answers Partnership with general partners and limited partners.
General Partner - Answers Manages the business and has unlimited liability.
Limited Partner - Answers Invests but has limited liability.
Corporation - Answers Separate legal entity owned by shareholders.
Limited Liability - Answers Owners are not personally responsible for business debts.
Stock - Answers Shares representing ownership in a corporation.
Merger - Answers Two companies join to form one company.
M&A Failure - Answers Often caused by poor integration and cultural conflict.
Federalist System - Answers U.S. legal system with national and state governments.
Contract Law - Answers Governs agreements between parties.
Tort Law - Answers Addresses wrongful acts causing injury or damage.
Strict Liability - Answers Responsibility without proof of negligence.
Patent - Answers Protects inventions and technological innovations.
Antitrust Laws - Answers Laws promoting competition and preventing monopolies.
