CHAPTER 1 BUS 100 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
business - Answers is any activity that provides goods or services to consumers for the purpose of
making a profit.
profit - Answers The financial gain made in a transaction
not-for-profit organizations - Answers groups that do not pursue profit as a goal; they engage in
charitable, educational, humanitarian, cultural, professional, or other activities, often with a social
purpose
Management - Answers involves planning for, organizing, staffing, directing, and controlling a
company's resources so that it can achieve its goals.
Operations Manager - Answers The person who designs and oversees the transformation of
resources into goods or services
Marketing - Answers consists of everything that a company does to identify customers' needs and
designs products to meet those needs.
Accountants - Answers measure, summarize, and communicate financial and managerial information
and advise other managers on financial matters.
Finance - Answers involves planning for, obtaining, and managing a company's funds.
Economics - Answers is the study of the production, distribution, and consumption of goods and
services.
Resources - Answers are the inputs used to produce outputs. Resources may include any or all of the
following:
Land and other natural resources
Labor (physical and mental)
Capital, including buildings and equipment
Entrepreneurship
factors of production - Answers The land that the shirt factory sits on, the electricity used to run the
plant, and the raw cotton from which the shirts are made
The laborers who make the shirts
The factory and equipment used in the manufacturing process, as well as the money needed to
operate the factory
The entrepreneurship skill used to coordinate the other resources to initiate the production process
and the distribution of the goods or services to the marketplace
Economic System - Answers the means by which a society (households, businesses, and government)
makes decisions about allocating resources to produce products and about distributing those
products
Communism - Answers In theory, a communist economy is one in which the government owns all or
most enterprises. Central planning by the government dictates which goods or services are produced,
how they are produced, and who will receive them.
Socialism - Answers industries that provide essential services, such as utilities, banking, and health
care, may be government owned. Other businesses are owned privately.
free market system or capitalism - Answers business is conducted with only limited government
involvement. Competition determines what goods and services are produced, how they are produced,
and for whom.
Mixed Market Economy - Answers relies on both markets and the government to allocate resources.
Privatization - Answers process of converting government enterprises into privately owned
companies
Perfect Competition - Answers exists when there are many consumers buying a standardized product
from numerous small businesses.
Demand - Answers is the quantity of a product that buyers are willing to purchase at various prices.
Supply - Answers is the quantity of a product that sellers are willing to sell at various prices.
Equilibrium Price - Answers the price at which the quantity demanded equals the quantity supplied
Oligopoly - Answers In an oligopolistic market, each seller supplies a large portion of all the products
sold in the marketplace.
business - Answers is any activity that provides goods or services to consumers for the purpose of
making a profit.
profit - Answers The financial gain made in a transaction
not-for-profit organizations - Answers groups that do not pursue profit as a goal; they engage in
charitable, educational, humanitarian, cultural, professional, or other activities, often with a social
purpose
Management - Answers involves planning for, organizing, staffing, directing, and controlling a
company's resources so that it can achieve its goals.
Operations Manager - Answers The person who designs and oversees the transformation of
resources into goods or services
Marketing - Answers consists of everything that a company does to identify customers' needs and
designs products to meet those needs.
Accountants - Answers measure, summarize, and communicate financial and managerial information
and advise other managers on financial matters.
Finance - Answers involves planning for, obtaining, and managing a company's funds.
Economics - Answers is the study of the production, distribution, and consumption of goods and
services.
Resources - Answers are the inputs used to produce outputs. Resources may include any or all of the
following:
Land and other natural resources
Labor (physical and mental)
Capital, including buildings and equipment
Entrepreneurship
factors of production - Answers The land that the shirt factory sits on, the electricity used to run the
plant, and the raw cotton from which the shirts are made
The laborers who make the shirts
The factory and equipment used in the manufacturing process, as well as the money needed to
operate the factory
The entrepreneurship skill used to coordinate the other resources to initiate the production process
and the distribution of the goods or services to the marketplace
Economic System - Answers the means by which a society (households, businesses, and government)
makes decisions about allocating resources to produce products and about distributing those
products
Communism - Answers In theory, a communist economy is one in which the government owns all or
most enterprises. Central planning by the government dictates which goods or services are produced,
how they are produced, and who will receive them.
Socialism - Answers industries that provide essential services, such as utilities, banking, and health
care, may be government owned. Other businesses are owned privately.
free market system or capitalism - Answers business is conducted with only limited government
involvement. Competition determines what goods and services are produced, how they are produced,
and for whom.
Mixed Market Economy - Answers relies on both markets and the government to allocate resources.
Privatization - Answers process of converting government enterprises into privately owned
companies
Perfect Competition - Answers exists when there are many consumers buying a standardized product
from numerous small businesses.
Demand - Answers is the quantity of a product that buyers are willing to purchase at various prices.
Supply - Answers is the quantity of a product that sellers are willing to sell at various prices.
Equilibrium Price - Answers the price at which the quantity demanded equals the quantity supplied
Oligopoly - Answers In an oligopolistic market, each seller supplies a large portion of all the products
sold in the marketplace.
