BUSINESS FOUNDATIONS ACTUAL EXAM SCRIPT 2026 FULL QUESTIONS AND CORRECT ANSWERS GRADED A+

BUSINESS FOUNDATIONS ACTUAL EXAM
SCRIPT 2026 FULL QUESTIONS AND
CORRECT ANSWERS GRADED A+

●● What is the difference between goods and services? Answer: Goods
are tangible (physical); Services are intangible (non-physical).


●● What is GDP? Answer: The total value of all goods and services
produced in a country in one year.


●● Why is GDP important? Answer: It measures the health of the
economy.


●● What is revenue? Answer: Sales (top line).


●● What are expenses? Answer: Costs of operating (COGS + OPEX).


●● What is profit? Answer: Revenue − Expenses.


●● What is a loss? Answer: When expenses are greater than revenue.


●● What are the 4 functions of management? Answer: Planning,
Organizing, Leading, Controlling.

, ●● What are the 4 P's of marketing? Answer: Product, Price, Place,
Promotion.


●● What is economics? Answer: How resources are used to produce
goods and services.


●● What are the factors of production? Answer: Land, Labor, Capital,
Entrepreneurship.


●● What are the 3 main economic systems? Answer: Communism,
Socialism, Capitalism.


●● Who is associated with communism? Answer: Karl Marx.


●● Who is associated with capitalism? Answer: Adam Smith.


●● What is a free market? Answer: A system with little government
intervention where supply and demand set prices.


●● What is demand? Answer: The quantity buyers are willing to
purchase.


●● What is supply? Answer: The quantity sellers are willing to produce.