BUSINESS PRINCIPLES BUSI 1301 EXAM 1
QUESTIONS WITH VERIFIED ANSWERS
Business - Answers - Any activity that seeks to provide goods and services to others
while operating at a profit.
Entrepreneur - Answers - A person who risks time and money to start and manage a
business.
Revenue - Answers - The total amount of money a business takes in during a given
period by selling goods and services.
Profit - Answers - The amount of money a business earns above and beyond what it
spends for salaries and other expenses.
Loss - Answers - Occurs when a business's expenses are more than its revenues.
Risk - Answers - The chance an entrepreneur takes of losing time and money on a
business that may not prove profitable.
Do Businesses take risks? - Answers - Yes, but with great risks could come great profit.
Risk should match profit potential.
Standard of Living - Answers - The amount of goods and services people can buy with
the money they have.
Quality of Life - Answers - The general well-being of a society in terms of its political
freedom, natural environment, education, healthcare, safety, amount of leisure and
rewards that add to personal satisfaction.
Stakeholders - Answers - All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the businesses need to address. To be
World Class a company must respond to ALL stakeholders
Outsourcing - Answers - Contracting with other companies (often in other countries) to
do some of the firm's functions, like production or accounting.
Insourcing - Answers - Foreign companies opening offices and factories in the United
States.
, Nonprofit Organization - Answers - An organization whose goals do not include making
a personal profit for its owners or organizers. Nonprofits often strive for social gains that
are achieved by its financial gains. These organizations are not subject to income taxes.
Factors of Production - Answers - Land
Labor
Capital
Machines, tools, and other means of manufacturing NOT cash, bonds, etc.
Entrepreneurship
Knowledge
Entrepreneurs use what they've learned maximize the factors of production to grow their
businesses and increase wealth.
The Factors of Production that contribute the most to making most countries rich are
entrepreneurship and knowledge
Efficiency - Answers - Producing goods and services using the least amount of
resources.
Productivity - Answers - The amount of output you generate given the amount of input
(example: hours you work). Your individual productivity and your ability to communicate
it are your job security and promotion tools for your career.
Customers Expectations - Answers - Meet them and keep your job
Exceed them and move ahead, delight them by providing them with a quality procut at a
good price with outstanding service and you are a superstar!
Empowerment - Answers - Giving frontline workers the responsibility, authority, and
freedom to respond quickly to customer requests. Learn how your staff learns and how
they want to be managed
Demograpics - - Answers - The population in terms of size, density and characteristics
like, age, race, gender and income.
Understanding Demographics can provide businesses and individuals with insights into
business and career opportunities in the future
IMPORTANT CHANGES to the
GLOBAL ENVIRONMENT - Answers - Growth of global competition.
QUESTIONS WITH VERIFIED ANSWERS
Business - Answers - Any activity that seeks to provide goods and services to others
while operating at a profit.
Entrepreneur - Answers - A person who risks time and money to start and manage a
business.
Revenue - Answers - The total amount of money a business takes in during a given
period by selling goods and services.
Profit - Answers - The amount of money a business earns above and beyond what it
spends for salaries and other expenses.
Loss - Answers - Occurs when a business's expenses are more than its revenues.
Risk - Answers - The chance an entrepreneur takes of losing time and money on a
business that may not prove profitable.
Do Businesses take risks? - Answers - Yes, but with great risks could come great profit.
Risk should match profit potential.
Standard of Living - Answers - The amount of goods and services people can buy with
the money they have.
Quality of Life - Answers - The general well-being of a society in terms of its political
freedom, natural environment, education, healthcare, safety, amount of leisure and
rewards that add to personal satisfaction.
Stakeholders - Answers - All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the businesses need to address. To be
World Class a company must respond to ALL stakeholders
Outsourcing - Answers - Contracting with other companies (often in other countries) to
do some of the firm's functions, like production or accounting.
Insourcing - Answers - Foreign companies opening offices and factories in the United
States.
, Nonprofit Organization - Answers - An organization whose goals do not include making
a personal profit for its owners or organizers. Nonprofits often strive for social gains that
are achieved by its financial gains. These organizations are not subject to income taxes.
Factors of Production - Answers - Land
Labor
Capital
Machines, tools, and other means of manufacturing NOT cash, bonds, etc.
Entrepreneurship
Knowledge
Entrepreneurs use what they've learned maximize the factors of production to grow their
businesses and increase wealth.
The Factors of Production that contribute the most to making most countries rich are
entrepreneurship and knowledge
Efficiency - Answers - Producing goods and services using the least amount of
resources.
Productivity - Answers - The amount of output you generate given the amount of input
(example: hours you work). Your individual productivity and your ability to communicate
it are your job security and promotion tools for your career.
Customers Expectations - Answers - Meet them and keep your job
Exceed them and move ahead, delight them by providing them with a quality procut at a
good price with outstanding service and you are a superstar!
Empowerment - Answers - Giving frontline workers the responsibility, authority, and
freedom to respond quickly to customer requests. Learn how your staff learns and how
they want to be managed
Demograpics - - Answers - The population in terms of size, density and characteristics
like, age, race, gender and income.
Understanding Demographics can provide businesses and individuals with insights into
business and career opportunities in the future
IMPORTANT CHANGES to the
GLOBAL ENVIRONMENT - Answers - Growth of global competition.
