BUS 110 CHAPTERS 1-4 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Value
Answer:
The relationship between the price of a good or a service and the benefits that it offers its customers.
Question:
2. Business
Answer:
Any organization or activity that provides goods and services in an effort to earn a profit
Question:
3. Profit
Answer:
The money that a business earns in sales, minus expenses, such as the cost of goods, and the cost of
salaries. Revenue-Expenses=Profit
Question:
4. Loss
Answer:
When a business incurs expenses that are greater than its revenue
Question:
5. Entrepreneurs
Answer:
People who risk their time, money, and other resources to start and manage a business
Question:
6. Standard of Living
Answer:
The quality and quantity of goods and services available to a population.
Question:
7. Quality of Living
Answer:
The overall sense of well-being experiences by either an individual or a group.
Question:
8. The Industrial Revolution
Answer:
(1700s-1800s) Mass production took hold, huge factories replaces skilled artisan workships. Resulted in
the unprecedented production efficiency but also a loss of individual ownership and personal pride in the
production process.
, Question:
9. The Entrepreneurship Era
Answer:
(2nd Half of 1800s) Built business empires. These industrial titans created enormous wealth, raising the
overall standard of living across the country. Many dominated their markets, forcing out competitors,
manipulating prices, exploiting workers, and decimating the environment. End of 1800s, government
stepped into the business realm.
Question:
10. The Production Era
Answer:
(Early 1900s) Major businesses focused on further refining the production process and creating greater
efficiencies. Henry Ford introduced the assembly line."Hard Sell" emerged, aggressive persuasion
designed to separate consumers from their cash.
Question:
11. The Marketing Era
Answer:
(Mid 1950s) Balance shifted away from producers and toward consumers, flooding the market with
enticing choices. Business began making different brands to differentiate themselves. "Marketing
Concept" emerged, a consumer focus that permeates successful companies in every department, at every
level.
Question:
12. The Relationship Era
Answer:
Leading edge firms look beyond each immediate transaction with a customer and aim to built long term
relationships.
Question:
13. Nonprofits
Answer:
Business-like establishments that employ people and produce goods and services with the fundamental
goal of contributing to the community rather than generating financial gain.
Question:
14. Factors of Production
Answer:
Four fundamental elements - Natural Resources, Capitial, Human Resources, and Entrepreneurship - that
businesses need to achieve their objectives.
Question:
15. Natural Resources
Answer:
Includes all inputs that offer value in their natural state, such as land, fresh water, wind, and mineral
deposits. The value of all natural resources tends to rise with high demand, low supply, or both.
AND CORRECT ANSWERS
Question:
1. Value
Answer:
The relationship between the price of a good or a service and the benefits that it offers its customers.
Question:
2. Business
Answer:
Any organization or activity that provides goods and services in an effort to earn a profit
Question:
3. Profit
Answer:
The money that a business earns in sales, minus expenses, such as the cost of goods, and the cost of
salaries. Revenue-Expenses=Profit
Question:
4. Loss
Answer:
When a business incurs expenses that are greater than its revenue
Question:
5. Entrepreneurs
Answer:
People who risk their time, money, and other resources to start and manage a business
Question:
6. Standard of Living
Answer:
The quality and quantity of goods and services available to a population.
Question:
7. Quality of Living
Answer:
The overall sense of well-being experiences by either an individual or a group.
Question:
8. The Industrial Revolution
Answer:
(1700s-1800s) Mass production took hold, huge factories replaces skilled artisan workships. Resulted in
the unprecedented production efficiency but also a loss of individual ownership and personal pride in the
production process.
, Question:
9. The Entrepreneurship Era
Answer:
(2nd Half of 1800s) Built business empires. These industrial titans created enormous wealth, raising the
overall standard of living across the country. Many dominated their markets, forcing out competitors,
manipulating prices, exploiting workers, and decimating the environment. End of 1800s, government
stepped into the business realm.
Question:
10. The Production Era
Answer:
(Early 1900s) Major businesses focused on further refining the production process and creating greater
efficiencies. Henry Ford introduced the assembly line."Hard Sell" emerged, aggressive persuasion
designed to separate consumers from their cash.
Question:
11. The Marketing Era
Answer:
(Mid 1950s) Balance shifted away from producers and toward consumers, flooding the market with
enticing choices. Business began making different brands to differentiate themselves. "Marketing
Concept" emerged, a consumer focus that permeates successful companies in every department, at every
level.
Question:
12. The Relationship Era
Answer:
Leading edge firms look beyond each immediate transaction with a customer and aim to built long term
relationships.
Question:
13. Nonprofits
Answer:
Business-like establishments that employ people and produce goods and services with the fundamental
goal of contributing to the community rather than generating financial gain.
Question:
14. Factors of Production
Answer:
Four fundamental elements - Natural Resources, Capitial, Human Resources, and Entrepreneurship - that
businesses need to achieve their objectives.
Question:
15. Natural Resources
Answer:
Includes all inputs that offer value in their natural state, such as land, fresh water, wind, and mineral
deposits. The value of all natural resources tends to rise with high demand, low supply, or both.
