Understanding Business by Nickels
Chapters 1-4 questions with answers.
Chapter 1 ANS - Chapter 1
business ANS - Any activity that seeks to provide goods and services to others while operating at a
profit.
goods ANS - Tangible products such as computers, food, clothing, cars, and appliances.
services ANS - Intangible products (i.e. products that con't be held in our hand) such as education,
health care, insurance, recreation, and travel and tourism.
entrepreneur ANS - A person who RISKS time and money to start and manage a business.
revenue ANS - The total amount of money a business takes in during a given period b selling goods and
services.
profit ANS - The amount of money a business earns above and beyond what it spends for salaries and
other expenses.
loss ANS - When a business's expenses are more than its revenues.
risk ANS - The chance an entrepreneur takes of losing time and money on a business that may not
prove profitable.
standard of living ANS - The amount of goods and services people can buy with the money they have.
, quality of life ANS - The general well-being of a society in terms of its political freedom, natural
environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction
and joy that other goods and services provide.
stakeholders ANS - All the people who stand to gain or loose by the policies and activities of a business
and whose concerns the business needs to address.
outsourcing ANS - Contracting with other companies (often in other countries) to do some or all of the
function of a firm, like its production or accounting tasks.
nonprofit organization ANS - An organization whose goals do not include making a personal profit for
its owners or organizers.
factors of production ANS - The resources used to create wealth: land, labor, capital, entrepreneurship,
and knowledge.
business environment ANS - The surrounding factors that either help or hinder the development of
business.
technology ANS - Everything from phones and copiers to computers, mobile devices, medical imaging
machines, and the various software programs and apps that make business processes more effective,
efficient, and productive.
productivity ANS - The amount of output you generate given the amount of input (e.g. hours worked).
e-commerce ANS - The buying and selling of goods over the Internet.
database ANS - An electronic storage file for information.
identity theft ANS - The obtaining of individuals' personal information, such as Social Security and credit
card numbers, for illegal purposes.
Chapters 1-4 questions with answers.
Chapter 1 ANS - Chapter 1
business ANS - Any activity that seeks to provide goods and services to others while operating at a
profit.
goods ANS - Tangible products such as computers, food, clothing, cars, and appliances.
services ANS - Intangible products (i.e. products that con't be held in our hand) such as education,
health care, insurance, recreation, and travel and tourism.
entrepreneur ANS - A person who RISKS time and money to start and manage a business.
revenue ANS - The total amount of money a business takes in during a given period b selling goods and
services.
profit ANS - The amount of money a business earns above and beyond what it spends for salaries and
other expenses.
loss ANS - When a business's expenses are more than its revenues.
risk ANS - The chance an entrepreneur takes of losing time and money on a business that may not
prove profitable.
standard of living ANS - The amount of goods and services people can buy with the money they have.
, quality of life ANS - The general well-being of a society in terms of its political freedom, natural
environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction
and joy that other goods and services provide.
stakeholders ANS - All the people who stand to gain or loose by the policies and activities of a business
and whose concerns the business needs to address.
outsourcing ANS - Contracting with other companies (often in other countries) to do some or all of the
function of a firm, like its production or accounting tasks.
nonprofit organization ANS - An organization whose goals do not include making a personal profit for
its owners or organizers.
factors of production ANS - The resources used to create wealth: land, labor, capital, entrepreneurship,
and knowledge.
business environment ANS - The surrounding factors that either help or hinder the development of
business.
technology ANS - Everything from phones and copiers to computers, mobile devices, medical imaging
machines, and the various software programs and apps that make business processes more effective,
efficient, and productive.
productivity ANS - The amount of output you generate given the amount of input (e.g. hours worked).
e-commerce ANS - The buying and selling of goods over the Internet.
database ANS - An electronic storage file for information.
identity theft ANS - The obtaining of individuals' personal information, such as Social Security and credit
card numbers, for illegal purposes.
