BUSINESS 104 - EXAM # 1 2024/2025 ACCURATE SOLUTIONS

BUSINESS 104 - EXAM # 1 2024/2025
ACCURATE SOLUTIONS

, BUSINESS 104 - EXAM # 1 2024/2025
ACCURATE SOLUTIONS

What is an advantage of a franchise? - CORRECT ANSWERSThe franchise offers a nationally recognized
name and reputation.



What is a disadvantage of a franchise? - CORRECT ANSWERSconflict between franchisors and
franchisees, Transaction cost problems, Certain types of innovations and changes are more difficult.



What is entrepreneurship? - CORRECT ANSWERSthe process of starting, organizing, managing, and
assuming the responsibility for a business



Why are small businesses important? - CORRECT ANSWERSProviding employment, competition for
bigger companies and filling needs



5 factors of production - CORRECT ANSWERSland, labor, capital, entrepreneurship, knowledge



Types of Economic Systems - CORRECT ANSWERSmixed capitalism, capitalism, socialism, communism



What is capitalism? - CORRECT ANSWERSan economic and political system in which a country's trade
and industry are controlled by private owners for profit, rather than by the state.



What is a mixed economy? - CORRECT ANSWERSan economic system combining private and public
enterprise.



What is a demand curve? - CORRECT ANSWERSshows the relationship between the price of a product
and the quantity of the product demanded. This is a direct relationship.



What is equilibrium point ? - CORRECT ANSWERSThe price marked on supply and demand graph. At this
price supply and demand are in balance.