Introduction to Business Administration Exam Questions and Correct Answers Latest Update 2024 (Graded A+)

Introduction to Business Administration Exam Questions and Correct Answers Latest Update 2024 (Graded A+) business - Answers Any activity that seeks to provide goods and services to others while operating at a profit Profit - Answers The amount of money a business earns above and beyond what it spends for salaries and other expenses 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 loss - Answers 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 standard of living - Answers the amount of goods an services people can buy with the money they have. quality of life - Answers the general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free ti e and everything else that leads to satisfaction and joy. stakeholders - Answers all the people who stand to gain or lose by the policies and activities of a business nonprofit organization - Answers an organization whose goals do not include making a personal profit for its owners or organizers factors of production - Answers The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge technology - Answers Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive productivity - Answers The amount of output you generate given the amount of input (e.g., hours worked) efficiency - Answers Producing items using the least amount of resources e-commerce - Answers The buying and selling of goods over the internet Database - Answers An electronic storage file where information is kept; one use of databases is to store vast amounts of information about consumers Empowerment - Answers Giving frontline workers the responsibility, authority, and freedom to respond quickly to customer requests Demography - Answers The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender and income Goods - Answers Tangible products such as computers, food, clothing, cars, and appliances Services - Answers Intangible products (i.e., products that cannot be held in your hand) such as education, health care, insurance, recreation, and travel and tourism economics - Answers The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals Macroeconomics - Answers The part of economics study that looks at the operation of a nation's economy as a whole Microeconomics - Answers The part of economics study that looks at the behavior of people and organizations in particular markets Resource Development - Answers The study of how to increase resources and to create the conditions that will make better use of those resources Invisible Hand - Answers A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all capitalism - Answers An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit supply - Answers The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time demand - Answers The quantity of products that people are willing to buy at different prices at a specific time market price - Answers The price determined by supply and demand Perfect Competition - Answers The market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product Monopolistic Competition - Answers The market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different oligopoly - Answers a form of competition in which just a few sellers dominate the market monopoly - Answers a market in which only one seller dominates the market socialism - Answers An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be evenly distributed among the people communism - Answers An economic and political system in which the state (the government) makes all economic decisions and owns almost all the major factors of production unemployment rate - Answers The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks inflation - Answers A general rise in the price of goods and services over time Deflation - Answers A situation in which prices are declining Consumer Price Index (CPI) - Answers Monthly statistics that measure the pace of inflation or deflation Producer Price index - Answers An index that measures prices at the wholesale level Business Cycles - Answers The periodic rises and falls that occur in all economies over time Recession - Answers Two or more consecutive quarters of decline in the GDP Depression - Answers A severe recession Fiscal Policy - Answers The Federal Government's efforts to keep the economy stable by increasing or decreasing taxes or government spending National Debt - Answers The sum of government deficits over time Monetary Policy - Answers The management of the money supply and interest rates Exporting - Answers Selling products to another country Importing - Answers Buying products from another country Free Trade - Answers The movement of goods and services among nations without political or economic trade barriers Balance of Trade - Answers A nations ratio of exports to imports Trade Deficit - Answers An unfavorable balance of trade