Business Exam Review with Answers
the term for all the activities involved in developing and exchanging products - correct
answer-business
the customer of a service is often called a - correct answer-client
anything that is bought or sold is called a - correct answer-product
customers who purchase goods and services for their own use are called - correct
answer-consumers
____ utility is added when a business changes the form of a good or a service to make
it more useful - correct answer-form
a ___ is anywhere buyers and sellers can meet to buy and sell goods and services -
correct answer-market
the difference between the income earned and the expenses incurred by a business
during a specific period of time is called _____ - correct answer-profit
a science that examines how goods and services are produced, sold and used is called
____ - correct answer-economics
a ____ economy is one in which economic decisions are based on society's values,
culture, and customs - correct answer-traditional
the law of ____ says that the price of a product is determined by the relationship of the
supply of the product and the demand for the product - correct answer-supply and
demand
____ is the market value of all final products produces in a country during a specific
time period - correct answer-GDP; gross domestic product
the four components of GDP are consumer spending, business investment, government
spending and ____ - correct answer-net exports
the ___- rate is the rate of change in prices calculated on a monthly or yearly basis -
correct answer-inflation
____ is the general decline in prices throughout the economy - correct answer-deflation
,the ____ represents the cost of a loan and is expressed as a percent of the amount
borrowed - correct answer-interest rate
____ competition is a competitive advantage based on factors other than price - correct
answer-nonprice
the activities involved in buying and selling goods on a large scale is ____ - correct
answer-commerce
the total money circulating at any one time in a country is the ____ - correct answer-
money supply
fiscal policy is the tax spending decisions made by the president and _____ - correct
answer-congress
when two or more businesses work together to remove their competition, set prices, and
control distribution is called ____ - correct answer-collusion
a ___ is a legal binding agreement between two or more people or businesses - correct
answer-contract
a(n) ____ is a proposal to provide a good or a service - correct answer-offer
something of value promised in a contract is called ___ - correct answer-consideration
___ means that a person is legally able to enter into a binding agreement - correct
answer-capacity
promoting the welfare of others is called - correct answer-philanthropy
a(n) ____ is a contract to rent something - correct answer-lease
when one or more parties do not follow the agreed terms of a contract without have a
legitimate reason ___ occurs - correct answer-breach of contract
a(n) ___ contract lists the products or the services provided by a business and the price
a customer pays in exchange - correct answer-sales and service
principles that help define appropriate behavior in a business setting are ____ - correct
answer-business ethics
a ____ is a document the dictates how businesses should be conducted - correct
answer-code of ethics
a(n) ___ business is an organization that generates revenue - correct answer-for-profit
business
, a(n) ____ exists to serve some public purpose - correct answer-not-for-profit
organizations
___are businesses that use supplies from other producers to make products - correct
answer-manufacturers
a business that purchases large quantities of products directly from producers and sells
the products in smaller quantities to retailers is a _____ - correct answer-wholesaler
in a private enterprise system, ______ directly provide consumers with products that
meet their needs and wants - correct answer-retailers
a ____ is the simplest and most common form of a business ownership - correct
answer-proprietorship
a ___ is an association of two or more persons who co-own a business with objective of
earning a profit - correct answer-partnership
the numeric system is used to classify businesses and collect and economic statistics is
called the ____ - correct answer-( NAICS) North american industry classification system
the ___ is a group of individuals who make a high level management decisions for a
corporation and establish company policies - correct answer-collective
a share of ownership in a corporation is called a ____ - correct answer-stock
___ is the connection made among nations when economies freely move goods, labor
and money across borders - correct answer-globalization
the shared beliefs, customs, practices, and social behavior of a particular group or
nation is the _____ - correct answer-culture
the business activity involved in making, buying, and selling products within a nations
border is _____ - correct answer-domestic business
the goods and services produces within a country's borders and sold in another country
are __________ - correct answer-exports
a(n) ____ a group of counties that have reduced or eliminated trade barriers among
themselves - correct answer-embargo
the ___ is the difference between a nations imports and exports - correct answer-
balance of trade
the term for all the activities involved in developing and exchanging products - correct
answer-business
the customer of a service is often called a - correct answer-client
anything that is bought or sold is called a - correct answer-product
customers who purchase goods and services for their own use are called - correct
answer-consumers
____ utility is added when a business changes the form of a good or a service to make
it more useful - correct answer-form
a ___ is anywhere buyers and sellers can meet to buy and sell goods and services -
correct answer-market
the difference between the income earned and the expenses incurred by a business
during a specific period of time is called _____ - correct answer-profit
a science that examines how goods and services are produced, sold and used is called
____ - correct answer-economics
a ____ economy is one in which economic decisions are based on society's values,
culture, and customs - correct answer-traditional
the law of ____ says that the price of a product is determined by the relationship of the
supply of the product and the demand for the product - correct answer-supply and
demand
____ is the market value of all final products produces in a country during a specific
time period - correct answer-GDP; gross domestic product
the four components of GDP are consumer spending, business investment, government
spending and ____ - correct answer-net exports
the ___- rate is the rate of change in prices calculated on a monthly or yearly basis -
correct answer-inflation
____ is the general decline in prices throughout the economy - correct answer-deflation
,the ____ represents the cost of a loan and is expressed as a percent of the amount
borrowed - correct answer-interest rate
____ competition is a competitive advantage based on factors other than price - correct
answer-nonprice
the activities involved in buying and selling goods on a large scale is ____ - correct
answer-commerce
the total money circulating at any one time in a country is the ____ - correct answer-
money supply
fiscal policy is the tax spending decisions made by the president and _____ - correct
answer-congress
when two or more businesses work together to remove their competition, set prices, and
control distribution is called ____ - correct answer-collusion
a ___ is a legal binding agreement between two or more people or businesses - correct
answer-contract
a(n) ____ is a proposal to provide a good or a service - correct answer-offer
something of value promised in a contract is called ___ - correct answer-consideration
___ means that a person is legally able to enter into a binding agreement - correct
answer-capacity
promoting the welfare of others is called - correct answer-philanthropy
a(n) ____ is a contract to rent something - correct answer-lease
when one or more parties do not follow the agreed terms of a contract without have a
legitimate reason ___ occurs - correct answer-breach of contract
a(n) ___ contract lists the products or the services provided by a business and the price
a customer pays in exchange - correct answer-sales and service
principles that help define appropriate behavior in a business setting are ____ - correct
answer-business ethics
a ____ is a document the dictates how businesses should be conducted - correct
answer-code of ethics
a(n) ___ business is an organization that generates revenue - correct answer-for-profit
business
, a(n) ____ exists to serve some public purpose - correct answer-not-for-profit
organizations
___are businesses that use supplies from other producers to make products - correct
answer-manufacturers
a business that purchases large quantities of products directly from producers and sells
the products in smaller quantities to retailers is a _____ - correct answer-wholesaler
in a private enterprise system, ______ directly provide consumers with products that
meet their needs and wants - correct answer-retailers
a ____ is the simplest and most common form of a business ownership - correct
answer-proprietorship
a ___ is an association of two or more persons who co-own a business with objective of
earning a profit - correct answer-partnership
the numeric system is used to classify businesses and collect and economic statistics is
called the ____ - correct answer-( NAICS) North american industry classification system
the ___ is a group of individuals who make a high level management decisions for a
corporation and establish company policies - correct answer-collective
a share of ownership in a corporation is called a ____ - correct answer-stock
___ is the connection made among nations when economies freely move goods, labor
and money across borders - correct answer-globalization
the shared beliefs, customs, practices, and social behavior of a particular group or
nation is the _____ - correct answer-culture
the business activity involved in making, buying, and selling products within a nations
border is _____ - correct answer-domestic business
the goods and services produces within a country's borders and sold in another country
are __________ - correct answer-exports
a(n) ____ a group of counties that have reduced or eliminated trade barriers among
themselves - correct answer-embargo
the ___ is the difference between a nations imports and exports - correct answer-
balance of trade
