Intro to Business Exam 1 with Verified Answers Graded A+
1. What is the primary To make a profit.
focus of a profit or-
ganization?
2. What are the four Planning, organizing, controlling, and leading
functions of man-
agement?
3. What are the fac- quality products, efficient operations, social responsibil-
tors of produc- ity, and business ethics.
tion used to make
goods and ser-
vices?
4. What is Commu- Owned and operated by by government. No compe-
nism? tition, the government owns and operates everything.
Excess income goes to the government. Consumers
have limited choice of goods and services, prices usu-
ally high. Little choice in career choice, most work for
government-owned farms and industries.
5. What is Socialism? Gov owns and operates major industries, individuals
own small businesses. Restricted in major industries,
encouraged in small business. Profits earned in small
business may be reinvested in business, profits from
gov owned industries go to gov. Consumers have some
choice of goods and services, prices determined by
supply and demand. Some choice of careers, many
work in gov jobs.
6. What is Capital- Individuals own and operate all business. Encouraged
ism? by market forces and government regulations. People
are free to keep profits and use them as they wish.
Consumers have wide choice of goods and services,
prices determined by supply and demand. Unlimited
choice of careers.
7. What is pure com- Many small businesses in same product market.
petition?
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, Intro to Business Exam 1 with Verified Answers Graded A+
8. What is monopolis- small number of businesses little difference in products.
tic competition?
9. What is oligopoly? Very few businesses selling a product.
10. What is a monop- The market structure that exists when there is only one
oly? business providing a product in a given market.
11. What is economic Economy is growing and consumers are spending mon-
expansion? ey.
12. What is a depres- unemployment very high; consumer spending low; busi-
sion? ness output sharply reduced
13. What is a reces- Decline in production, employment, and income
sion?
14. What is economic spending declines, layoffs, economy slows down.
contraction?
15. What is inflation? Condition characterized by continuing rise in prices.
16. What is importing? the purchase of goods and services from foreign
sources
17. What is exporting? the sale of goods and services to foreign markets
18. What is a budget the condition in which a nation spends more than it takes
deficit? in taxes
19. What is a negative A country who brings more in than they are sending out
balance of trade?
20. What is a positive A country who sends out more than they are bringing in
balance of trade?
21. What is an entre- an individual who risks his or her wealth, time and effort
preneur? to develop for profit an innovative product or way of
doing things.
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1. What is the primary To make a profit.
focus of a profit or-
ganization?
2. What are the four Planning, organizing, controlling, and leading
functions of man-
agement?
3. What are the fac- quality products, efficient operations, social responsibil-
tors of produc- ity, and business ethics.
tion used to make
goods and ser-
vices?
4. What is Commu- Owned and operated by by government. No compe-
nism? tition, the government owns and operates everything.
Excess income goes to the government. Consumers
have limited choice of goods and services, prices usu-
ally high. Little choice in career choice, most work for
government-owned farms and industries.
5. What is Socialism? Gov owns and operates major industries, individuals
own small businesses. Restricted in major industries,
encouraged in small business. Profits earned in small
business may be reinvested in business, profits from
gov owned industries go to gov. Consumers have some
choice of goods and services, prices determined by
supply and demand. Some choice of careers, many
work in gov jobs.
6. What is Capital- Individuals own and operate all business. Encouraged
ism? by market forces and government regulations. People
are free to keep profits and use them as they wish.
Consumers have wide choice of goods and services,
prices determined by supply and demand. Unlimited
choice of careers.
7. What is pure com- Many small businesses in same product market.
petition?
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, Intro to Business Exam 1 with Verified Answers Graded A+
8. What is monopolis- small number of businesses little difference in products.
tic competition?
9. What is oligopoly? Very few businesses selling a product.
10. What is a monop- The market structure that exists when there is only one
oly? business providing a product in a given market.
11. What is economic Economy is growing and consumers are spending mon-
expansion? ey.
12. What is a depres- unemployment very high; consumer spending low; busi-
sion? ness output sharply reduced
13. What is a reces- Decline in production, employment, and income
sion?
14. What is economic spending declines, layoffs, economy slows down.
contraction?
15. What is inflation? Condition characterized by continuing rise in prices.
16. What is importing? the purchase of goods and services from foreign
sources
17. What is exporting? the sale of goods and services to foreign markets
18. What is a budget the condition in which a nation spends more than it takes
deficit? in taxes
19. What is a negative A country who brings more in than they are sending out
balance of trade?
20. What is a positive A country who sends out more than they are bringing in
balance of trade?
21. What is an entre- an individual who risks his or her wealth, time and effort
preneur? to develop for profit an innovative product or way of
doing things.
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