ITB Final Exam Review Questions and
Answers
Characteristics of Nonprofits - ANSWER-Health, human services, education, art,
religion, and culture.
Factors of Productions - ANSWER-Elements that businesses need to achieve their
objectives.
Natural Resources - ANSWER-- inputs that offer value.
- extracted, purified and harnessed.
ex. - wind, fresh water, land etc.
Capital - ANSWER--synthetic resources
ex. - machines, tools, buildings, information and technology.
Human Resources - ANSWER-- physical, intellectual and creative contributions of
everyone who works within a economy.
ex. - education and motivation
Entrepreneurship - ANSWER-- people who take risk of launching and operating their
own businesses.
- creating opportunities by harnessing other factors.
ex. - freedom of choice, excess regulation, and too much taxation
Business Environment - ANSWER-- economic
- social
- global
- technological
- competitive
GDP (Gross Domestic Product) - ANSWER-- The total value of all final goods and
services produced within a nation's physical boundaries over a given period of time
Pure Competition - ANSWER-- a market structure with many competitors selling
virtually identical products.
Monopolistic Competition - ANSWER-- a market structure with many competitors selling
differentiated products.
, Oligopoly Competition - ANSWER-- a market structure with only a handful of
competitors selling products that can be similar or different.
Monopoly Competition - ANSWER-A one seller market.
Social Responsibility - ANSWER-the obligation of a business to contribute to society
Foreign Corrupt Practices Act - ANSWER-U.S. law regulating behavior regarding the
conduct of international business in the taking of bribes and other unethical actions.
Stakeholders - ANSWER-any groups that have a stake - or a personal interest - in the
performance and actions of an organization
Consumerism - ANSWER-A social movement that focuses on four key consumer rights:
(1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the
right to be heard.
green marketing - ANSWER-developing and promoting environmentally sound products
and practices to gain a competitive edge
Supply Curve - ANSWER-- The graphed relationship between price and quantity from a
supplier standpoint.
- When prices go up, the quantity produced rises.
Communication Channel + Business Writing - ANSWER-- Being Face to Face gives
more experience to verbal content and body language.
- Using an active voice
- Appropriate language/ Pronouns
- Proof of grammatical errors.
Sole Proprietorship - ANSWER-a form of business ownership with a single owner who
usually actively manages the company
Partnership - ANSWER-a voluntary agreement under which two or more people act as
co-owners of a business for profit
Corporation - ANSWER-a form of business ownership in which the business is
considered a legal entity that is separate and distinct from its owners
Limited Liability Company (LLC) - ANSWER-a form of business ownership that offers
both limited liability to its owners and flexible tax treatment
Franchise - ANSWER-a licensing arrangement under which a franchisor allows
franchisees to use its name, trademark, products, business methods, and other property
in exchange for monetary payments and other considerations
Answers
Characteristics of Nonprofits - ANSWER-Health, human services, education, art,
religion, and culture.
Factors of Productions - ANSWER-Elements that businesses need to achieve their
objectives.
Natural Resources - ANSWER-- inputs that offer value.
- extracted, purified and harnessed.
ex. - wind, fresh water, land etc.
Capital - ANSWER--synthetic resources
ex. - machines, tools, buildings, information and technology.
Human Resources - ANSWER-- physical, intellectual and creative contributions of
everyone who works within a economy.
ex. - education and motivation
Entrepreneurship - ANSWER-- people who take risk of launching and operating their
own businesses.
- creating opportunities by harnessing other factors.
ex. - freedom of choice, excess regulation, and too much taxation
Business Environment - ANSWER-- economic
- social
- global
- technological
- competitive
GDP (Gross Domestic Product) - ANSWER-- The total value of all final goods and
services produced within a nation's physical boundaries over a given period of time
Pure Competition - ANSWER-- a market structure with many competitors selling
virtually identical products.
Monopolistic Competition - ANSWER-- a market structure with many competitors selling
differentiated products.
, Oligopoly Competition - ANSWER-- a market structure with only a handful of
competitors selling products that can be similar or different.
Monopoly Competition - ANSWER-A one seller market.
Social Responsibility - ANSWER-the obligation of a business to contribute to society
Foreign Corrupt Practices Act - ANSWER-U.S. law regulating behavior regarding the
conduct of international business in the taking of bribes and other unethical actions.
Stakeholders - ANSWER-any groups that have a stake - or a personal interest - in the
performance and actions of an organization
Consumerism - ANSWER-A social movement that focuses on four key consumer rights:
(1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the
right to be heard.
green marketing - ANSWER-developing and promoting environmentally sound products
and practices to gain a competitive edge
Supply Curve - ANSWER-- The graphed relationship between price and quantity from a
supplier standpoint.
- When prices go up, the quantity produced rises.
Communication Channel + Business Writing - ANSWER-- Being Face to Face gives
more experience to verbal content and body language.
- Using an active voice
- Appropriate language/ Pronouns
- Proof of grammatical errors.
Sole Proprietorship - ANSWER-a form of business ownership with a single owner who
usually actively manages the company
Partnership - ANSWER-a voluntary agreement under which two or more people act as
co-owners of a business for profit
Corporation - ANSWER-a form of business ownership in which the business is
considered a legal entity that is separate and distinct from its owners
Limited Liability Company (LLC) - ANSWER-a form of business ownership that offers
both limited liability to its owners and flexible tax treatment
Franchise - ANSWER-a licensing arrangement under which a franchisor allows
franchisees to use its name, trademark, products, business methods, and other property
in exchange for monetary payments and other considerations
