BUS 100 Midterm Exam with Answers
What is the difference between revenue and profit? - ✔✔Revenue is the total amount a
business takes in, profit is the amount of money a business earns above what it spends.
Difference between standard of living and quality of life? - ✔✔Standard of living is the amount
of goods and services people can buy with the money they have. Quality of life is the general
well-being of a society in terms of its political freedom, natural environment, education, health
care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other
goods and services provide.
What is risk and how is related to profit? - ✔✔The chance an entrepreneur takes of losing time
and money on a business that may not prove profitable. The chance of loss, the degree of
probability of loss, and the amount of possible loss.
What do the terms stakeholders, outsourcing, and insourcing mean? - ✔✔Stakeholders are all
the people who stand to gain or lose from the policies and activities of a business and whose
concerns the business needs to address. Outsourcing is contracting with other companies
(often in other countries) to do some or all of the functions of a firm, like its production or
accounting tasks.
What are advantages for working with others? - ✔✔is that somebody else assumes the
company's entrepreneurial risk and provides you with benefits like paid vacation times and
health insurance.
What benefits do you lose by being an entrepreneur, and what do you gain? - ✔✔You don't
receive benefits such as paid vacation time, day care, a company car, or health insurance. You
do gain freedom to make your own decisions, opportunity, and possible wealth.
What are the five factors of production? Which ones seem to be the most important for
creating wealth? - ✔✔land, labor, capital, entrepreneurship, and knowledge. Wealth is
between entrepreneurship and knowledge.
What is the difference between revenue and profit? - ✔✔Revenue is the total amount a
business takes in, profit is the amount of money a business earns above what it spends.
Difference between standard of living and quality of life? - ✔✔Standard of living is the amount
of goods and services people can buy with the money they have. Quality of life is the general
well-being of a society in terms of its political freedom, natural environment, education, health
care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other
goods and services provide.
What is risk and how is related to profit? - ✔✔The chance an entrepreneur takes of losing time
and money on a business that may not prove profitable. The chance of loss, the degree of
probability of loss, and the amount of possible loss.
What do the terms stakeholders, outsourcing, and insourcing mean? - ✔✔Stakeholders are all
the people who stand to gain or lose from the policies and activities of a business and whose
concerns the business needs to address. Outsourcing is contracting with other companies
(often in other countries) to do some or all of the functions of a firm, like its production or
accounting tasks.
What are advantages for working with others? - ✔✔is that somebody else assumes the
company's entrepreneurial risk and provides you with benefits like paid vacation times and
health insurance.
What benefits do you lose by being an entrepreneur, and what do you gain? - ✔✔You don't
receive benefits such as paid vacation time, day care, a company car, or health insurance. You
do gain freedom to make your own decisions, opportunity, and possible wealth.
What are the five factors of production? Which ones seem to be the most important for
creating wealth? - ✔✔land, labor, capital, entrepreneurship, and knowledge. Wealth is
between entrepreneurship and knowledge.
