BUS 100 Midterm Exam with Answers
Risk - ✔✔the chance an entrepreneur takes of losing time and money on a business that may
not prove profitable
Loss - ✔✔when a business's expenses are more than its revenues
Business - ✔✔any activity that seeks to provide goods and services to others while operating at
a profit
Standard of living - ✔✔the amount of goods and services people can buy with the money they
have
Quality of life - ✔✔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.
Five Factor of Production w/ ex. - ✔✔land- Natural resources ex. oil
labor- Workers ex. constructors
capital-Things to make money ex.equipment
entrepreneurship- Taking risks ex. autoshop
knowledge- Information Technology ex.internet
business environment - ✔✔1. The economic and legal environment
2. The technological environment
3. The competitive environment
4. The social environment
5. The global business environment
, social environment - ✔✔diversity, demographic changes, family changes
Technological Environment - ✔✔information technology, databases, bar codes, the internet
Economic and Legal Environment - ✔✔1. Freedom of ownership
2. Contract laws
3. Elimination of corruption
4. Tradable currency
5. Minimum taxes and regulation
competitive environment - ✔✔customer service, stakeholder recognition, employee service,
concern for the environment
Macroeconomics - ✔✔The part of economics study that looks at the operation of a nation's
economy as a whole.
Microeconomics - ✔✔the part of economics study that looks at the behavior of people and
organizations in particular markets
invisible hand - ✔✔A phrase coined by Adam Smith to describe the process that turns self-
directed gain into social and economic benefits for all
Free Market Capitalism four basic rights - ✔✔1. The right to own private property
2. The right to own a business and keep all that business's profits
3. The right to freedom of competition
4. The right to freedom of choice
Risk - ✔✔the chance an entrepreneur takes of losing time and money on a business that may
not prove profitable
Loss - ✔✔when a business's expenses are more than its revenues
Business - ✔✔any activity that seeks to provide goods and services to others while operating at
a profit
Standard of living - ✔✔the amount of goods and services people can buy with the money they
have
Quality of life - ✔✔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.
Five Factor of Production w/ ex. - ✔✔land- Natural resources ex. oil
labor- Workers ex. constructors
capital-Things to make money ex.equipment
entrepreneurship- Taking risks ex. autoshop
knowledge- Information Technology ex.internet
business environment - ✔✔1. The economic and legal environment
2. The technological environment
3. The competitive environment
4. The social environment
5. The global business environment
, social environment - ✔✔diversity, demographic changes, family changes
Technological Environment - ✔✔information technology, databases, bar codes, the internet
Economic and Legal Environment - ✔✔1. Freedom of ownership
2. Contract laws
3. Elimination of corruption
4. Tradable currency
5. Minimum taxes and regulation
competitive environment - ✔✔customer service, stakeholder recognition, employee service,
concern for the environment
Macroeconomics - ✔✔The part of economics study that looks at the operation of a nation's
economy as a whole.
Microeconomics - ✔✔the part of economics study that looks at the behavior of people and
organizations in particular markets
invisible hand - ✔✔A phrase coined by Adam Smith to describe the process that turns self-
directed gain into social and economic benefits for all
Free Market Capitalism four basic rights - ✔✔1. The right to own private property
2. The right to own a business and keep all that business's profits
3. The right to freedom of competition
4. The right to freedom of choice
