FOUNDATIONS OF BUSINESS,
CHAPTERS 1-4 EXAM QUESTIONS
WITH VERIFIED ANSWERS. A+ GRADE
2025/2026.
Free Enterprise - ANS The system of business in which individuals are free to decide what to
produce, how to produce it, and at what price to sell it
Business - ANS The organized effort of individuals to produce and sell, for a profit, the goods
and services that satisfy society's needs
Service Business - ANS A business that performs an activity for a fee
Manufacturing Business - ANS A business that makes finished goods from raw materials by
hand or machinery
Marketing Intermediaries - ANS Middlemen that link producers to other intermediaries or
ultimate consumers through contractual arrangements or through the purchase and resale of
products
E-Business - ANS Using the internet to facilitate every aspect of running a business
Profit - ANS What you have left after expenses
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Stakeholders - ANS all the different people or groups of people who are affected by an
organization's policies, decisions, and activities
Economics - ANS the study of how wealth is created and distributed
Micro - ANS Study of decisions of individuals and businesses
Macro - ANS The study of national and global economics
Economy - ANS The way in which people deal with the creation and distribution of wealth
Factors of Production - ANS Land, labor, and capital; the three groups of resources that are
used to make all goods and services
Capitalism - ANS An economic system based on private ownership of capital
Market Economy - ANS an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
Command Ecnomy - ANS state-owned; decision based on production mean that are public;
socialism and communism
Productivity - ANS the average level of output per worker per hour
Gross Domestic Product (GDP) - ANS the total dollar value of all goods and services produced
by all people within the boundaries of a country during a one-year period
Inflation - ANS Rise in prices
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
CHAPTERS 1-4 EXAM QUESTIONS
WITH VERIFIED ANSWERS. A+ GRADE
2025/2026.
Free Enterprise - ANS The system of business in which individuals are free to decide what to
produce, how to produce it, and at what price to sell it
Business - ANS The organized effort of individuals to produce and sell, for a profit, the goods
and services that satisfy society's needs
Service Business - ANS A business that performs an activity for a fee
Manufacturing Business - ANS A business that makes finished goods from raw materials by
hand or machinery
Marketing Intermediaries - ANS Middlemen that link producers to other intermediaries or
ultimate consumers through contractual arrangements or through the purchase and resale of
products
E-Business - ANS Using the internet to facilitate every aspect of running a business
Profit - ANS What you have left after expenses
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Stakeholders - ANS all the different people or groups of people who are affected by an
organization's policies, decisions, and activities
Economics - ANS the study of how wealth is created and distributed
Micro - ANS Study of decisions of individuals and businesses
Macro - ANS The study of national and global economics
Economy - ANS The way in which people deal with the creation and distribution of wealth
Factors of Production - ANS Land, labor, and capital; the three groups of resources that are
used to make all goods and services
Capitalism - ANS An economic system based on private ownership of capital
Market Economy - ANS an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
Command Ecnomy - ANS state-owned; decision based on production mean that are public;
socialism and communism
Productivity - ANS the average level of output per worker per hour
Gross Domestic Product (GDP) - ANS the total dollar value of all goods and services produced
by all people within the boundaries of a country during a one-year period
Inflation - ANS Rise in prices
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
