Business administration exam
questions and answers graded A+
VARK learning styles - ANS✅✅- visual learners (graphics, step by step directions)
- aural learners (listening and discussions)
- read/write learners
- kinaesthetic learners (hands on; demonstrations)
- Multimodal(more than one learning style)
Stakeholders - ANS✅✅All the people who stand to gain or lose by the policies and activities of a
business and whose concerns the business needs to address.- competitors are in the environment
they are not stakeholders.
shareholder - ANS✅✅A person who invests in a corporation by buying stock and is a partial owner
- all shareholder are stakeholders but not all stakeholders are shareholders
5 Factors of production - ANS✅✅land
labor
capital
entrepreneurship knowledge
(2 most important)
monopolistic competition - ANS✅✅a market structure in which many companies sell products that
are similar but not identicalStrategy: minimize production cost to be able to offer lower prices
oligopolistic competition - ANS✅✅Oligopoly : a few large sellers of close substitutes, high barriers
to entry, actions of one seller can affect sales and prices of competitors.
Strategy: distinguish product though differentiating attributes and match prices of competitors
,Monopoly - ANS✅✅A market in which there are many buyers but only one seller. high barriers to
entry, no close substitutes
.Strategy: sell and provide good services w/o gouging, otherwise buyers will complain and scrutiny
regarding ''fairness'' will increase
example: utilities
perfect competition - ANS✅✅a market structure in which a large number of firms all produce the
same product
Strategy: minimize production cost to be able to offer lower prices
Porter's Five Forces - ANS✅✅Porters 5 forces models helps to determine the degree of market
attractiveness (is it a good market?) by identifying the four factors that affect the fifth factor (the
degree of competitive rivalry)
1)Power of Suppliers:The easier it is for suppliers to drive up prices and /or the more difficult it is to
switch to a new supplier, the more intense the competitive rivalry
2)Power of Buyers:If customers have leverage to negotiate down prices, or ability to switch to a
different competitive, competitive rivalry will be higher
3)Threat of Substitutes:The more close substitutes there are for your company's product, the more
intense the competition will be
4) Threat of New Entrants:The easier it is for new companies to enter, the more intense the
competitive rivalry will be
5) Degree of competitive rivalry
environmental scanning - ANS✅✅Environmental scanning involves research into, and monitoring
of, different environments that affect business
,PESTLE ANALYSIS used
The Political, Legal and Regulatory Environment - ANS✅✅Ex. Legal changes: Are there proposed
changes in the laws governing our markets or industry that will affect our business?
Questions: Are we able to write enforceable contracts?Do we get sufficient protection by our
government?
Regulatory changes: Are there new regulations that will affect how our business operates in this
country or other countries
The Economic Environment - ANS✅✅Economic factor examples:
Economic strength of currency: Is our currency strengthening or weakening relative to that of our
key trading partners?
Unemployment: Has the unemployment rate increased or decreased (affecting spending and
confidence)
GDP: Are there indications that the economy is strengthening or weakening?
Industry economic conditions: Is our industry strong and growing or weakening?
Consumer confidence: Are consumers confident and optimistic about the country's economic state
Taxes: Are taxes affecting our ability to reach profit goals or our customers' willingness to buy?
The Social (or Sociocultural) Environment - ANS✅✅Social or Sociocultural environmental factors
have to do with behaviors, beliefs, and values of people. These trends can change ability to pay and
interest in particular products
Sociocultural trends examples:Demographic trends: aging population, lower income of middle class,
increasing education, shrinking family size, changes in family structure, diversity
, Lifestyle trends: Eating out, staying in, wearing casual (as opposed to business) clothing, more online
shopping
Value trends: Greater focus on ethics and social responsibility, shorter attention spans, less
tolerance for waiting, greater focus on getting high value from purchases
The Technological Environment - ANS✅✅Technological changes can impact:
Customers (better informed via social media, better technology improves the shopping experience)
Competitors
Suppliers
Employees (productivity)
Efficiency, effectiveness, and productivity
Service (better/faster/more accurate service due to improvements in technology)
Productivity may increase due to technological advances
Manufacturing technology can reduce defects and labor costs
Technology could also make some products or services obsolete
The Ecological Environment - ANS✅✅Ecological examples:
environmental issues
environmental protections
Free Market Economic System - ANS✅✅economic system where the government has no control
and the individuals and businesses make the decisions
also known as capitalism
ORDER: capitalism-mixed-social-command
Capitalist economic system - ANS✅✅an economy marked by private ownership of businesses and
the resources necessary for producing goods and services
questions and answers graded A+
VARK learning styles - ANS✅✅- visual learners (graphics, step by step directions)
- aural learners (listening and discussions)
- read/write learners
- kinaesthetic learners (hands on; demonstrations)
- Multimodal(more than one learning style)
Stakeholders - ANS✅✅All the people who stand to gain or lose by the policies and activities of a
business and whose concerns the business needs to address.- competitors are in the environment
they are not stakeholders.
shareholder - ANS✅✅A person who invests in a corporation by buying stock and is a partial owner
- all shareholder are stakeholders but not all stakeholders are shareholders
5 Factors of production - ANS✅✅land
labor
capital
entrepreneurship knowledge
(2 most important)
monopolistic competition - ANS✅✅a market structure in which many companies sell products that
are similar but not identicalStrategy: minimize production cost to be able to offer lower prices
oligopolistic competition - ANS✅✅Oligopoly : a few large sellers of close substitutes, high barriers
to entry, actions of one seller can affect sales and prices of competitors.
Strategy: distinguish product though differentiating attributes and match prices of competitors
,Monopoly - ANS✅✅A market in which there are many buyers but only one seller. high barriers to
entry, no close substitutes
.Strategy: sell and provide good services w/o gouging, otherwise buyers will complain and scrutiny
regarding ''fairness'' will increase
example: utilities
perfect competition - ANS✅✅a market structure in which a large number of firms all produce the
same product
Strategy: minimize production cost to be able to offer lower prices
Porter's Five Forces - ANS✅✅Porters 5 forces models helps to determine the degree of market
attractiveness (is it a good market?) by identifying the four factors that affect the fifth factor (the
degree of competitive rivalry)
1)Power of Suppliers:The easier it is for suppliers to drive up prices and /or the more difficult it is to
switch to a new supplier, the more intense the competitive rivalry
2)Power of Buyers:If customers have leverage to negotiate down prices, or ability to switch to a
different competitive, competitive rivalry will be higher
3)Threat of Substitutes:The more close substitutes there are for your company's product, the more
intense the competition will be
4) Threat of New Entrants:The easier it is for new companies to enter, the more intense the
competitive rivalry will be
5) Degree of competitive rivalry
environmental scanning - ANS✅✅Environmental scanning involves research into, and monitoring
of, different environments that affect business
,PESTLE ANALYSIS used
The Political, Legal and Regulatory Environment - ANS✅✅Ex. Legal changes: Are there proposed
changes in the laws governing our markets or industry that will affect our business?
Questions: Are we able to write enforceable contracts?Do we get sufficient protection by our
government?
Regulatory changes: Are there new regulations that will affect how our business operates in this
country or other countries
The Economic Environment - ANS✅✅Economic factor examples:
Economic strength of currency: Is our currency strengthening or weakening relative to that of our
key trading partners?
Unemployment: Has the unemployment rate increased or decreased (affecting spending and
confidence)
GDP: Are there indications that the economy is strengthening or weakening?
Industry economic conditions: Is our industry strong and growing or weakening?
Consumer confidence: Are consumers confident and optimistic about the country's economic state
Taxes: Are taxes affecting our ability to reach profit goals or our customers' willingness to buy?
The Social (or Sociocultural) Environment - ANS✅✅Social or Sociocultural environmental factors
have to do with behaviors, beliefs, and values of people. These trends can change ability to pay and
interest in particular products
Sociocultural trends examples:Demographic trends: aging population, lower income of middle class,
increasing education, shrinking family size, changes in family structure, diversity
, Lifestyle trends: Eating out, staying in, wearing casual (as opposed to business) clothing, more online
shopping
Value trends: Greater focus on ethics and social responsibility, shorter attention spans, less
tolerance for waiting, greater focus on getting high value from purchases
The Technological Environment - ANS✅✅Technological changes can impact:
Customers (better informed via social media, better technology improves the shopping experience)
Competitors
Suppliers
Employees (productivity)
Efficiency, effectiveness, and productivity
Service (better/faster/more accurate service due to improvements in technology)
Productivity may increase due to technological advances
Manufacturing technology can reduce defects and labor costs
Technology could also make some products or services obsolete
The Ecological Environment - ANS✅✅Ecological examples:
environmental issues
environmental protections
Free Market Economic System - ANS✅✅economic system where the government has no control
and the individuals and businesses make the decisions
also known as capitalism
ORDER: capitalism-mixed-social-command
Capitalist economic system - ANS✅✅an economy marked by private ownership of businesses and
the resources necessary for producing goods and services
