BUS 100 UPDATED EXAM SCRIPT QUESTIONS AND
ANSWERS RATED A+
✔✔Market price: - ✔✔The price at which the quantity demanded equals the quantity
supplied.
✔✔Economic Indicator: - ✔✔Used to predict the future movements of an economy.
✔✔Gross Domestic Product (GDP): - ✔✔An economic indicator showing the total value
of everything a country produces within a year.
✔✔Unemployment Rate: - ✔✔An economic indicator showing the percentage of the
labor force who are unemployed.
✔✔Labor Force: - ✔✔People 16 or older, working or seeking work.
✔✔Underemployment: - ✔✔People working part-time, who want to work full-time.
✔✔Inflation: - ✔✔An economic indicator showing the rise in prices over time.
✔✔Consumer Price Index (CPI): - ✔✔An economic indicator measuring the cost of a
fixed basket of goods and services over time.
✔✔Business Cycle: - ✔✔Describes fluctuations in economic activity, measured by
changes in economic indicators.
✔✔Recession: - ✔✔A period of economic decline.
✔✔Depression: - ✔✔A prolonged and severe recession.
✔✔Fiscal Policy: - ✔✔Government efforts to influence the economy through taxation
and spending.
✔✔Keynesian Economic Theory: - ✔✔Government interventions can correct free-
market recessions.
✔✔Monetary Policy: - ✔✔Federal Reserve efforts to influence the economy by adjusting
interest rates and the supply of money.
✔✔Expences: - ✔✔Money spent to conduct business.
✔✔Risk: - ✔✔The chance taken to make a profit.
✔✔Quality of Life: - ✔✔The sense of well-being experienced by individuals.
,✔✔Factors of Production: - ✔✔Resources used to produce goods and services (Land,
Labor, Capital, & Risk).
✔✔Consumer Confidence: - ✔✔An economic indicator showing how optimistic
consumers are regarding the state of the economy.
✔✔Importing: - ✔✔Buying products produced in foreign nations.
✔✔Exporting: - ✔✔Selling products to foreign nations.
✔✔Free Trade: - ✔✔Unrestricted flow of goods across international boundaries.
✔✔Trade Surplus: - ✔✔When exports exceed imports.
✔✔Trade Deficit: - ✔✔When imports exceed exports.
✔✔Licensing: - ✔✔Purchasing the right to use another company's brand on your
products.
✔✔Contract Manufacturing: - ✔✔A company manufacturing your product for you.
✔✔Joint Venture: - ✔✔When two companies create a new, third company.
✔✔Strategic Alliance: - ✔✔Partnering to share resources.
✔✔Foreign Direct Investment (FDI): - ✔✔Owning long-term assets in another country.
✔✔Foreign Subsidiary: - ✔✔A company owned by a larger corporation in another
country.
✔✔Culture: - ✔✔People's values, customs, and way of life.
✔✔Exchange Rate: - ✔✔The ratio to convert one currency to another.
✔✔Tariffs: - ✔✔Taxes on imports.
✔✔Import Quota: - ✔✔Limits on imports, set by government, on the number products
from certain countries.
✔✔Embargo: - ✔✔A ban on trade with a particular country or of a certain item.
✔✔Offshoring: - ✔✔Shifting business functions to another country.
, ✔✔Outsourcing: - ✔✔Shifting business functions to another company.
✔✔Ethics: - ✔✔Beliefs about right and wrong, good and bad.
✔✔Ethical Dilemma: - ✔✔A decision that involves a conflict of values.
✔✔Corporate Social Responsibility: - ✔✔The obligation to contribute to society.
✔✔Sole Proprietorship: - ✔✔A form of business ownership with one owner actively
managing the company.
✔✔Partnership: - ✔✔A form of business ownership with two or more people acting as
co-owners.
✔✔Corporation: - ✔✔A form of business ownership recognized as a separate legal
entity.
✔✔Income Tax: - ✔✔A tax on wages earned.
✔✔General Partnership: - ✔✔A partnership where everyone manages the business and
share responsibility for debts.
✔✔Limited Partnership: - ✔✔A partnership where one partner only contributes funds
while the other manages the business.
✔✔Limited Liability: - ✔✔Not personally responsible for debts accrued by a business.
✔✔Limited Liability Corporation (LLC): - ✔✔A form of business ownership combining
flexible tax treatment with legal protections from a company's debts.
✔✔Board of Directors: - ✔✔Those elected by stockholders to represent their interests.
✔✔Dividend: - ✔✔Money paid to shareholders.
✔✔Retained Earnings: - ✔✔Reinvesting profit back into the company.
✔✔Merger: - ✔✔When two companies combine to form a single organization.
✔✔Acquisition: - ✔✔When a company buys all or part of another company.
✔✔Franchise: - ✔✔Purchasing the right to use another company's brand and business
methods.
ANSWERS RATED A+
✔✔Market price: - ✔✔The price at which the quantity demanded equals the quantity
supplied.
✔✔Economic Indicator: - ✔✔Used to predict the future movements of an economy.
✔✔Gross Domestic Product (GDP): - ✔✔An economic indicator showing the total value
of everything a country produces within a year.
✔✔Unemployment Rate: - ✔✔An economic indicator showing the percentage of the
labor force who are unemployed.
✔✔Labor Force: - ✔✔People 16 or older, working or seeking work.
✔✔Underemployment: - ✔✔People working part-time, who want to work full-time.
✔✔Inflation: - ✔✔An economic indicator showing the rise in prices over time.
✔✔Consumer Price Index (CPI): - ✔✔An economic indicator measuring the cost of a
fixed basket of goods and services over time.
✔✔Business Cycle: - ✔✔Describes fluctuations in economic activity, measured by
changes in economic indicators.
✔✔Recession: - ✔✔A period of economic decline.
✔✔Depression: - ✔✔A prolonged and severe recession.
✔✔Fiscal Policy: - ✔✔Government efforts to influence the economy through taxation
and spending.
✔✔Keynesian Economic Theory: - ✔✔Government interventions can correct free-
market recessions.
✔✔Monetary Policy: - ✔✔Federal Reserve efforts to influence the economy by adjusting
interest rates and the supply of money.
✔✔Expences: - ✔✔Money spent to conduct business.
✔✔Risk: - ✔✔The chance taken to make a profit.
✔✔Quality of Life: - ✔✔The sense of well-being experienced by individuals.
,✔✔Factors of Production: - ✔✔Resources used to produce goods and services (Land,
Labor, Capital, & Risk).
✔✔Consumer Confidence: - ✔✔An economic indicator showing how optimistic
consumers are regarding the state of the economy.
✔✔Importing: - ✔✔Buying products produced in foreign nations.
✔✔Exporting: - ✔✔Selling products to foreign nations.
✔✔Free Trade: - ✔✔Unrestricted flow of goods across international boundaries.
✔✔Trade Surplus: - ✔✔When exports exceed imports.
✔✔Trade Deficit: - ✔✔When imports exceed exports.
✔✔Licensing: - ✔✔Purchasing the right to use another company's brand on your
products.
✔✔Contract Manufacturing: - ✔✔A company manufacturing your product for you.
✔✔Joint Venture: - ✔✔When two companies create a new, third company.
✔✔Strategic Alliance: - ✔✔Partnering to share resources.
✔✔Foreign Direct Investment (FDI): - ✔✔Owning long-term assets in another country.
✔✔Foreign Subsidiary: - ✔✔A company owned by a larger corporation in another
country.
✔✔Culture: - ✔✔People's values, customs, and way of life.
✔✔Exchange Rate: - ✔✔The ratio to convert one currency to another.
✔✔Tariffs: - ✔✔Taxes on imports.
✔✔Import Quota: - ✔✔Limits on imports, set by government, on the number products
from certain countries.
✔✔Embargo: - ✔✔A ban on trade with a particular country or of a certain item.
✔✔Offshoring: - ✔✔Shifting business functions to another country.
, ✔✔Outsourcing: - ✔✔Shifting business functions to another company.
✔✔Ethics: - ✔✔Beliefs about right and wrong, good and bad.
✔✔Ethical Dilemma: - ✔✔A decision that involves a conflict of values.
✔✔Corporate Social Responsibility: - ✔✔The obligation to contribute to society.
✔✔Sole Proprietorship: - ✔✔A form of business ownership with one owner actively
managing the company.
✔✔Partnership: - ✔✔A form of business ownership with two or more people acting as
co-owners.
✔✔Corporation: - ✔✔A form of business ownership recognized as a separate legal
entity.
✔✔Income Tax: - ✔✔A tax on wages earned.
✔✔General Partnership: - ✔✔A partnership where everyone manages the business and
share responsibility for debts.
✔✔Limited Partnership: - ✔✔A partnership where one partner only contributes funds
while the other manages the business.
✔✔Limited Liability: - ✔✔Not personally responsible for debts accrued by a business.
✔✔Limited Liability Corporation (LLC): - ✔✔A form of business ownership combining
flexible tax treatment with legal protections from a company's debts.
✔✔Board of Directors: - ✔✔Those elected by stockholders to represent their interests.
✔✔Dividend: - ✔✔Money paid to shareholders.
✔✔Retained Earnings: - ✔✔Reinvesting profit back into the company.
✔✔Merger: - ✔✔When two companies combine to form a single organization.
✔✔Acquisition: - ✔✔When a company buys all or part of another company.
✔✔Franchise: - ✔✔Purchasing the right to use another company's brand and business
methods.
