introduction to business final exam
UPDATED Study Guide CORRECT
ANSWERS AND QUESTIONS
- What businesses do with profits - CORRECT ANSWERS
Reinvest in operations (equipment, hiring, research), Pay dividends to
owners/shareholders, Expand products or markets, Strengthen
financial stability (reduce debt, build reserves)
Four of the six factors of production - CORRECT ANSWERS
Natural resources (land): raw materials from nature, Human resources
(labor): mental and physical labor, Capital: tools, buildings,
equipment, Entrepreneurship: risk-takers who create and manage
businesses
Entrepreneur and their reward - CORRECT ANSWERS
Entrepreneur: someone who organizes resources and takes risks to
start a business. Reward: profits, independence, flexibility, personal
fulfillment.
Technological change—positive & negative - CORRECT ANSWERS
Positive: boosts productivity, reduces costs, improves quality,
enables innovation. Negative: expensive to adopt, may disrupt
industries, causes job displacement.
Economics / Micro vs. Macro - CORRECT ANSWERS
Economics: study of allocating scarce resources. Micro: focuses on
individuals, households, firms. Macro: national economy—GDP,
inflation, unemployment.
, Consumer preferences & demand curve - CORRECT ANSWERS
Increased popularity shifts demand right. Example: Popularity
of plant-based burgers increases demand for Impossible Burger.
CPI and the market basket - CORRECT ANSWERS CPI
tracks the cost of a fixed 'basket' of goods over time to measure
inflation.
Parts of the business cycle - CORRECT ANSWERS
Expansion → Peak → Contraction/Recession → Trough → (back to
Expansion)
Unethical vs. amoral behavior - CORRECT ANSWERS
Unethical: knowingly violating ethics. Amoral: disregard for ethics
entirely.
Ethical issues in price fixing - CORRECT ANSWERS Unfair
prices, reduced competition, consumer harm, illegal collusion.
Benefits of corporate social responsibility - CORRECT ANSWERS
Enhanced brand image, Customer loyalty, Attracting/retaining
employees, Lower regulatory/legal risks
Sustainability - CORRECT ANSWERS Meeting current needs
without compromising future generations' ability to meet theirs.
UPDATED Study Guide CORRECT
ANSWERS AND QUESTIONS
- What businesses do with profits - CORRECT ANSWERS
Reinvest in operations (equipment, hiring, research), Pay dividends to
owners/shareholders, Expand products or markets, Strengthen
financial stability (reduce debt, build reserves)
Four of the six factors of production - CORRECT ANSWERS
Natural resources (land): raw materials from nature, Human resources
(labor): mental and physical labor, Capital: tools, buildings,
equipment, Entrepreneurship: risk-takers who create and manage
businesses
Entrepreneur and their reward - CORRECT ANSWERS
Entrepreneur: someone who organizes resources and takes risks to
start a business. Reward: profits, independence, flexibility, personal
fulfillment.
Technological change—positive & negative - CORRECT ANSWERS
Positive: boosts productivity, reduces costs, improves quality,
enables innovation. Negative: expensive to adopt, may disrupt
industries, causes job displacement.
Economics / Micro vs. Macro - CORRECT ANSWERS
Economics: study of allocating scarce resources. Micro: focuses on
individuals, households, firms. Macro: national economy—GDP,
inflation, unemployment.
, Consumer preferences & demand curve - CORRECT ANSWERS
Increased popularity shifts demand right. Example: Popularity
of plant-based burgers increases demand for Impossible Burger.
CPI and the market basket - CORRECT ANSWERS CPI
tracks the cost of a fixed 'basket' of goods over time to measure
inflation.
Parts of the business cycle - CORRECT ANSWERS
Expansion → Peak → Contraction/Recession → Trough → (back to
Expansion)
Unethical vs. amoral behavior - CORRECT ANSWERS
Unethical: knowingly violating ethics. Amoral: disregard for ethics
entirely.
Ethical issues in price fixing - CORRECT ANSWERS Unfair
prices, reduced competition, consumer harm, illegal collusion.
Benefits of corporate social responsibility - CORRECT ANSWERS
Enhanced brand image, Customer loyalty, Attracting/retaining
employees, Lower regulatory/legal risks
Sustainability - CORRECT ANSWERS Meeting current needs
without compromising future generations' ability to meet theirs.
