BUS-X100 EXAM 1
QUESTIONS AND
CORRECT ANSWERS
, BUS-X100 EXAM 1 QUESTIONS AND CORRECT ANSWERS
Absolute Advantage - Answer-monopoly exists when a country is the only source of an item,
only producer, or most efficient
Assessing Risk - Answer-political climate and economic stability; longer its expected to last,
greater potential risk; affected by a stability and competitive nature of marketplace and world
economy
Balance of Payments - Answer-difference between flow of $ in and out of country; trade, foreign
investments, foreign aid, loans, military, tourists
Balance of Trade - Answer-difference in value between nations exports and imports
Bonds - Answer-debt instrument that larger companies sell to raise long-term funds
Budget Deficit - Answer-condition where nation spends more than it takes in from taxes
Business - Answer-individuals or organizations who try to earn a profit by providing products
that satisfy
Capital Budgeting - Answer-process of analyzing the needs of the business and selecting the
assets that will maximize value
Capitalism - Answer-free enterprise, system in which individuals own and operate majority of
businesses that provide G/S
Cartel - Answer-group of firms or nations that agree to act as a monopoly and not compete with
each other in order to generate competitive advantage in world market
Commercial Certificates of Deposit (CDs) - Answer-issued by commercial banks and brokerage
companies, available in minimum amounts of $100,000 which may be traded prior to maturity
Commercial Paper - Answer-written promise from one company to another to pay a specific
amount of $, most popular
Communism - Answer-society in which people without regards to class, own all nations
resources, Karl Marx, on paper it's a good idea but in practice- low standard of living, shortages
of goods,high prices, corruption, and little freedom
Comparative Advantage - Answer-basis of international trade, country specializes in products
that it can supply more efficiently or at a lower cost than it can produce other items
Consumer Price Index - Answer-changes in price of GS
Contract Marketing - Answer-hiring of a foreign company to produce a specified volume of
initiating company's product to specification; carries domestic firms name
Contraction - Answer-slowdown of economy, decline in spending, businesses cut back on
production and lay off workers
QUESTIONS AND
CORRECT ANSWERS
, BUS-X100 EXAM 1 QUESTIONS AND CORRECT ANSWERS
Absolute Advantage - Answer-monopoly exists when a country is the only source of an item,
only producer, or most efficient
Assessing Risk - Answer-political climate and economic stability; longer its expected to last,
greater potential risk; affected by a stability and competitive nature of marketplace and world
economy
Balance of Payments - Answer-difference between flow of $ in and out of country; trade, foreign
investments, foreign aid, loans, military, tourists
Balance of Trade - Answer-difference in value between nations exports and imports
Bonds - Answer-debt instrument that larger companies sell to raise long-term funds
Budget Deficit - Answer-condition where nation spends more than it takes in from taxes
Business - Answer-individuals or organizations who try to earn a profit by providing products
that satisfy
Capital Budgeting - Answer-process of analyzing the needs of the business and selecting the
assets that will maximize value
Capitalism - Answer-free enterprise, system in which individuals own and operate majority of
businesses that provide G/S
Cartel - Answer-group of firms or nations that agree to act as a monopoly and not compete with
each other in order to generate competitive advantage in world market
Commercial Certificates of Deposit (CDs) - Answer-issued by commercial banks and brokerage
companies, available in minimum amounts of $100,000 which may be traded prior to maturity
Commercial Paper - Answer-written promise from one company to another to pay a specific
amount of $, most popular
Communism - Answer-society in which people without regards to class, own all nations
resources, Karl Marx, on paper it's a good idea but in practice- low standard of living, shortages
of goods,high prices, corruption, and little freedom
Comparative Advantage - Answer-basis of international trade, country specializes in products
that it can supply more efficiently or at a lower cost than it can produce other items
Consumer Price Index - Answer-changes in price of GS
Contract Marketing - Answer-hiring of a foreign company to produce a specified volume of
initiating company's product to specification; carries domestic firms name
Contraction - Answer-slowdown of economy, decline in spending, businesses cut back on
production and lay off workers
