BADM 101 Exam #1 || All Answers are Verified.
Free enterprise correct answers Individuals are free to:
-decide what to produce
-how to produce it
-at what price to sell it
Business correct answers The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs
Resources for a business correct answers Human, Material, Informational & Financial
Service businesses correct answers Produce services, such as haircuts, legal advice, or tax
preparation
Manufacturing businesses correct answers Process various materials into tangible goods
Marketing intermediaries correct answers Buy products from manufacturers and then resell them
e-Business correct answers The organized effort of individuals to produce and sell for a profit,
the goods and services that satisfy society's needs through the facilities available on the Internet
Profit is: correct answers Reward for producing goods and services people want
Compensation for assuming the risk of ownership:
-Risk of not receiving payment
-Risk of losing investment
Stakeholders correct answers are all the different people or groups of people who are affected by
the policies and decisions made by an organization
Stakeholders include:
-Consumers
-Marketing intermediaries
-Stockholders
-Employees
Economics correct answers the study of how wealth (anything of value) is created and distributed
Microeconomics correct answers the study of the decisions made by individuals and businesses
Macroeconomics correct answers the study of the national and global economies
Factors of production correct answers the resources used to produce goods and services
Land and natural resources—elements that can be used in the production process
Labor—time and effort used to produce goods and services
Capital—money, facilities, equipment, and machines used in the operation of organizations
Entrepreneurship—activity that organizes land and natural resources, labor, and capital
, Entrepreneur correct answers a person who risks his or her time, effort, and money to start and
operate a business
Economy correct answers the system through which a society creates and distributes wealth
Capitalism correct answers an economic system in which individuals own and operate the
majority of businesses that provide goods and services
Invisible hand correct answers a term created by Adam Smith to describe how an individual's
own personal gain benefits others and a nation's economy
Laissez-faire correct answers Implies that there should be no government interference in the
economy
Loosely translated, this term means "let them do" (as they see fit).
Is based on the concept of a market economy
market economy correct answers an economic system in which:
Businesses and individuals decide what to produce and buy
The market determines prices and quantities sold
mixed economy correct answers one that exhibits elements of both capitalism and socialism
Consumer products correct answers goods and services purchased by individuals for personal
consumption
Businesses: correct answers Produce goods and services to exchange for revenues (money)
Use revenues to purchase factors of production
Households correct answers Consume goods and services
Government correct answers Provides public services in exchange for taxes
command economy correct answers an economic system in which the government decides:
What goods and services will be produced
How they will be produced
For whom available goods and services will be produced
Who owns and controls the major factors of production
Today, two types of economic systems serve as examples of command economies: correct
answers Socialism & Communism
Socialism Government: correct answers Decides what will be produced, how it will be produced,
and who owns and controls the factors
of production
Owns and controls key industries
Free enterprise correct answers Individuals are free to:
-decide what to produce
-how to produce it
-at what price to sell it
Business correct answers The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs
Resources for a business correct answers Human, Material, Informational & Financial
Service businesses correct answers Produce services, such as haircuts, legal advice, or tax
preparation
Manufacturing businesses correct answers Process various materials into tangible goods
Marketing intermediaries correct answers Buy products from manufacturers and then resell them
e-Business correct answers The organized effort of individuals to produce and sell for a profit,
the goods and services that satisfy society's needs through the facilities available on the Internet
Profit is: correct answers Reward for producing goods and services people want
Compensation for assuming the risk of ownership:
-Risk of not receiving payment
-Risk of losing investment
Stakeholders correct answers are all the different people or groups of people who are affected by
the policies and decisions made by an organization
Stakeholders include:
-Consumers
-Marketing intermediaries
-Stockholders
-Employees
Economics correct answers the study of how wealth (anything of value) is created and distributed
Microeconomics correct answers the study of the decisions made by individuals and businesses
Macroeconomics correct answers the study of the national and global economies
Factors of production correct answers the resources used to produce goods and services
Land and natural resources—elements that can be used in the production process
Labor—time and effort used to produce goods and services
Capital—money, facilities, equipment, and machines used in the operation of organizations
Entrepreneurship—activity that organizes land and natural resources, labor, and capital
, Entrepreneur correct answers a person who risks his or her time, effort, and money to start and
operate a business
Economy correct answers the system through which a society creates and distributes wealth
Capitalism correct answers an economic system in which individuals own and operate the
majority of businesses that provide goods and services
Invisible hand correct answers a term created by Adam Smith to describe how an individual's
own personal gain benefits others and a nation's economy
Laissez-faire correct answers Implies that there should be no government interference in the
economy
Loosely translated, this term means "let them do" (as they see fit).
Is based on the concept of a market economy
market economy correct answers an economic system in which:
Businesses and individuals decide what to produce and buy
The market determines prices and quantities sold
mixed economy correct answers one that exhibits elements of both capitalism and socialism
Consumer products correct answers goods and services purchased by individuals for personal
consumption
Businesses: correct answers Produce goods and services to exchange for revenues (money)
Use revenues to purchase factors of production
Households correct answers Consume goods and services
Government correct answers Provides public services in exchange for taxes
command economy correct answers an economic system in which the government decides:
What goods and services will be produced
How they will be produced
For whom available goods and services will be produced
Who owns and controls the major factors of production
Today, two types of economic systems serve as examples of command economies: correct
answers Socialism & Communism
Socialism Government: correct answers Decides what will be produced, how it will be produced,
and who owns and controls the factors
of production
Owns and controls key industries
