BUS 100 Final Exam – Introduction to Business – 2026 – Study and Practice Guide
Business - correct answer ✔✔ An organized effort of individuals to produce, sell, for a profit, the
goods and services that satisfy society's needs
Classifications of business: manufacturing - correct answer ✔✔ Goods producing (ex: keyboards
- tangible)
Classifications of business: service - correct answer ✔✔ Service providers (ex: healthcare -
intangible)
Classifications of business: marketing intermediaries - correct answer ✔✔ Manufacturer —>
Marketing Intermediary —> Consumer
(ex: Amazon, Redbox, vending machine)
Profit equation - correct answer ✔✔ Sales revenue - expenses = profit (loss)
Top line - correct answer ✔✔ We need more revenue and get it any way you can
Bottom line - correct answer ✔✔ We need to improve profit by being more efficient and
effective with cost
Profit - correct answer ✔✔ Reward for producing good and services people want. It
compensates for assuming risks of ownership; not receiving payment or risk if losing
investment.
Stakeholders - correct answer ✔✔ All the different people or groups who are affected by the
policies and decisions made by an organization
,Microeconomics - correct answer ✔✔ Study of the decisions made by individuals and
businesses (ex: prices of homes affecting the number of homes people buy)
Macroeconomics - correct answer ✔✔ The study of the national economy and the global
economy (ex: unemployment, inflation, etc)
Capitalism - correct answer ✔✔ Economics system in which individuals own and operate the
majority of businesses that provide goods and services
Command economy - correct answer ✔✔ Economic system in which the government decides
what goods and services will be produced, how they'll be produced, for whom they'll be
available and who owns and controls the major factors of production
Gross domestic product (GDP) - correct answer ✔✔ Total dollar value of goods and services
PRODUCED by all people within the boundaries of a country during a specific time period
Consumer price index (CPI) - correct answer ✔✔ Monthly index that measures the changes in
the prices of a fixed basket of goods purchased by a typical consumer in an urban area
Inflation - correct answer ✔✔ General rise in the level of prices DUE TO demand rising and
dollar value going down
Unemployment rate - correct answer ✔✔ Percentage of the nation's labor force unemployed at
any time
Monetary policies - correct answer ✔✔ Federal Reserve's decisions that determine the size of
the supply of money in the nation and the level of interest rates
Fiscal policies - correct answer ✔✔ Government can influence the amount of savings and
expenditures by altering the tax structure and changing the levels of government spending
, Perfect (pure) competition - correct answer ✔✔ Many buyers and sellers of the product but no
single buyer or seller is powerful enough to affect the price of the product
Oligopoly - correct answer ✔✔ Market/industry with few sellers
Monopoly - correct answer ✔✔ One seller and barriers to keep other sellers from entering the
industry
Ethics - correct answer ✔✔ The study of right and wrong and of the morality of the choices
individuals make
2 important ethical concerns - correct answer ✔✔ Fairness and honesty
Ethical issues - correct answer ✔✔ Plagiarism, conflict of interest, and communication
Social responsibility - correct answer ✔✔ Recognition that a business activities that have an
impact on society and the consideration of that impact in business decision making
Pyramid of responsibility (top to bottom) - correct answer ✔✔ Philanthropic
Ethical
Legal
Economic
2 views of social responsibility: economic - correct answer ✔✔ Holds that society will benefit
most when business is left alone to produce and market profitable products that society needs
Business - correct answer ✔✔ An organized effort of individuals to produce, sell, for a profit, the
goods and services that satisfy society's needs
Classifications of business: manufacturing - correct answer ✔✔ Goods producing (ex: keyboards
- tangible)
Classifications of business: service - correct answer ✔✔ Service providers (ex: healthcare -
intangible)
Classifications of business: marketing intermediaries - correct answer ✔✔ Manufacturer —>
Marketing Intermediary —> Consumer
(ex: Amazon, Redbox, vending machine)
Profit equation - correct answer ✔✔ Sales revenue - expenses = profit (loss)
Top line - correct answer ✔✔ We need more revenue and get it any way you can
Bottom line - correct answer ✔✔ We need to improve profit by being more efficient and
effective with cost
Profit - correct answer ✔✔ Reward for producing good and services people want. It
compensates for assuming risks of ownership; not receiving payment or risk if losing
investment.
Stakeholders - correct answer ✔✔ All the different people or groups who are affected by the
policies and decisions made by an organization
,Microeconomics - correct answer ✔✔ Study of the decisions made by individuals and
businesses (ex: prices of homes affecting the number of homes people buy)
Macroeconomics - correct answer ✔✔ The study of the national economy and the global
economy (ex: unemployment, inflation, etc)
Capitalism - correct answer ✔✔ Economics system in which individuals own and operate the
majority of businesses that provide goods and services
Command economy - correct answer ✔✔ Economic system in which the government decides
what goods and services will be produced, how they'll be produced, for whom they'll be
available and who owns and controls the major factors of production
Gross domestic product (GDP) - correct answer ✔✔ Total dollar value of goods and services
PRODUCED by all people within the boundaries of a country during a specific time period
Consumer price index (CPI) - correct answer ✔✔ Monthly index that measures the changes in
the prices of a fixed basket of goods purchased by a typical consumer in an urban area
Inflation - correct answer ✔✔ General rise in the level of prices DUE TO demand rising and
dollar value going down
Unemployment rate - correct answer ✔✔ Percentage of the nation's labor force unemployed at
any time
Monetary policies - correct answer ✔✔ Federal Reserve's decisions that determine the size of
the supply of money in the nation and the level of interest rates
Fiscal policies - correct answer ✔✔ Government can influence the amount of savings and
expenditures by altering the tax structure and changing the levels of government spending
, Perfect (pure) competition - correct answer ✔✔ Many buyers and sellers of the product but no
single buyer or seller is powerful enough to affect the price of the product
Oligopoly - correct answer ✔✔ Market/industry with few sellers
Monopoly - correct answer ✔✔ One seller and barriers to keep other sellers from entering the
industry
Ethics - correct answer ✔✔ The study of right and wrong and of the morality of the choices
individuals make
2 important ethical concerns - correct answer ✔✔ Fairness and honesty
Ethical issues - correct answer ✔✔ Plagiarism, conflict of interest, and communication
Social responsibility - correct answer ✔✔ Recognition that a business activities that have an
impact on society and the consideration of that impact in business decision making
Pyramid of responsibility (top to bottom) - correct answer ✔✔ Philanthropic
Ethical
Legal
Economic
2 views of social responsibility: economic - correct answer ✔✔ Holds that society will benefit
most when business is left alone to produce and market profitable products that society needs
